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Slash electricity prices, urges Climate Change Committee

The UK's climate advisers note that removing policy costs from electricity prices can make running heat pumps cheaper, supporting industrial electrification

The Climate Change Committee (CCC) has called on the government to take bold steps to make electricity cheaper and accelerate the UK’s transition to cleaner energy sources.

Key recommendations include removing policy costs from electricity prices to support industrial electrification and ensure that lower running costs of heat pumps are reflected in household bills compared to fossil fuel boilers.

Recent policy rollbacks, such as exemptions for fossil fuel boiler phaseouts and obligations for energy efficiency in rented homes, should be reversed according to the committee.

They also advocate reinstating the 2030 ban on new fossil fuel car and van sales to curb emissions.

Barriers hindering the installation of heat pumps, electric vehicle charge points and onshore wind projects need to be removed to facilitate the transition to greener technologies, according to the CCC.

Additionally, a comprehensive programme is urged to decarbonise public sector buildings.

The upcoming renewable energy Contracts for Difference (CfD) auctions must be effectively designed and funded to deliver a minimum of 50GW of offshore wind by 2030.

Strengthening the UK Emissions Trading Scheme is also recommended to incentivise industrial decarbonisation and support the shift to electric heat.

Furthermore, increasing tree planting and peatland restoration efforts are essential to meet future carbon budgets and achieve net zero targets.

Business models for large scale deployment of engineered carbon removals should be finalised and made available to the market.

A strategy is needed to support workforce skills development in sectors transitioning to cleaner technologies, while adaptation policy should be integrated across all government departments to enhance resilience to climate impacts.

Despite cutting emissions by more than half since 1990 by phasing out coal and boosting renewable energy, the CCC warns that urgent action across transport, buildings, industry and agriculture is crucial to meet the UK’s 2030 emission reduction targets.

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