@timbolord Interesting to see that the UK govt does not expect hydrogen to be used widely for heating, in its core modelling pathway to cutting emissions 78% by 2035
(it does model an alternative "high resource" pathway where hydrogen heat is widespread)
@timbolord A key issue for hydrogen heat is that low-carbon hydrogen isn't expected to be available at scale by the mid-2030s, according to the UK govt
@timbolord Also interesting to see UK govt modelling finding that blue hydrogen is needed, but only in the "short to medium term" before truly zero-carbon supplies become available at large scale and lower cost
NEW: Why does gas set the price of electricity – and is there an alternative?
Make yourself a tea (or grab a beer??) and enjoy my Friday longread on marginal pricing, ideas for market reform – & how to break the link btwn gas & power prices for good
It seems like only yesterday that everyone was rushing to understand "marginal pricing" in the wake of Russia's invasion of Ukraine in 2022 – and the huge spike in gas prices
Since then, most will have seen this familiar chart on gas setting UK power prices… 2/8
Since then, both the UK govt + EU commission have studied – and then rejected – market-reform alternatives to the marginal pricing model
But gas prices just spiked again and the idea of doing away with marginal pricing is back in vogue
NEW: UK climate advisers now "more optimistic" net-zero goals can be met
🎯Net-zero "possible" + "good for economy"
📉CO2 halved vs 1990
📈More "credible" policies
🚘🏡EV/heat pumps soaring
But…
⚡"Critical" to cut power prices
✈️Flight CO2 "risk"
1/9
For the first time I can remember, the CCC says its progress report is "optimistic" about UK climate goals being hit. Interim chair Prof Piers Forster says he is "more optimistic" than last yr due to last govt's policies starting to deliver + changes since Labour took office
2/9
Another notable change is that the CCC seems to be getting less prescriptive…
CCC has faced (inaccurate) charges that it has, in effect, set govt policy. But it's now being clearer than ever that it only offers advice – and policy is up to govt.
IEA: Oil still on track to peak by 2030; oil for fuel to peak in 2027
"annual growth slows…to just a trickle over the next several years, with a small decline expected in 2030, based on today’s policy settings and market trends"
Here are some of the most striking charts 🧵 1/8
In recent years, global oil demand has been almost entirely driven by growth in China…
…and that party is now over
Equally, US "dominance" of rising oil supply is also a thing of the past 2/8
Since last year, the IEA has raised its oil demand outlook for the US, due to EV rollbacks etc, but it has simultaneously cut its outlook for China by the same amount
So global demand in 2030 is right where the IEA thought it would be last year 3/8
In Q1 of 2025, the clean-energy driven drop in power sector CO2 outweighed small increases in other sectors of China's economy, driving a 1.6% fall year-on-year overall
FACTCHECK: Almost all the headlines on Tony Blair / net-zero are *wildly* inaccurate
REALITY:
1️⃣Net-zero is *only way* to stop warming
2️⃣Blair calls for tech to "turbocharge our path to net-zero"
3️⃣He categorically *does not* say "net-zero is doomed to fail"
🧵 1/6
Blair says a "strategy based on either 'phasing out' fossil fuels in the short term or limiting consumption is a strategy doomed to fail"
This is logically & categorically not the same as saying "net-zero is doomed to fail"
(If you can't see why, I can't help you) 2/6
Nor does Blair say "current net-zero policies are doomed"
Because literally no govt in the world has a current net-zero policy to "phase out fossil fuels in the short term or limit consumption"
Instead, world's govts agreed at COP28 to "transition away from fossil fuels" 3/6
NEW: Official advisers CCC say UK shld cut emissions 87% by 2040
⚖️Net cost of net-zero 73% less than thought
💷Total cost to 2050 = £108bn (~£4bn/yr, 0.2% GDP)
🏡🚗H’hold energy/fuel bills to fall £1,400
🔌Electrification is key