logo

The expert voice for energy efficiency in the UK.
Follow us:

Brexit,European Energy Efficiency Directive,European Energy Performance of Buildings Directive,European Union

eu-flag

New PM must stick to key EU climate change targets for 2020

Irrespective of Brexit, UK Prime Minister Theresa May and her cabinet must commit to critical EU targets for the year 2020 on cutting carbon emissions and transforming the UK’s energy infrastructure.

This is the call made today (Friday) by 30 environmental and energy-related organisations¹ in a letter² to Greg Clark,  the new Secretary of State for Business, Energy and Industrial Strategy. Signatories include leading business associations covering the renewable energy and energy efficiency sectors, two of the UK’s biggest green NGOs and Energy UK, the body representing the  major energy suppliers.

Their letter argues that EU laws and regulations on energy and buildings have played a leading role in enabling the UK to reduce its emissions of greenhouse gases and to provide global leadership on climate change.³

Three EU targets for the year 2020 have paved the way for future emission reductions. The signatories say the UK Government should now declare that it is sticking to these, as it prepares to commence exit negotiations from the union, to give badly-needed confidence to businesses and investors.

The three targets are:

  • 15% of all energy used for electricity, transport and heating should come from renewable energy sources (under the Renewables Energy Directive)
  • UK final energy consumption should fall to 129.2 million tonnes of oil equivalent or less (the Energy Efficiency Directive)
  • All new buildings must be nearly zero energy buildings by the end of 2020 (by the end of 2018 for public buildings) (The Energy Performance of Buildings Directive)

The letter says that a combination of EU and UK laws, regulations and policies have given businesses, investors and consumers the confidence to begin putting the UK on the path towards a low carbon future.

“Following the referendum, it is now critical that Government restores this already-eroded confidence by giving an assurance that, until the terms of leaving the EU are in place, all relevant EU directives and targets are still in place and the UK Government is legally obliged to continue to meet them.”

Dr Joanne Wade, CEO of the Association for the Conservation of Energy, says: “The Brexit vote has caused industry uncertainty. Government must move quickly to confirm it will continue on a clear path to meeting key energy targets.”

Sue Riddlestone, Chief Executive of sustainability charity Bioregional, says: “Cutting emissions is the pathway to secure, affordable energy for the UK in the long term as well as tackling climate change. We need a firm commitment to these long-agreed targets for 2020.”

Dr Nina Skorupska, Chief Executive of the Renewable Energy Association, said: “For the sake of jobs and investor confidence the Government cannot afford to row back on the EU 2020 renewables targets.”

Contacts:

  • Nicholas Schoon, Policy and Communications Manager, Bioregional, 07732 381728
  • Jenny Holland, Campaigns Director, Association for the Conservation of Energy, 0207 359 8000, 07875 629781, jenny@ukace.org

[1] SIGNATORIES

  • Ashden
  • Association for the Conservation of Energy
  • Bioregional
  • British Blind and Shutter Association
  • British Pump Manufacturers Association
  • British Rigid Urethane Foam Manufacturers Association
  • Cavity Insulation Guarantee Agency
  • Centre for Sustainable Energy
  • Chartered Institution of Building Services Engineers
  • E3G
  • Energy Saving Trust
  • Energy Systems Trade Association
  • Energy UK
  • Existing Homes Alliance Scotland
  • Friends of the Earth
  • Glass and Glazing Federation
  • Greenpeace
  • Insulated Render and Cladding Association
  • Lighting Industry Association
  • Mineral Wool Manufacturers Association
  • National Energy Foundation
  • National Insulation Association
  • Oil Firing Technical Association
  • Property and Energy Professionals Association
  • Regen SW
  • Renewable Energy Association
  • Solar Trade Association
  • Sustainable Energy Association
  • Thermal Insulation Consortium
  • Town & Country Planning Association

[2]  TEXT OF LETTER

Dear Mr Clark,

We would like to warmly congratulate you on your appointment as the Secretary of State for Business, Energy and Industrial Strategy, and wish you well in this important new post.

We welcome the 29 June statement of Amber Rudd, Secretary of State for Energy and Climate Change, that the UK government would not step back from international leadership in acting on climate change.

We agree that both the UK and the EU have been world leaders in addressing the enormous challenge posed by climate change. UK leadership has stemmed from the combination of EU and UK laws,  regulations and policies. Together these have given businesses, investors and consumers the confidence to begin putting the UK economy and infrastructure on the path towards a low carbon future.

Following the referendum, it is now critical that Government restores this already-eroded confidence by giving an assurance that, until the terms of leaving the EU are in place, all relevant EU directives and targets are still in place and the UK Government is legally obliged to continue to meet them.

In particular, we call upon the Government to commit to hitting 2020 targets under the Renewable Energy Directive, the Energy Efficiency Directive and the Energy Performance of Buildings Directive:

  • 15% of all energy used for electricity, transport and heating should come from renewable energy sources
  • UK final energy consumption should fall to 129.2 million tonnes of oil equivalent or less
  • All new buildings must be nearly zero energy buildings by the end of 2020 (by the end of 2018 for public buildings)

These targets make a key contribution towards implementing the UK’s world-leading Climate Change Act 2008 – pioneering legislation which requires ever-lower UK emissions in successive five-year carbon budgets. The policies and regulations required to meet these budgets have all been set in the context of EU law and policies on energy and climate.

Yours sincerely,

[3]  Between 1990 and 2014, the latest year for which final figures are available, UK territorial emissions of greenhouse gases fell by 35%. Between 2000 and 2014 they fell by 28%.

Continue Reading No Comments

panorama

Treasury slammed following 9,000 cold home deaths

The Treasury was strongly criticised this week after a Panorama investigation revealed that over 9,000 people in England and Wales died from living in cold homes last winter.

The Panorama programme, ‘Too Poor to Stay Warm’, broadcast on Monday, cited research by academics at UCL which shows that a fifth of the 43,900 Excess Winter Deaths in Winter 2014/15 were due to people living in cold homes.

Yet Government support for energy efficiency has crashed by 80%. Making homes energy efficient is considered by experts as the only long term solution to fuel poverty, which affects over 4 million households in the UK.  The UK has one of the oldest and least energy efficient building stocks in Europe.

In our own research published earlier this week, also reported in The Guardian, we found that:

  • the number of energy efficiency measures installed in British homes has fallen by 80% since 2012
  • the number of households helped with energy efficiency measures has crashed by 76%
  • investment in home energy efficiency has declined by over 50%

We also found that the very low level of energy efficiency support now on offer is set to continue for the rest of this Parliament. During the last Parliament 5 million households were helped but we estimate that only 1.2 million households will receive energy efficiency measures this Parliament.

The Government axed Warm Front during the last Parliament, and the Green Deal and Green Deal Home Improvement Fund last year.  It also axed the UK’s zero carbon policy for new homes. Only the Energy Company Obligation is left, a levy on energy bills that was slashed in the Spending Review in December 2015.

A major alliance of 200 organisations and businesses under the Energy Bill Revolution banner is calling on the Government to make home energy efficiency an infrastructure priority. It is the most popular energy solution in the UK today with support across Parliament.

But the Treasury has refused to allocate one penny of the £120bn infrastructure budget to make homes energy efficient, despite the fact energy efficiency is classified as infrastructure by both the International Energy Agency and the European Investment Bank. According to the Government’s own economic data, making homes energy efficient also provides comparable economic returns to other infrastructure projects like roads and railways.

Jenny Holland, Head of Campaigns at ACE, said: “Our research findings are truly shocking. The UK has some of the worst housing stock in Europe, with levels of fuel poverty unheard of in much colder countries like Sweden. And UCL’s findings make clear that our cold homes were responsible for 9,000 avoidable deaths last winter. But Treasury help to upgrade our freezing homes has been slashed to the bone. The Government has pledged to make all fuel poor homes energy efficient by 2030, but without new funding, it will take them 94 years to meet their pledge. This is simply not good enough. By making energy efficiency an infrastructure priority, the Treasury could transform the lives of some of our most vulnerable citizens, making their fuel bills affordable and greatly reducing the risk of cold-related illness.

Ed Matthew, Director of the Energy Bill Revolution alliance said: “The decision by Treasury to decimate energy efficiency support will cost lives. Yet making UK homes energy efficient provides strong economic returns, as much as any other infrastructure project. But Osborne has chosen to invest £50 billion in HS2, £30 billion in road building and not one penny of the infrastructure budget in retrofitting the crumbling UK building stock. Perhaps he thinks there are more votes for the Conservatives by shaving a few minutes off a railway ride than saving the lives of the fuel poor.

Continue Reading 1 Comment

ACElogo

Press Release: ‘Scandalous’ – winter deaths surge, but Chancellor slashes help for cold homes by 42%

Press Release, for immediate release

ACE’s reaction to Excess Winter Deaths figures and Comprehensive Spending Review

On the same day that official figures reveal that last winter’s Excess Winter Deaths were at their highest level for 15 years, ACE has described as ‘scandalous’ the Chancellor’s announcement of a 42% cut in the help available to households living in dangerously cold homes. They have also expressed disappointment that, despite allocating £100 billion for infrastructure projects, Mr Osborne has chosen to spend not one penny of this pot to make the UK housing stock more energy efficient.

Jenny Holland, Head of the Parliamentary Team, said:

“The appalling state of our housing stock is one of the key causes of excess winter deaths, which today’s figures show surged last winter to their highest level in 15 years.  Yet despite this, the Chancellor has today ignored industry-wide pleas to release infrastructure funding for an energy efficiency programme.  Instead, he has announced that the Energy Company Obligation – the only remaining help for householders living in cold homes – will be slashed to £640m a year from 2017, a drop of 42% on annual ECO spending to date.

”The Chancellor boasts that households benefitting from the ECO are expected to save £300 on their bills. But these lucky few will amount to just 200,000 per year. The other 5 million poorest households who struggle with their basic living costs won’t even get a look in until April 2022.”

In addition, while welcoming the proposal to build 40,000 ‘affordable’ homes by 2020, ACE points out that, having ditched the zero carbon homes standard earlier in the year, the Chancellor has needlessly saddled these homes with higher fuel bills.  ACE also describes as a missed opportunity the Chancellor’s refusal to announce variable rates of stamp duty based on a home’s energy efficiency.

Jenny Holland continued:

“It’s a bit rich for the Chancellor to trumpet these new homes as ‘affordable’ when he was the one who, without warning, ditched the zero carbon homes standard in July.  This means that these new homes will be needlessly saddled with higher running costs – or householders will be forced to have expensive and messy retrofits at some later stage to bring their homes up to scratch.

“Meanwhile, the Chancellor has again shown a willingness to adjust stamp duty as a policy lever, increasing it by 3% for buy-to-let purchasers.  But he has once again failed to incentivise energy efficiency investment by introducing a revenue-neutral adjustment to stamp duty based on homes’ energy performance.”

For more information, contact: Jenny Holland, jenny@ukace.org, 07875 629781

PDF version of press release

Notes for Editors:

The new Energy Company Obligation, to run for 5 years from April 2017, will cost £640m per year.  That represents a 42% reduction in the ECO’s actual expenditure to date (£1.1bn per annum on average over the 2.5 years to the end of June 2015, according to the latest available official statistics).

Continue Reading No Comments

ACElogo

A jobs tragedy that could have been avoided

Yesterday saw the sad announcement that energy efficiency and renewables employers Mark Group and Climate Energy had gone into administration. Many hundreds of people have lost their jobs. This is a direct consequence of the uncertain and unstable investment environment created by Government. A long-term policy framework is now DECC’s stated aim – and the newly announced Infrastructure Commission has a remit to consider energy infrastructure needs. But for these companies this is too little, far too late. Since May the Government has jettisoned policy after policy – playing havoc with industry’s confidence and longer term expectations.

While we believe it is possible – and necessary – to rebuild investor and supply chain confidence, without swift and clear indications of a stable, long-term policy framework, there is a significant risk that the UK will be written off as a place to invest in energy efficiency and renewables.  This would mean tens of thousands of jobs forgone, energy security undermined, competitiveness reduced, fuel poverty exacerbated and CO2 reductions made more expensive.

Current Government policy is recasting energy efficiency as Cinderella, whereas it is – as the International Energy Agency puts it – the First Fuel.  If we are to avoid further tragedies such as yesterday’s and reap energy efficiency’s rich rewards, it is high time for the whole Government to treat it as such.

Related reading / listening:

Continue Reading No Comments

budget,European Court of Justice,Treasury,VAT

European-Court-of-Justice-3

Chancellor urged to confirm there will be no VAT changes on energy saving materials till Budget 2016 at the earliest

An ACE-convened business coalition has today written to Chancellor George Osborne in the wake of the judgment by the European Court of Justice that the UK’s 5% reduced VAT rate on professionally installed energy saving materials breaches the 2006 VAT Directive.  The letter highlights the unhelpful nature of the judgment for those industries involved in the supply and installation of the measures potentially affected.  It also urges the Chancellor to make clear in next week’s Budget that any changes to the reduced VAT rate will be deferred until Budget 2016 at the earliest.

Read the letter here.

Continue Reading No Comments

parliament_logo

ACE’s Seven Energy Efficiency Asks for the 2015-2020 Parliament

On May 7, General Election day, ACE launched its seven key energy efficiency asks (#7ACEasks) for this Parliament:

1. A new energy policy framework

The cheapest, safest and most secure form of energy is the energy we do not use. That is why energy efficiency must be allowed to compete on equal terms with new supply capacity. Energy efficiency means the construction of fewer new generating plants and reduced network infrastructure investment combined with greater resilience and lower carbon emissions. DECC estimated in 2012 that investment in socially cost-effective energy efficiency to 2020 would save energy equivalent to the output of 22 power stations. In the past, UK energy policy has focused heavily on the supply side as opposed to reducing demand for energy. We urgently need a new policy framework – possibly even a new Energy White Paper – that puts demand reduction on a level playing field with supply-side measures.

2. Buildings energy efficiency as infrastructure

The UK’s current National Infrastructure Plan has a gaping hole at its heart: the most fundamental element of our infrastructure – the fabric of the homes we live in and the places we work – is missing. Energy efficiency in buildings should be made a top national infrastructure priority, because no other investment can achieve as much to cut costs for households and businesses, stimulate economic growth and create jobs in every constituency in the UK.

3. A leadership role for the public sector

Public sector organisations, at the national and at the local level, are significant owners, lessees and occupiers of non-domestic buildings, and can therefore drive the market for energy efficiency in existing non-domestic buildings. Therefore the public sector should demand, and invest in, high levels of energy efficiency in its buildings and should clearly display the energy performance of its buildings to demonstrate to others the progress being made.

4. Zero carbon new build

The pause in the trajectory towards zero carbon new build must not remain in force for any significant period. Not only would this mean lock-in of unnecessary energy use and emissions as Government attempts to accelerate new construction, but also we need to comply with EU Nearly Zero Energy Buildings requirements that will come into force for new public buildings in 2019 and for all other new buildings from 2021. A new trajectory is urgently needed to re-engage the supply chain in innovating to cost-effectively deliver highly efficient new buildings.

5. Minimum energy efficiency standards for existing buildings

The clearest, strongest policy framework to support growth in the market for energy efficiency investments would be the introduction of more comprehensive minimum energy efficiency standards for all existing buildings. However, it is likely that this will remain a politically unacceptable option for some time. Therefore, we need to focus on expanding and strengthening existing standards, whilst at the same time learning from developments in Scotland, where there appears to be greater political will in this area.

6. Incentives for energy efficiency retrofits

Simple financial incentives such as grant programmes stimulate a temporary upturn in investment levels, but do not support the growth of a self-sustaining market for energy efficiency. The transient nature of such incentives also causes problems as the delivery capacity needed fluctuates significantly over relatively short time periods. Therefore we are pushing for longer-term, more systemic incentives that stimulate steady and sustained growth in investment by making energy efficiency retrofits as ‘normal’ to consumers as an office refit or a new kitchen.

7. Improved access to finance for energy efficiency investments

Access to competitive finance for energy efficiency investments is critically important. We therefore need a concerted and sustained initiative, led by Government, to enable lenders and borrowers to understand the attractiveness of energy efficiency as an investment, and to unlock the use of personal and business loans and mortgages.

For more information, contact Jenny Holland, Head of Parliamentary Team at jenny@ukace.org.

Continue Reading No Comments

PRS

A first step for minimum energy standards for rented homes, but not far-reaching enough

Secretary of State for Energy and Climate Change Ed Davey is finally laying regulations before Parliament that are intended to bring the coldest and leakiest private-rented homes up to a minimum Energy Performance Certificate of Band E by April 2018. Having long campaigned for minimum standards for the sector, we welcome this overdue breakthrough. This campaign has had to overcome considerable resistance to minimum standards, and we agree with what Ed Davey says in the Guardian today:

“Not everyone in this government wants more regulation. But in energy efficiency, regulations play a crucial role.”

But today’s development does not go far enough. Given Britain’s status as the ‘Cold Man of Europe’ (see the Guardian’s infographic, based on our earlier briefing), and that energy efficiency support for households, particularly fuel poor households, has collapsed this winter, we cannot stress enough that the regulations have got to go further in at least two important respects (see our response to the domestic PRS consultation for more):

  • Guardian © 2014

    Guardian © 2014

    The minimum standard should not have been based on the principle of ‘no net or upfront costs’ to landlords. It is quite wrong, as a matter of both law and practice, that a regulatory framework should be dependent upon a set of financing mechanisms – i.e. the Green Deal and Energy Company Obligation – that may not even exist in 2018. We therefore believe that all properties within scope of the regulations should be required to meet a minimum standard of EPC Band E, up to a maximum spend of £6,000. More broadly, all domestic private rented properties should be within scope of the minimum standard regulations, not just those with a valid EPC.

  • Government should have today set a trajectory for increasing the minimum standard to EPC D in 2022 and to EPC C in 2026. An EPC rating of E is only the best of the worst, and a trajectory would have encouraged landlords to go further in one go, which in countless properties is easy and sensible to do.

We look forward to working with the next government on making sure these regulations become as meaningful and forward-looking as they can and should be to match the challenge our housing stock and fuel poverty poses.

Continue Reading 2 Comments

Energy Bill Revolution,Energy Company Obligation,Fuel Poverty

Energybillrevolution

Government betrays Britain’s fuel poor

  • Political spin a ‘cover up’ for 80% decrease in help to make  cold homes more energy efficient
  • 4 million poor families left out in the cold with no support in next decade
  • Energy Bill Revolution demands that the next Government makes home energy efficiency the UK’s priority infrastructure spending priority

February 3, 2015 (London): Inefficient and unambitious Government programmes have resulted in a dramatic 80% decrease in help available for those with freezing homes.

Fuel poor households will  be some of the worst hit, with the number of major energy efficiency delivered dropping from 112,000 in the winter of 2011/12 to a mere 22,000 this winter, a new report has revealed.  The big drop occurred after the introduction of two new energy efficiency programmes, the Green Deal and the Energy Company Obligation.

The research by the Association for the Conservation of Energy, commissioned by The Energy Bill Revolution, the world’s largest anti-fuel poverty campaign group found that, at current rates, less that 30% of 6 million poorly insulated low income homes will receive energy efficiency support in the next decade.

Continue Reading 2 Comments

excess winter deaths,Fuel Poverty

ACElogo

ACE joins call on Chancellor for emergency fuel poverty funding

ACE has today joined other charities, fuel poverty groups and industry in calling on the Chancellor to take immediate action by announcing additional ‘emergency’ funding for heating and insulation measures in the Autumn Statement on 3rd December. The funds would help reduce the thousands of vulnerable people who would otherwise die of cold related illnesses this winter.

Continue Reading 2 Comments

DECC,Fuel Poverty

DECC

ACE response to DECC consultation on a new fuel poverty ‘strategy’ for England

ACE has submitted a written response to the Department of Energy and Climate Change’s consultation on a new fuel poverty strategy for England. A strategy is widely held to encompass the following elements, elements which we would have hoped to see after four years of deliberation: identifying the nature and scale of the challenge at hand; setting goals to meet that challenge; laying out policies, programmes and actions to achieve those goals; and earmarking resources to execute the policies, programmes and actions. Instead, the consultation contained a series of important but ultimately small picture questions. In our response, we focused on answering big picture questions not posed in it.

In summary, the draft fuel poverty strategy proposes to set a target to ensure that as many fuel poor homes as is ‘reasonably practicable’ achieve a minimum standard of EPC Band C by 2030. ACE welcomes the Government’s recognition that setting a high standard for energy efficiency is the best long-term solution to tackling fuel poverty. However, we believe that all low income households – not just those that are fuel poor – should be targeted and that the Band C standard should be reached by 2025, not 2030. We also believe that the ‘reasonably practicable’ caveat should be removed or, at the very least, tightly defined so as to ensure that it cannot be used by future Governments as an excuse for failing to implement the Fuel Poverty Strategy. Finally, the interim targets of EPC Band E by 2020 and EPC Band D by 2025 should be removed, as it is far more efficient and effective to improve homes in one go straight to Band C, thus ‘fuel poverty proofing’ them and removing the necessity for expensive repeat visits.

Continue Reading 1 Comment

CONTACT US | FIND US | US | © 2016 Association for the Conservation of Energy. Westgate House, 2a Prebend Street, London N1 8PT. Registered company number 01650772