Chapter 2: Greenhouse gas emissions inventory 51 2.3 National system for preparing the UK GHG inventory 53 2.6 GHG emissions inventory by gas 58 2.7 Sectoral emissions – by source 64 2.8 Sectoral emissions – by end-user 64 2.10 Comparison of Sixth and Seventh National Communications 69 2.11 Indirect Greenhouse Gases 73 Chapter 3: Policies and Measures 75 3.4 Cross cutting measures 100 3.5 Business and Industry 105 3.9 Agriculture, land use, forestry, waste and F-gases 138 3.12 Leaving the European Union 160 3.13 Policies to promote sustainable development in developing countries and emerging economies 160 3.14 Monitoring and evaluation 161

Chapter 8: Education, training and public awareness 265 8.3 Education and training 265 Annex 1: UK’s third biennial report to the UNFCCC 277 Annex 3: Global Climate Observing System (GCOS) Annex 4: UK GHG Inventory tables 479 Annex 5: Mapping between IPCC and National Communications sectors and other breakdowns used in this report 493 Annex 6: Reporting under Article 7, Paragaph 2 499

Foreword by Minister of State for Climate change is one of the most urgent and pressing challenges we face today, and the UK is committed to tackling it. The UK was the first country to introduce legally binding emission reduction targets through the Climate Change Act, and we played our part in securing the agreement of 195 countries to sign up to the historic Paris Climate Agreement. It is an unprecedented multilateral partnership demonstrating a real commitment and collective responsibility for our planet. We are already making progress on the Paris Agreement, as evidenced by our strong domestic performance. The UK has been among the most successful countries in the developed world in growing our economy while reducing emissions, and the recently published Clean Growth Strategy sets out ambitious policies and proposals to meet our carbon reduction targets while seizing the opportunities of clean growth. The global shift to clean growth is one of the most foreseeable and significant global economic trends. Our Clean Growth Grand Challenge aims to make the UK a world leader in the development, manufacture and use of clean technologies, systems and services that cost less than the high carbon alternatives. Our most recent analysis shows that the UK’s performance against our carbon reduction targets has improved, and I am proud to set out in this National Communication the strong progress We are also committed to helping developing countries meet their objectives. The UK is among the largest contributors of climate finance, committing to provide at least £5.8 billion from 2016 to 2020, to help developing countries mitigate and adapt to the impacts of climate change, reduce deforestation and support cleaner economic growth. Our climate finance is helping developing countries reduce their emissions and deal with the impacts of climate change by building their capacity to take action themselves and by catalysing large scale public and private finance investments. So far, our climate finance has helped 34 million people cope with the effects of climate change; supported 12 million people to access clean energy; reduced or avoided 9.2 million tons of CO and leveraged £2.2bn of public finance and £500m of private finance. 10 7th National Communication Achieving the clean growth we need will require everyone to play their part – governments, businesses and civil society working together. The prize will be driving and capturing the benefits and opportunities of the world’s low carbon future – this document sets out our progress

The UK was one of the first countries to recognise and act on the economic and security threats of climate change. The Climate Change Act, passed in 2008, committed the UK to reducing greenhouse gas emissions by at least 80 per cent by 2050 when compared to 1990 levels, through a process of setting five year caps on greenhouse gas emissions termed ‘Carbon Budgets’. This approach has now been used as a model for action across the world, and is mirrored by the United Nations’ Paris Agreement. The UK has been among the most successful countries in the developed world in growing its economy while reducing emissions. Since 1990, the UK Government has cut emissions by 1 while our economy has grown by two thirds2. This means that we have reduced emissions faster than any other G7 nation, while leading the G7 group of countries in growth in national income over this period This progress has meant that the UK has outperformed the target emissions reductions of its domestically set first carbon budget (2008 to 2012) by one per cent and projects that it will outperform against our second and third budgets, covering the years 2013 to 2022, by about four per cent and six per cent respectively 4. In doing so, we also expect to over-achieve our international commitments under the Kyoto Protocol. The UK economy is expected to grow by 12 per cent over that time5, representing a significant achievement. The UK has made progress across every sector of our economy. This progress has been aided by the falling costs of many low carbon technologies, resulting in new high value jobs, industries and companies. This progress has altered the way that we see many of the trade-offs between investing in low carbon technologies that help secure our future but that might incur costs today. It is clear that actions to cut emissions can be a cutting consumer bills, driving economic growth, creating high value jobs and helping to improve quality of life. 1 BEIS (2017) BEIS UK emissions statistics 1990-2016 greenhouse-gas-emissions-national-statistics-2016 2 ONS (2016) Quarterly National Accounts Statistical bulletins (Series ABMI. Seasonally adjusted chained volume measures) 3 Figures on per capita basis. OECD (retrieved September 2017) aspx?DataSetCode=PDB_LV; World Resources Institute (2017) CAIT Climate Data Explorer 4 Figures available in Energy and Emission Projection report due to be published in January 2018 5 OBR (March 2017) Economic and Fiscal Outlook march-2017/; OBR (January 2017) FiscalSustainability Report sustainability-report-january-2017/

12 7th National Communication The UK has also been leading the way internationally.
We played an important role in securing the historic Paris Agreement in 2015 and we are fully committed to its implementation. We are also supporting other countries in implementing their commitments through our International Climate from 2011/12 to 2015/16 we provided £3.87bn and we have pledged to spend a further £5.8bn in climate finance through to 2020/21. The devolved administrations of Scotland, Wales and Northern Ireland contribute to the UK’s overall climate objectives as outlined throughout this report. For example, Scotland has its own domestic climate change legislation and statutory emissions reduction targets. Sustained progress has been made towards these targets, with the last two annual targets (for 2014 and 2015) having been met and emissions reductions well on track to exceed the interim 2020 target of a 42% reduction from baseline levels. The package of policies and proposals to meet Scotland’s future targets is set out in statutory Climate Change Plans. In response to the UNFCCC Paris Agreement, the Scottish Government has proposed new domestic legislation to raise the level of its emissions reduction targets 6. Since 2010 Wales has been achieving its non- statutory target for 3% year-on-year emissions reduction in devolved policy areas. To contribute to this target, the Welsh Government has reduced emissions from its administrative estate by 45% since 2010/11. The Environment (Wales) Act 2016 provides Wales with its own climate change legislation and statutory framework. In 2018 the Welsh Government will set interim targets to 2050 and its first two carbon budgets. A plan for meeting the first budget will follow This report covers the UK’s Seventh National Communication and Third Biennial Report under Article 12 of the United Nations Framework Convention on Climate Change (UNFCCC), under Article 7 of the Kyoto Protocol and under decision 2/CP .17 of the Conference of the Parties under the UNFCCC. This report provides a comprehensive overview of climate change related activity in the UK – including the progress made at home and abroad to reduce greenhouse gas emissions, and to adapt to the effects of a changing climate. The UK’s first Biennial Report is attached in Annex 1 and the related Common Tabular Format forms Annex 2. Annex 3 of the National Communication is the UK Report on national activities supplementary information required under Article 7 , paragraph 2, of the Kyoto Protocol within this National Communication is provided in Annex 8. The National Communication contains eight Chapter 1: National Circumstances • The UK population in 2016 was 65.6 million, with nearly 84% of the population resident in England. The UK population is predicted to rise to over 70 million by 2030. • The UK covers over 24 million hectares. In 2016 around 71% of this is used for • In March 2017 the Office for Budget Responsibility forecast GDP growth of 2.0% in 2017 , 1.6% in 2018, and then 1.7% in 2019, 1.9% in 2020 and 2.0% in 2021. • Eight of the ten warmest years recorded for the UK have been since 2002, with all top ten warmest years occurring since 1990. • Climate projections indicate that all areas of the UK will get warmer during the 21st century, more so in summer than in winter. 6 Information on action in Scotland available at

Chapter 2: Greenhouse gas emissions inventory • In 2015, UK greenhouse gas (GHG) emissions on a UNFCCC basis were 499.4 million tonnes of carbon dioxide equivalent (MtCO2e) – 37 .8% lower than 1990 levels.7 • Between 1990 and 2015 carbon dioxide emissions including LULUCF fell by 32.0%. Methane emissions fell by 61.1% and nitrous oxide emissions fell by 54.8%. • Between 1990 and 2015, hydrofluorocarbons emissions increased by 10.9%, perfluorocarbons emissions fell by 80.2%, and sulphur hexafluoride emissions fell by • The reduction in GHG emissions since 1990 has been due to a reduction in many sectors. These include; restructuring in the energy supply industry (concerted move away from coal and oil generation towards use of gas and renewables), energy efficiency, pollution control measures in the industrial processes sector and other policies that reduced emissions of non-carbon dioxide GHGs, most notably the increase in landfill methane capture and oxidation. Greenhouse gas emissions (MtCO2e) Total greenhouse gas emissions Chapter 3: Policies and Measures • In 2016, 47 per cent of UK electricity came from low carbon sources, around double the level in 20108, and the UK now has the largest installed offshore wind capacity in the world. Homes and commercial buildings in the UK have become more efficient in the way they use energy which helps to reduce emissions and also cut energy bills, for example average household energy consumption has fallen by 17 per cent since 7 Greenhouse gas emissions are expressed throughout this document as million tonnes of carbon dioxide equivalent (MtCO2e). Gases other than CO2 are expressed in terms of carbon dioxide equivalent by multiplying their emissions by their global warming potential (GWP).
8 BEIS (2017): Digest of UK Energy Statistics 2017 digest-of-united-kingdom-energy-statistics-dukes 9 BEIS (2017) Energy Consumption in the UK the-uk Change in average consumption per household 1990-2016

14 7th National Communication • Automotive engine technology has helped drive down emissions per kilometre driven by up to 16 per cent and driving a new car bought in 2015 will save car owners up to £200 on their annual fuel bill, compared to a car bought new in 2000.10 England also recycles nearly four times more than it did in 2000.11 • This progress has been aided by the falling costs of many low carbon renewable power sources like solar and wind are comparable in cost to coal and gas in many countries12; energy efficient light bulbs are over 80 per cent cheaper today than in 201013; and the cost of electric vehicle battery packs has tumbled by over • This progress has meant that the UK has outperformed the target emissions reductions of its domestically set first carbon budget (2008 to 2012) by one per cent and projects that it will outperform against our second and third budgets, covering the years 2013 to 2022, by about four per cent and six per cent respectively.15 • In 2015, emissions of the basket16 of six greenhouse gases (GHGs) covered by the Kyoto Protocol are estimated to be 499 million tonnes of carbon dioxide equivalent (MtCO2e), 38% lower than the 1990 level of 802 MtCO2e. Emissions of the basket are projected to fall to 414 MtCO2e (48% below the 1990 level) by 2020 and 382 MtCO2e by 2030 (52% below the 1990 level). • Emissions of carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) are projected to be 44%, 65% and 57% respectively, below 1990 levels by 2020. Emissions of the fluorinated GHGs (Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs) and sulphur hexafluoride (SF6)) are collectively projected to be 33% below their • Since the 6th National Communication, the UK has implemented further policies to help meet its EU effort sharing, renewable energy and energy efficiency targets, and the targets for the Carbon Budgets 17 set under the 2008 Climate Change Act.18 The UK met the first carbon budget with headroom of 36 MtCO2e, and is projected to meet the second and third carbon budgets with headroom of 125 and 143 MtCO2e, respectively. There are projected shortfalls against the fourth and fifth carbon budgets of 94 MtCO2e and 196 MtCO2e, respectively. As policies and proposals in the 10 Annual average household saving from driving a car purchased new in 2015 (the latest year for which data is available) compared to driving a car purchased new in 2000. Fuel savings valued using 2015 prices. DfT (2017) National Travel Survey; DfT (2017) Vehicles Statistics; ICCT (2015) From Laboratory to Road; BEIS (2016) Green Book supplementary appraisal guidance 11 Defra (2016) ENV18 – Local authority collected annual results statistical-data-sets/env18-local-authority-collected-waste-annual-results-tables 12 New Climate Economy (2014) Better Growth, Better Climate 13 International Energy Agency (2016) Energy Efficiency Market Report term-energy-efficiency-2016_WEB.PDF 14 Bloomberg New Energy Finance (2016) 2016 lithium-ion battery price survey 15 Figures available in Energy and Emission Projection report due to be published in January 2018 16 The basket of greenhouse gases covered by the Kyoto Protocol consists of six carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride 17 18

Clean Growth Strategy19 are developed more fully, their impacts will be included as appropriate in future projections. Chapter 5: Vulnerability assessment, Climate Change impact and • Government Action – Since the publication of the 6th National Communication (2013), the UK has successfully passed a number of further significant milestones, including the publication of the country’s second Climate Change Risk Assessment (2017) and two statutory assessments of progress (2015 and 2017) on the first National • UK Climate Projections – The UK’s climate projections were released in summer 2009 (UKCP09) and relate to current and future climate change up to 2100. They were used in both the first and second UK Climate Change Risk Assessments published in January 2012 and 2017 . We have been working towards updating these projections in 2018 (UKCP18). Work builds upon the current set of projections to provide the most up-to date assessment of how the climate of the UK may change over the 21st century. UKCP18 will update the probabilistic projections over land and provide a set of high-resolution spatially-coherent future climate projections for the globe at 60km scale and for the UK at 12km scale. Projections will be further downscaled to a level previously only used for short-term meteorological modelling allowing realistic simulation of high impact events such as localised heavy rainfall in summer. The marine projections will also be updated for sea-level rise and storm surge. • UK Climate Change Risk Assessment – The Climate Change Act 2008 requires a Climate Change Risk Assessment (CCRA) to be completed every five years. The first UK CCRA was published in January 2012 and identified over 700 risks to the UK from a changing climate. The second CCRA was published in January 2017 and outlines the UK and Devolved Governments’ views on the key climate change risks and opportunities that the UK faces. Six priority risk areas have been identified where further action is needed in the next five years. • The National Adaptation Programme –The first National Adaptation Programme (NAP) was published in July 2013 covering England and non-devolved climate adaptation matters, as required by the Climate Change Act 2008. Assessments of progress in implementing the NAP , also required every two years by the Climate Change Act, were completed in June 2015 and 2017 by the independent Adaptation Sub-Committee of the Committee on Climate Change. The 2017 assessment concluded that actions in the NAP have largely been completed, identifying where progress is being made or where further efforts are needed to reduce vulnerability.
Chapter 6: Financial Assistance and Support for technologies • Building on the provision of £3.87 billion in International Climate Finance (ICF) between 2011/12-2015/16, the UK has committed to further scale up climate finance by providing at least £5.8 billion between 2016/17-2020/21 The UK’s ICF helps developing countries mitigate and adapt to the impacts of climate change, reduce deforestation and pursue clean economic growth. The ICF is focussed on transformational change, reflecting the scale of the challenge of climate change. This 19

16 7th National Communication includes unlocking the potential of the private sector, with UK ICF funding mobilising £500m in private finance to date. • Since 2011, the UK has used its ICF to install more than 400 megawatts of clean energy capacity and to reduce or avoid 9.2m tonnes of CO continue to grow as new and ambitious programmes like the £177 .5m Sustainable Infrastructure Programme are delivered. The UK continues to apply and share lessons learned from its ICF extensive monitoring & evaluation framework, improving effectiveness and enhancing transparency. • Recognising that adaptation is a priority for many developing countries, the UK aims to spend half of its climate finance on adaptation, and achieved this aim in 2016. Since 2013, the UK has provided over £1.2 billion to support more than 34 million people adapt to the impacts of climate change. • The UK is committed to an effective international climate finance architecture, and has been one of the largest contributors to major multilateral climate funds like the Green Climate Fund (£720 million) and the Clean Technology Fund (£701 million). We have also supported multi-lateral development bank ambition as they scale up their activities towards their 2020 climate finance pledges. • We have supported international knowledge generating organisations such as the Intergovernmental Panel on Climate Change and Mission Innovation, amongst others. • Through its ICF and other international action, the UK is continuing to scale up support towards the shared developed country goal of jointly mobilising $100 billion per year in climate finance from a range of sources by 2020/21. Beyond this, the UK is focussed on helping developing countries put in place the conditions to align finance flows with low greenhouse gas and climate resilient development, including by creating the right conditions to unlock green investment for Nationally Determined Contributions (NDCs) and by phasing out the most polluting activities. Chapter 7: Research and Systematic Observations The UK is committing to research on both climate science and observations, and mitigation and adaptation actions. Selected highlights • Funding two major research programmes on a global temperature rise of 1.5°C to contribute to the body of evidence to be assessed by the IPCC in its Special Report • Publication of the second UK Climate Change Risk Assessment, setting out the priority risks and opportunities for the UK posed by climate change. • Continued work under the world-leading Met Office Hadley Centre Climate Programme, with the work plan for 2018-2021 now in place. This plan will help the UK meet the needs of the post-Paris science agenda. • Continued UK support for the IPCC, through government funding and through the contributions of the UK’s world-leading research community. • Major collaborative projects with international partners, such as the Climate Science for Service Partnership China and the Ganga Delta – Bay of Bengal Interactions • UK involvement in the Sentinel programme, which has included provision of the satellite platform for the Sentinel-5 Precursor mission. This was successfully launched

in October 2017 , bridging the data gap between Envisat and Sentinel-5 providing measurements of greenhouse gas concentration in the atmosphere. • Significant investment in UK funding for science and £2.5 billion of public funding is expected to be invested in research, development and demonstration of low-carbon energy, transport, agriculture and waste between 2015 and 2021. • Pioneering programme of work on Greenhouse Gas Removal Technologies and their • Work with European partners on the development of MicroCarb, a satellite monitoring 2 sources and sinks across the whole earth. • The continued development of the UK DECC (Deriving Emissions linked to Climate Change) Network of tall towers. This provides top down verification of the UK’s Chapter 8: Education, training and public awareness • Climate Change, and broader sustainability issues, feature in the educational curricula of the UK and its devolved administrations. • Since the Sixth National Communication, the UK has continued to develop the 2050s Global calculator, as well as supporting 10 countries in developing their own calculators. All 10 calculators have now been launched, along with Global calculator. • The launch of the Government’s Clean Growth Strategy included a dedicated Green Britain week to focus on climate and air quality issues across the UK. Chapter 1 – National Circumstances • The UK population in 2016 was 65.6 million, which was 8.4 million more (15%) than in mid-1990. The UK population is predicted to rise to over 74 million by 2039. • The UK covers over 24 million hectares. In 2016 around 71% of this is used for • The area of woodland in the UK at 31 March 2017 is 3.2 million hectares. Of this total, 1.4 million hectares (45%) is in Scotland, 1.3 million hectares (41%) is in England, 0.3 million hectares (10%) is in Wales and 0.1 million hectares (4%) is in • Eight of the ten warmest years recorded for the UK have been since 2002, with all top ten warmest years occurring since 1990. By 2080, UK daily minimum temperatures are set to rise by up to 4ºC or more, depending on the region and the • In March the Office for Budget Responsibility forecast GDP growth of 2.0% in 2017 , 1.6% in 2018, and then 1.7% in 2019, 1.9% in 2020 and 2.0% in 2021. • Total energy production in the UK has fallen between 2000 and 2014; driven by a sharp decrease in primary oil, gas and coal production.
Since 2014 total energy production has increased due to increases in primary oil and gas production from new • In 2016, 42% of total production came from primary oil, 32% from natural gas, 16% from primary electricity (nuclear, wind, natural flow hydro and imports), 2% from coal and 9% from other renewables (bioenergy and waste). • The UK’s long term strategy to reduce transport emissions includes the Renewable Transport Fuels Obligation (RFTO), which requires 9.75% of transport fuel sold in the UK to come from renewable sources by 2020. • In 2015 households in the UK produced 26.7 million tonnes of waste, a reduction of 1% since 2010. In 2015, 44.3% of waste from households was recycled in the UK; this is an increase from the rate of 43.9% achieved in 2014. Local Authorities recycled, composted or reused 9.8 million tonnes of the waste they collected. 20 7th National Communication • Despite the UK’s long history of urbanisation, some areas are sparsely populated, including the Highlands of Scotland, and parts of Wales and northern England. In 2014 there were around 28 million dwellings in the UK, of which 23.4 million were • In June 2016, the total number of cattle and calves in the UK saw a 1% increase, to around 10 million. The total number of pigs in the UK increased by 2.7% between June 2015 and June 2016, to just below 4.9 million. The total number of sheep and lambs in the UK increased by 1.8% between June 2015 and June 2016, to just below 34 million. This chapter presents a brief description of the UK’s national circumstances and how changes in national circumstances affect GHG emissions over time. The UK has international targets for reducing greenhouse gas (GHG) emissions. The first commitment period of the Kyoto Protocol required that UK GHG emissions were reduced by 12.5% below base year levels over the 2008-12 period, which the UK met. Under the second commitment period (2013-2020), the EU and the Member States, Iceland and Norway have a collective target to reduce its emissions by 20 per cent relative to base year levels. The UK has now ratified the Doha Amendment, but it has not yet come into force. This report therefore does not include information on the UK’s progress against its second commitment period. Information on legal entities authorised to participate in mechanisms under Articles 6, 12 and 17 of the Kyoto Protocol can be found on the UK Emissions Registry website in the Kyoto Protocol 20 Further information on institutional measures are outlined in section 2.3 of The National Communication and the Biennial Report detail the action the UK is taking to fulfil its commitments under the Framework Convention on Climate Change and the Kyoto Protocol. In particular, Chapter 3 discusses policies put in place by the Devolved Administrations, the Ministerial Departments (listed below) and other government departments. These include policies from the Department for Business, Energy and Industrial Strategy (BEIS), the Department for Transport (DfT), the Department for Communities and Local Government (DCLG), the Department for International Development (DfID), the Department for the Environment, Food and Rural Affairs (Defra), Her Majesty’s Treasury (HMT). Her Majesty’s Government (HMG) is the central government of the United Kingdom (UK). HMG has responsibility for developing and implementing policy and for drafting laws. The UK consists of England, Scotland, Wales and Northern Ireland, with aspects of government devolved to the democratically accountable governments within each, namely • Northern Ireland Executive23 20 21 23

Chapter 1 – National Circumstances 21 While the UK Government has overall responsibility for ensuring that a programme is put in place to deliver the UK’s Kyoto target and its domestic carbon budgets24, all the administrations will play a part in meeting these targets. The approach taken by each administration will differ, drawing on the range of policies at their disposal. HMG is split into 25 ministerial departments and 21 non-ministerial departments. Each department focuses on a different aspect of government policy, • The Department for Business, Energy and Industrial Strategy which works to make sure the UK has secure, clean, affordable energy supplies and promote international action to mitigate climate change. • The Department for Environment, Food and Rural Affairs (Defra), which is the government department responsible for policy and regulations on environmental, food and rural issues including domestic adaptation. • Her Majesty’s Treasury (HMT), which is the UK government’s economic and finance ministry, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth. Further information about the UK government can be found This section discusses demographic characteristics of the UK, to provide context on the population-related drivers that affect the UK’s GHG emissions. Unless stated otherwise, the following statistics have been produced from data collected by the Office for National Statistics25, who produce the official population estimates for the UK and its The total population of the UK was estimated to be 65.6 million in mid-2016, which was increasing and ageing with the median age in the UK increasing from 35.8 in 1990 to 40.0 in 2016. The population aged greater than 64 years increased from 15.7% in 1990 to 18% in 2016. The male to female ratio of the UK population has remained steady between 1990 and 2016 at 1990 57,237 27,819 29,419 35.8 20.2% 64.0% 15.7% 2000 58,886 28,690 30,196 37.6 20.3% 63.9% 15.8% 2010 62,759 30,805 31,954 39.5 18.8% 64.8% 16.4% 2015 65,110 32,074 33,036 40.0 18.8% 63.3% 17.8% 2016 65,648 32,378 33,270 40.0 18.9% 63.1% 18.0% Mid-year population estimates and Office for National Statistics 24 supporting-pages/carbon-budgets 25

22 7th National Communication population is projected to increase to 74.3 million by 2039 an increase equivalent to an average annual rate of growth of 0.5% between 2016 and 2039.26 If past trends continue, the UK population will continue to grow, reaching 74.3 million by 2039.
Assumed net migration accounts for 51% of the projected increase over the next 25 years, with natural increase (more births than deaths) accounting for the remaining 49% of growth United Kingdom 64.6 66.9 69.0 71.0 72.7 74.3 England 54.3 56.5 58.4 60.2 61.8 63.3 Scotland 5.3 5.4 5.5 5.6 5.7 5.7 Northern Ireland 1.8 1.9 1.9 2.0 2.0 2.0 Office for National Statistics 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Office for National Statistics number of people of that age in the population. The size and composition of the population is determined by the pattern of births, deaths and migration which have taken place in previous years. The main details illustrated by the pyramid for mid-2016 include the • The peaks and wide areas of the pyramid reflect the high numbers of births in the years after the Second World War (around age 70) and during the baby boom of • The sharp narrowing of the pyramid for people aged around 15 years is a consequence of low numbers of births just after the turn of the century. The increasing broadening of the base of the pyramid is due to a higher number of births in 26 bulletins/nationalpopulationprojections/2015-10-29

Chapter 1 – National Circumstances 23 • Females outnumber males at older ages, reflecting the higher life expectancy The UK lies between latitude 49ºN and 61ºN and longitude 8ºE and 2ºW, positioned in the north western part of Europe. Crown dependencies are self-governing and make up part of the UK, these Jersey; Guernsey; and Isle of Man. Overseas territories are under the jurisdiction and sovereignty of the UK but do not form part of it. There are fourteen overseas • British Indian Ocean Territory • Saint Helena, Ascension and Tristan da Cunha • South Georgia and the South Sandwich Islands • Sovereign base areas of Akrotiri and Dhekelia In 2016, around 71% (17 .4 million hectares) of the total UK land area was used for agriculture; agriculture area saw a 2% increase between 2012 and 2016, whereas total croppable area decreased by 3%. The biggest change in agricultural land use was seen in uncropped arable land which saw a 71% increase since 2012. 27 Agriculture in the UK 2016:

24 7th National Communication Temporary grass under 5 years old Total agricultural area = 17,360 thousand hectares Agriculture in the UK 2016, Department for Environment, Food and Rural Affairs The UK’s climate is maritime, moist and temperate, with a moderate annual temperature range. Average annual precipitation in the UK typically ranges from approximately 800 mm to 1,400 mm. The UK climate is heavily influenced by its proximity to the Atlantic Ocean and the Gulf Stream/North Atlantic Drift which brings warm water into high northern latitudes. Prevailing winds are westerly, thus UK regional climates vary with distance from the Atlantic as well as topography. Continental influences are most strongly seen in the southeast of the country. Variations in the strength and position of the jet stream strongly influence UK weather. Sometimes the jet stream is directed close to or over the country, bringing extended periods of stormy, wet weather. At other times, a blocked pattern steers the jet stream away to the north or to the south, bringing generally settled, dry conditions, either warmer or colder than average. Space heating is required in most buildings throughout the winter months and the use of air conditioning in the summer months is increasing. In the UK, GHG emissions are strongly influenced by weather conditions. In winter, cooler-than-average temperatures increase demand for space heating; and in summer, warmer-than-average temperatures increase demand for 28

Chapter 1 – National Circumstances 25 The Central England Temperature (CET) series is the longest-compiled temperature record in warmer than the previous three centuries for all seasons of the year. 29 state-of-uk-climate-2016-v4.pdf

26 7th National Communication Met State of the UK Climate 2016 For the UK as a whole, temperature records begin in 1910, showing an increase in temperature from the 1970s to the 2000s with the most recent decade (2007-2016) on average 0.3°C warmer than the 1981-2010 average and 0.8°C warmer than 1961-1990. Eight of the ten warmest years recorded for the UK have been since 2002, with all top ten warmest years Cold years are still observed despite the warming 2010 was the coldest year recorded since 1990 and the 12th coldest in the UK series since 1910. The effect of this cold year on that is most pronounced for Scotland for which the most recent decade (2007–2016) has been on average 11% wetter than 1961–1990 and 4% wetter than 1981-2010. Seven of the ten wettest years for the UK have occurred since 1998, in a series beginning in 1910. The two recent winters of 2013-2014 and 2015-2016 have been considerably wetter than previous years, each with over 150% of the 1981-2010 average UK rainfall. The long-running England and Wales Precipitation (EWP) series shows a marked increase in winter rainfall, offset by a slightly smaller reduction in summer rainfall. Chapter 1 – National Circumstances 27 1981-2010 Long term average 1961-2010 Long term average Rolling average Met State of the UK Climate 2016 Mean sea level around the UK has risen by approximately 1.4mm/yr since 1910, when corrected Sea surface temperatures around the UK for the most recent decade (2007-2016) have been on average 0.3°C warmer than the 1981-2010 average and 0.6°C warmer than 1961-1990. 1.6.2 UK climate projections30 UK Climate projections presented here are based on climate modelling conducted by the Met Office Hadley Centre in 2009 (UKCP09). Following the Paris Agreement on Climate Change in December 2015, the UK Climate Projections will be updated in 2018 (UKCP18), to make sure decision-makers have the most up-to-date projections on the future of the UK climate.
Until UKCP18 is published, UKCP09 will remain the best available evidence for projected changes in The projections below are summer, winter and annual mean changes by the 2080s (relative to a 1961-1990 baseline) under a medium emissions scenario (IPCC Special Report Emissions Scenario A1B). Central estimates of change (those at 50% probability level) are reported here. The full UKCP09 report additionally presents changes that are very likely to be exceeded and very likely not to be exceeded (10% and 90% probability levels, respectively). 30 UK Climate Projections science report : jsp?mediaid=87893&filetype=pdf 31

28 7th National Communication The projections indicate that all areas of the UK warm during this century, more so in summer than in winter. Changes in summer mean temperatures are greatest in parts of southern England (up to 4.2ºC) and least in the Scottish islands (just over 2.5ºC). This is shown in Mean daily maximum temperatures increase throughout the UK everywhere. Increases in the summer average are up to 5.4ºC in parts of southern England and 2.8ºC in parts of northern Britain. Increases in winter are 1.5ºC to 2.5ºC across the country. Changes in the warmest day of summer range from +2.4ºC to +4.8ºC, depending on location, but with no simple geographical pattern. Mean daily minimum temperature increases on average in winter by about 2.1ºC to 3.5ºC depending on location. In summer, it increases by 2.7ºC to 4.1ºC, with the biggest increases in southern Britain and the smallest in northern Scotland. 2080s under the Medium emissions scenario UK Climate Projections, UKCP09

Chapter 1 – National Circumstances 29 Central estimates of average annual precipitation amounts show very little change across the UK. The biggest changes in precipitation in winter are seen along the western side of the UK, with increases of up to 33%. Decreases of a few percent are seen over parts of the The biggest changes in precipitation in summer are seen in parts of the far south of England, with precipitation down by around 40%. Almost no change is seen over parts of Changes in the wettest day of the winter range from zero in parts of Scotland to 25% increases in parts of England. Changes in the wettest day of the summer range from 12% decreases in parts of southern England to 12% increases in parts of Scotland. Relative humidity decreases by around 9% in summer in parts of southern England, with smaller decreases seen everywhere else. In winter changes are a few percent or less everywhere. Summer-mean cloud amount decreases, by up to –18% in parts of southern England (giving up to an extra +20 Wm-2 of downward shortwave radiation) but increase by up to +5% in parts of northern Scotland. Changes in cloud amount are small in winter. It is very unlikely that an abrupt change to the Atlantic Ocean Circulation (Gulf Stream) will occur 1.7 Economy and Industry profile In 2015, the UK had a Gross Domestic Product (GDP) of $2.9 trillion, making it the world’s 6th 32. It is the tenth largest exporter of goods ($439 billion in 2015) and second largest exporter of services ($334 billion in 2015)33. Real GDP has grown considerably since growth, which increases the amount of available labour; investment in capital, which improves labour productivity; and technological improvement, which increases how much the economy can produce (productive potential). In 2008-09, the global financial crisis affected UK and global economic UK real GDP fell by 4.5% between 2008 and 2009, in line with the average for European Union countries. Economic growth resumed towards the end of 2009 but at a slower rate than the period prior to 2008, with GDP not reaching pre-2008 levels again until 2012. The level of UK GDP was 7 .0% higher in 2015 than it was in 2007 – a relative increase similar to that of Germany – and 12.6% higher in 2015 than it was in 2009 after the economy had contracted rate of growth in UK real GDP had exceeded the rate of population growth. However in 2014, GDP per head remained below its level in 2007 . 32 United Nations Statistics 33 United Nations conference on trade and development Exports and imports of goods and services, annual, 1980-2016: 34 35 unitedkingdomnationalaccountsthebluebook/2016edition/nationalaccountsataglance

30 7th National Communication Office for National Statistics Economic growth in recent years has been supported by strong growth in employment. The UK labour market continues to perform exceptionally well, with record high employment and low unemployment. The employment rate was 75.3% in the three months to June 2017 , the highest since comparable records began in 1971. The unemployment rate was 4.3%; the lowest rate since 1975. However performance on productivity and wages has been weak. Unemployment rate (16+ right hand axis) Employment rate (16-64 left hand axis) Office for National Statistics Productivity declined sharply in 2009 during the economic downturn and has not recovered to its pre-crisis trend rate of growth. Output per hour worked in the UK is currently -0.4% below its pre-crisis peak in 2007 Q4. Demand was subdued in the years immediately following the crisis, as the rate of inflation outstripped nominal wage growth. Real wage growth picked up from late 2014 as pay awards increased and inflation fell, but growth has since returned to being

Chapter 1 – National Circumstances 31 The UK’s economic performance in the latter half of 2016 following the EU referendum was robust; consumers remained resilient, and investment was largely unaffected. The economy grew by 0.6% in the fourth quarter – in line with historical trends – and over 2016 as a whole the UK economy grew by 1.8%, the 2nd fastest growth in the G7 . In the first quarter of 2017 there was a slowdown in economic activity, as the Pound’s depreciation and rising inflation weighed on consumer expenditure. Growth continued to be historically weak in Q2, and the IMF expects the UK economy to grow by 1.7% this year.
Forecasts for the UK economy generally predict moderate growth over the next few years, as business investment and consumer spending is dampened by heightened uncertainty as the UK negotiates its exit from the EU. In March the Office for Budget Responsibility forecast GDP growth of 2.0% in 2017 , 1.6% in 2018, and then 1.7% in 2019, 1.9% in 2020 and 2.0% in 2021 The UK economy is dominated by the service sector (79% of GDP), which has been the driver of growth in recent years. During 2016, the services industries were estimated to have increased by 2.8%, up on growth of 2.6% during 2015. The largest contributing services industry grouping was business services and finance, which grew by 2.8%. Financial and insurance services are a particularly important In 2016, they contributed £124.2 billion in gross value added (GVA) to the UK economy, 7 .2% of the UK’s total GVA 37. The services industry provided the sole positive contribution to growth in Quarter 2 2017 . Consumer spending and investment (gross capital formation) are the two expenditure components driving growth in the Household expenditure contributed 5.6 percentage points of the 12.6% GDP growth between 2009 and 2016, and in 2016 it grew by 2.9% in real terms. The only expenditure component not to contribute to UK economic growth in recent years is net trade. The UK consistently imports more than it exports, having had a trade deficit since 1998, and net trade overall has detracted from GDP growth each year since 2012. Households and non-profit institutions serving households final expenditure 5.6 United Kingdom National Accounts, The Blue Book 2016 Edition Release *Comprises acquisition of valuables and the statistical discrepancy between the expenditure measure and the average measure of GDP. Comprises acquisition of valuables and the statistical discrepancy between the expenditure measure and the average measure of GDP . for 2014, 2015 and 2016.38 In all three years the professional, scientific and technical sector 36 37 38 ukbusinessactivitysizeandlocation/2016

32 7th National Communication accounted for the largest number of businesses. The second largest number of enterprises come from wholesale, retail and repairs of motor vehicles, with 14.5% in 2016. However this has fallen from the 15.7% seen in 2014. The professional, scientific and technical sector had the largest growth between 2015 and 2016, an increase of 23,000 businesses. This was followed by the construction sector which increased Agriculture, forestry and fishing 146 6.2 147 6 148 5.8 Production 140 5.9 142 5.8 146 5.7 Mining, quarrying and utilities 11 0.5 12 0.5 13 0.5 Manufacturing 129 5.5 130 5.3 133 5.2 Construction 274 11.6 284 11.6 302 11.8 Wholesale and retail; repair of Motor trades 71 3 72 2.9 73 2.9 Wholesale 105 4.4 104 4.3 104 4.1 Retail 196 8.3 192 7.9 192 7.5 Transport and storage (inc. postal) 74 3.1 83 3.4 93 3.6 Accommodation and food services 145 6.2 146 6 148 5.8 Information and communication 181 7.6 193 7.9 207 8.1 Finance and insurance 45 1.9 49 2 52 2.1 Professional, scientific and technical 409 17.3 436 17.8 459 18 Public administration and defence 7 0.3 7 0.3 7 0.3 Education 39 1.6 40 1.7 42 1.6 Arts, entertainment, recreation and Inter-Departmental Business Register (IDBR), Office for National Statistics Count given to the nearest thousand. Figures are rounded individually therefore the sum of component items may be slightly different to the totals shown. This section provides a summary of the UK energy system looking at trends in production, consumption, imports and exports, and the price of energy. Energy Supply accounted for around 29% of the UK’s GHG emissions in 2015, representing an emissions reduction of nearly

Chapter 1 – National Circumstances 33 period 1990 to 2000, UK production increased rapidly, mainly due to the growth of oil and gas. Production reached record levels for natural gas in 2000, a year after record levels were reached for overall energy and petroleum. Total energy production in the UK has fallen between 2000 and 2014; this fall was driven by a sharp decrease in primary oil, gas and coal production. Since 2014 total energy production has increased due to increases in primary oil and gas production from new fields commencing production. In 2016, total energy production was 125 million tonnes of oil equivalent (mtoe), a decrease of 43% compared to 1990 production, and 58% lower than when output peaked at In 2016 there has been a sharp reduction in coal output, down by over 50 per cent on the low output levels seen in 2015. The decrease is due to the last large deep mines closing in 2015 and a sharp reduction in demand from electricity generators. This represents a 95% reduction in In 1990, primary oil (crude oil and natural gas liquids) accounted for 46% of total production, natural gas 21%, coal 26%, with primary electricity (consisting of nuclear, wind, natural flow hydro and imports) a further 8%. In 2016 this altered, with 42% of total production coming from primary oil, 32% from natural gas, 16% from primary electricity, 2% from coal and 9% from other renewables (bioenergy and waste). Digest of United Kingdom Energy Statistics, BEIS Import dependency is calculated by dividing net imports by adjusted primary supply, where an addition is made for energy supplied to marine bunkers. UK import dependency is shown 39 Digest of United Kingdom Energy 40 UK Energy in Brief,

34 7th National Communication In the 1970s, the UK was a net importer of energy. Following development of oil and gas production in the North Sea, the UK then became a net exporter of energy in 1981. Output fell back in the late 1980s following the Piper Alpha disaster, with the UK regaining a position as a net exporter in the mid-1990s. North Sea production peaked in 1999, and the UK returned to being an energy importer in 2004.
In 2013 imports of petroleum products exceeded exports following the closure of the Coryton refinery; the UK is now a net importer of all main fuel types although remains a net exporter of some products such as petrol and fuel oil. In 2016, 36% of energy used in the UK was imported, down sharply from the 2014 level due to the increases in indigenous oil and gas output. Latest comparable data from Eurostat, for 2015, show that the UK had the eighth lowest level of import dependency in the EU. All EU countries are now net importers of energy. UK Energy in Brief, BEIS 1.8.3 Primary energy consumption In 2016, the total UK level of primary energy consumption (fuels obtained directly from natural sources) was 140.7 mtoe. In 2015, energy consumption was 138.5 mtoe. The level of primary consumption has changed in the UK since 1990 for both the unadjusted and temperature 41 Energy Consumption in the UK. Chapter 1 – National Circumstances 35 Thousand tonnes of oil equivalent (ktoe) Energy Consumption in the UK, BEIS On a temperature-corrected basis (to remove the impact a hot or cold year has on energy consumption) primary energy consumption in 2016 was 12% lower than in 2012. Energy supply will always equal energy demand, and so far in this section we have discussed energy supply in the UK, which can be calculated energy production + imports – export + stock change. In the final part of this section demand is discussed, which can be calculated final consumption including non-energy use + energy used by the energy industry + which they become available from home production or imports, to their eventual final uses They are shown in their original state and after conversion into different types of energy by the secondary fuel producers. The flows are measured in million tonnes of oil equivalent, with the widths of the bands approximately proportional to the size of the flow they represent. 36 7th National Communication A number of transformations occur to get from primary energy sources to usable fuel with crude oil refined into various petroleum products. The majority of coal is burnt in power stations to generate electricity which is then consumed by final users. In 2016, just over a quarter of energy supplied was used to generate electricity. Between 1990 and 2016, supply of electricity rose by 15% from 308.7 TWh to 337 .7 TWh. Electricity supplied from gas increased from less than 1% to 42%. Electricity supplied from electricity supplied by fuel for 1990 and 2016, to show how the fuel mix in electricity supplied 43 Digest of United Kingdom Energy

Chapter 1 – National Circumstances 37 UK Energy in Brief, BEIS energy consumption fell 10% to 192.8 mtoe, this was driven by a 81% (54.5 mtoe) fall in coal consumption and a 12% (9.1 mtoe) reduction in petroleum consumption44. Over this period natural gas inland energy consumption increased by 25.5 mtoe. Primary energy consumption was 1.4% lower in 2016 than in 2015. Consumption decreased as a result of the slightly warmer temperatures in 2016, where the mean heating degree days were 5.5 compared to 5.3 the 1990 1995 2000 2005 2010 2015 2016 Coal 66.9 48.9 38.5 39.9 32.6 25.1 12.4 Oil 77.2 75.4 76.7 78.2 70.2 67.3 68.0 Gas 51.2 69.2 95.9 94.3 93.5 68.1 76.7 Primary electricity 17.7 23.1 21.4 19.8 15.4 21.9 21.5 Bioenergy & waste 0.7 1.7 2.3 4.2 7.8 13.1 14.2 Total 213.6 218.4 234.8 236.3 219.5 195.5 192.8 energy consumption in 2016 in the UK was 140.7 mtoe. Final energy consumption in 2015, at 138.5 mtoe, was the second lowest level of consumption seen during the period 1990-2016. A 2% increase seen between 2015 and 2016 was driven by a 3% increase in gas consumption and a 9% increase in bioenergy and waste consumption. Between 1990 and 2016, final energy consumption in the UK decreased by 4%, from 147 .3 mtoe to 140.7 mtoe. This fall of 6.6 mtoe, was created from a reduction in the consumption of solid fuels of 11.9 mtoe and a reduction in natural gas of 2.7 mtoe; alongside increases in electricity (2.5 mtoe), bioenergy and waste (4.6 mtoe) and heat sold (1.1 mtoe). 44 UK Energy in Brief, 45 Energy Consumption in the UK. 38 7th National Communication In 1990 final energy consumption from petroleum was 43% of total final energy consumption in the UK, increasing slightly to 45% in 2016. Over the same period, electricity increased from 16% to 19%, with solid fuels falling from 9% to 1%. In 2016, bioenergy and waste made up 4% of final UK energy consumption. The share of gas consumption remained at 31% between 1990 From 2005, a general declining trend in final energy consumption was driven by improvements in energy efficiency. However a number of one-off effects have driven down the series – namely the recession into 2009 reduced consumption, particularly cold weather in 2010 and 2012 resulted in an increase in demand, whilst warmer weather in 2011 caused consumption to fall back. The cold weather of 2012 saw final energy consumption increase and warmer weather in 2014 again saw demand decrease. In 2015 and 2016 demand has increased as the temperatures were cooler in the winter period and an increase in demand for travel resulted in increases of petroleum consumption. Thousand tonnes of oil equivalent (ktoe) Energy Consumption in the UK, BEIS the UK by sector46. In 1990 total final UK consumption was 158,520 thousand tonnes of oil equivalent. The transport sector was responsible for 31% of total final energy consumption, the domestic sector a further 26%, with industry consumption responsible for 24% and other final users 12%. However, by 2016 total UK consumption had declined by 6% to 148,971 thousand tonnes of oil equivalent.
During this period, consumption from transport had risen to 37% of the UK total, domestic consumption had increased to 28% of UK consumption, with industrial consumption decreasing to 16% of total UK consumption and other final users increasing 46 Energy Consumption in the UK. Chapter 1 – National Circumstances 39 Million tonnes of oil equivalent Energy Consumption in the UK, BEIS The relationship between energy consumption and economic activity at the aggregate level can be gauged by comparing a country’s temperature corrected inland primary energy consumption with its gross domestic product (GDP). The energy ratio is calculated by dividing temperature corrected primary energy consumption by GDP at constant (2009) prices. The carbon ratio is calculated similarly by dividing carbon dioxide emissions by GDP . Both ratios have fallen steadily, with the energy ratio declining by around 2½% per year and the The downward trends are due to a number of factors, with improvements in energy efficiency and the decline in the relative importance of energy intensive industries affecting both ratios. The carbon ratio has been improved further by the increased use of more carbon efficient fuels The sharp downward ticks in the carbon ratio in both 2011 and 2014 are due, in the main, to temperatures, with energy consumption decreasing in response to the warmer weather. The reduction in 2016 is mainly down to fuel switching with less coal used for generation. 47 UK Energy in

40 7th National Communication UK Energy in Brief, BEIS The downward trend in the ratio can be explained by a number of • Improvements in energy efficiency (including the impact of the EU Emissions Trading System, Climate Change Agreements and the Carbon Reduction Commitment) • Fuel switching in generation (from coal to gas and renewables) • Structural changes to the economy • The fact that some uses, such as space heating, do not increase. Latest International Energy Authority data shows that the energy ratio is falling in all G8 countries. The UK is estimated to have the lowest energy ratio in the G8. A key driver of energy use in the UK is price. UK energy prices are influenced by a number of factors, both local and global. Prices of primary fuels (gas, coal, oil) will obviously affect the price of secondary fuels (electricity, road fuels), but can also themselves be affected by the price of The price of crude oil is the main driver in the cost of all energy. Petroleum products such as petrol are made from crude oil, and as such, changes in the price of oil will be reflected in the cost of these products. However, gas prices have historically been linked to oil, and as initially oil and then gas have formed a major input to electricity generation, the price of electricity has also was 23.73 $/bbl (US dollars per barrel), in 2016 this was nearly twice that at 43.73 $/bbl. The 2012 price of 111.67 $/bbl was a high over the 1990 to 2016 period, whilst the average 1998 price was a low at 12.72 $/bbl 48 BP Statistical

Chapter 1 – National Circumstances 41 Transport accounted for around 24% of the UK’s GHG emissions in 2015, representing an emissions reduction of 2% since 199049. Petrol and diesel use in road transport is the most significant source of emissions in this sector and in particular the changes seen in passenger cars heavily influence the Transport category. Although there has been an increase in both the number of passenger vehicles50 and the vehicle kilometres travelled51, emissions from passenger cars have generally decreased since the early 2000s due to lower petrol consumption outweighing an increase in diesel consumption52 and more recently, improvements in fuel efficiency of both petrol and diesel cars53. This increase in the vehicle kilometres travelled is driven mainly by an increase in the distance class, Great Britain, annually from 1909 mode, since 1952 consumption by transport mode and fuel United Kingdom, 2000-2015 new car fuel Great Britain 1997-2015 54 Transport Statistics Great Britain 2016,

42 7th National Communication 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Transport Statistics Great Britain 2016, Department for Transport The number of licensed vehicles in Great Britain has increased from about 25 million in 1990 to just over 36 million in 2015. Vehicles in the private and light goods taxation class (which is mainly made up of private cars and light vans) accounted for about 89% of all the licensed vehicles Most of the increase in new registrations has been in the private and light good vehicles tax class. It is likely that the significant decrease in new registrations since 2008 was caused by the recession and the ongoing economic climate. New car and light van registrations were helped by the Vehicle Scrappage Scheme which ran between May 2009 and March 2010. Both Vehicle Excise Duty (VED) and the Company Car Tax System selecting fuel-efficient cars by being linked to the vehicles’ carbon emissions. Reforms to VED mean that for cars with the very lowest carbon emissions the rate is reduced to zero. Motorists can save thousands of pounds on their company car tax bill if they choose Due to the increased manufacture of more fuel efficient cars, new cars sold in the UK in 2015 were approximately 32% more fuel efficient for petrol and approximately 28% more fuel efficient for diesel than they were in 2000 In 2015, transport accounted for the largest share of all final energy consumption in the UK at 37%.57 Road transport accounted for the largest share of transport consumption representing 74% of transport consumption in 2015, equivalent to its 2014 share. Energy from renewable sources made up around 2.0% of transport energy consumption in 2015, up from 0.2% in 2005. Almost all transport renewable energy consumption is in the form road transport energy consumption in 2015, up from 0.2% in 2005.
55 Vehicle Certification Agency (VCA) website 56 Average new car fuel Great Britain, annual 57

Chapter 1 – National Circumstances 43 Proportion of road transport fuels (%) 2009 20112010200620052004 20082007 2012 2013 2014 2015 Department for Transport The UK’s long term strategy to reduce transport emissions includes the Renewable Transport Fuels Obligation (RTFO), which requires 9.75% of transport fuel sold in the UK to come from renewable sources by 2020, rising to 12.4% in 2032. In 2017 the RTFO was amended to add an additional target for development fuels at 0.1% in 2019, rising to 2.8% in 2032. It will also now make sustainable renewable aviation fuels and renewable fuels of non-biological origin eligible 245.0 to 247 .7 billion vehicle miles. In the last ten years, traffic volumes for all vehicle types, except light commercial vehicles, have seen a generally decreasing trend up until 2013. After this traffic volumes have been increasing for all vehicle types. Department for Transport

44 7th National Communication Government forecasts suggest that road traffic will return to the growth trend evident before the recession. Forecasts from the National Transport Model suggests that by 2040 road traffic will be 42% higher than in the level in 201058. Despite this increase in traffic, CO2 emissions are forecast to decline by around 17% from 2010 levels, reflecting fleet fuel efficiency improvements compared to 1990, at around 201 billion tonnes kilometres. Since 1990, 66% of goods moved have been transported by road. The amount travelling this way rose to 152 billion tonne kilometres in 2015 from 136 billion tonne kilometres in 1990, an increase of 12%. Goods moved by rail have increased slowly since the mid-1990s to account for around 9% of all goods moved in 2015. In recent years, rail freight has also accounted for around 5% of goods lifted, compared 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Department for Transport, Office of Rail Regulation, BEIS In 2015 GHG emissions from waste contributed to 4% of total UK emissions; representing an emissions reduction of 73% since 1990. Approximately 67% of emissions from this sector are attributable to landfill methane.59 Consistent with the EU Landfill Directive, the government and the devolved administrations have published waste strategies aiming to reduce the quantity of waste produced and to increasingly recover value from it. The strategies also set targets for reducing the amount of waste sent to landfill and to increase the amount of recycling or composting. These targets will further reduce the level of methane emissions from the waste sector in the UK. 58 59 2015 UK greenhouse gas final figures – data tables uk-greenhouse-gas-emissions-national-statistics-1990-2015

Chapter 1 – National Circumstances 45 In 2015 households in the UK produced 26.7 million tonnes of waste, a reduction of 1% since 2010. The last data for commercial and industrial sources shows a significant decrease from 33.9 million tonnes in 2010 to 27 .7 million tonnes in 201460. In 2015, 44.3% of waste from households was recycled in the UK; this is a decrease from the rate of 43.9% achieved in 2014. Local Authorities recycled, composted or reused 9.8 million tonnes of the waste they collected. 61 In 2011 for the first time since records began, more has been recycled, composted or reused than landfilled. This trend has continued until 2015/16, although an increase in incineration may have partly accounted for the change in landfill. UK Commercial & industrial waste sectors generated 27 .7million tonnes of waste in 2014, of which 19.8 was in England. Slightly over half of this waste was from Commercial waste, in both the UK and England. Waste generation from both commercial and industrial sectors fell between 2010 and 2014 in the UK by just over 18% 1.11 Building Stock and Urban Structure Profile Despite the UK’s long history of urbanisation, some areas are sparsely populated, including the Highlands of Scotland, and parts of Wales and northern England. In 2014 there were around 28 million dwellings in the UK, of which 23.4 million were in England63. Most common are semi- detached houses (30%), followed by terraced houses (25%), detached houses (23%), purpose built flats (17%) and all other types of properties (5%) The number of households in the England is projected to increase by 10% between 2015 and 65. This reflects, amongst other things, the increasing number of people living on their own. In Scotland the number of households is projected to increase by around 13% between 2015 The total area of agricultural land in the UK in 2016 was around 17 .4 million hectares. About 4.5 million hectares of this was arable, of which around two thirds was under cereal production. 11.2 million hectares is currently under grass, (temporary, permanent and sole right rough grazing). The remainder was common rough grazing and land for outdoor pigs.66 Livestock numbers have a negative impact on GHG emissions due several processes including The total number of cattle and calves in the UK saw a 1% increase between June 2015 and June 2016, to around 10 million. There is a general downward trend of cattle numbers in June since 2005, although in recent years this trend has started to reverse slightly. The UK’s dairy herd remained static at 1.9 million and the UK’s beef herd continues to fluctuate at around 60 Digest of waste and resource statistics 62 Digest of Waste and Resource Statistics – 2017 Edition 64 2011 Census 66

46 7th National Communication 1.6 million. Total cattle and calves numbers in the UK during the period 2005-2016 are shown in 2009 2011201020062005 20082007 2012 2013 2014 2015 2016 The total number of pigs in the UK increased in June 2016 by 2.7% since June 2015, to just below 4.9 million. There was a 0.4% increase in the total number of breeding pigs in the UK, to just over 500,000 animals in June 2016.
Total pig numbers in the UK during the period 2016201420122010200820062004200220001998199619941992 Farming Statistics, Department for Environment, Food and Rural Affairs The total number of sheep and lambs in the UK increased by 1.8% between June 2015 and June 2016, to just below 34 million. The UK’s female breeding flock increased by 1.7% to 16.3 million over the same period. Larger increases were seen in other sheep and lambs for the UK rising 1.9%. These include lambs less than 1 year of age, rams and other sheep that are 1 year or older. Total sheep and lamb numbers in the UK during the period 1984-2016 are shown 67 Farming livestock populations at 1 December 2016 – UK and England

Chapter 1 – National Circumstances 47 201620122008200420001996199219881984 Farming Statistics, Department for Environment, Food and Rural Affairs The area of woodland in the UK at 31 March 2017 is 3.2 million hectares. Of this total, 1.4 million hectares (45%) is in Scotland, 1.3 million hectares (41%) is in England, 0.3 million hectares (10%) is in Wales and 0.1 million hectares (4%) is in Northern Ireland68. This has changed relatively Forestry Statistics 2013, Forestry Commission Around 1.6 million hectares of the total UK woodland is made up predominantly of conifer species, the remainder being broadleaved. 68 Forestry Statistics 2017

48 7th National Communication The total area of new planting and restocking in the UK was 23.6 thousand hectares in 2016-17 . Restocking accounted for 72% of this total. Broadleaved species accounted for 46% of the new planting area but just 22% of the restocked area in 2016-17 . A total of 10.7 million green tonnes of softwood was produced in the UK in 2016 and accounted for 95% of removals from UK woodland. UK hardwood production totalled 0.6 million green tonnes in 2016. Softwood availability in Great Britain is projected to increase to an annual average of 17 .2 million green tonnes over the five year period 2017 to 2021 and 18.4 million green tonnes from 2027 to 2031. Apparent consumption of wood in the UK amounted to 56.7 million m equivalent in 2016, made up of 10.8 million m3 UK production, 49.8 million m3 imports and This sector can act as both a source and a sink for GHG emissions. Chapter 2 – Greenhouse gas inventory • In 2015, UK greenhouse gas (GHG) emissions on a UNFCCC basis were 499.4 million tonnes of carbon dioxide equivalent (MtCO2e) – 37 .8% lower than 1990 levels.69 • Between 1990 and 2015 carbon dioxide emissions including LULUCF fell by 32.0%. Methane emissions fell by 61.1% and nitrous oxide emissions fell by 54.8%. • Between 1990 and 2015, hydrofluorocarbons emissions increased by 10.9%, perfluorocarbons emissions fell by 80.2%, and sulphur hexafluoride emissions fell by • The reduction in GHG emissions since 1990 has been mainly driven by restructuring in the energy supply industry (concerted move away from coal and oil generation towards use of gas), energy efficiency; pollution control measures in the industrial processes sector and other policies that reduced emissions of non-carbon dioxide GHGs, most notably the increase in landfill methane capture and oxidation. This chapter presents information on UK GHG emissions and the National System established to produce and quality assure the UK GHG Inventory. A fuller description of this National System can be found in the UK’s National Inventory Report (NIR), submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in 201770. The UK is obliged to produce an annual GHG inventory, containing an estimate of all anthropogenic GHG emissions across the UK, in order to meet its commitments under the UNFCCC and the Kyoto Protocol. 69 Greenhouse gas emissions are expressed throughout this document as million tonnes of carbon dioxide equivalent (MtCO2e). Gases other than CO2 are expressed in terms of carbon dioxide equivalent by multiplying their emissions by their global warming potential (GWP). 70 UK Greenhouse Gas Inventory, 1990–2015, Annual report for submission under the UN Framework Convention on Climate Change, April 2017:

52 7th National Communication The GHG inventory covers the seven direct GHGs under the Kyoto Protocol. These are collectively known as the ‘basket’ of GHGs and The direct GHGs have different impacts on the atmosphere and are therefore assigned a global warming potential (GWP). The GWP is a means of providing a simple measure of the relative effects of the emissions of the various gases when compared with CO2 which has a GWP of 1. Once the emissions of GHGs are converted into their GWP equivalents, the emissions can be in the UK’s third Biennial report (Annex A) contains a list of respective GWPs for each gas. The Kyoto Protocol to the UNFCCC was established in 1997 as an international agreement in response to the threat of climate change. The UK met its emissions reductions target for the first commitment period of the Kyoto Protocol. Under the first commitment period (2008-12), the EU and its Member States, Iceland and Norway collectively made a commitment to reduce greenhouse gas emissions across the EU by 8 per cent on 1990 levels by 2012. Under the second commitment period (2013-2020), the EU and the Member States have a collective target to reduce emissions by 20 per cent relative to base year levels. The UK has now ratified the Doha Amendment, but it has not yet come into force. This report therefore does not include information on the UK’s progress against its second commitment period. The UK’s base year for assessing emissions of CO 2, CH4, and N2O is 1990. The UK has chosen to use 1995 as the base year for emissions of the fluorinated HFCs, PFCs, SF6 and NF3. This is in line with most other EU Member States, and in accordance with Article 3.8 of the Kyoto Protocol. The UK also uses the inventory to track progress against domestic targets.
The UK has a legally binding commitment to ensure that the net carbon account for the year 2050 is at least 80% lower than the 1990 baseline – further information is detailed in Chapter 3 – At the United Nations Conference on Climate Change in Paris in December 2015, 195 countries committed to adopt a global climate change Agreement. The Paris Agreement entered into force on 4 November 2016. It was ratified by the UK on 18 November 2016, during the United Nations Conference on Climate Change in Marrakesh. The EU and its Member States are committed to a target of at least a 40% domestic reduction in greenhouse gas emissions by 2030 compared to 1990 levels. The contribution of each EU Member State to this overall target will be set out in EU legislation (the Effort Sharing Regulation) which is currently being negotiated. This chapter shows trends in UK GHG emissions between 1990 and 2015, disaggregating overall emissions by gas, by source and end-use sector. The by-source basis includes emissions from the energy supply industry as a particular sector, whereas the end-user basis reallocates these emissions to the sectors that make use of the energy supplied. The

Chapter 2 – Greenhouse gas inventory information 53 inventory is also spatially disaggregated to provide geographical breakdown to England and the three devolved administrations (Scotland71, Wales72 and Northern Ireland73), and to 391 local authorities74 that make up the United Kingdom. Land use, land-use change and forestry (LULUCF) emissions and removals are reported in the UK’s GHG inventory in accordance with the rules for reporting this sector under the UNFCCC. The UNFCCC reporting basis includes an estimate of all anthropogenic sources minus sinks Common Reporting Format Tables used for reporting GHG emissions estimates to the UNFCCC are included as Annex B. Data from the GHG inventory are also used to monitor progress against the carbon budgets under the UK Climate Change Act 2008. A narrower definition of LULUCF emissions and removals is used to assess progress against the Kyoto target which includes only mandatory activities under Article 3.3 of the Kyoto Protocol, and forest management (formerly elective) has become mandatory for the second commitment period under the Kyoto Protocol. In the first commitment period of the protocol, the UK decided not to account for cropland or grazing land management or re-vegetation under Article 3.4. For the second commitment period of the Kyoto Protocol the UK elects Cropland Management, Grazing Land Management, and Wetland Drainage and Rewetting, as activities under Article 3.4. The UK does not elect Revegetation, as the eligible land area for Revegetation within the UK is estimated to be very small, and therefore the associated potential sink will be very small also. For calculation of the Kyoto Protocol Base Year deforestation emissions in 1990 are included in the base year total, as required by Article 3.7 of the Kyoto Protocol and subsequent decisions of the COP (Conference of the Parties). 2.3 National system for preparing the UK GHG inventory This section provides a summary of the national system the UK uses for preparing its GHG inventory. Section 1.2 of the National Inventory Report presents the full details of the institutional arrangements the UK has for inventory preparation. The UK’s GHG inventory is compiled under contract to BEIS by a consortium led by the environment consultancy Ricardo Energy and Environment.76 77 Ricardo Energy and Environment also compiles the UK’s Air Quality Pollutant Inventory, used for reporting emissions to other international agreements, including the Gothenburg Protocol and the UNECE Convention on Long Range Trans boundary Air Pollution. Most of the underlying information is held on common databases and this helps ensure consistency between these inventories. Emissions estimates from the energy supply sector, industrial processes sector and waste management sector are produced under the Ricardo Energy and Environment contract. Emissions from the agricultural sector are provided by Rothamsted Research under contract to Defra and emissions and removals in the LULUCF sector are produced on behalf of BEIS by the Centre for Ecology and Hydrology (CEH) and Forest Research. 71 Information on emissions in Scotland is available at 72 Information on emissions in Wales available at 73 74 local authority is a designation of local government used in the United Kingdom. 75 2015 UK National Inventory Report (NIR): 76 Department of Business, Energy and Industrial Strategy, 1 Victoria Street, London, SW1H 0ET, 020 7215 5000, climatechange.statistics@BEIS.gsi.gov.uk 77 Ricardo Energy and Environment, 30 Eastbourne Terrace, London, W2 6LA, +44 (0) 1235 753 000,

54 7th National Communication The GHG inventory is compiled annually according to Intergovernmental Panel on Climate Change (IPCC) Guidelines and Good Practice Guidance (IPCC, 1996, 2000 and 2003) and with regard to the 2006 Guidelines (IPCC, 2006)78. Methodological improvements take account of new data sources, updated guidance from IPCC, relevant work by organisations such as CORINAIR (the European inventory system for certain air pollutants) and specific research programmes sponsored by government Departments including BEIS, Defra and Department for Transport (DfT) together with the Devolved Administrations. All methodological improvements are applied back to 1990 to ensure a consistent time series. The UK operates an established national system for GHG emissions estimation, reporting and archiving. There are a wide range of activities that take place as part of this system. These activities collecting and processing data from a wide range of sources; selecting appropriate emissions factors and estimation methods according to IPCC guidance; compiling the inventory; managing all aspects of inventory Quality Assurance (QA) and Quality Control (QC) including the Quality Control of raw and processed data and data management tools; documentation and archiving; prioritisation of methodology and data improvements; and completing uncertainty assessments. The methodologies and data sources used to create the GHG inventory are summarised in Section 1.4 of the NIR. The NIR, including Common Reporting Format (CRF) tables, is reported to the UNFCCC, and to the EU Monitoring Mechanism (EUMM), by the deadlines set.
Further details are provided in Section 1.4 of the NIR, and in subsequent chapters and appendices of the NIR. The national system ensures that the UK will be able to engage with the expert review process under Article 8 of the Kyoto Protocol. Data are collected on an annual basis from national statistics, industry, trade associations and data associated with industrial pollution reporting and emissions trading. Emissions factors are reviewed on an annual basis, and if necessary updated. A consistent time series of emissions and removal estimates is maintained by recalculations to previous years of the time series where necessary if methods or data have been updated. Each sector specific chapter of the NIR provides details of the process for the recalculation of previously submitted inventory data, and the effects of these recalculations. Chapter 10 of the NIR provides a summary which explains and justifies any re-calculations across the inventory. These approaches are fully compliant with the requirements of the Kyoto Protocol and IPCC good practice. data to the European Union under the terms of the EU Monitoring Mechanism. 78 IPCC

Chapter 2 – Greenhouse gas inventory information 55 UK National Inventory Report The complexity (or tier) of the methods used to estimate emissions (and removals) of GHGs is prioritised. Higher tier methods of calculation and country specific emissions factors are used for key source categories in the inventory. The UK inventory mainly uses higher tier methods, and makes extensive use of country specific emissions factors. The GHG inventory is subject to a range of review procedures. These include an annual internal pre-submission review, where the latest GHG inventory is presented and discussed at the National Inventory Steering Committee (NISC). The inventory is also reviewed each year by the UNFCCC either during centralised, desk or in-country reviews, and in addition, is reviewed by the compilers of the EU GHG inventory. Any recommendations made as part of these reviews are used to help guide the development of the inventory. Chapter 10 of the NIR provides brief details of improvements to the NIR and the inventory in response to FCCC reviews. BEIS has been appointed as the Single National Entity with responsibility for the overall management and strategic development of priority improvements in the UK’s GHG inventory. The latest NIR provides the contact details for the Single National Entity. Ricardo Energy and Environment is the delegated Inventory Agency with responsibility for the planning, preparation and reporting of the UK GHG inventory. Ricardo Energy and Environment is responsible for the quality and delivery of datasets to BEIS and reporting in BEIS’s behalf. BEIS has established

56 7th National Communication the NISC, an inter-departmental committee responsible for prioritising improvements and the approval of the national inventory data prior to submission to the European Union (EU) through the European Commission (EC) and the UNFCCC each year, as well as guiding the BEIS has an inventory improvement programme, which is a process for prioritising improvement needs, clarifying and consulting with stakeholders via the NISC and contracting the improvement work via a framework contract with key inventory experts . The improvement programme aims to ensure completeness of the inventory and reduce its uncertainty. The programme is informed by assessments of uncertainty in the inventory, the identification of key categories, the procedures to ensure quality, and the outcomes of reviews. Section 1.7 of the NIR provides details of the uncertainty analyses; Section 1.5 provides a description of the key categories and the processes to identify them; and, Section 1.6 provides a description of the QA/QC system, and the inventory improvement programme. The NIR provides some of the additional reporting required under Article 7 , paragraph 2 of the Kyoto Protocol. Other sources of information required under Article 7 , paragraph 2 are 79 is operated and maintained by the Environment Agency80 on behalf The National Registry conforms to the technical standards for data exchange between registry systems as outlined in the Independent Assessment Report (IAR) the measures that are taken to safeguard data and a description of the database structure. Procedures and security measures are employed to minimise discrepancies and prevent unauthorised changes or errors. Further information can be found in the Standard Independent Assessment Reports (SIAR). Results of test procedures can also be found in these reports. Information on the registry is publicly available on the environment agency website of the NIR contains further information on the changes in the National Registry. 2.4.1 Geographical coverage used for National and International reporting The UK is obliged to produce an annual GHG inventory, containing an estimate of all anthropogenic GHG emissions across the UK, in order to meet its commitments under the UNFCCC and the Kyoto Protocol. The UK instrument of ratification of the Convention and Kyoto Protocol extends the coverage of these instruments to Overseas Territories (OTs) and Crown Dependencies (CDs). They are territories under the jurisdiction and sovereignty of the United Kingdom, though not part of it, and requested to join the UK’s commitments under the Kyoto Protocol and reduce their greenhouse gas emissions. The UK inventory provides data to 1) assess progress with the UK’s commitments under the Kyoto Protocol, 2) assess the UK’s contribution to the EU’s target under the Kyoto Protocol and 3) assess progress towards domestic targets, at the UK and devolved administrations levels, to 79 80 Environment Agency, PO Box 544, Rotherham, S60 1BY, +44 (0)3708506506, enquiries@ 81 82

Chapter 2 – Greenhouse gas inventory information 57 Geographical coverage for these three purposes differs, because of the For 1) the Kyoto commitment extends coverage to emissions from the Crown Dependencies of Jersey, Guernsey and the Isle of Man, and the Overseas Territories that have joined the UK’s ratification of the Convention and the Doha Amendment to the Kyoto Protocol (the Cayman Islands, the Falkland Islands and Gibraltar). This differs to the geographical coverage which is reported to the UNFCCC, since the UNFCCC coverage also includes data from the overseas territory Bermuda.
Bermuda joined the UK’s ratification of the Convention and the Kyoto Protocol and is included in the first commitment period, but is not included in the UK’s coverage for the second commitment period. For 2) the UK’s commitments under the EU’s Kyoto Protocol target only include the parts of the UK which are also parts of the EU (the UK and Gibraltar, excluding all Crown Dependencies and For 3) the carbon budgets and targets under the UK Climate Change Act 2008 only apply to the UK, excluding the UK’s Crown Dependencies and Overseas Territories. of the United Kingdom, Crown Dependencies and Overseas Territories including net emissions/ 83. Together these total the overall emissions estimates submitted to the United Kingdom 799.0 748.5 709.7 605.9 515.1 495.7 Crown Dependencies 1.7 1.9 2.0 1.8 1.7 1.6 Overseas Territories1 (excluding Gibraltar) 1.6 1.5 1.6 1.9 1.8 1.8 Gibraltar 0.2 0.2 0.2 0.3 0.3 0.3 Total 802.5 752.1 713.6 609.9 518.9 499.4 Change from 1990 0.0% -6.3% -11.1% -24.0% -35.3% -37.8% 1 This includes all OTs, including Bermuda. Gibraltar is reported on a separate basis due to its additional inclusion in the EU Kyoto 2.4.2 Geographical coverage used in this report This report presents emissions estimates based on UNFCCC coverage. Tables 6, 7 and 8 and CD that have signed up to be part of the second Kyoto Protocol commitment period are calculated individually and added to the UK total. covered by the Kyoto Protocol. Annual GHG emissions for 2015 were an estimated 37 .8% 83 UK National 2015 Final UK greenhouse gas emissions final-uk-greenhouse-gas-emissions-national-statistics 84 UK National Statistics publications have a geographical coverage that includes the United Kingdom only. 58 7th National Communication below the fixed base year85 emission. This has been driven by a number of factors such as restructuring in the energy supply industry (concerted move away from coal and oil generation towards use of gas), energy efficiency, pollution control measures in the industrial processes sector and other policies that reduced emissions of non-carbon dioxide GHGs, most notably the increase in landfill methane capture and oxidation. Information on individual gases is contained in sections below and Annex B contains tables summarising the UK’s GHG emissions. More details can be found in the UK’s annual GHG inventory, published in April 2017 . Greenhouse gas emissions (MtCO2e) Total greenhouse gas emissions 2.6 GHG emissions inventory by gas of the UK, its Crown Dependencies and Overseas Territories. Further detailed information and analysis can be found in the UK NIR. Gas 1990 1995 2000 2005 2010 2015 Carbon dioxide 598.5 560.4 558.8 558.4 499.9 406.8 Methane 135.3 128.8 111.1 89.4 68.3 52.6 Nitrous oxide 51.3 41.9 31.4 27.3 24.2 23.2 Hydrofluorocarbons 14.4 19.1 9.9 13.2 16.5 16.0 Perfluorocarbons 1.7 0.6 0.6 0.4 0.3 0.3 Sulphur hexafluoride 1.3 1.3 1.8 1.1 0.7 0.5 Total GHG emissions by sources minus 802.5 752.1 713.6 689.7 609.9 499.4 85 The Base Year for emissions of carbon dioxide, methane and nitrous oxide is 1990. The Base Year for emissions of fluorinated gases (F-gases) is 1995. The Fixed Base Year is taken from the UK’s Initial Report under the Kyoto Protocol. The latest version of the report was submitted in 2017 , based on emissions reported in the 1990-2014 Greenhouse Gas Inventory. For the purposes of calculating achievement of the Kyoto Protocol target emissions occurring in this base year are now fixed, in MtCO

Chapter 2 – Greenhouse gas inventory information 59 The sections that follow summarise the main factors affecting the historical trend by gas. Percentages and data quoted in these sections refer to the full UNFCCC geographical coverage unless otherwise specified. Annex B has more detailed data available for all years from Carbon dioxide had the largest share of UK greenhouse gas emissions in 2015, making up 81.5% of the inventory. Net CO2 emissions (all anthropogenic sources minus removals by sinks) in 1990 were estimated to be 598.5 MtCO2e, or an estimated 75% of the UK’s total emissions of GHGs. By 2015, CO2 emissions estimates had been reduced by 32% to 406.8 MtCO2e. The main source of CO2 is from combustion of fossil fuels. Power station emissions have contributed the most to decreases in CO2 (by an estimated 99.8 MtCO2e, across the period) primarily due to a change in the fuel mix for electricity generation, with a decrease in the use of coal and greater use of nuclear and renewables. Industrial combustion emissions have decreased due to lower fuel use, in part due to improvements in energy efficiency and fuel- In the LULUCF sector, estimates take account of changes in carbon stocks in forests and soils, based on land use and soil survey data, and on annual planting data from the Forestry Commission. CEH also uses the inventories of woodlands in Great Britain (England, Scotland and Wales), which the Forestry Commission has undertaken at 15-20 year intervals since 1924. Data from the most recent woodland inventory is available to BEIS, and is being used to improve inventory estimates for this sector. 60 7th National Communication Methane is the second largest share of the UK’s GHG emissions by gas. Estimated emissions of CH4 in 1990 were 135.3 MtCO2e, contributing an estimated 16.9% of the UK’s total emissions of GHGs. By 2015 CH4 emissions estimates had been reduced by 61% to 52.6 MtCO2e, contributing an estimated 10.5% of UK GHG emissions in that year. The major sources of CH4 include the anaerobic degradation of landfill waste, enteric fermentation and waste management in the agriculture sector, leakage of natural gas from the distribution network, and emissions due to coal mining. The overall trend in CH4 emissions is a relatively steady decline driven by large reduction in landfill emissions. Landfill emissions have 2e since 1990, due to tighter regulations and increased utilisation of landfill methane in gas flares and engines.
Mitigation actions in the energy supply sector (including replacing UK gas distribution infrastructure and the capture and use of CH4 from working and abandoned coal mines) and a reduction in livestock numbers have also reduced CH4 emissions. Nitrous oxide emissions contributed 51.3 MtCO2e or an estimated 6.4% of the UK’s total GHG emissions in 1990. By 2015 N2O emissions estimates had been reduced by approximately 54.8% to 23.2 MtCO2e, contributing an estimated 4.7% of UK GHG emissions in that year. The industrial processes sector was a major source of N2O emissions in the 1990s. Emissions from this sector have declined significantly following the introduction of abatement technology in adipic acid and nitric acid manufacture and due to plant closures. The largest source of N2O in 2015 is agricultural soils, accounting for an estimated 60% of total N2O emissions. Agricultural soil emissions have declined by an estimated 16.2% since 1990 due to improvements in farm

Chapter 2 – Greenhouse gas inventory information 61 2.6.4 Fluorinated gases (hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride Emissions of the fluorinated or industrial gases are small in absolute terms, but their significance Biennial report (Annex A). For the purpose of accounting under the Kyoto Protocol, the UK has chosen to use 1995 as the base year for emissions of HFCs, PFCs and SF the approach adopted by the majority of EU Member States. Emissions of the F-gases totalled 16.7 MtCO2e in 2015. Since 1995 the overall decrease in their emissions has been an estimated 20.1%, due mainly to the fall in emissions from F-gas manufacture, due to the installation of abatement equipment at two of the three manufacturers. Since 1990, emissions of HFCs are estimated to have increased by 10.9%. The main reason for this is a large increase in emissions from refrigeration and air conditioning. Emissions from this sector were the largest contributor to HFC emissions in 2015, at an estimated 84% of total HFC emissions. Emissions from this category arise due to leakage from refrigeration and air conditioning equipment during its manufacture and lifetime. Emissions from aerosols contribute the next largest percentage (estimated to be 11%) to overall HFCs emissions. In this category, it is assumed that all the fluid is emitted in the year of manufacture. This category contains mainly industrial aerosols and also metered dose inhalers. Emissions of HFC have increased by 62%

62 7th National Communication Perfluorocarbons emissions have declined by an estimated 80.2% since 1990. The main source of PFCs emissions is fugitive halocarbon production and from electronics and sporting goods. Sulphur hexafluoride emissions have decreased by an estimated 64% since 1990. The use of SF6 in electrical insulation contributed around 54% towards total SF6 emissions in 2015, and total emissions from electrical insulation has decreased by an estimated 55%. Chapter 2 – Greenhouse gas inventory information 63 Nitrogen Trifluoride was added to the “basket of greenhouse gases” in the 2015 inventory due to its high GWP and use in the electronics industry. NF3 is the smallest of all the greenhouse gases with only 4.4x10-4 MtCO2e in 2015, all coming from the electronics industry. 64 7th National Communication 2.7 Sectoral emissions – by source By-source reporting shows emissions from the energy supply industry separately to the other sectors. Annex B contains more detailed data available for all years from 1990-2015. Sector 1990 1995 2000 2005 2010 2015 Agriculture 59.3 58.7 55.2 51.5 48.9 49.4 Business 114.6 112.5 116.5 110.1 95.1 84.9 Energy Supply 279.1 239.2 222.2 232.3 208.1 145.5 Industrial Processes 60.0 50.9 27.1 20.6 12.7 12.7 Public 13.5 13.3 12.1 11.2 9.7 8.1 Residential 80.4 82.0 89.1 86.1 87.9 66.7 Transport 123.0 123.3 127.8 131.7 121.3 121.0 Waste Management 66.9 69.3 63.0 49.4 31.9 18.4 Total GHG emissions by sources minus 802.5 752.1 713.6 689.7 609.9 499.4 Change from 1990 -6% -11% -14% -24% -38% Energy supply was responsible for an estimated 145.5 MtCO2e or 29.1% of total greenhouse gas emissions in 2015, with CO2 being the most prominent gas for this sector. Overall, between 1990 and 2015, there has been a 48% decrease in greenhouse gas emissions from the energy supply sector. This decrease has resulted mainly from changes in the mix of fuels being used for electricity generation, including the growth of renewables; together with greater efficiency resulting from improvements in technology. Electricity generation in 2015 was 2 per cent lower than in 1990, again it peaked in the early 2000s and has decreased since. The restructuring of the energy supply industry in the mid-1990s led to a significant decrease in emissions to 1999, as there was a strong move away from coal and oil generation towards use of gas. Between 1999 and 2006 emissions increased, due to the volatile and high gas price and the corresponding switching from gas to coal. However between 2006, when CO the energy supply sector peaked, and 2015, emissions have again shown a decline, down an estimated 38.6% on 2006. This decrease has resulted from a combination of changes in mix of fuel being used for generation, together with greater efficiency due to improvements in Further details for each sector can be found in the UK NIR describing factors such as a detailed source description, methodology and sources contributing to the sector. 2.8 Sectoral emissions – by end-user section in this chapter reported on this basis. Emissions by end-user attribute the emissions from energy supply to the end-user of that energy rather than the source. This means that emissions on an end-user basis do include emissions from electricity; however these are attributed to different sectors than in the by-source chapters above. The by-source basis reports emissions from the energy supply industry separately in its own category. Chapter 2 – Greenhouse gas inventory information 65 Emissions from Crown Dependencies and Overseas Territories are not included in the end-user consistent with UNFCCC coverage. Emissions by end user are included in this chapter as additional information only. Policies and measures are based on emissions by source discussed earlier in this chapter.
The “exports” sector represents emissions associated with the production of fuels within the UK (for example, from a refinery or a coal mine) which are subsequently exported or sent to bunkers for use outside the UK. Since these fuels are ultimately used for activities which occur outside the UK, it would not be appropriate to allocate the emissions from their production to any of the National Communication sectors, hence they are reported separately. Sector 1990 1995 2000 2005 2010 2015 Agriculture 62.8 61.5 57.5 53.9 51.2 51.1 Business 248.4 218.5 217.5 212.4 186.7 147.0 Industrial Processes 63.1 53.4 29.2 21.4 13.5 13.3 Public 31.5 28.9 24.4 22.4 19.3 14.6 Residential 171.5 157.3 158.1 162.3 155.7 112.1 Transport 140.0 143.3 146.8 150.3 137.3 134.9 Waste Management 66.6 69.0 62.7 49.2 31.7 18.2 Exports 9.4 13.4 13.1 17.1 16.2 12.1 Crown Dependencies and Overseas Territories 3.5 3.6 3.8 3.9 3.9 3.6 Total GHG emissions by end-user minus 802.5 752.1 713.6 689.7 609.9 499.4 The agriculture sector includes emissions from livestock and agricultural soils, stationary combustion sources and off-road machinery (e.g. tractors). There are also small amounts of emissions of CO2 from the breakdown of pesticides. In 1990, GHG emissions from agriculture were estimated to be 62.8 MtCO2e or 7 .8% of total UK GHG emissions. Emissions from this sector have fallen by an estimated 18.6% between 1990 and 2015. The fall in emissions is the result of decreasing animal numbers and fertiliser use. This is reported on an end-user basis, so includes emissions from electricity used in stationary and mobile combustion. The business sector covers emissions from stationary combustion in all industrial and commercial sectors (including the combustion of fuel to provide the heat required for certain industrial processes or for heating), industrial off-road machinery, refrigeration and air conditioning, and the use of fluorinated gases for other applications. Emissions have fallen since 1990 in the business sector. In 2015, emissions from this sector were estimated to be 41% below 1990 levels and represented an estimated 29% of total emissions. A number of factors contributed to this decrease; primarily due to a reduction in emissions from industrial combustion (including iron and steel). Further information describing the circumstances that

66 7th National Communication affect this sector is presented in the economy and industry profile (1.5) and building stock and urban structure profile in Chapter 1. This is reported on an end-user basis, so includes emissions from electricity used in business such as the iron and steel and other industries. The industrial processes sector contains all emissions from industry except for those associated with fuel combustion. Sources include metal production, mineral products (cement and lime) and chemical production. Industrial processes emissions have decreased by an estimated 79% since 1990. The largest reductions are due to emissions trading schemes and the chemical manufacturing industry, most notably the abatement of N 2O emissions from nitric and adipic acid manufacture in response to Integrated Pollution Prevention Control. Further information describing the circumstances that affect this sector is presented in the Economy and Industry Profile Subsection (1.7) in Chapter 1. This is reported on an end-user basis, so includes a small amount of emissions from electricity used in iron, steel and sinter production. 2.8.4 Land Use Change, Land Use and Forestry For the LULUCF sector, emissions measured by end-user are the same as those measured by source, since no emissions from the energy supply sector are reallocated to LULUCF. The UK has moved from being a net source of CO 2 from LULUCF activities in 1990 to a net sink for all years since 2000. Between 1990 and 2015, total emissions of direct GHGs from the LULUCF sector decreased by an estimated 13.1MtCO2e. The size of the net sink has decreased by 27% since 2010. The land use categories which have the greatest effect on the net LULUCF emissions / removals are forest land (a net sink), cropland (a net source) and grassland (a net sink). Emissions from cropland have decreased by 24.2% since 1990 (7 .5% since 2010). Net removals from land use change to grassland have increased by 18% since 1990. Emissions from the public sector occur from the combustion of fuel in public sector buildings. This includes public administration and defence; compulsory social security; education; and health and social work. Public sector emissions fell from an estimated 31.5 MtCO 14.6 MtCO2e in 2015; this has been largely driven by a reduction in the use of oil in this sector. In 2015 this sector represents 2.9% of total emissions. Further information describing the circumstances that affect this sector is presented in the government profile Subsection (1.3) in Chapter 1. This is reported on an end-user basis, so includes emissions from electricity used in Emissions in the residential sector arise from fuel combustion for heating, cooking, garden machinery, fluorinated gases released from aerosols and metered dose inhalers (such as those used for asthma sufferers), and carbon emissions released from the breakdown of consumer products (such as detergents). In 2015, residential sector emissions (including those derived from electricity use in the sector) 2e, compared to 1990 emissions of 171.5 MtCO2e, a reduction of approximately 35%. This net change was the result of interactions between several much larger individual contributions over the decade. Three factors have had a major a growth in demand for underlying energy services (such as warmer homes, hot water and home entertainment); background improvement in energy efficiency; and reduction in the carbon intensity of grid electricity. Further information describing the circumstances that affect this

Chapter 2 – Greenhouse gas inventory information 67 sector is presented in Population Profile (1.2), Climate Profile (1.4), Energy Profile and Building Stock and Urban Structure Profile (1.11) Subsections of Chapter 1. This is reported on an end- user basis, so includes emissions from electricity used in homes. This sector includes emissions from domestic aviation, road transport, diesel railways, domestic shipping (coastal, inland waterways), fishing and aircraft support vehicles.
Transport accounted for around 27% of UK GHG emissions in 2015, representing a reduction of 3.6% since 1990. Road transport is the most significant source of emissions in this sector and in particular the changes seen in passenger cars heavily influence the transport category. The numbers of passenger vehicles and the vehicle kilometres travelled have both seen an increase across the time series. Despite these increases, the decrease in emissions from passenger cars has been due to lower petrol consumption outweighing an increase in diesel consumption and an increase in vehicle efficiency. Due to the increased manufacture of more fuel efficient cars, new cars sold in the UK are approximately 32% more fuel efficient for petrol and approximately 28% more fuel efficient for diesel than they were a decade ago 86. Further information describing the circumstances that affect this sector is presented in the Transport Profile Subsection (1.9) in Chapter 1. This is reported on an end-user basis, so includes emissions from electricity used in things such as electric vehicles. The waste management sector includes emissions from waste disposed to landfill sites, waste incineration, and the treatment of waste water. Emissions from disposal of waste have decreased by an estimated 73% since 1990, primarily due to the decline in CH decrease has been realised mainly due to tighter regulation of landfills, through fitting of CH4 recovery systems on landfills, and increasing diversion of biodegradable waste from landfill, plus more diversion away from landfills in response to the UK landfill tax and policies to meet the requirements of the EU Landfill Directive. Further information describing the circumstances that affect this sector is presented in the Waste Profile Subsection (1.10) in Chapter 1. The UK GHG inventory uses error propagation and Monte Carlo simulation method to estimate uncertainties for GWP weighted emissions of all GHGs. The uncertainty estimates from the 2, which dominate GWP weighted emissions, have a low uncertainty of around 2%. There are much larger uncertainties associated with emissions of N2O and CH4 and the source which makes the major contribution to the overall uncertainty of the UK GHG inventory is agricultural soils. The UK Government has work programmes in place aimed to reduce these uncertainties, which include field based measurement programmes in the agricultural sector, literature review and assessment, and methodological development. UK GHG emissions, which is 3% in 2015. The likely percentage change in GHG emissions between 2015 and 1990 lies between -41% and -35%; with a central estimate of -38%. The uncertainty in the trend of emissions is smaller than the overall uncertainty on the emissions total in a given year. The uncertainty in the trend 86 Average new car fuel Great Britain,

68 7th National Communication between years (as a percentage change) is likely to be less than the uncertainty in a given year because the methodology used is consistent throughout the time-series. Therefore, there is more certainty in the trend in emissions than the absolute emissions themselves. This gives more confidence in assessing compliance with percentage reduction targets, where it is the 2 597,827 406,134 2% -32% 397,771 414,041 -34% -30% 802,180 499,044 3% -38% 486,098 513,735 -41% -35% 2015 Final UK greenhouse gas emissions. 1 Expressed as a percentage relative to the mean value 2015 emissions. Calculated as 2s/E where s is the standard deviation and E is the 2 GHG emissions are net total emissions minus removals. 3 The GWP of a GHG measures its effectiveness in global warming over 100 years relative to carbon dioxide. 4 Equivalent to a 95% probability that the percentage change between 1990 and 2015 is between the two values shown. Values include uncertainties for Overseas Territories data. 5 1990 and 2015 emissions are expressed as the central estimate from the Monte Carlo analysis of uncertainties. These differ from the

Chapter 2 – Greenhouse gas inventory information 69 2.10 Comparison of Sixth and Seventh National Communications Since the publication of the Fifth National Communication in 2009, various updates and revisions to methodologies have been implemented in the UK GHG inventory that have impacted on the Changes to the GWP values from the IPCC's Second Assessment Report (SAR) to the Fourth Assessment Report (AR4). The GWP for methane was increased and the GWP for nitrous Increase in emissions from waste and a decrease in emissions from Inclusion of additional F-gases (new HFC species, NF sources (e.g. particle accelerators, SF6 used as a tracer gas) Increase in estimated F-gases total. In the waste sector, the method for estimating methane captured and flared at landfill sites has been revised in line with recommendations from UNFCCC reviews. Significant increase in estimated emissions from landfills. Inclusion of additional sources for industrial waste water treatment. Increase in estimated CH Reallocation of source categories from energy to industrial Increase in estimated industrial processes emissions. Inclusion of new activity data estimates for chemical industry (e.g. methanol and carbon black production) and categories including zinc production, and uses of N Increase in estimated industrial processes emissions. How these and other changes have impacted on total emissions over the time series when compared to data presented in the 6th National Communication (1990-2011) is summarised, by depending on the sector, but we can see that in the waste and industrial processes have seen increases across all years due to the changes made to the inventory. In comparison, agriculture and energy are now lower than previously reported. 70 7th National Communication 2015 National Inventory Report2.11 Quality Assurance/ Quality Control. The current UK GHG inventory complies with the relevant IPCC Guidelines and Good Practice Guidance. The inventory agency is fully accredited to ISO 9001 standards that provide institutional standards that the agency must apply to all projects. Much of the data received by Ricardo Energy and Environment for the UK GHGI compilation come from other government departments, agencies, research establishments or consultants working on behalf of UK government or for trade associations. Some of the organisations (e.g.
BEIS, the Office of National Statistics and British Geological Survey) qualify as the UK’s National Statistical Agencies and abide by strict statistical QA/QC standards. Other organisations (e.g. CEH, providing the LULUCF estimates and the Environment Agency, providing regulated point source emissions data) supply important datasets for the inventory and have their own QA/QC systems. Whilst these organisations have their own QA/QC systems, Ricardo Energy and Environment is responsible for co-ordinating inventory-wide QA/QC activities relating to the submitted datasets. In addition, Ricardo Energy and Environment is working continuously with organisations

Chapter 2 – Greenhouse gas inventory information 71 supplying data to the GHG inventory to encourage them to demonstrate their own levels of QA/QC that comply with either IPCC Good Practice Guidance or the UK’s Official Statistics The inventory has a well-developed quality assurance and quality control plan, which is described in section 1.6 of the NIR. This plan includes procedures to ensure the timely reporting of the NIR and CRF tables, and the archiving of all relevant information. The QA/QC plan oversees the calculation of GHG estimates and reporting to UNFCCC and EUMM, and calculation of estimates and reporting to UK National Statistics. The key objective of the QA/QC plan is to ensure that the estimates in the GHG inventory are of a suitably high quality, and in achieving this, meet the principles of transparency, completeness, consistency, comparability and accuracy which govern the generation of all GHG inventories. Specific responsibilities have been assigned to the different QA (review) and QC (checking) activities and to different roles within the compilation and reporting process. The QA/QC plan is maintained by the inventory’s QA/QC manager. The plan defines the specific quality objectives and QA/QC activities required in undertaking the compilation and reporting of GHG estimates. The plan also assigns roles and responsibilities to inventory staff, and provides a timeline for completion of QA/

72 7th National Communication National Inventory Report. To verify the emissions levels and trends reported in the GHG inventory, BEIS maintains a research programme of high-frequency, high-precision measurements of atmospheric trace gases at the Mace Head research station, in the Republic of Ireland. The UK DECC Network87 is a network of tall tower measurement sites set up to complement these measurements as part of BEIS’s GHG inventory verification programme. The network of towers were established by the University of Bristol in 2012 and is located at Ridge Hill (Herefordshire) and Tacolneston (Norfolk), and used an existing tower at Angus (Dundee). In 2013 and 2014 two additional tall towers became operational as part of the NERC funded GAUGE project, Heathfield (W. Sussex) and Bilsdale (N. Yorkshire). In 2016, the tall tower at Angus was decommissioned, and the site at Bilsdale was incorporated into the UK DECC Network. The site at Heathfield was taken over by NPL but continues to measure GHGs as an affiliated UK DECC network site.’ The observations enable estimates of UK emissions to be derived using a technique designed specifically for the 87

Chapter 2 – Greenhouse gas inventory information 73 BEIS research programme, which provide an important cross-check for the GHG inventory. Establishment an expanded UK programme of atmospheric observations delivers increased spatial and temporal resolution in emissions estimates for a wide range of GHGs (CO2, CH4, N2O, SF6, and CO at all sites; and the full suite of GHGs and ODS species at Tacolneston). The UK is one of very few countries verifying its inventory in this manner. 2.11 Indirect Greenhouse Gases The indirect GHGs emitted in significant volumes in the UK consist of Nitrogen Oxides (NOx), Carbon Monoxide (CO), Non-Methane Volatile Organic Compounds (NMVOC) and Sulphur 2). Of these, NOX, CO and NMVOC can increase tropospheric ozone concentration and hence radiative forcing. Sulphur dioxide contributes to aerosol formation in the atmosphere. This is believed to have a negative net radiative forcing effect, tending to cool the surface. NOx 2,929 2,352 1,825 1,616 1,145 922 National Inventory Report. Total emissions of CO in 2015 were 1670 Kt, and since 1990, emissions have decreased by 78%. A significant part of this reduction was from transport and was due the increased use of three way catalysts, fuel switching from petrol to diesel cars. In 2015, total emissions of NOx were 922 Kt, and since 1990, emissions have decreased by 69%. The majority of this reduction was from the energy supply sector and due to abatement measures on power stations; three-way catalysts fitted to cars and stricter emissions regulations 2 total emissions in 2015 were 237 Kt, and since 1990, emissions have decreased by 94%. The reductions arise mainly from the energy supply sector due to the increase in the proportion of electricity generated by combined cycle gas turbine (CCGT) stations which are more efficient than conventional coal and oil stations and have negligible SO2 emissions. NMVOCs total emissions for 2015 were 837 Kt, and since 1990, overall emissions have decreased by 78%. This has been for various reasons, but the biggest contributor to the decrease was from the solvent and other product use sector. This sector includes paint application, degreasing and dry cleaning and chemical products, manufacture and processing. Chapter 3 – Policies and Measures The UK has made impressive progress against its carbon reduction target. In 2016, 47 % of UK electricity came from low carbon sources, around double the level in 201088, and the UK now has the largest installed offshore wind capacity in the world. Homes and commercial buildings in the UK have become more efficient in the way they use energy which helps to reduce emissions and also cut energy bills, for example average household energy consumption has fallen by 17% Automotive engine technology has helped drive down emissions per kilometre driven by up to 16% and driving a new car bought in 2015 will save car owners up to £200 on their annual fuel bill, compared to a car bought new in 2000 90.
England also recycles nearly four times more than This progress has been aided by the falling costs of many low carbon renewable power sources like solar and wind are comparable in cost to coal and gas in many countries92; energy efficient light bulbs are over 80% cheaper today than in 201093; and the cost of electric vehicle battery packs has tumbled by over 70% in this time94. 88 BEIS (2017): Digest of UK Energy Statistics 2017 digest-of-united-kingdom-energy-statistics-dukes 89 BEIS (2017) Energy Consumption in the UK the-uk Change in average consumption per household 1990-2016. 90 Annual average household saving from driving a car purchased new in 2015 (the latest year for which data is available) compared to driving a car purchased new in 2000. Fuel savings valued using 2015 prices. DfT (2017) National Travel Survey; DfT (2017) Vehicles Statistics; ICCT (2015) From Laboratory to Road; BEIS (2016) Green Book supplementary appraisal guidance. 91 Defra (2016) ENV18 – Local authority collected annual results statistical-data-sets/env18-local-authority-collected-waste-annual-results-tables 92 New Climate Economy (2014) Better Growth, Better Climate 93 International Energy Agency (2016) Energy Efficiency Market Report term-energy-efficiency-2016_WEB.PDF 94 Bloomberg New Energy Finance (2016) 2016 lithium-ion battery price survey

76 7th National Communication This progress has meant that the UK has outperformed the target emissions reductions of the first carbon budget (2008 to 2012) by one %95 and it is projected that the UK will outperform against the second and third budgets, covering the years 2013 to 2022, by about four % and To build on this progress, and to address the challenges ahead, the UK Government published its Clean Growth Strategy, setting out a comprehensive set of policies and proposals that aim to accelerate the pace of decreasing emissions, while delivering economic growth. The UK was one of the first countries to recognise and act on the economic and security threats of climate change. The Climate Change Act, passed in 2008, committed the UK to reducing greenhouse gas emissions by at least 80% by 2050 when compared to 1990 levels, through a process of setting five year caps on greenhouse gas emissions termed ‘Carbon Budgets’. This approach has now been used as a model for action across the world, and is mirrored by the United Nations’ Paris Agreement. The UK has been among the most successful countries in the developed world in growing its economy while reducing emissions. Since 1990, the UK Government has cut emissions by 42% while our economy has grown by two thirds. This means that the UK has reduced emissions faster than any other G7 nation, while leading the G7 group of countries in growth in national This chapter sets out the policies and measures that contribute to the UK meeting its obligations to reduce GHG emissions by 80% by 2050. BEIS coordinates UK policy on climate change at official level through inter-departmental committees chaired by BEIS. A Cabinet Committee chaired by the Chancellor of the Exchequer makes decisions at ministerial level. Some policies are the responsibility of BEIS directly, while others are the responsibility of HMT, DfT, Defra, Department for Communities and Local Government, Foreign and Commonwealth Office, Department for Exiting the European Union, and Department for International The UK government’s programme is supported by action taken by the Devolved Administrations in Scotland, Wales and Northern Ireland. While the UK government has overall responsibility for ensuring that a programme is put in place to deliver the UK’s Paris Agreement target and its domestic carbon budgets, all the administrations will play a part in meeting these targets. The approach taken by each administration will differ, drawing on the range of policies at their disposal. Policies and programmes specific to each Devolved Administration are included The Environment (Wales) Act 2016 sets a statutory target and a duty on Welsh Ministers to reduce Wales’ emissions by at least 80% by 2050. It requires interim targets for 2020, 2030 95 DECC (2014) 96 Figures available in Energy and Emission Projection report due to be published in January 2018. Chapter 3 – Policies and Measures 77 and 2040 and a framework of five-yearly carbon budgets. The interim targets and the first two carbon budgets (2016 to 2020 and 2021 to 2025) must be set in regulations by the end of 2018. The Welsh Government must publish a delivery plan of policies and proposals for meeting each Before the first Welsh budget is set in 2018, the Welsh Government needs to quantify Welsh emissions and take into account Wales-specific industry, science, technology and the latest Future Trends reports, as well as exploring what potential action will mean for people and The Welsh Government is currently reviewing existing policies for their emission reduction potential, as well as exploring potential new areas to take action to decarbonise. This is being carried out across the Welsh Government and through working closely with stakeholders. Prior to the interim targets and carbon budgets being set, the Welsh Government continues to work towards targets in the 2010 Climate Change Strategy for Wales. This includes a target to reduce greenhouse gas emissions in areas of devolved competence by 3% a year from 2011 (against a baseline average between 2006 and 2010) and achieve at least a 40% reduction in all emissions in Wales by 2020 (against a 1990 baseline). The Welsh Government has consistently achieved the 3% target. In 2014 emissions were 27 .34 2e, a reduction of 20% from the baseline which is in excess of its target of 12% for 2014. This means there has been a 6% reduction compared with the previous year. In terms of progress against the 40% target, by 2015 Wales had reduced emissions by 20% compared to the base year. This is mainly due to a reduction in the use of coal in the power generation sector, a reduction in emissions from refineries and the residential sector. There was an 1% decrease in greenhouse gas emissions in 2015 compared with 2014.
Action to mitigate climate change is a key component of the Scottish Government’s aim to create a growing, sustainable and inclusive economy. The Climate Change (Scotland) Act 2009 sets targets to reduce Scotland’s emissions of greenhouse gases by at least 42% by 2020 and 80% by 2050, compared to the 1990/1995 baseline. The Act also requires that annual emissions reduction targets are set for each year in the period 2010-2050, consistent with achieving the long-term targets. The Act anticipated that reducing greenhouse gas emissions would be required across all major sectors of the economy and society. Specifically, it requires the Scottish Government to set out policies and proposals for energy efficiency, energy generation, land use and transport. In February 2018, the Scottish Government will publish its third Climate Change Plan setting out how it intends to meet emission reduction targets in the period 2017-2032. The draft Plan contains transformational outcomes in transport, heat, electricity generation, and energy efficiency along with increased natural carbon sinks and more efficient and profitable agricultural In recognition of cross-government responsibility, the Cabinet Sub-Committee on Climate Change, chaired by the Cabinet Secretary for the Environment, Climate Change and Land Reform, has overseen the development and production of the draft Climate Change Plan. Scottish Ministers have worked collaboratively to develop policies and proposals for emissions reductions across sectors in ways that maximise opportunities and minimise costs. Local government, other public bodies, the private sector, the third sector, and communities and households all have important roles to play. Throughout the Scottish Government’s draft Climate

78 7th National Communication Change Plan there are examples of how and where other actors are, or will be, taking action to reduce greenhouse gas emissions and reaping the wide range of other social and economic benefits that such actions bring. To accompany the draft Climate Change Plan, the Scottish Government has developed a new, overarching Scottish Energy Strategy. The strategy is the first of its kind, providing a full explanation of the energy system in Scotland. The Scottish Government’s vision for 2050 is for a flourishing, competitive local and national energy sector, delivering secure, affordable, clean energy for Scotland’s households, communities and businesses. 3.3.4 Northern Ireland Executive Northern Ireland continues to contribute to the achievement of the UK target of an at least 80% reduction in greenhouse gas emissions by 2050 and the UK carbon budgets. From 1990 to 2015 there has been a reduction in Northern Ireland emissions of 17 .8%. Supporting efforts to reduce greenhouse gas emissions the draft Northern Ireland Programme for Government (2016-2021) includes an indicator for the reduction in greenhouse gas emissions to contribute to the outcome, ‘We live and work sustainably – protecting the environment.’ Targets and actions, agreed with stakeholders, will be monitored for progress and reported on To increase recycling and reduce waste to landfill communications campaigns are being developed to build public awareness, understanding and confidence in council led recycling. Work is also on going to identify gaps in recycling so that support can be provided to local councils and other stakeholders to address the areas identified. The NICS Energy Management Strategy being developed will focus on energy efficiency, procurement and usage across the government estate. Contributing to the strategy is a study to identify how the forestry estate may be able to generate renewable energy, storage and energy efficient measures that reduce costs of power and benefits emissions reduction. The Energy Management Strategy also encompasses work by Northern Ireland Water to reduce the production of greenhouse gases from its operations through investment of at least £6m on a programme for energy efficiency and renewable energy generation. Across government the Department of Education is undertaking a pilot project to install automated meter reading systems in a number of the most inefficient school buildings, the Department of Health is taking forward the Royal Victoria Hospital Energy Centre Project and the Forestry Strategy is currently being reviewed and will identify actions to increase tree planting. In transport, work is progressing to encourage a shift to cycling, increase use of public transport and support the introduction of Ultra Low Emission Vehicles to the Northern Ireland The Department for the Economy (DfE) is currently progressing the development of a new longer term energy strategy to replace the current Strategic Energy Framework (SEF 2010-20). DfE Officials have already undertaken significant work in relation to the development of a new strategy and continue to progress this. It is anticipated that the new energy strategy will cover a timeframe up to 2050 (dependent on Ministerial decisions). The future directions for renewable energy and energy efficiency policy are expected to form integral parts of the overall strategy. The Northern Ireland Executive’s target of 40% of electricity consumption coming from 97

Chapter 3 – Policies and Measures 79 Through the Northern Ireland Sustainable Energy Programme (NISEP) energy companies provide energy saving measures to low income households. This has been extended to March 2019 and options for a new energy efficiency scheme (Energy Wise) to replace the scheme from April 2019 is currently being considered. Work is also being progressed on the introduction of new building regulations in 2018 that will further improve the energy efficiency of new buildings. 3.3.5 Quantified economy-wide emissions reduction targets (QEWER) Alongside the EU and its member States, the UK communicated an independent quantified economy-wide emission reduction target of 20% by 2020 compared with 1990 levels (base year), which remains in place as detailed in the Sixth National Communication. The EU has also agreed on a new 2030 framework for Climate and Energy under the Clean Energy Package, which includes targets and policy aims and objects for the period 2020-2030. The EU-wide targets for 2030 • At least a 40% cut in greenhouse gas emissions • at least a 27% share of renewable energy consumption The Sixth National Communication highlighted the 2008 Climate Change Act which established the world’s first legally binding framework.
It also discussed the ensuing carbon budgets which set legally-binding limits on the total amount of GHG that the UK can emit for a given five year period. This section discusses the updated carbon budgets and the UK’s progress in achieving • The UK has put the first five carbon budgets in law through secondary legislation, covering the period from 2008 to 2032, with the sixth carbon budget due to be set in • These carbon budgets limit GHG emissions to, and do not include emissions savings from all policies and proposals in the Clean Growth Targets and projected performance Carbon budget level (MtCO2e) 3,018 2,782 2,544 1,950 1,725 of which traded 1,233 1,078 985 690 590 of which non-traded 1,785 1,704 1,599 1,260 1,135 Percentage reduction below base year levels 25% 31% 37% 51% 57% Coverage of the targets set out in the Climate Change Act comprises UK territory only (i.e. England, Wales, Scotland and Northern Ireland) and not our Crown Dependencies or Overseas Territories. They cover both the traded and non-traded sector, with the traded sector cap based on the UK’s share of the EU Emissions Trading System (EU ETS). The target includes the impact of LULUCF, but excludes International aviation. The base year consists of emissions of CO 2, CH4, and N2O in 1990, and of HFCs, PFCs and SF6 in 1995. It also includes an allowance for net emissions from the LULUCF sector in 1990. The

80 7th National Communication The Kyoto Protocol agreed in 1997 , set quantitative limits to emissions but only for industrialised nations. The UK was set a target of a 12.5% reduction by 2008-12 below 1990 levels (within an EU-wide target of 8%), which it comfortably exceeded. A second Kyoto commitment period was agreed for the period of 2013-20. Alongside the EU and its Member States, the UK communicated an independent quantified economy-wide emission reduction target of 20% by 2020, compared with 1990 levels. The UK is also on track to meet this target. In accordance with the Kyoto protocol, the Environment Agency is the UK’s designated national authority (DNA) under the Clean Development Mechanism (CDM). Under the Paris Agreement, as well as seeking to limit warming to well below 2 degrees, and to pursue 1.5 degrees, the UK is committed to working with other countries to achieve global net zero emissions in the second half of the century. 3.3.8 Summary of policies and measures The UK has a significant package of policies and measures to meet the targets. Many of the policies described in this chapter cut across different sectors and involve a number of different delivery mechanisms. The UK has also published its Clean Growth Strategy, identifying areas where greatest progress is required, and setting out future policies, proposals and aspirations. The Scottish Government has published a draft of its third Climate Change Plan setting out policies and proposals to achieve Scotland’s ambitious targets 98 . The final plan will be published 98

Chapter 3 – Policies and Measures 81

82 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To increase the proportion of low carbon (Nuclear, CCS) and renewables electricity Grouped savings produced by a selection of post-2009 - 12,952 36,170 42,863 43,240 47,279 To increase in the proportion of electricity generation and supply from renewables. Sets an annual obligation on electricity suppliers to source a proportion of their generation from renewable sources. Targets can be met by providing Renewable Energy Certificates (ROCs) or paying into the RO buy-out fund. The RO closed to new applicants on 31 March 2017. To reduce the use of emissions intensive fossil fuels and increase the use of renewables. It sets an emissions target (cap) for installations covered by the system (across the EU), with the carbon market determining the carbon price, and therefore where emissions can be reduced most cheaply. It guarantees that total emissions in the sectors covered will not exceed the cap set, and in doing so drives investments in low-carbon technologies, leading to cutting emissions of carbon 2) and other greenhouse gases at least cost. To improve air quality by limiting industrial emissions of nitrogen oxides, sulphur dioxide and dust. This indirectly acts to mitigate GHG emission by reducing the use of high carbon (coal) generation in the electricity supply industry. The Large Combustion Plant Directive (LCPD, 2001/80/EC) sets limits on emissions of sulphur dioxide, nitrogen oxides, and dust from combustion plants with a thermal capacity of 50 MW or greater. Has now been replaced by the Industrial To further increase in the proportion of electricity generation and supply from renewables. Increases Renewable Obligation (RO) targets in electricity supply so as meet the UK’s overall renewables target for 2020 as set out in the Renewables Directive Feed in Tariffs (FITS) * Energy CO2, (CH4, Encourage small-scale, low carbon generation. Regulatory, Implemented Feed-in Tariffs (FITs) support organisations, businesses, communities and individuals to generate low-carbon electricity using small-scale (5 MW or less total installed capacity) systems. Electricity suppliers are obliged to pay the regulated tariffs to eligible generators. Consolidates and strengthens several air quality measures, including the LCPD. Further reduce the use of high carbon (coal) generation in the As transposed into UK law, the IED replaced the LCPD from 1 January 2016 with similar although more stringent provisions set out in chapter III of the Industrial Emissions Directive (2010/75/EU) (IED).
Those provisions already apply in respect to any plant newly permitted since Three compliance routes were available to generating plants; to abate emissions and comply with more stringent limits by 2020; to comply with less stringent limits but face a 1,500 hour per year load factor constrain; or to close Capacity Mechanism 1 * Energy CO2, (CH4, To increase the proportion of low carbon (Nuclear, CCS) and renewables electricity Part of the government’s Electricity Market Reform package, the Capacity Market ensures that sufficient capacity is available to meet peak demand, encouraging construction and use of new low carbon To increase the proportion of low carbon (Nuclear, CCS) and renewables Offers Contracts for Difference (CfDs) in the electricity generation market for low carbon and renewable sources, CfDs will replace Renewable Obligation Certificates (ROCs) which are due to be phased out from 2017. Current policy offers CfD for new capacity through auctions should Government’s choose to hold them. There is also a bilateral negotiation underway for Hinkley point C Nuclear plant. Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To increase the proportion of low carbon (Nuclear, CCS) and renewables electricity Grouped savings produced by a selection of post-2009 - 12,952 36,170 42,863 43,240 47,279 To increase in the proportion of electricity generation and supply from renewables. Sets an annual obligation on electricity suppliers to source a proportion of their generation from renewable sources. Targets can be met by providing Renewable Energy Certificates (ROCs) or paying into the RO buy-out fund. The RO closed to new applicants on 31 March 2017. To reduce the use of emissions intensive fossil fuels and increase the use of renewables. It sets an emissions target (cap) for installations covered by the system (across the EU), with the carbon market determining the carbon price, and therefore where emissions can be reduced most cheaply. It guarantees that total emissions in the sectors covered will not exceed the cap set, and in doing so drives investments in low-carbon technologies, leading to cutting emissions of carbon 2) and other greenhouse gases at least cost. To improve air quality by limiting industrial emissions of nitrogen oxides, sulphur dioxide and dust. This indirectly acts to mitigate GHG emission by reducing the use of high carbon (coal) generation in the electricity supply industry. The Large Combustion Plant Directive (LCPD, 2001/80/EC) sets limits on emissions of sulphur dioxide, nitrogen oxides, and dust from combustion plants with a thermal capacity of 50 MW or greater. Has now been replaced by the Industrial To further increase in the proportion of electricity generation and supply from renewables. Increases Renewable Obligation (RO) targets in electricity supply so as meet the UK’s overall renewables target for 2020 as set out in the Renewables Directive Feed in Tariffs (FITS) * Energy CO2, (CH4, Encourage small-scale, low carbon generation. Regulatory, Implemented Feed-in Tariffs (FITs) support organisations, businesses, communities and individuals to generate low-carbon electricity using small-scale (5 MW or less total installed capacity) systems. Electricity suppliers are obliged to pay the regulated tariffs to eligible generators. Consolidates and strengthens several air quality measures, including the LCPD. Further reduce the use of high carbon (coal) generation in the As transposed into UK law, the IED replaced the LCPD from 1 January 2016 with similar although more stringent provisions set out in chapter III of the Industrial Emissions Directive (2010/75/EU) (IED). Those provisions already apply in respect to any plant newly permitted since Three compliance routes were available to generating plants; to abate emissions and comply with more stringent limits by 2020; to comply with less stringent limits but face a 1,500 hour per year load factor constrain; or to close Capacity Mechanism 1 * Energy CO2, (CH4, To increase the proportion of low carbon (Nuclear, CCS) and renewables electricity Part of the government’s Electricity Market Reform package, the Capacity Market ensures that sufficient capacity is available to meet peak demand, encouraging construction and use of new low carbon To increase the proportion of low carbon (Nuclear, CCS) and renewables Offers Contracts for Difference (CfDs) in the electricity generation market for low carbon and renewable sources, CfDs will replace Renewable Obligation Certificates (ROCs) which are due to be phased out from 2017. Current policy offers CfD for new capacity through auctions should Government’s choose to hold them. There is also a bilateral negotiation underway for Hinkley point C Nuclear plant. 84 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To increase the proportion of low carbon (Nuclear, CCS) and renewables generation. Planned continuation of Contracts for Difference (CfDs) for new low carbon capacity after 2020. Carbon Price Floor 1 * Energy CO2, (CH4, To reduce the use of emissions intensive fossil fuels and increase the use of renewables in The Carbon Price Floor (CPF) is designed to further reduce the use of emission-intensive fossil fuels and increase the proportion of electricity generation and supply from low Improve energy efficiency of buildings. Regulatory Implemented Building Regulations set minimum energy performance standards for new buildings and when people carry out controlled ‘building work’ to existing properties including extensions, conversions and certain categories of renovation and replacement windows and boilers. 5,544 8,801 10,140 7,70 8 5,110 2,733 Improve energy efficiency of buildings. Regulatory Implemented Building Regulations set minimum energy performance standards for new buildings and when people carry out controlled ‘building work’ to existing properties including extensions, conversions and certain categories of renovation and replacement windows and boilers. - 3,232 5,382 6,376 4,832 3,772 Improve energy efficiency of buildings. Regulatory Implemented Building Regulations set minimum energy performance standards for new buildings and when people carry out controlled ‘building work’ to existing properties including extensions, conversions and certain categories of renovation and replacement windows and boilers.
Reducing energy use and emissions from appliances and products such as white goods, lighting, televisions, heating and cooling systems and electric motors by preventing the sale of the worst performing products and promoting the The EU Ecodesign Directive and the Energy Labelling Framework Regulation respectively operate by setting minimum performance and information requirements for energy using products placed to take the least efficient products off the market and to give consumers clear information to make informed purchasing decisions. This is implemented through product specific EU regulations. 825 5,923 5,593 3,082 1,631 485 Reducing energy use and emissions from appliances and products such as white goods, lighting, televisions, heating and cooling systems and electric motors by preventing the sale of the worst performing products and promoting the The EU Ecodesign Directive and the Energy Labelling Framework Regulation respectively operate by setting minimum performance and information requirements for energy using products placed to take the least efficient products off the market and to give consumers clear information to make informed purchasing decisions. This is implemented through product specific EU regulations. To encourage the generation of renewable heat in all sectors from large industrial sites down to the The Non-Domestic Renewable Heat Incentive (RHI) provides financial incentives to increase the uptake of renewable heat by businesses, the public sector and non-profit organisations. Eligible installations receive quarterly payments for 20 years based on the amount of heat generated. The Domestic RHI is a government financial incentive to promote the use of renewable heat. Eligible installations receive quarterly payments for seven years for the amount of renewable heat it is estimated their - 1,491 2,401 2,444 2,418 1,014 To encourage the generation of renewable heat in all sectors from large industrial sites down to the The Non-Domestic Renewable Heat Incentive (RHI) provides financial incentives to increase the uptake of renewable heat by businesses, the public sector and non- profit organisations. Eligible installations receive quarterly payments for 20 years based on the amount of heat generated. The Domestic RHI is a government financial incentive to promote the use of renewable heat. Eligible installations receive quarterly payments for seven years for the amount of renewable heat it is estimated their system - - 2,132 2,589 2,600 2,609

Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To increase the proportion of low carbon (Nuclear, CCS) and renewables generation. Planned continuation of Contracts for Difference (CfDs) for new low carbon capacity after 2020. Carbon Price Floor 1 * Energy CO2, (CH4, To reduce the use of emissions intensive fossil fuels and increase the use of renewables in The Carbon Price Floor (CPF) is designed to further reduce the use of emission-intensive fossil fuels and increase the proportion of electricity generation and supply from low Improve energy efficiency of buildings. Regulatory Implemented Building Regulations set minimum energy performance standards for new buildings and when people carry out controlled ‘building work’ to existing properties including extensions, conversions and certain categories of renovation and replacement windows and boilers. 5,544 8,801 10,140 7,70 8 5,110 2,733 Improve energy efficiency of buildings. Regulatory Implemented Building Regulations set minimum energy performance standards for new buildings and when people carry out controlled ‘building work’ to existing properties including extensions, conversions and certain categories of renovation and replacement windows and boilers. - 3,232 5,382 6,376 4,832 3,772 Improve energy efficiency of buildings. Regulatory Implemented Building Regulations set minimum energy performance standards for new buildings and when people carry out controlled ‘building work’ to existing properties including extensions, conversions and certain categories of renovation and replacement windows and boilers. Reducing energy use and emissions from appliances and products such as white goods, lighting, televisions, heating and cooling systems and electric motors by preventing the sale of the worst performing products and promoting the The EU Ecodesign Directive and the Energy Labelling Framework Regulation respectively operate by setting minimum performance and information requirements for energy using products placed to take the least efficient products off the market and to give consumers clear information to make informed purchasing decisions. This is implemented through product specific EU regulations. 825 5,923 5,593 3,082 1,631 485 Reducing energy use and emissions from appliances and products such as white goods, lighting, televisions, heating and cooling systems and electric motors by preventing the sale of the worst performing products and promoting the The EU Ecodesign Directive and the Energy Labelling Framework Regulation respectively operate by setting minimum performance and information requirements for energy using products placed to take the least efficient products off the market and to give consumers clear information to make informed purchasing decisions. This is implemented through product specific EU regulations. To encourage the generation of renewable heat in all sectors from large industrial sites down to the The Non-Domestic Renewable Heat Incentive (RHI) provides financial incentives to increase the uptake of renewable heat by businesses, the public sector and non-profit organisations. Eligible installations receive quarterly payments for 20 years based on the amount of heat generated. The Domestic RHI is a government financial incentive to promote the use of renewable heat. Eligible installations receive quarterly payments for seven years for the amount of renewable heat it is estimated their - 1,491 2,401 2,444 2,418 1,014 To encourage the generation of renewable heat in all sectors from large industrial sites down to the The Non-Domestic Renewable Heat Incentive (RHI) provides financial incentives to increase the uptake of renewable heat by businesses, the public sector and non- profit organisations. Eligible installations receive quarterly payments for 20 years based on the amount of heat generated. The Domestic RHI is a government financial incentive to promote the use of renewable heat.
Eligible installations receive quarterly payments for seven years for the amount of renewable heat it is estimated their system - - 2,132 2,589 2,600 2,609

86 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) Smart Metering * Energy, Industry/ Reduce consumption of electricity and gas though provision of better management The smart metering programme will replace 53 million meters with smart electricity and gas meters in all domestic properties, and smart or advanced meters in smaller non domestic sites in Great Britain by the end of 2020. Smart meters will deliver consumers with near-real time information on their energy consumption to help them control energy use, and avoid wasting energy and money. It will deliver energy networks with better information upon which to manage and plan current activities. Smart meters will also assist the move towards smart grids which support sustainable energy supply and will help reduce the total - 327 2,058 2,021 1,851 1,744 Carbon Trust measures * Energy, Industry/ Improve energy efficiency in buildings Information, Expired The Carbon Trust provides a range of measures from general advice to in-depth consultancy and accreditation, to reduce emissions and save energy and money to businesses and public sector organisations of all sizes. 2002 Carbon Trust 3,567 1,615 353 66 - - To drive emission reductions from large non- energy intensive private and public sector The Carbon Reduction Commitment (CRC) is a mandatory UK-wide emissions trading scheme (launched in 2010). It encourages the uptake of energy efficiency measures in large non-energy intensive private and public sector organisations that use energy not covered by the EU ETS or Climate Change Agreements. It covers 1800-1900 large users of energy across the business and public sector. The scheme is split into phases. Phase 1 ran from 1 April 2010 until 31 March 2014. Phase 2 runs from 1 April 2014 until 31 March 2019. In the 2016 Spring Budget, the Chancellor announced the closure of the CRC after Phase 2 (i.e. following the 2018/19 compliance year). To incentivise businesses to reduce their energy The Climate Change Levy (CCL) was introduced in 2001. It is levied on the supply of energy to business and public sector consumers. Each of the four main groups of taxable commodities (electricity, gas, solid fuels, and liquefied petroleum gas [LPG]) has its own main rate per unit of energy. The main rates of the CCL are intended to incentivise businesses to reduce their energy consumption. Eligible energy-intensive industries may pay reduced main rates of CCL through CCAs, or be exempt from the CCL for mineralogical/metallurgical processes. To incentivise businesses to reduce their energy Budget 2016 announced that CCL rates will increase from April 2019, moving to an electricity-to-gas ratio of 2.5:1 compared to the previous 2.9:1 ratio. In the longer term, the government intends to rebalance the rates further, reaching a ratio of 1:1 by 2025. The changes in CCL between 2019 and 2025, as well as the rates from 2025 onwards, have not To improve the energy efficiency of residential and commercial buildings and address The Energy Company Obligation (ECO) is a statutory obligation on energy suppliers with over 250,000 domestic customers and delivering over a certain amount of electricity or gas to make reductions in carbon emissions or achieve heating cost savings in domestic households. ECO focuses on insulation measures, and also heating improvements to low income and vulnerable households. It ran until March 2017. ECO initially ran to Mar 15 (also known as ‘ECO1’), although was extended in April 2014 to March To improve the energy efficiency of residential and commercial buildings and address The 2015 Spending Review announced that ECO will be replaced with a new, lower cost scheme that will run for 5 years (to March 2022) and will tackle the root causes of fuel poverty. The 5 year extension will take place in the two phases, with the ECO Extension (April 2017 – Sept 2018) acting as a bridge between the expired ECO scheme and the new fuel poverty focussed scheme, ECO 3, which will run from Oct 2018 to March 2022. Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) Smart Metering * Energy, Industry/ Reduce consumption of electricity and gas though provision of better management The smart metering programme will replace 53 million meters with smart electricity and gas meters in all domestic properties, and smart or advanced meters in smaller non domestic sites in Great Britain by the end of 2020. Smart meters will deliver consumers with near-real time information on their energy consumption to help them control energy use, and avoid wasting energy and money. It will deliver energy networks with better information upon which to manage and plan current activities. Smart meters will also assist the move towards smart grids which support sustainable energy supply and will help reduce the total - 327 2,058 2,021 1,851 1,744 Carbon Trust measures * Energy, Industry/ Improve energy efficiency in buildings Information, Expired The Carbon Trust provides a range of measures from general advice to in-depth consultancy and accreditation, to reduce emissions and save energy and money to businesses and public sector organisations of all sizes. 2002 Carbon Trust 3,567 1,615 353 66 - - To drive emission reductions from large non- energy intensive private and public sector The Carbon Reduction Commitment (CRC) is a mandatory UK-wide emissions trading scheme (launched in 2010). It encourages the uptake of energy efficiency measures in large non-energy intensive private and public sector organisations that use energy not covered by the EU ETS or Climate Change Agreements. It covers 1800-1900 large users of energy across the business and public sector. The scheme is split into phases. Phase 1 ran from 1 April 2010 until 31 March 2014. Phase 2 runs from 1 April 2014 until 31 March 2019.
In the 2016 Spring Budget, the Chancellor announced the closure of the CRC after Phase 2 (i.e. following the 2018/19 compliance year). To incentivise businesses to reduce their energy The Climate Change Levy (CCL) was introduced in 2001. It is levied on the supply of energy to business and public sector consumers. Each of the four main groups of taxable commodities (electricity, gas, solid fuels, and liquefied petroleum gas [LPG]) has its own main rate per unit of energy. The main rates of the CCL are intended to incentivise businesses to reduce their energy consumption. Eligible energy-intensive industries may pay reduced main rates of CCL through CCAs, or be exempt from the CCL for mineralogical/metallurgical processes. To incentivise businesses to reduce their energy Budget 2016 announced that CCL rates will increase from April 2019, moving to an electricity-to-gas ratio of 2.5:1 compared to the previous 2.9:1 ratio. In the longer term, the government intends to rebalance the rates further, reaching a ratio of 1:1 by 2025. The changes in CCL between 2019 and 2025, as well as the rates from 2025 onwards, have not To improve the energy efficiency of residential and commercial buildings and address The Energy Company Obligation (ECO) is a statutory obligation on energy suppliers with over 250,000 domestic customers and delivering over a certain amount of electricity or gas to make reductions in carbon emissions or achieve heating cost savings in domestic households. ECO focuses on insulation measures, and also heating improvements to low income and vulnerable households. It ran until March 2017. ECO initially ran to Mar 15 (also known as ‘ECO1’), although was extended in April 2014 to March To improve the energy efficiency of residential and commercial buildings and address The 2015 Spending Review announced that ECO will be replaced with a new, lower cost scheme that will run for 5 years (to March 2022) and will tackle the root causes of fuel poverty. The 5 year extension will take place in the two phases, with the ECO Extension (April 2017 – Sept 2018) acting as a bridge between the expired ECO scheme and the new fuel poverty focussed scheme, ECO 3, which will run from Oct 2018 to March 2022. 88 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To improve the energy efficiency of residential and commercial buildings and address The 2015 Spending Review announced that ECO will be replaced with a new, lower cost scheme that will run for 5 years (to March 2022) and will tackle the root causes of fuel poverty. The 5 year extension will take place in the two phases, with the ECO Extension (April 2017 – Sept 2018) acting as a bridge between the expired ECO scheme and the new fuel poverty focussed scheme, ECO 3, which will run from Oct 2018 to March 2022. Tackling fuel poverty, improving energy efficiency Warm Front installed heating and insulation measures to make homes warmer and more energy efficient for private sector households in England vulnerable to fuel poverty. The scheme offered a package of heating and insulation measures of up to £3,500 (or £6,000 where oil central heating or other alternative technologies are 1,125 332 247 251 262 259 To require larger domestic energy supply companies to assist households to take-up cost- effective energy efficiency measures. Energy Efficiency Commitment I (EEC I): GB wide regulation that required all electricity and gas suppliers with 15,000 or more domestic customers to achieve a combined energy saving of 62 TWh by 2005 by incentivising their customers to install energy-efficiency measures in homes. EEC II – energy suppliers with more than 50,000 domestic customers required to deliver a total of 130 TWh lifetime energy use reductions in GB households, primarily through the promotion of energy efficiency measures. Carbon Emission Reduction Target (CERT) – GB regulation that required all domestic energy suppliers with a customer base in excess of 50,000 domestic customers to make 5,446 4,627 2,987 2,476 2,293 2,258 To require larger domestic energy supply companies to assist households to take-up cost- effective energy efficiency measures. CERT extension – increased the targets originally set under CERT by 20% and required domestic energy suppliers with a customer base in excess of 50,000 (later increased to 250,000) to make savings in the amount of CO by householders. The extension also refocused subsidy towards insulation measures and away from electricity saving measures such as low energy lighting – and introduced a super priority group (households in receipt of certain means-tested benefits) to make energy reductions in low income and vulnerable households. 553 1,914 1,680 1,420 1,317 1,247 To require larger energy companies to encourage households in areas of low income to take-up cost-effective energy efficiency measures. Community Energy Saving Programme (CESP) – area based regulation that targeted households across Great Britain, in areas of low income, to improve energy efficiency standards, and reduce fuel bills. CESP was funded by an obligation on larger energy suppliers and also the larger, Encourage uptake of energy efficiency measures. Regulatory, Expired Energy Performance Certificates (EPCs) are required when any building is sold, rented out or constructed, and sometimes after refurbishment work. EPCs give information on a building’s energy efficiency in a sliding scale from ‘A’ (very efficient) to ‘G’ (least efficient) Energy Performance Certificates (EPCs) are required when any building is sold, rented out or constructed, and after refurbishment when construction work is undertaken to a building and the modifications change the number of parts designed or altered for separate use and include the provision or extension of any fixed services for heating, hot water, air-conditioning and mechanical ventilation. EPCs give information on a building’s energy efficiency in a sliding scale from ‘A’ (very efficient) to ‘G’ (least efficient).
Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To improve the energy efficiency of residential and commercial buildings and address The 2015 Spending Review announced that ECO will be replaced with a new, lower cost scheme that will run for 5 years (to March 2022) and will tackle the root causes of fuel poverty. The 5 year extension will take place in the two phases, with the ECO Extension (April 2017 – Sept 2018) acting as a bridge between the expired ECO scheme and the new fuel poverty focussed scheme, ECO 3, which will run from Oct 2018 to March 2022. Tackling fuel poverty, improving energy efficiency Warm Front installed heating and insulation measures to make homes warmer and more energy efficient for private sector households in England vulnerable to fuel poverty. The scheme offered a package of heating and insulation measures of up to £3,500 (or £6,000 where oil central heating or other alternative technologies are 1,125 332 247 251 262 259 To require larger domestic energy supply companies to assist households to take-up cost- effective energy efficiency measures. Energy Efficiency Commitment I (EEC I): GB wide regulation that required all electricity and gas suppliers with 15,000 or more domestic customers to achieve a combined energy saving of 62 TWh by 2005 by incentivising their customers to install energy-efficiency measures in homes. EEC II – energy suppliers with more than 50,000 domestic customers required to deliver a total of 130 TWh lifetime energy use reductions in GB households, primarily through the promotion of energy efficiency measures. Carbon Emission Reduction Target (CERT) – GB regulation that required all domestic energy suppliers with a customer base in excess of 50,000 domestic customers to make 5,446 4,627 2,987 2,476 2,293 2,258 To require larger domestic energy supply companies to assist households to take-up cost- effective energy efficiency measures. CERT extension – increased the targets originally set under CERT by 20% and required domestic energy suppliers with a customer base in excess of 50,000 (later increased to 250,000) to make savings in the amount of CO by householders. The extension also refocused subsidy towards insulation measures and away from electricity saving measures such as low energy lighting – and introduced a super priority group (households in receipt of certain means-tested benefits) to make energy reductions in low income and vulnerable households. 553 1,914 1,680 1,420 1,317 1,247 To require larger energy companies to encourage households in areas of low income to take-up cost-effective energy efficiency measures. Community Energy Saving Programme (CESP) – area based regulation that targeted households across Great Britain, in areas of low income, to improve energy efficiency standards, and reduce fuel bills. CESP was funded by an obligation on larger energy suppliers and also the larger, Encourage uptake of energy efficiency measures. Regulatory, Expired Energy Performance Certificates (EPCs) are required when any building is sold, rented out or constructed, and sometimes after refurbishment work. EPCs give information on a building’s energy efficiency in a sliding scale from ‘A’ (very efficient) to ‘G’ (least efficient) Energy Performance Certificates (EPCs) are required when any building is sold, rented out or constructed, and after refurbishment when construction work is undertaken to a building and the modifications change the number of parts designed or altered for separate use and include the provision or extension of any fixed services for heating, hot water, air-conditioning and mechanical ventilation. EPCs give information on a building’s energy efficiency in a sliding scale from ‘A’ (very efficient) to ‘G’ (least efficient). 90 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) Encourage uptake of energy efficiency measures. Regulatory, Adopted Extension of the EPBD requirement for public buildings to display Energy Performance Certificates to include Encourage uptake of energy efficiency measures. Regulatory, Planned The Government is required to report to the European Commission by June 2017 to demonstrate that UK building standards for energy performance remain ‘cost optimal’. Cost-optimal energy performance means that the lifetime cost-benefit analysis is positive. Minimum energy performance requirements must be compared against calculated cost-optimal levels using the Comparative Improve energy efficiency of private From the 1 April 2018 there will be a requirement for any properties rented out in the private rented sector to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). The regulations will come into force for new lets and renewals of tenancies with effect from 1 April 2018 and for all existing tenancies on 1 April 2020 (1 April 2023 for non-domestic properties). It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an To address funding barriers to achieving energy efficiency in the Public sector. The Public Sector Energy Efficiency Loans Scheme, managed by Salix Finance Ltd, provides interest-free loans in England to public sector organisations for energy efficiency schemes. These loans are intended to provide the capital cost of energy efficiency retrofit work and other measures to be installed. These loans have a payback period of five years (eight for schools) during which the repayments are met with the energy bill savings from the energy efficiency measures. Thus, once the loan has been paid off, the organisations continue to benefit from energy savings for the lifetime of these measures. This funding is then recycled once it has been returned to the Scheme and once again loaned out. BEIS provides the most amount of funding to the Scheme but there is also some funding from Scotland, Wales and the Department for Education. To address funding barriers to achieving energy efficiency by the small and medium The Carbon Trust provided interest free loans of £3,000 – £400,000 for small and medium sized businesses to invest in energy efficiency equipment and renewable technologies.
These loans were designed so that in most cases the forecast reduction in energy costs would be similar to the total repayment amount. To provide an incentive for energy-intensive industries to reduce energy consumption. Climate Change Agreements offer participating energy- intensive industries a discount from the Climate Change Levy in return for meeting targets for energy reductions. From 2013 these are a 90% discount for electricity and a 65% discount for other fuels. From 2019 this will increase to a 93% discount for electricity and 78% discount for

Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) Encourage uptake of energy efficiency measures. Regulatory, Adopted Extension of the EPBD requirement for public buildings to display Energy Performance Certificates to include Encourage uptake of energy efficiency measures. Regulatory, Planned The Government is required to report to the European Commission by June 2017 to demonstrate that UK building standards for energy performance remain ‘cost optimal’. Cost-optimal energy performance means that the lifetime cost-benefit analysis is positive. Minimum energy performance requirements must be compared against calculated cost-optimal levels using the Comparative Improve energy efficiency of private From the 1 April 2018 there will be a requirement for any properties rented out in the private rented sector to have a minimum energy performance rating of E on an Energy Performance Certificate (EPC). The regulations will come into force for new lets and renewals of tenancies with effect from 1 April 2018 and for all existing tenancies on 1 April 2020 (1 April 2023 for non-domestic properties). It will be unlawful to rent a property which breaches the requirement for a minimum E rating, unless there is an To address funding barriers to achieving energy efficiency in the Public sector. The Public Sector Energy Efficiency Loans Scheme, managed by Salix Finance Ltd, provides interest-free loans in England to public sector organisations for energy efficiency schemes. These loans are intended to provide the capital cost of energy efficiency retrofit work and other measures to be installed. These loans have a payback period of five years (eight for schools) during which the repayments are met with the energy bill savings from the energy efficiency measures. Thus, once the loan has been paid off, the organisations continue to benefit from energy savings for the lifetime of these measures. This funding is then recycled once it has been returned to the Scheme and once again loaned out. BEIS provides the most amount of funding to the Scheme but there is also some funding from Scotland, Wales and the Department for Education. To address funding barriers to achieving energy efficiency by the small and medium The Carbon Trust provided interest free loans of £3,000 – £400,000 for small and medium sized businesses to invest in energy efficiency equipment and renewable technologies. These loans were designed so that in most cases the forecast reduction in energy costs would be similar to the total repayment amount. To provide an incentive for energy-intensive industries to reduce energy consumption. Climate Change Agreements offer participating energy- intensive industries a discount from the Climate Change Levy in return for meeting targets for energy reductions. From 2013 these are a 90% discount for electricity and a 65% discount for other fuels. From 2019 this will increase to a 93% discount for electricity and 78% discount for

92 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To encourage the uptake of energy saving A mandatory energy assessment scheme for all large undertakings (non-SMEs) in response to requirements contained Article 8 of the EU Energy Efficiency Directive (2012/27/EU). Organisations which employ 250 or more people, or employ fewer than 250 people but have both an annual turnover exceeding £38.9m and an annual balance sheet total exceeding £33.4m, must measure their total energy consumption and carry out audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures, by 5 December 2015 and every four years thereafter. It is estimated that around 10,000 organisations will participate 2 To increase the volume of heat networks built through providing central Government funding. The Heat Networks Investment Project (HNIP) capital investment programme is expected to support up to 200 projects by 2021 through grants and loans and other mechanisms and to lever in up to wider investment, reducing bills, cutting carbon and forming a key part of wider urban regeneration in many locations. Rail Electrification * Transport CO2, (CH4, To reduce travel times, costs and fossil Major programme of rail electrification underway to replace older diesel trains with modern, low-emission electric trains. 2 Reduce the fossil carbon content of The RTFO set a phased 5% target for biofuel use by diesel and petrol suppliers to be achieved by 2014. Targets are by volume rather than by energy. Implements the EU Renewables Directive (2009/28/EC). 2,757 2,385 2,344 2,228 2,150 2,112 2 Reduce the fossil carbon content of To set enhanced targets for biofuel use by diesel and petrol suppliers to be achieved by 2020. Implements the EU Renewables Directive (2009/28/EC) as amended by - - 5,818 5,587 5,400 5,297 Improve fuel efficiency and reduce CO2 Implemented EC Regulation 443/2009 sets fuel efficiency targets for new cars to be achieved by 2015 and 2020. The regulation 2 tailpipe emissions target for new vehicles sold into the EU market into specific targets for individual manufacturers according to the mass of their fleet. Heavy fines are imposed for non-compliance. The 2021 target is for a fleet average of 95g CO the single market, with a transition period where 95% of a manufacturer’s fleet must meet the 95g target by 2020. Complementary measures are a collection of technologies that could improve ‘real world’ fuel efficiency of cars which wouldn’t be fully captured in new car CO improve fuel efficiency within the existing fleet.
These include gear shift indicators, tyre pressure monitoring systems more efficient mobile air-conditioning and low rolling resistance tyres. EC Regulation 661/2009 sets minimum requirements and introduce labelling for the rolling resistance, wet grip and external rolling noise of tyres. Measures to support the uptake of ultra low emission vehicles include the Plug-in Car and Plug-in Van Grants towards ultra-low emission vehicle (ULEV) cars and vans, as well as various tax incentives including lower rates for Vehicle Excise Duty and Company Car Tax. EV infrastructure is directly supported through the Workplace Charging Scheme grants for EV charge points for employees and fleets, the Electric Vehicle Home charge Scheme grants towards home EV charge points and the On-street Residential Charging Scheme. Highways England have committed £15m to ensure EV charge points are available every 20 miles on the Strategic Road Network. 6 821 4,882 11,255 17,297 22,448

Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To encourage the uptake of energy saving A mandatory energy assessment scheme for all large undertakings (non-SMEs) in response to requirements contained Article 8 of the EU Energy Efficiency Directive (2012/27/EU). Organisations which employ 250 or more people, or employ fewer than 250 people but have both an annual turnover exceeding £38.9m and an annual balance sheet total exceeding £33.4m, must measure their total energy consumption and carry out audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures, by 5 December 2015 and every four years thereafter. It is estimated that around 10,000 organisations will participate 2 To increase the volume of heat networks built through providing central Government funding. The Heat Networks Investment Project (HNIP) capital investment programme is expected to support up to 200 projects by 2021 through grants and loans and other mechanisms and to lever in up to wider investment, reducing bills, cutting carbon and forming a key part of wider urban regeneration in many locations. Rail Electrification * Transport CO2, (CH4, To reduce travel times, costs and fossil Major programme of rail electrification underway to replace older diesel trains with modern, low-emission electric trains. 2 Reduce the fossil carbon content of The RTFO set a phased 5% target for biofuel use by diesel and petrol suppliers to be achieved by 2014. Targets are by volume rather than by energy. Implements the EU Renewables Directive (2009/28/EC). 2,757 2,385 2,344 2,228 2,150 2,112 2 Reduce the fossil carbon content of To set enhanced targets for biofuel use by diesel and petrol suppliers to be achieved by 2020. Implements the EU Renewables Directive (2009/28/EC) as amended by - - 5,818 5,587 5,400 5,297 Improve fuel efficiency and reduce CO2 Implemented EC Regulation 443/2009 sets fuel efficiency targets for new cars to be achieved by 2015 and 2020. The regulation 2 tailpipe emissions target for new vehicles sold into the EU market into specific targets for individual manufacturers according to the mass of their fleet. Heavy fines are imposed for non-compliance. The 2021 target is for a fleet average of 95g CO the single market, with a transition period where 95% of a manufacturer’s fleet must meet the 95g target by 2020. Complementary measures are a collection of technologies that could improve ‘real world’ fuel efficiency of cars which wouldn’t be fully captured in new car CO improve fuel efficiency within the existing fleet. These include gear shift indicators, tyre pressure monitoring systems more efficient mobile air-conditioning and low rolling resistance tyres. EC Regulation 661/2009 sets minimum requirements and introduce labelling for the rolling resistance, wet grip and external rolling noise of tyres. Measures to support the uptake of ultra low emission vehicles include the Plug-in Car and Plug-in Van Grants towards ultra-low emission vehicle (ULEV) cars and vans, as well as various tax incentives including lower rates for Vehicle Excise Duty and Company Car Tax. EV infrastructure is directly supported through the Workplace Charging Scheme grants for EV charge points for employees and fleets, the Electric Vehicle Home charge Scheme grants towards home EV charge points and the On-street Residential Charging Scheme. Highways England have committed £15m to ensure EV charge points are available every 20 miles on the Strategic Road Network. 6 821 4,882 11,255 17,297 22,448

94 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) Improve fuel efficiency and reduce CO2 emissions of light goods vehicles. Implemented EC Regulation 510/2011 sets fuel efficiency targets for new Light Commercial Vehicles (LCV) to be achieved by 2017 and 2020. EC Regulation 661/2009 sets minimum requirements and introduce labelling for the rolling resistance, wet grip and external rolling noise of tyres. The regulation translates a fleet average CO target for new vehicles sold into the EU market into specific targets for individual manufacturers according to the mass of their fleet. Heavy fines are imposed for non-compliance. The 2020 target is for a fleet average of 147g CO represents a reduction of 19% from the 2012 average. Measures include the Plug-in Car and Plug-in Van Grants towards ultra-low emission vehicle (ULEV) cars and vans, as well as various tax incentives including lower rates for Vehicle Excise Duty and Company Car Tax. EV infrastructure is directly supported through the Workplace Charging Scheme grants for EV charge points for employees and fleets, the Electric Vehicle Home charge Scheme grants towards home EV charge points and the On-street Residential Charging Scheme. Highways England have committed £15m to ensure EV charge points are available every 20 miles on the Strategic Road Network. -155 223 908 2,300 3,795 5,353 Improve fuel efficiency and reduce CO2 emissions of heavy goods vehicles. Implemented EC Regulation 661/2009 sets minimum requirements and introduces labelling for the rolling resistance, wet grip and external rolling noise of tyres.
Industry and Government are taking a range of actions to reduce freight emissions, including the Freight Transport Association’s Logistics Carbon Reduction Scheme, which encourages members to record, report and reduce emissions from freight. The Mode Shift Revenue Support scheme encourages modal shift from road to rail or inland waterway where the costs are higher than road, and where there are environmental benefits to be gained. It currently helps to remove around 800,000 lorry journeys a year from Britain’s roads. A similar scheme, Waterborne Freight Grant, can provide assistance with the operating costs associated with coastal or short sea shipping. 1 1 551 1,121 1,124 1,118 HGV natural gas policy Transport CO2, CH4, Implemented The Government has implemented measures to encourage alternatively fuelled HGVs including through reduced fuel duty rates for road fuel gases, and increasing rewards for renewable gaseous fuels under the Renewable Transport Fuel Obligation. We have recently consulted on proposed legislative amendments which would further increase support for renewable transport fuels suitable for heavy goods vehicles. The Government has helped operators establish and run fleets of alternatively fuelled HGVs through the Low Carbon Truck Trial. £11.3m funding has been provided, via competition, to part fund and test around 370 commercial vehicles, with most using a gas or dual fuel system (diesel and gas), and to develop refuelling infrastructure. Savings for this policy are captured within Improve fuel efficiency and reduce Implemented The Green Bus Fund (GBF) allowed bus companies and local authorities in England to compete for funds to help them buy new low carbon emission buses. The four rounds of the fund, which ran from 2009- 2014, added around 1250 Low Carbon Emission Buses onto England’s roads. The GBF has now been replaced by the Low Emission Bus Fund (LEBS) which offered £30m for bus operators and local authorities across England and Wales to bid for low emission buses and supporting infrastructure. This scheme funding is open from 2016-2019 and the successful bidders were announced in July 2016, adding more than 300 extra

Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) Improve fuel efficiency and reduce CO2 emissions of light goods vehicles. Implemented EC Regulation 510/2011 sets fuel efficiency targets for new Light Commercial Vehicles (LCV) to be achieved by 2017 and 2020. EC Regulation 661/2009 sets minimum requirements and introduce labelling for the rolling resistance, wet grip and external rolling noise of tyres. The regulation translates a fleet average CO target for new vehicles sold into the EU market into specific targets for individual manufacturers according to the mass of their fleet. Heavy fines are imposed for non-compliance. The 2020 target is for a fleet average of 147g CO represents a reduction of 19% from the 2012 average. Measures include the Plug-in Car and Plug-in Van Grants towards ultra-low emission vehicle (ULEV) cars and vans, as well as various tax incentives including lower rates for Vehicle Excise Duty and Company Car Tax. EV infrastructure is directly supported through the Workplace Charging Scheme grants for EV charge points for employees and fleets, the Electric Vehicle Home charge Scheme grants towards home EV charge points and the On-street Residential Charging Scheme. Highways England have committed £15m to ensure EV charge points are available every 20 miles on the Strategic Road Network. -155 223 908 2,300 3,795 5,353 Improve fuel efficiency and reduce CO2 emissions of heavy goods vehicles. Implemented EC Regulation 661/2009 sets minimum requirements and introduces labelling for the rolling resistance, wet grip and external rolling noise of tyres. Industry and Government are taking a range of actions to reduce freight emissions, including the Freight Transport Association’s Logistics Carbon Reduction Scheme, which encourages members to record, report and reduce emissions from freight. The Mode Shift Revenue Support scheme encourages modal shift from road to rail or inland waterway where the costs are higher than road, and where there are environmental benefits to be gained. It currently helps to remove around 800,000 lorry journeys a year from Britain’s roads. A similar scheme, Waterborne Freight Grant, can provide assistance with the operating costs associated with coastal or short sea shipping. 1 1 551 1,121 1,124 1,118 HGV natural gas policy Transport CO2, CH4, Implemented The Government has implemented measures to encourage alternatively fuelled HGVs including through reduced fuel duty rates for road fuel gases, and increasing rewards for renewable gaseous fuels under the Renewable Transport Fuel Obligation. We have recently consulted on proposed legislative amendments which would further increase support for renewable transport fuels suitable for heavy goods vehicles. The Government has helped operators establish and run fleets of alternatively fuelled HGVs through the Low Carbon Truck Trial. £11.3m funding has been provided, via competition, to part fund and test around 370 commercial vehicles, with most using a gas or dual fuel system (diesel and gas), and to develop refuelling infrastructure. Savings for this policy are captured within Improve fuel efficiency and reduce Implemented The Green Bus Fund (GBF) allowed bus companies and local authorities in England to compete for funds to help them buy new low carbon emission buses. The four rounds of the fund, which ran from 2009- 2014, added around 1250 Low Carbon Emission Buses onto England’s roads. The GBF has now been replaced by the Low Emission Bus Fund (LEBS) which offered £30m for bus operators and local authorities across England and Wales to bid for low emission buses and supporting infrastructure. This scheme funding is open from 2016-2019 and the successful bidders were announced in July 2016, adding more than 300 extra

96 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To allow the delivery of sustainable transport solutions that support economic growth, and £600m of capital and revenue funding between 2011 and 2015 to support sustainable travel investments by Local Government.
The projects include promoting public transport, encouraging uptake of cycling and walking, and raising awareness of the alternative transport modes available to commuters and residents Awards were made through competitive bidding processes. Since then revenue central Government has made funding of £65m (2015/16) and £20m( (p.a. 2016/17 to 2019/20) ) available for 618 1,034 931 523 328 197 Agricultural Action Plan * Agriculture CH4, N2O Reduce emissions from farming. Voluntary Implemented Range of resource-efficient and land management measures to reduce emissions to meet UK carbon budgets. - 1,000 2,429 3,197 3,197 3,197 Agri- Tech Strategy * Agriculture CH4, N2O Reduce emissions from farming. Economic Implemented Co-funded by industry and addressing industry priorities. Funding is split been projects – “the Agri-Tech Catalyst” – and new Centres of Agricultural Innovation. These technologies can contribute to agricultural efficiency and Nitrates Action Plan * Agriculture N2O Reduce nitrate pollution to water under the Improved compliance with the Nitrate Directive (91/676/ EEC). Designated revised “Nitrate Vulnerable Zones” (NVC); established a range of mandatory measures to reduce nitrate pollution to water in NVC. Also Code of Good 2O Reducing pollution to water. Economic, Implemented Delivers practical solutions and targeted support to enable farmers and land managers to take voluntary action to reduce diffuse water pollution from agriculture to protect water bodies and the environment. 2O Biodiversity and resource protection. Economic Implemented Provides income foregone support under Pillar 2 of the Common Agricultural Policy (CAP) for farmers to undertake management options that benefit biodiversity, resource Waste measures * Waste CH4 There are a number of waste measures whose overarching objective is to increase recycling/reuse and reduce harmful disposal. These include the Waste Framework Directive (2008/98/EC), Landfill Directive (1999/31/ EC), Waste Incineration Directive (2000/76/EC) and the UK Landfill Tax, an escalating tax on There are a number of waste measures with the aim of increasing recycling/reuse and reduce harmful disposal. The Waste Framework Directive (2008/98/EC): is the general framework of waste management requirements and sets rules governing the separate collection of waste. The Landfill Directive (1999/31/EC): sets rules governing the disposal of waste to landfill, The UK Landfill a tax on waste sent to landfill. There are other waste measures targeting other waste streams, such as the Waste Incineration Directive (2000/76/EC). The overall effect is reducing environmental impacts of waste, such as landfilling biodegradable waste and its associated

Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) To allow the delivery of sustainable transport solutions that support economic growth, and £600m of capital and revenue funding between 2011 and 2015 to support sustainable travel investments by Local Government. The projects include promoting public transport, encouraging uptake of cycling and walking, and raising awareness of the alternative transport modes available to commuters and residents Awards were made through competitive bidding processes. Since then revenue central Government has made funding of £65m (2015/16) and £20m( (p.a. 2016/17 to 2019/20) ) available for 618 1,034 931 523 328 197 Agricultural Action Plan * Agriculture CH4, N2O Reduce emissions from farming. Voluntary Implemented Range of resource-efficient and land management measures to reduce emissions to meet UK carbon budgets. - 1,000 2,429 3,197 3,197 3,197 Agri- Tech Strategy * Agriculture CH4, N2O Reduce emissions from farming. Economic Implemented Co-funded by industry and addressing industry priorities. Funding is split been projects – “the Agri-Tech Catalyst” – and new Centres of Agricultural Innovation. These technologies can contribute to agricultural efficiency and Nitrates Action Plan * Agriculture N2O Reduce nitrate pollution to water under the Improved compliance with the Nitrate Directive (91/676/ EEC). Designated revised “Nitrate Vulnerable Zones” (NVC); established a range of mandatory measures to reduce nitrate pollution to water in NVC. Also Code of Good 2O Reducing pollution to water. Economic, Implemented Delivers practical solutions and targeted support to enable farmers and land managers to take voluntary action to reduce diffuse water pollution from agriculture to protect water bodies and the environment. 2O Biodiversity and resource protection. Economic Implemented Provides income foregone support under Pillar 2 of the Common Agricultural Policy (CAP) for farmers to undertake management options that benefit biodiversity, resource Waste measures * Waste CH4 There are a number of waste measures whose overarching objective is to increase recycling/reuse and reduce harmful disposal. These include the Waste Framework Directive (2008/98/EC), Landfill Directive (1999/31/ EC), Waste Incineration Directive (2000/76/EC) and the UK Landfill Tax, an escalating tax on There are a number of waste measures with the aim of increasing recycling/reuse and reduce harmful disposal. The Waste Framework Directive (2008/98/EC): is the general framework of waste management requirements and sets rules governing the separate collection of waste. The Landfill Directive (1999/31/EC): sets rules governing the disposal of waste to landfill, The UK Landfill a tax on waste sent to landfill. There are other waste measures targeting other waste streams, such as the Waste Incineration Directive (2000/76/EC). The overall effect is reducing environmental impacts of waste, such as landfilling biodegradable waste and its associated

98 7th National Communication Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) HFCs Implement obligations under the Montreal Protocol and EU Regulations (2037/2000/ EC and 1005/2009/EC) on ozone depleting substances. Indirectly reduced emissions of HFCs which are a manufacturing by-product but increased their use This regulation implements obligations under the Montreal Protocol and EU Regulations (2037/2000/ EC and 1005/2009/EC) on ozone depleting substances. With the exemption of some critical use exemptions, CFCs and halon use is banned and HCFC use was banned from 2015. Most ozone depleting substances are potent greenhouse gases, so reductions in their use both protects the ozone layer and provides some GHG emissions mitigation. Implementation of EU MAC (2006/40) Directive and F-Gas Regulation (EC 842/2006) to reduce emissions of fluorinated greenhouse gases. Control (containment, prevention and reduction) of F-gas emissions through recovery, leak reduction and repair and some very limited use bans. Mandatory certification requirements to work with F gases.
F-gas regulation 2014 * Industry/Industrial Implementation of F-Gas Regulation (EC 517/2014) to reduce emissions of fluorinated Introduced an 80% phase down in the quantities of F gases that can be placed on the EU market delivered via a gradually reducing quota system; a number of bans on the use of certain F gases in some new equipment; a ban on the use of very high GWP HFCs for the servicing of certain types of refrigeration equipment; some strengthening of obligations in 2006 Regulation related to leak checking, repairs, F gas recovery and technician training. - - 4,569 8,470 12,343 14,458 Recent forestry policies * LULUCF CO2, CH4, Increase afforestation. Regulatory, Implemented Grouped savings produced by a selection of post-2009 2 Increase rate of afforestation. Voluntary Implemented Woodland Carbon Code (UK coverage): voluntary standard for forest carbon projects to attract private finance to 2 Increase rate of afforestation. Voluntary Implemented Exchequer-funded grant to support the creation of large-scale productive woodlands which also enhance Enhance removals and reduce emissions through woodland creation and sustainable Revised (2017) national standard for sustainable forest management to include a new guideline on climate change, covering both adaptation and mitigation. 2 Regulatory framework to limit deforestation and Strong regulatory framework that controls felling, only allows deforestation for purposes of nature conservation and prevents afforestation of deep peat. Legislation Grown in Britain * LULUCF CO2 Industry-led action plan with the objective of increasing woodland creation and the use of Industry-led action plan announced in Government’s Forestry and Woodlands Policy Statement (2013) which aspires to encourage businesses to invest in woodland creation and sustainable forest management practice. 2 Grant aid for afforestation. Economic Implemented Woodland creation grants provided through EU co-financed Rural Development Programmes in all four countries of 2 Strategy to increase wood fuel supply for Grant to support the planning of large-scale productive woodlands, compliant with the UK Forestry Standard. * Indicates that a mitigation action has been included in the ‘with measures’ projection. IE – included elsewhere. The impact of measure has been included in the UK’s emissions projection baseline, however no ‘without-measure’ counterfactual is available. estimation is available). Years may be selected by the party GHG = greenhouse gas; LULUCF = land use, land-use change and forestry. a Parties should use an asterisk (*) to indicate that a mitigation action is included in the ‘with measures’ projection. b To the extent possible, the following sectors should be energy, transport, industry/industrial processes, agriculture, forestry/LULUCF, waste management/waste, other sectors, cross-cutting, as appropriate. c To the extent possible, the following types of instrument should be economic, fiscal, voluntary agreement, regulatory, information, education, research, other. d To the extent possible, the following descriptive terms should be used to report on the status of implemented, adopted, planned. e Additional information may be provided on the cost of the mitigation actions and the relevant timescale. Sectors affected GHG affected Objective and or activity affected Type of Brief Description Start Year of Greenhouse Gas Saving (ktCO2 eq) HFCs Implement obligations under the Montreal Protocol and EU Regulations (2037/2000/ EC and 1005/2009/EC) on ozone depleting substances. Indirectly reduced emissions of HFCs which are a manufacturing by-product but increased their use This regulation implements obligations under the Montreal Protocol and EU Regulations (2037/2000/ EC and 1005/2009/EC) on ozone depleting substances. With the exemption of some critical use exemptions, CFCs and halon use is banned and HCFC use was banned from 2015. Most ozone depleting substances are potent greenhouse gases, so reductions in their use both protects the ozone layer and provides some GHG emissions mitigation. Implementation of EU MAC (2006/40) Directive and F-Gas Regulation (EC 842/2006) to reduce emissions of fluorinated greenhouse gases. Control (containment, prevention and reduction) of F-gas emissions through recovery, leak reduction and repair and some very limited use bans. Mandatory certification requirements to work with F gases. F-gas regulation 2014 * Industry/Industrial Implementation of F-Gas Regulation (EC 517/2014) to reduce emissions of fluorinated Introduced an 80% phase down in the quantities of F gases that can be placed on the EU market delivered via a gradually reducing quota system; a number of bans on the use of certain F gases in some new equipment; a ban on the use of very high GWP HFCs for the servicing of certain types of refrigeration equipment; some strengthening of obligations in 2006 Regulation related to leak checking, repairs, F gas recovery and technician training. - - 4,569 8,470 12,343 14,458 Recent forestry policies * LULUCF CO2, CH4, Increase afforestation. Regulatory, Implemented Grouped savings produced by a selection of post-2009 2 Increase rate of afforestation. Voluntary Implemented Woodland Carbon Code (UK coverage): voluntary standard for forest carbon projects to attract private finance to 2 Increase rate of afforestation. Voluntary Implemented Exchequer-funded grant to support the creation of large-scale productive woodlands which also enhance Enhance removals and reduce emissions through woodland creation and sustainable Revised (2017) national standard for sustainable forest management to include a new guideline on climate change, covering both adaptation and mitigation. 2 Regulatory framework to limit deforestation and Strong regulatory framework that controls felling, only allows deforestation for purposes of nature conservation and prevents afforestation of deep peat. Legislation Grown in Britain * LULUCF CO2 Industry-led action plan with the objective of increasing woodland creation and the use of Industry-led action plan announced in Government’s Forestry and Woodlands Policy Statement (2013) which aspires to encourage businesses to invest in woodland creation and sustainable forest management practice. 2 Grant aid for afforestation. Economic Implemented Woodland creation grants provided through EU co-financed Rural Development Programmes in all four countries of 2 Strategy to increase wood fuel supply for Grant to support the planning of large-scale productive woodlands, compliant with the UK Forestry Standard. * Indicates that a mitigation action has been included in the ‘with measures’ projection. IE – included elsewhere. The impact of measure has been included in the UK’s emissions projection baseline, however no ‘without-measure’ counterfactual is available. estimation is available).