With a focus on gas and the UK continental shelf, industrial decarbonisation, heat, mobility and the environment, we look at developments both at home and internationally and ask whether the UK is a leader in decarbonisation.

2021 has been a landmark year for UK energy and climate policy. Plans and strategies were announced across many sectors, from offshore wind to how we heat our homes.  The UK also hosted COP26 and pressed hard for greater ambition.  Now that the spotlight has moved, in this Review, we consider whether plans will be adequate to deliver results.

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With a focus on gas and the UK continental shelf, industrial decarbonisation, heat, mobility and the environment, we look at developments both at home and internationally and ask whether the UK is a leader in decarbonisation, and if the transition is being managed as well as it could be.

On gas: we highlight the record gas prices and call for an approach of ‘gas by design’ with a planned approach to the future role of gas in the energy system.

On the UK continental shelf: Considering oil and gas production in the North Sea, we ask if the approach of maximising economic recovery of hydrocarbons is compatible with net zero.

On industrial decarbonisation: The Industrial Strategy with its sector-wide approach was a first for a major economy. However, as the UK’s past record on carbon capture and storage shows, strategy does not substitute for consistent support.

On heat: We welcome with cautious optimism the Heat and Buildings Strategy. The proposed measures could close some of the policy gaps, but further action is needed to deliver energy efficiency in homes and local area based solutions.

On mobility: The Transport Decarbonisation Plan is the first to cover the whole sector since 2004, however the absence of underpinning data undermines its credibility. It does not state that we need to reduce the number of car miles to meet net zero. Our research has identified that a 30-50% reduction is required.

On the environment: Whilst ambition for rapid decarbonisation is commendable, it risks a wide range of unintended negative environmental impacts. It is essential that decarbonisation is aligned with broader environmental goals to enable the exploitation of co-benefits.

Overall, we argue that policies in some areas need to be bolder if decarbonisation is to continue to proceed, or indeed to get started in areas where progress to date has been limited. We need a strategic and carefully managed approach to the energy transition.