Policy & Socio-Economics

Horizon 2020 is the biggest EU Research and Innovation programme ever with nearly €80 billion of funding available over 7 years (2014 to 2020) – in addition to the private investment that this money will attract. It promises more breakthroughs discoveries and world-firsts by taking great ideas from the lab to the market.<br/>Horizon 2020 is the financial instrument implementing the Innovation Union a Europe 2020 flagship initiative aimed at securing Europe's global competitiveness.<br/><br/>Seen as a means to drive economic growth and create jobs Horizon 2020 has the political backing of Europe’s leaders and the Members of the European Parliament. They agreed that research is an investment in our future and so put it at the heart of the EU’s blueprint for smart sustainable and inclusive growth and jobs.<br/><br/>By coupling research and innovation Horizon 2020 is helping to achieve this with its emphasis on excellent science industrial leadership and tackling societal challenges. The goal is to ensure Europe produces world-class science removes barriers to innovation and makes it easier for the public and private sectors to work together in delivering innovation.<br/><br/>Horizon 2020 is open to everyone with a simple structure that reduces red tape and time so participants can focus on what is really important. This approach makes sure new projects get off the ground quickly – and achieve results faster.<br/><br/>The EU Framework Programme for Research and Innovation will be complemented by further measures to complete and further develop the European Research Area. These measures will aim at breaking down barriers to create a genuine single market for knowledge research and innovation.

As countries around the world rally behind net zero targets hydrogen is increasingly seen as a missing piece of the energy transformation puzzle to decarbonise harder-to-abate sectors. The possible pathway on which hydrogen might evolve still involves many uncertainties. With the growing momentum to establish a global hydrogen market comes the need for a deeper understanding of its broader effects including geopolitical aspects. IRENA has carried out an in-depth analysis of the geopolitics of hydrogen as part of the work of the Collaborative Framework on the Geopolitics of Energy Transformation (CF-GET). The report builds on IRENA’s substantial body of work in hydrogen and benefits from a wide range of expert input in the fields of energy and geopolitics.

This report considers whether and how hydrogen may disrupt future energy systems reflecting on many of the key themes discussed in the Global Commission’s report A New World – The Geopolitics of the Energy Transformation. The analysis offers insights into how countries and stakeholders can navigate the uncertainties and shape the development of hydrogen markets and outlines policy considerations to help mitigate the geopolitical risks and capitalise on opportunities. Some of the key findings of the report include:

• Hydrogen is part of a much bigger energy transition picture and its development and deployment strategies should not be considered in isolation.
• Setting the right priorities for hydrogen use will be essential for its rapid scale-up and long-term contribution to decarbonisation efforts.
• The 2020s could become the era of a big race for technology leadership as costs are likely to fall sharply with learning and scaling-up of needed infrastructure. Equipment manufacturing offers an opportunity to capture value in the coming years and decades.
• Hydrogen trade and investment flows will spawn new patterns of interdependence and bring shifts in bilateral relations.
• Countries with an abundance of low-cost renewable power could become producers of green hydrogen with commensurate geoeconomic and geopolitical consequences.
• Hydrogen could be an attractive avenue for fossil fuel exporters to help diversify their economies and develop new export industries.
• Supporting the advancement of renewable energy and green hydrogen in developing countries is critical for decarbonising the energy system and can contribute to global equity and stability.
• International co-operation will be necessary to devise a transparent hydrogen market with coherent standards and norms that contribute to climate change efforts meaningfully.

This is the tenth consecutive year of the World Energy Council’s (the Council) annual survey of key challenges and opportunities facing energy leaders in managing and shaping Energy Transitions. This year’s Issues Monitor report provides seven global maps six regional maps and fifty national maps.

These maps have been developed by analysing the responses of nearly 2300 energy leaders drawn from across the Council’s diverse and truly global energy community.

The Council’s Issues Monitor identifies the strategic energy landscape of specific countries and regions in the world through an analysis of 42 energy issues and 4 digitalisation-specific issues affecting the energy system. It provides a unique reality check and horizon scanning of persistent and emerging concerns involved in whole energy systems transition. This year’s report welcomes a significant increase in both the participation of global leaders (up over 75% from 1300 to nearly 2300) as well as the participation of 86 countries.

Each Issue Map provides a visual snapshot of the uncertainties and action priorities that energy policymakers CEOs and leading experts strive to address to shape and manage successful Energy

Transitions. Maps can be used in the following ways:

• To promote a shared understanding of successful Energy Transitions
• To appreciate and contrast regional variations to better understand differing priorities and areas of concern
• To follow the evolution of specific technology trends related to the energy sector

The Covid-19 pandemic has dealt a massive blow to countries around the world choking economies and transforming daily life for billions of people. This extraordinary disruption has significantly impacted the energy sector with worrying implications for clean energy transitions. Some key clean energy technologies have been encouragingly resilient to the effects of the crisis but so far there is little to suggest that the dramatic structural progress needed to achieve long-term climate and energy goals will happen in the current turmoil. Unprecedented action and leadership from governments companies and other real-world decision makers will be required to put the world more firmly on a sustainable long-term pathway. The energy sector must achieve dramatic sustained emissions reductions through policy investment and innovation measures across all energy sectors and technologies.

Building on Tracking Clean Energy Progress 2020  and other COVID-19 analysis this article takes stock of how the crisis has affected energy sectors and technologies thus far and explores the potential implications for clean energy transitions over the medium and longer term.

Link to Document on IEA Website

The Hydrogen Taskforce welcomes the opportunity to submit evidence to the Business Energy and

Industrial Strategy Committee’s inquiry into post-pandemic economic growth.

It is the Taskforce’s view that:

• Due to its various applications hydrogen is critical for the UK to reach net zero by 2050;
• The UK holds world-class advantages in hydrogen production distribution and application;
• Other economies are moving ahead in the development of this sector and the UK must respond;
• The post pandemic economic recovery planning should reflect the need to achieve deep decarbonisation and support wider objectives such as achieving net zero and levelling up the
• economy; and 
• The hydrogen sector is well-placed to play a key role in the UK’s economic recovery with the right policies and financial structures in place.

The Taskforce has defined a set of policy recommendations for Government which are designed to ensure that hydrogen can scale to meet the future demands of a net zero energy system:

• Development of a cross departmental UK Hydrogen Strategy within UK Government;
• Commit £1bn of capex funding over the next spending review period to hydrogen production storage and distribution projects;
• Develop a financial support scheme for the production of hydrogen in blending industry power and transport;
• Amend Gas Safety Management Regulations (GSMR) to enable hydrogen blending and take the next steps towards 100 per cent hydrogen heating through supporting public trials and
• mandating 100 per cent hydrogen-ready boilers by 2025; and
• Commit to the support of 100 Hydrogen Refuelling Stations (HRS) by 2025 to support the rollout of hydrogen transport.

You can download the whole document from the Hydrogen Taskforce website here

As the world’s largest integrated energy and chemicals company Saudi Aramco continues to invest in technologies and innovative business models to enable the sustainable use of hydrocarbon resources across the value chain.  In this podcast David Ledesma discusses with Yasser Mufti Vice President Strategy & Market Analysis Saudi Aramco about Saudi Aramco’s perspectives on hydrogen its opportunities and challenges. This wide-ranging interview discusses Saudi Aramco’s investment in new technologies and the sustainable use of its hydrocarbon resources before addressing the role of hydrogen in achieving a low emissions economy possible business models and the barriers to achieving hydrogen’s growth. The podcast then moves on to discuss ammonia carbon capture utilisation and storage finishing up with a forward-looking perspective on the vision for Saudi Aramco asking how will the company look in 2050 and specifically whether it will still be a hydrocarbon company?

The podcast can be found on their website

This project provides evidence to identify the key innovation needs across the UK’s energy system to inform the prioritisation of public sector investment in low-carbon innovation including any future phases of the Department for Business Energy & Industrial Strategy (BEIS) Energy Innovation1 Programme. The BEIS Energy Innovation Programme aims to accelerate the commercialisation of innovative clean energy technologies and processes into the 2020s and 2030s. The current Programme with a budget of £505 million from 2015-2021 consists of six themes and invests in smart systems industry & CCS (Carbon Capture and Storage) the built environment nuclear renewables and support for energy entrepreneurs and green financing.



Vivid Economics was contracted to lead a consortium with technical expertise in each of the Energy Innovation Needs Assessment (EINA) priority areas. The programme relied on evidence from a programme of workshops with over 180 participants energy system modelling and detailed technical advice. Partners include the Carbon Trust E4tech Imperial College London and Fraser-Nash. The Energy Systems Catapult (ESC) provided analytical evidence using their Energy System Modelling Environment (ESME) to support an early pre-screening of technologies.



Innovations have been prioritised where there is a strong case for UK Government investment. The prioritisation in this report is based on evidence of the potential benefits to the UK via a lower cost energy system and larger export markets. We also consider whether there is a need for UK Government intervention in addition to private and international efforts.

 

A distinctive feature of this project is its focus on innovation that benefits the whole energy system. Internationally there are other efforts attempting to answer the question of where to target resources to maximise benefits from innovation2. In selecting priorities we identify innovations that can unlock value across electricity heat transport sectors and the rest of the economy.

The group concluded that the transition to Net Zero can and will occur and will leave a positive legacy for future generations. They examined the UK as a complex adaptive system and identified recommendations for accelerating progress and reducing the risks of failure. The Group recognised an opportunity for Sensitive Intervention Points (SIPs) coinciding with these recommendations pointing to opportunities to accelerate a transition towards Net Zero by exploiting socio-economic tipping points.

These included:

• Deepening public engagement through investments to support measures to lower ‘thresholds’ to behavioural change such as energy efficiency or dietary alternatives. This can form part of a public engagement strategy for Net Zero that educates the public involves people in decision-making and provides trusted information at key decision points
• Delivering social justice via a clear long-term vision for specific regions coupled with mechanisms that reward the private sector for building industries in otherwise deprived areas starting now
• Government leading on Net Zero by requiring any company meeting with ministers and secretaries of state to have a plan to reach net zero emissions
• Leveraging global dynamics by introducing a border carbon adjustment and consider forming bilateral and multilateral preferential trading arrangements for environmental goods and services
• Penalising emissions by committing in the UK’s NDC to sequester 10% of CO2 emissions generated by fossil fuels and industry by 2030
• Increasing business ambition by identifying businesses that shape industries – celebrate and elevate them
• Accelerating technology via Pathfinder cities that can deliver comprehensive steps towards Net Zero and demonstrate the interactions required across complex systems of low-carbon electricity heat and transport
• Redirecting capital flows by introducing Net zero aligned and transparent accounting and auditing
• Harnessing legal avenues by legislating all regulators to regard the Paris Agreement Sixth Carbon Budget and 2050 Net Zero target in their duties.

The hydrogen economy is a proposition for the distribution of energy by using hydrogen in order to potentially eliminate carbon emissions and end our reliance on fossil fuels. Some futuristic forecasters view the hydrogen economy as the ultimate carbon free economy. Hydrogen operated vehicles are on trial in many countries. The use of hydrogen as an energy source for buildings is in its infancy but research and development is evolving. Hydrogen is generally fed into devices called fuel cells to produce energy. A fuel cell is an electrochemical device that produces electricity and heat from a fuel (often hydrogen) and oxygen. Fuel cells have a number of advantages over other technologies for power generation. When fed with clean hydrogen they have the potential to use less fuel than competing technologies and to emit no pollution (the only bi-product being water). However hydrogen has to be produced and stored in the first instance. It is possible to generate hydrogen from renewable sources but the technology is still immature and the transformation is wasteful. The creation of a clean hydrogen production and distribution economy at a global level is very costly. Proponents of a world-scale hydrogen economy argue that hydrogen can be an environmentally cleaner source of energy to end-users particularly in transportation applications without release of pollutants (such as particulate matter) or greenhouse gases at the point of end use. Critics of a hydrogen economy argue that for many planned applications of hydrogen direct use of electricity or production of liquid synthetic fuels from locally-produced hydrogen and CO2 (e.g. methanol economy) might accomplish many of the same net goals of a hydrogen economy while requiring only a small fraction of the investment in new infrastructure. This paper reviews the hydrogen economy how it is produced and distributed. It then investigates the different types of fuel cells and identifies which types are relevant to the built environment both in residential and nonresidential sections. It concludes by examining what are the future plans in terms of implementing fuel cells in the built environment and discussing some of the needs of built environment sector.



Link to Document

According to the UK’s Committee on Climate Change the economically efficient achievement of Government’s legally-binding carbon-reduction target will require full decarbonisation of all heat in buildings and the decarbonisation of most industrial heat over the next 20 to 30 years (BEIS 2018). This goliath task is not unprecedented. Indeed the scale of this transition is similar to the UK’s former transition from coal to natural gas heating. Albeit the rate of transition away from natural gas will certainly need to be greater than the rate of the transition toward natural gas to achieve net zero greenhouse gas emissions by 2050.<br/><br/>At present Government’s commitment stands in sharp contrast with its inaction on heat decarbonisation to date. Under pressure to progress this agenda Government has charged the Clean Heat Directorate with the task of outlining the process for determining the UK’s long-term heat policy framework to be published in the ‘Roadmap for policy on heat decarbonisation’ in the summer of 2020 (BEIS 2017). This report resulting from one of six EPSRC-funded secondments is designed to support early thinking on the roadmap by answering the research question: How can ‘Transitions’ research informs the roadmap for governing the UK’s heating transition?<br/><br/>‘Transitions’ research is an interdisciplinary field of study within the Social Sciences and Humanities that investigates the co-evolution of social and technological systems (such as the UK heating system) and the dynamics by which fundamental change in these systems occur. To investigate what insights this area of research may hold for the governance of the UK’s heat transition a systematic literature review was conducted focusing specifically on past and ongoing heat transitions across Europe.<br/><br/>The review uncovered learnings about the role of path dependency; power and politics; complexity; cross-sector interactions; multi-level governance; and intermediaries in shaping non-linear transitions toward renewable heat. This report illustrates each learning with real-world examples from case studies undertaken by Transitions researchers and concludes with a long list of policy and process-oriented governance recommendations for the UK Government.