Economic Report 2017

E C ONOM IC R E P OR T 2 0 1 7 E C M C R E P R T 2 0 1 7

3.2 T h e R ole for Oil and Gas in t h e L ow e r - C ar b on E conom y It is w ide ly r e cognise d t h at clim at e ch ange is a glob al ch alle nge t h at r e q uir e s a colle ct iv e r e sp onse . T o de liv e r a loǁerͲcarďon Ĩuture, Ĩurther suďstantial imƉroǀements in energy eĨĨiciency comďined ǁith maũor changes in t h e fue l m ix w ill b e r e q uir e d. Oil & Gas UK r e cognise s t h e im p or t ance of addr e ssing clim at e ch ange and m e e t ing car b on t ar ge t s as ke y e le m e nt s of UK e ne r gy p olicy . It is com m it t e d t o p lay ing it s p ar t in b uilding a sust ainab le indust r y t h at is p r ogr e ssiv e ly low e r ing it s e m ission int e nsit y in t h e p r oduct ion of oil and gas. T h e r e ne e ds t o b e an aƉƉroƉriate ďalance ďetǁeen meeting greenhouse gas ;G,GͿ emission reduction targets ǁith the need Ĩor secure and affor dab le e ne r gy sup p ly t h at can sust ain gr ow t h in t h e e conom y . It is im p or t ant t h at t h e UK Gov e r nm e nt ’ s Indust r ial St r at e gy r e cognise s t h at oil and gas w ill r e m ain p ar t of a div e r se m ix of fue ls t h at is r e q uir e d t o e nsur e t h e se cur it y of t h e UK’ s fut ur e e ne r gy sup p ly w h ile ach ie v ing e m issions r e duct ion t ar ge t s. C e nt r al t o t h is is an e ne r gy p olicy t h at r e alise s t h e full b e ne fit s of indige nous r e sour ce s. Under the limate hange Act ;200ϴͿ, the UK has set amďitious targets to reduce emissions ďy ϴ0 Ɖer cent oĨ 1ϵϵ0 leǀels ďy 20ϱ0͘ These targets are outlined in arďon udgets, mandated ďy legislation, to helƉ comďat the r isks of clim at e ch ange . T h e UK Gov e r nm e nt ’ s r at ificat ion of t h e P ar is A gr e e m e nt in 2016 fur t h e r e m p h asise s t h e com m it m e nt t o ach ie v e t h e se t ar ge t s.

Figure 5: Total UK Greenhouse Gas Emissions

9 00

Total Greenhouse Gas E missions

8 00

F orecast Greenhouse Gas E missions

7 00

6 00

3 00 Million Tonnes CO 2 E q uiv alent 4 00 5 00

2 00

100

2 nd Carbon B udget

1 st Carbon B udget

3 rd Carbon B udget

4 th Carbon B udget

5 th Carbon B udget

0

2 03 2

2 03 4

2 02 4

2 02 6

2 02 8

2 02 2

19 9 4

19 9 6

19 9 8

19 9 2

19 9 0

2 03 0

2 018

2 02 0

2 012

2 014

2 016

2 006

2 008

2 010

2 000

2 002

2 004

Source: B E I S

1 2 1 2