building a low-carbon economy the uk’s innovation challenge 19 th july 2010
TRANSCRIPT
Building a low-carbon economy
The UK’s innovation challenge19th July 2010
www.theccc.org.uk
Main messages
Current levels of public RD&D spend are a minimum: • cuts will damage achievement of our climate goals • funding increases should be an urgent priority as financial pressures ease
Government should address current uncertainties by setting out its strategy for meeting the 2050 target
The landscape of delivery bodies should:• be aligned with Government objectives• provide seamless coverage of all stages of innovation• be simple to understand and access• implement improved monitoring
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Presentation structure
To review the effectiveness of research and innovation arrangements in the UK related to
achieving our climate change goals
The Committee should:
•consider issues at a high strategic level,
•draw on existing information and analysis,
•decide on which areas/sectors to place greatest attention
Terms of reference
4
The innovation system: RDD&D
Source: Energy Research Partnership
Our approach
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Presentation structure
Dominant designs, lack of product differentiation, uncertainty and knowledge spillovers mean that support is required
The case for intervention
Source: ONS/CCC
Low levels of innovation in key
sectors for climate change mitigation
Energy RD&D funding: historically low
UK public sector energy RD&D spend 1974-2008
$US
D m
illio
ns
Source : IEA
Compared to other countries: low
Source: IEA
UK is failing to exploit the opportunities offered by a low-carbon economy
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Presentation structure
Technology pathways to 2050
Broadly consistent view of technologies required to meet 2050 targets
Illustrative scenario
Develop and Deploy
● Technologies not yet competitive with high-carbon alternatives● UK has relevant capabilities● UK well placed to accelerate development
Deploy
● UK appears to lack an advantage● Unlikely to influence direction of development
● may develop some components ● can participate in international collaborations
Research & Develop
●Technologies further from market● Unclear which country has, or will have, an advantage● Potential for UK to lead/continue to lead some research areas
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Presentation structure
Low-carbon RDD&D spend
Estimated spend in 2009/10
Power
Transport
Buildings & industry
Agric & Waste
Other
£ 550 million
£5 billion deploymentsupport* £0.5bn
RD&D
* Deployment support comprises two-third levies and one-third expenditure
Very difficult to estimate, data not routinely
collected
Consider funding changes
Any cuts to public expenditure on low-carbon RD&D would be detrimental to the achievement of our climate goals
Deployment barriers
Barriers to deployment are as important as RD&D support
Background to the review
The case for intervention
Technologies the UK needs to develop & deploy
Provision of public sector support
The required institutional framework
Presentation structure
Today: Objectives to 2050 and beyond but a strategy only to 2020
Government should:
Long-term objectives & focus
Government strategy should focus on increasing:
International engagement
Delivery bodies should:
Delivery bodies
Improved monitoring and evaluation requires:
Monitoring and evaluation
Main messages
Current levels of public RD&D spend are a minimum: • cuts will damage achievement of our climate goals • funding increases should be an urgent priority as financial pressures ease
Government should address current uncertainties by setting out its strategy for meeting the 2050 target
The landscape of delivery bodies should:• be aligned with Government objectives• provide seamless coverage of all stages of innovation• be simple to understand and access• implement improved monitoring
Future work of the Committee
• Review of the second phase cap for the Carbon Reduction Commitment
• Advice on the level of the fourth budget
• Review of the second phase cap for the Carbon Reduction Commitment
• Advice on the level of the fourth budget
• Review of renewable energy ambition
• Advice on the Scottish cumulative emissions budget
• Third annual report to Parliament
• Advice on use of offset credits to meet the second carbon budget
• Review of international shipping emissions
• Review of sustainable bioenergy
• Review of renewable energy ambition
• Advice on the Scottish cumulative emissions budget
• Third annual report to Parliament
• Advice on use of offset credits to meet the second carbon budget
• Review of international shipping emissions
• Review of sustainable bioenergy
• Advice on inclusion of international aviation & shipping in carbon budgets
• Fourth annual report to Parliament
• Advice on inclusion of international aviation & shipping in carbon budgets
• Fourth annual report to Parliament
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20122012