GB Gas Networks Poised to Support Accelerated Energy Sector Decarbonisation for 2030s Carbon Budgets

Feb 2025

 

  • A new report by Frontier Economics sets out initiatives to support additional carbon savings on the journey to net zero.
  • It builds on Climate Change Committee (CCC) analysis, which finds that current climate policies and rate of low-carbon investment will leave a significant gap to meet legally binding carbon targets in the 2030s. 
  • The report outlines measures that could close a quarter of this gap in the buildings and industry sectors. 
  • The measures are realistic, deliverable and cost effective.  They include transporting even more green gas, further reducing gas network emissions, and providing flexibility to support wider energy system change. 

A report entitled ‘Accelerating Progress Towards 2030s Carbon Budget’ was published today by Future Energy Networks, the membership organisation representing the GB gas networks. It outlines what the gas networks are currently doing to support decarbonisation and importantly highlights realistic and deliverable measures which could help cut the carbon budget deficit in buildings and industry by a quarter in 2035.

According to the CCC, there are insufficient credible policies to meet carbon targets in the 2030s. The CCC also assesses low carbon investment in buildings and industry as being off-track. This report identifies practical, cost effective and realisable ways in which the gas network could contribute to decarbonisation of buildings and industry by 11 MtCO2e/year in 2035 (with an additional 2 MtCO2e/year savings from the power sector), the equivalent to taking 7 million cars off the road.

The gas networks are already supporting the transition to Clean Power 2030 but there is more that can be done with additional support from policymakers and regulators. Transporting more green gas by increasing the uptake of biomethane, enabling low carbon hydrogen through new or repurposed networks and facilitating the growth of hydrogen production by supporting blending at distribution and transmission level would save just over 7 MtCO2e/year in buildings and industry in 2035 (with a further 2MtCO2e/year savings in the power sector).

Further reducing network emissions through advanced leak detection could save 0.5 MtCO2e/year, while whole systems measures such as increasing gas hybrid pumps by 940,000 and supporting an increase in district heating by one million connections could save 3.1 MtCO2e/year. These measures alone make up nearly a quarter of the carbon budget shortfall in buildings and industry in Great Britain. Under more optimistic assumptions (for example in relation to technological progress) emissions savings from gas network activities could be even higher. 

James Earl, CEO, Future Energy Networks (FEN), said: “Our gas network is an incredibly reliable and efficient national asset that with augmented support from the government could significantly accelerate our progress to achieving net zero. To help us to realise this potential we urge government to set an ambitious target and an appropriate support scheme for the growth of biomethane production, unlock the value of hydrogen blending at both distribution and transmission level, and recognise the vital role hybrid heat pumps can play in decarbonising buildings by making this technology eligible for support through the Boiler Upgrade Scheme.

He goes on to say:

Every unit of carbon reduced today is worth even more than a unit of carbon reduced in the future, so early action is critical. The gas network can play an important role in accelerating progress and ensure the UK leads the way to net zero.”

To access the report, click here.