Speed up electrification of industrial heat, urges UK Climate Change Committee

The UK must speed up electrification of industrial heat and undertake a rapid expansion of a low-carbon electricity system, according to the latest report from the Climate Change Committee, the UK government advisory body.

Its ‘Progress in reducing emissions’ report notes that more than half the energy used in the economy is wasted because of the inherent inefficiency of fossil fuels.

“Electrification could halve that waste. The transition to a predominantly home-grown energy supply system powering modern, efficient, electric technologies will reduce household bills, increase energy security, and improve air quality, as well as keeping the UK on the path to Net Zero,” it states.

The report finds the proportion of industrial energy use coming from electricity is currently 28% although emissions from the industry sector fell by 4.7 MtCO2e in 2024 compared with the previous year and are now 48% lower than 2008 levels.

“This will need to increase rapidly, as many industrial processes electrify. The UK’s high electricity-to-gas price ratio is a barrier to some industries choosing to electrify. The ratio of industrial electricity-to-gas prices remains above 4:1,” it states.

Source: Climate Change Committee

The UK’s forthcoming Industrial and Industrial Decarbonisation Strategy must support a rapid transition to electric heat across much of industry, including ensuring that financial barriers and non-financial issues such as grid connections do not hinder electrification, it added.

The report notes that linking the UK Emissions Trading System with the larger EU market should promote further decarbonisation in UK industry.

Most of the world is investing heavily in low-carbon technologies, driven by falling costs, energy security concerns, and a realisation of the need to respond to rising climate impacts. The pace of progress globally remains too slow “but the direction of travel is increasingly the right one,” to the extent that the UK can meet its interim Net Zero targets by 2030, and full target for 2050.

While final investment decisions have been reached on CO2 transport and storage infrastructure at both Track 1 carbon capture and storage (CCS) clusters, its assessment for engineered removals “has worsened due to delays to finalising business models”.

Trade body the Carbon Capture & Storage Association (CCSA) welcomed the CCC’s report and said it rightly raises concerns that the window for deploying CCUS in line with the UK’s carbon budgets is narrowing.

“The CCC’s report is a clear signal that we must move beyond strategy and into action,” said CEO Olivia Powis.

“While recent announcements from government are very encouraging, the focus must now shift from ambition to delivery.

“The CCSA echoes the CCC’s calls for government to finalise support frameworks for engineered GHG removals, and to move forward with the deployment of industrial emitter projects.”

She said this can be achieved by setting out next steps for utilising the storage capacity in HyNet and the East Coast Custer, reaching financial close on the Acorn project and Viking CCS, and outlining a clear future route to market for additional projects by establishing allocation rounds.