Research shows importance of tailored carbon reduction measures

A report published  by PwC – accelerating net zero delivery: unlocking the benefits of climate action in UK city-regions – highlights the importance of a “place-based” approach to carbon reduction measures.

The research was commissioned by Innovate UK and carried out by PwC with Otley Energy and the University of Leeds.

It uses economic modelling, focusing on six city-regions with different characteristics, comparing the costs and benefits of a “place-specific” approach compared to a “place-agnostic” approach when delivering low-carbon measures and projects in the buildings and transport sectors.

It shows that when cities are able to adopt the most socially cost-effective combination of low-carbon measures based on local characteristics, needs and opportunities, far less investment is needed.

It also creates nearly double the energy savings and social benefit.

The research studied these six city regions across the UK:

• Belfast
• Cambridgeshire and Peterborough
• Glasgow
• Greater Manchester
• Liverpool
• Swansea Bay.

A wide range of low-carbon measures were analysed including:

• electrification of transport and freight
• local and district heating networks
• building insulation and energy efficiency
• promoting cycling and walking.

A place-based approach could mean, for example:

• a city with mostly Victorian building stock prioritising measures to improve glazing and insulation
• an urban area with high traffic levels focusing on active or public travel measures that improve air quality as well as carbon reduction.

The report finds that there are significant barriers in the way of effective place-based approaches to realise these benefits, and calls for a new delivery framework to coordinate local delivery with national policy, taking a whole-systems approach.

Such a framework would include:

• a revised governance model
• consistent portfolio design and management approaches
• refreshed funding and finance instruments
• targeted development of skills and capacity.

The report’s reommendations include:

• central government to give devolved and local government a clear mandate:
  • for local net zero delivery where aligned to their responsibilities in housing, building and local transport
  • to design and implement a national delivery framework that supports enhanced local net zero action as part of a whole-system approach
• local government to take accountability for net zero portfolios for buildings and transport, identify the most appropriate measures to take for each place and coordinate with local businesses and communities to prioritise opportunities
• businesses to engage with local low-carbon planning and portfolios, and develop business models, products, services, skills, and financing solutions that can deliver local objectives
• investors to engage with government on investment priorities and strategies, and investigate local net zero financing opportunities.

Speaking at a pre-publication event, Lord Callanan, Minister for Business, Energy and Corporate Responsibility, said: “Today’s research provides some useful insights into how national and local government can work together to achieve net zero.

“It’s particularly significant because this is the first time that social and economic benefits of place-based net zero delivery have been modelled.

“I know that this novel research will not only be of interest to policymakers but to planners, businesses, communities, and to investors.

Rob Saunders, director of UK Research and Innovation (UKRI)’s prospering from the energy revolution programme at Innovate UK, said: “Building on the government’s net zero strategy, this study presents the missing piece of the puzzle for accelerating net zero delivery in UK city-regions.

“It makes a powerful economic case for localised approaches and supports government planning for how place-based delivery could work, potentially enabling projects worth billions of pounds to bring better net zero lives for residents across the UK.”