Removing carbon from electricity production (decarbonisation of power) is crucial, both to reduce power sector emissions and so that low-carbon electricity can be extended to other sectors of the economy, for example,  to heat and transport.

The CCC’s December 2008 report found that meeting the 2050 target at least-cost relies on substantial decarbonisation of the power sector by the 2030s and a key role for the power sector in decarbonising heat and transport through electrification.  

Emissions from the power sector need to be reduced by 50% by 2020, which will require the carbon-intensity of the electricity we use to fall from 540gCO₂/kWh today to less than 300 gCO₂/kWh in 2020.

The Committee’s 1st progress report (October 2009) set out the investments that would be required to meet this reduction and in our 2nd progress report (June 2010), the Committee reported on Government’s progress in this area to date.

Achieving decarbonisation will involve moving away from the use of conventional coal and gas-fired power to increasingly using electricity generated from on- and off-shore wind, carbon capture and storage (CCS) and nuclear power.

It is also important to plan now for low-carbon generation in the future by ensuring that by the end of the third budget period in 2022, there is sufficient investment in low-carbon capacity to keep us on track to meeting our emissions targets.

It is essential to make low-carbon investments in the first three budgets because:

• Power plants have long lifespans - failure to make the investments required now for the low-carbon world of the future could lead to lock-in to high-carbon power generation in the 2020s and 2030s, which is likely to be costly, and could jeopardise the UK’s ability to reduce emissions. 
• A large amount of current capacity is due to retire in the next 10 years, presenting us with an opportunity to make low-carbon investments now and for the UK to seize opportunities which are presented by low-carbon generation

Declining carbon-intensity and increasing generation of electricity to 2050

Source: CCC Based on AEA (2008) MARKAL-MED model runs of long-term carbon reduction targets in the UK