UK’s new climate targets to reinforce green competition, says GlobalData

Following the news that the UK’s sixth Carbon Budget will set in law new targets to cut emissions 78% by 2035, compared to 1990 levels, and incorporate the UK’s share of international aviation and shipping emissions;

The Thematic Team at GlobalData gives their view on the situation:

Luke Gowland, Thematic Analyst at GlobalData, a leading data and analytics company, comments:

“The announcements are certainly to be welcomed and reflect the increased urgency for action on climate. While there is a lack of a detailed roadmap to meet the targets, it reinforces previous government commitments to de-carbonize the industrial sector, sending a clear message to companies that they need to make sustainability a priority.”

Alice Cordo Gallucci, Thematic Analyst at GlobalData, adds:

“In the past, many companies felt answerable only to shareholders. Today they recognize they have a variety of different stakeholders. However, all stakeholders have the same goal when it comes to climate: halting greenhouse gas emissions. This unified pressure sets up a positive feedback loop that drives de-carbonization across all sectors and geographies.

“No individual stakeholder can tackle the climate crisis alone. Such a titanic challenge requires a concerted and coordinated effort from a range of actors. While still nascent, the government announcements show a positive feedback loop in action.”

Warren Wilson, Lead Analyst at GlobalData, adds:

“One of the overriding narratives around climate change is the desire to have government do even more. Highlighting a big problem in this whole realm, which is the wish for someone else to solve the problem. The point of the feedback loop is that all stakeholders are pushing in the same direction; consumers, partners, NGOs, regulators, investors all want the same thing and are pushing for it in the choices they make.

“It doesn’t depend on any one type of stakeholder to solve it for all. If all stakeholders realize they’re having an impact, they’ll push harder. Consumers will make more sustainable choices; employees will gravitate toward green firms; partners will prefer to do business with green suppliers, and companies will face fewer lawsuits and fines.”

More from GlobalData:

Somik Das, Power Analyst at GlobalData, notes:

“In the power segment, the focus of the UK government would be on clean power comprising renewable technologies such as biopower, geothermal, hydropower, solar and wind power.

“The limelight is likely to be more on clean power generated from wind and solar. As per GlobalData’s database, wind and solar together formed 75.2% of the capacity mix in 2020, which is anticipated to shape around 80-82% by the end of the decade.

“Shaping 42% of the overall wind capacity in 2020, offshore wind is likely to hold a lot of promise for the nation.

“As capacity additions take place in clean energy, the UK Government has set a deadline for eliminating emission causing coal-based power generation by 2025. Besides, the government has expressed the desire of bringing this deadline forward by a year.”

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