Ofgem’s Decarbonisation Action Plan
- Supply and Retail Market
- Distribution Network
- Offshore Transmission Network
- Transmission Network
- Generation and Wholesale Market
- Domestic RHI
- Non-Domestic RHI
In June 2019, Parliament went beyond the UK’s existing commitment to an 80% reduction on 1990 emissions levels by legislating for a net zero greenhouse gas emissions target by 2050.
The UK has made significant progress in decarbonising the economy. Overall emissions have fallen by 40% since 1990; more than any other advanced economy. For example, almost half our electricity came from renewable or low carbon sources last year.
However, significant challenges remain if we are to continue on the path to meet our 2050 goals. The way we heat our homes and our transport needs to transform. Only 5% of the energy used to heat our homes today is from low carbon sources and our use of electric vehicles may need to grow from 230,000 today to 39 million by 2050. To meet the challenge of net zero, we must now go further and faster, especially in decarbonising transport, heating and our industrial use of energy.
To achieve net zero will require a huge increase in renewable and low carbon electricity, especially to meet new sources of demand such as electric vehicles. We will also need an energy system which can continue to reliably supply energy when consumers need it. Given the need for new investment, it is imperative that we build an energy system that is as efficient as possible. New technologies, better use of data and AI will also be needed to boost flexible demand.
The transition will also require consumers to be engaged - and to see that the costs and benefits of the transition are falling fairly. How and when energy is used must change. This opens up opportunities for a consumer-led transition, enabled by new technologies.
This document sets out the actions we will take in the next 18 months, beginning our next steps on an urgent, but decades-long journey towards net zero. We will work closely with government, industry and consumers to do this at the lowest cost. Our approach will continue to evolve and we will develop new actions and programmes as the opportunities arise.