Comment & Analysis
Support and Financing Net Zero
Engineers will be at the heart of the energy transition to Net Zero. To meet global and UK Government climate change objectives set for 2050, we need to reduce energy consumption significantly and switch to low-carbon sources of energy—primarily wind, solar and nuclear. Any continuing hydrocarbon sources must be produced sustainably or include carbon capture. This is arguably the biggest engineering project ever undertaken by humankind, requiring funding on an unprecedented scale.
Net Zero solutions will only be adopted widely if their costs are comparable to existing solutions and any risks are balanced by return on investment. Reducing risk and the cost of capital in non-established and uncertain markets is essential. The stability and predictability of support measures to aid investment are as important as the emission reduction interventions themselves, and governments must strike a fine balance. For example, policies such as long-term subsidies, tax incentives, and stable regulatory frameworks can encourage investment. However, inconsistent market interventions will have the opposite effect to that intended.
To make significant strides, we need to invest in commercial-scale demonstration projects across the country. These projects will help us identify what works, what doesn't, and what can meet cost targets. Rapid prototyping and testing—often referred to as "fail fast" approaches—are essential, particularly for the sectors that are harder to decarbonise or electrify in the coming decades. Prioritisation of demonstration sites will be important during the next Parliament.
Energy Optimisation
The Institution has long championed the energy hierarchy as an effective framework to guide sustainable energy policy and decision-making. One of the most immediate and impactful actions is to reduce energy demand and improve energy efficiency, which often pays for itself through cost savings. This involves measures such as enhancing insulation in buildings, promoting energy-saving technologies, and optimizing industrial processes to use less energy.
Optimising the electricity grid is another crucial aspect. This includes integrating smart technologies that can balance supply and demand more effectively and incorporating storage solutions. By optimising the grid, we can reduce waste and ensure that energy generated from renewable sources is used efficiently.
Adapting to Changing Climates
This year has already seen unprecedented heat across the world. In the UK, Spring 2024 was the warmest on record, and 2023 was confirmed as the world's hottest year on record. There is no doubt that the world is heating up. The temperatures we have been experiencing in the UK pose serious risks to health, wellbeing, and prosperity. Impacts include changes in health risks, the spread of disease, reduced cognitive function, increased risk-taking, and disrupted sleep. It's not just our health at risk, industrial assets will also be impacted; many of which significantly contribute to our economic activity, such as the cooling of data centres, production of pharmaceuticals and refrigeration of food and drink. Furthermore, our buildings are not designed for warmer ambient temperatures.
In our 2023 report, ‘Adapting Industry to Withstand Rising Temperatures and Future Heatwaves’, we recommended that governments recognise the threat of higher ambient temperatures and heat extremes that underpin their national and local economic well-being. This needs to include raised awareness of the impact of heat and ensuring planning policy includes an evaluation of climate change-induced heat impacts.
The provision of cooling will be vital in adapting to climate change, but we must ensure that in adapting to changing climates we do not make the mitigation challenge harder. In line with the energy hierarchy, the need for active cooling should be reduced through the encouragement of behavioural change and nature-based and passive solutions. Examples include designing buildings with better natural ventilation, using green roofs and walls to provide insulation, and urban planning that incorporates more green spaces to reduce the urban heat island effect. Cooling needs to be higher on the agenda.
This is a grand and complex challenge. This is why, at the Institution, we are in the process of creating a new policy panel on our priority area, ‘Climate Change and Sustainability’, to leverage the wide expertise of our members to find solutions. We look forward to the start of the new Parliament and the opportunity to collaborate.
Image credit: Kervin Edward