A low carbon economy has three key characteristics:
- Firstly, electricity is generated from renewables and nuclear, not by burning fossil fuels.
- Secondly, transport is powered from renewable sources not by oil based fuels.
- Thirdly, people are much more frugal in their use of energy.
At the moment, nearly all of the energy we use in the UK is generated from high carbon, fossil fuels – coal, oil and gas. Not only are these fuels becoming increasingly expensive, but burning them produces some 500 million tonnes a year of carbon dioxide, the greenhouse gas primarily responsible for climate change. Because most scientists and governments agree that we must limit the emissions of greenhouse gases to prevent unacceptable climate change, the UK government has committed us to a 34% reduction in C02 emissions by 2020 and an 80% reduction by 2050. This will be possible only if we replace most of our oil, coal and gas fired power stations with nuclear power and renewable sources of energy – from wind, water and sun.
40% of the UK’s total C02 emissions are from transport – cars, lorries, ships, planes and other oil driven vehicles. In order to hit those C02 emission reduction targets we are going to have to replace most of our transport fleet with low carbon alternatives. So far as road vehicles are concerned, electric cars look promising, although there are other technologies around, including hydrogen fuel cells and biofuels.
The low carbon economy isn’t just about alternative sources of power – it’s about being much more frugal with the energy we have. Almost a quarter of the power we currently use in the UK goes to heat and light buildings, even though it’s comparatively easy to halve the energy usage of a house or office with better insulation and low energy lighting. Being frugal with energy is a key aspect of the low carbon economy, and new technologies such as smart grids will enable us to be more frugal without a negative impact on the quality of our lives.
Moving from the high carbon economy of the 20th Century to the low carbon economy of the 21st isn’t going to be easy. The scale of the challenge is huge, and many of the technologies are controversial. But as the change happens, every business and every organisation will be affected. Some will thrive in this new business environment, and some will struggle or fail. Is your business ready to rise to the challenge of the low carbon economy?