The power sector Around 50%of the annual emissions cuts between now and 2020 wil ...

The power sector Around 50%of the annual emissions cuts between now and 2020 will be achieved by further greening of the electricity mix. The Government expects 40% of the electricity we use in 2020 to come from low carbon sources - 30% from renewables, the rest from nuclear (including new build) and clean coal. We need to all-but eliminate carbon from electricity by 2050. Some new measures: up to £6mn to start development of a ‘smart grid’, including a policy road map next spring; DECC to take direct responsibility from Ofgem for establishing a new grid access regime within 12 months; launch of the new Office for Renewable Energy Deployment in DECC to speed up the growth of renewables in the UK; and a consultation covering the changes to the existing Renewables Obligation, such as extending the life-time of the RO to at least 2037 and the introduction of a 20 year limit on support, to make it capable of delivering some 30% of our electricity from renewables. Homes and communities Around 15%of the annual emissions cuts between now and 2020 will be achieved making our homes more efficient and supporting small scale renewable energy. Some new measures: ‘Pay as you save’ pilots helping people make their whole house greener by using the savings made on energy bills to repay the upfront costs, backed by up to £4mn from low carbon investment funding; consultation on the shape and rates of a new ‘clean energy cash-back’ scheme (feed-in tariff) to be in place by April next year - a similar scheme for renewable heat will follow in April 2011; extending the current CERT energy efficiency programme by a year to 2012; and a new personal carbon incentive scheme to challenge people on a voluntary basis to save energy, through the Government’s Act on CO2 campaign. Workplaces and jobs Around 10%of the annual emissions cuts between now and 2020 will be achieved through greater efficiencies in our workplaces. By 2050, offices, factories, schools and hospitals need to reduce emissions to almost zero. Some new measures: up to £120mn from low carbon investment funding to significantly advance the offshore wind industry in the UK; up to £60mn fromlow carbon investment funding announced in the Budget to cement the UK’s position as a global leader in wave and tidal energy; and the public sector must lead by example - DECC has challenged itself to reduce emissions from its own building by 10% in 09/10 with more to follow. Transport system Around 20%of the annual emissions cuts between now and 2020 will be achieved by cleaning up the way we travel. By 2050, road and rail transport will be largely decarbonised and aviation and shipping will have seen a significant improvement in efficiency. Some new measures: providing proposed detail on the kinds of electric and plug-in hybrid cars that could qualify for the £2000-£5000 consumer incentives expected to apply from 2011, including the requirement for the vehicle to have maximum tailpipe emissions of 75g CO2/km; and commitment to work with our European partners to develop a robust mechanism for regulating carbon dioxide from new vans. Farms, land and waste Around 5% of the annual emissions cuts between now and 2020 will be achieved by reducing emissions from agriculture, land use and waste. Some new measures: for the first time ever, an ambition for agriculture to cut emissions - changes to farming practices can save farmers money and contribute 6% cuts by 2020; support for anaerobic digestion, a technology that turns waste and manure into renewable energy; and reducing the amount of waste sent to landfill, and better capture of landfill emissions.

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