Opportunities for Climate Tech Innovators Arise from UK's Mission Zero
The UK initiated an independent review in 2022 to identify ways to fulfil its legal obligation of achieving net zero by 2050 while also promoting substantial economic and social advantages. The review produced Mission Zero, a blueprint that highlights the economic potential of the energy shift and offers suggestions on how to reach the objective. MP Chris Skidmore, who served as the energy minister when the net zero goal was enshrined into law in 2019, authored the review.
Mission Zero is an important signal and a positive step in supporting the energy transition. Here are five of its proposals that will foster innovation and development in the climate technology sector:
1. Regulating Carbon Credits?
One of the most significant methods to reduce emissions worldwide is to protect natural ecosystems and channel capital flows towards areas of immediate impact. However, there is currently a lack of transparency and poor data quality. Skidmore has suggested the creation of a regulatory framework to ensure the quality of carbon credits, which represents a positive shift. This proposal should provide reassurance to companies that strive to enable high-quality offset markets.
2. Scaling Greenhouse Gas Removals (GGRs)
According to Mission Zero, greenhouse gas removals are crucial for achieving net zero, and the UK must hasten the development of the GGR industry to capture the 40 to 100 MtCO2 per year of residual emissions projected to remain in 2050. Many European businesses are discovering inventive means of directly extracting carbon from the atmosphere, but such initiatives require high confidence in offtake volume and pricing.. Skidmore's review reinforces the necessity of long-term commitment, sending an important message to these innovators.
3. Enhancing Emissions Reporting?
Mission Zero urges enhanced emissions reporting in both public and private sectors, as it is crucial for converting ambitious reduction targets into tangible actions. The Office for National Statistics in the UK will be tasked with helping businesses to find ways to reliably track emissions through their supply chains. The enhanced reporting standards aim to combat greenwashing, while voluntary reporting will eventually become mandatory, on par with financial reporting. These changes support the growing ecosystem of companies helping large enterprises and SMEs monitor, track and act on their emissions.
4. Innovating in Mobility
Europe is a leader in decarbonizing transportation, with significant incentives for electric vehicle (EV) adoption and a looming ban on passenger vehicles with combustion engines (by 2025 in Norway, by 2030 in the UK, and throughout the EU by 2035). Mission Zero is correct in highlighting the unresolved decarbonization challenges in commercial transportation.
5. Investing in a Circular Economy
Skidmore's evaluation advocates for greater investment in the circular economy, emphasizing its potential to diminish emissions and generate job opportunities. It suggests that the UK should intensify its minimum recycled content standards and strive to eradicate plastic waste. This endeavor will necessitate substantial advancements in recycling technologies and the emergence of innovative materials to bridge the gap.
