ESG Savings and investments Responsible investment

Reasons to be cheerful: UK achieves seismic results in carbon emissions and fusion

With climate anxiety growing it's often hard to determine if the UK is making progress in achieving a truly clean economy. But there are some recent developments that show we're heading in the right direction

23 Oct 2024
  • Katrina Brown
Katrina Brown
Authors
  • Katrina Brown Katrina Brown
Fusion

There have been two welcome developments for clean power within the UK this year. This comes at a time when many are suffering from climate anxiety, where people feel a helplessness caused by the threat of negative climate effects. In a study by PERITIA, a European Union (EU) funded project that investigates public perception, 75% of people said they were worried about the impact of climate change while 62% said that they would like to know more about it.1

The first positive announcement was made by the Department for Energy and Net Zero in February this year. The UK is the first major economy to halve its total greenhouse gas (GHG) emissions between 1990 and 2022, while also growing its economy (by 79%).2

In addition, earlier this year, a new world record had been set at the UK based JET laboratory using nuclear fusion to produce energy, where the results are triple what was achieved in similar tests back in 1997.3 A newly formed body, UK Industrial Fusion Solutions, is tasked with making this project a commercial reality by 2040.4

The total GHG emissions reduction statement follows on from data released in late 2023, which showed that the UK had cut its carbon emissions from fossil fuels in half compared to the peak in 1970. This makes the UK the first G20 country to achieve this reduction. Illustrated in the graph below carbon dioxide emissions from fossil fuels are now below 320 million metric tons, a level not reached since the late 1800s.5

UK Carbon emissions from fossil fuels have fallen to 1893 levels

Territorial UK emissions, those produced within a country’s borders and excluding emissions generated from imports of goods purchased by UK consumers, have been falling steadily since the 1990s. Throughout this period, significant reductions can largely be attributed to the decarbonisation of the power sector, where emissions from electricity generation have fallen 69% since 2010 and coal output is likely to be phased out completely in 2024.6

Renewable energy provided 42% of the power nationally in 2023 making it the single largest source to the grid that year. High fuel prices have driven the development of energy efficiencies within combustion engines, and the inclusion of low-carbon fuel additives such as E10 petrol has cut emissions from transport.  

Other sectors have also reduced their footprint, with total GHG emissions from agriculture falling by 17% between 1990 and 2022.7 Business and residential emissions have fallen by 44% and 28% over the same period respectively.8 In addition, emissions generated from imports of goods purchased by UK consumers are estimated to have dropped by 23% since 1990.9

Hope for the future?

Tucked away in the Midlands, a newly created programme, will aim to deliver fusion energy via the Spherical Tokamak for Energy Production (STEP). This could provide us with limitless clean energy, using the same process that powers stars.  

According to the International Energy Agency, nuclear fusion could generate four times more energy per kilogram of fuel than fission (the process currently used in nuclear power plants) and nearly four million times more energy than burning oil or coal.10 Now the mission of STEP and UK Industrial Fusion Solutions is to make this a commercial reality.

While there is still a long way to go to achieve a truly clean economy, these developments will hopefully retain a significance for many years to come.  

If you have any questions about this article, your own financial plan or investment strategy, speak to your usual Evelyn Partners contact, book an initial consultation online or call 020 7189 2400. 

Glossary

Greenhouse gas (GHG): A greenhouse gas is defined as any gas that has the property of absorbing infrared radiation (net heat energy) emitted from Earth’s surface and reradiating it back to Earth’s surface, thus contributing to the greenhouse effect. Carbon dioxide, methane, and water vapour are the most important greenhouse gases. To a lesser extent, surface-level ozone, nitrous oxides, and fluorinated gases also trap infrared radiation. Greenhouse gases have a profound effect on the energy budget of the Earth system despite making up only a fraction of all atmospheric gases.11

Total greenhouse gas emissions and CO2 emissions are both discussed in this article. Methane and nitrous oxide are examples of gases, along with carbon dioxide, that are included in total GHG emissions. Human produced CO2 emissions are largely generated from the combustion of oil, coal and gas. 

Nuclear fusion: This is the process by which two light atomic nuclei combine to form a single heavier one while releasing massive amounts of energy. The sun, along with all other stars, is powered by this reaction. High temperatures provides the nuclei with enough energy to overcome their mutual electrical repulsion. Once they come within a very close range of each other, the attractive nuclear force between them will outweigh the electrical repulsion and allow them to fuse. For this to happen, the nuclei must be confined within a small space to increase the chances of collision.11  

Disclaimer

Past performance is not a guide to future performance.

By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.

The value of an investment may go down as well as up and you may get back less than you originally invested.