UK ‘leads the G20 nations in green growth’

The UK is strongly outperforming its peers within the G20 group of nations on reducing emissions, according to PwC’s Low Carbon Economy Index (LCEI). New analysis reveals that in 2016, the UK achieved a decarbonisation rate of 7.7% – almost three times the global average of 2.6% and putting it at the top of the LCEI table.

Now in its ninth year, the LCEI tracks G20 countries’ progress in reducing the carbon intensity of their economies – ie energy-related greenhouse gas emissions per million dollars of GDP. Initial results show the UK continued to make progress in 2016 despite uncertainties around Brexit. The UK reduced its energy-related emissions in 2016 by 6%, driven largely by a dramatic fall in coal consumption, while maintaining GDP growth of 1.8%. Energy demand fell by 1.4% due to continued improvements in energy efficiency in buildings, vehicles and appliances.

China, the world’s largest emitter, reduced its carbon intensity by 6.5% and is ranked second in the Index.

According to the LCEI analysts, the UK also leads the G20 in having the highest average decarbonisation rate since 2000. The carbon intensity of the UK has fallen this century by 3.7% a year on average, the highest of the G20 countries. The rate achieved is significantly better than the average reductions needed by countries to meet their national Paris targets (or Nationally Determined Contributions – NDCs).

Jonathan Grant, Director of Climate Change and LCEI co-author at PwC, commented: ‘We’re using less coal and investing in more renewable power. However this transition away from coal is now nearly complete. The UK now needs to tackle other parts of the economy – whether it’s increasing renewables or efficiency improvements – in order to maintain its position as a climate leader.’ Grant continued: ‘Despite strong performances in reducing carbon emissions particularly within the electricity sector, the UK continues to rely on oil and gas.

Tackling transport emissions and heating and cooling will be the next big challenges. It’ll be policies in the next one to two years that will provide signals to investors and consumers to sustain UK’s decarbonisation.’