| Government should conduct a strategic review of the UK's international climate leadership and ensure the 2030 Strategic Framework on Climate and Nature provides practical direction for the UK's international climate and nature leadership. |
1099. As described elsewhere, an unstoppable drive to decarbonise is reshaping the global economy. The UK can only capitalise on the opportunities for investment and collaboration with a serious and renewed commitment to international partnership.
1100. The UK has had a leading role in global climate action over the last decade. Our roles as COP26 President and recent G7 Presidency put us in a natural position to lead the way for increased ambitions globally, showing leadership and setting the direction for decarbonisation. We now need to retain this position without these platforms, remaining a key player in the global debate. This will enable us to promote UK solutions globally - creating economic growth and investment in the UK economy.
1101. International action is key to bringing down costs of green technologies. Green technologies are increasingly becoming more competitive, but this could fall even faster with international action. For example, costs for critical low carbon technologies such as electrolysers and batteries are set to decrease by more than 40% by 2030 if the green transition picks up pace globally.781 That can happen even more quickly if countries collaborate to grow global markets and compete to fill them.
1102. Prioritising development of UK R&D and technologies for net zero provides opportunity to demonstrate global leadership and collaboration in these areas. Moreover, research and innovation attendees at the Royal Society-hosted roundtable were confident that there were emerging opportunities in the international decarbonising technologies market for the UK to participate in or mirror, such as the partnership recently built between Canada and South Korea to deepen cooperation on critical mineral usage in electric vehicle batteries. The UK has played a leading role in the international Missions Innovation, a global initiative to accelerate public and private investment in clean energy innovation, work and should strive to participate and lead similarly in other relevant international fora.
1103. The UK's global leadership on standards can help facilitate global cooperation on emerging technologies. Standards are crucial to the net zero transition, ensuring new forms of energy generation and low carbon technologies can be integrated into the grid, are interoperable, digitally-enabled, safe and secure by design. Globally accepted standards can also provide rigour and credibility to green claims and accelerate the adoption of innovation. BSI, the UK's national standards body, is a leading member of the 'International Organization for Standardization' and has led a number of international efforts on net zero, e.g. the new international Net Zero Guidelines at COP27.782
| CASE STUDY: The Industrial Deep Carbonisation Initiative The Clean Energy Ministerial Industrial Deep Decarbonisation Initiative (IDDI) is a global coalition of public and private organisations working in collaboration with national governments, to stimulate demand for low carbon industrial materials. Coordinated by the United Nations Industrial Development Organisation (UNIDO), the IDDI is co-led by the UK and India and brings together additional members such as Germany and Canada. The IDDI's mission is to facilitate the process to consider well-designed policy packages that tackle decarbonising heavy industry such as steel and cement which are key emitting sectors. For instance, if developing countries expand their infrastructure to average current global emissions, the construction sector alone will emit 470 billion tonnes of CO2 by 2050. One major focus of the IDDI is on agreeing common standards for low and near zero emissions steel which is important for the UK from a carbon leakage perspective. The IDDI will address missing policy gaps, encourage governments and private sector to buy low carbon steel and cement, source and share data for common standards and targets, and ultimately stimulate a market for decarbonised industrial materials including steel and cement.783 |
1104. As COP26 presidents, the UK played an instrumental role in securing a broad set of international coalitions in key emitting sectors, in order to keep 1.5°C alive. This included work to phase out coal, end international public financing for fossil fuels, end the sale of petrol and diesel cars, and halt and reverse deforestation. As part of this, the UK called on political leaders and business leaders to commit to action - including through the Breakthrough Agenda, the Glasgow Declaration on Forests, the Zero Emission Vehicle Declaration and the Coal to Clean Transition Statement.
1105. The Glasgow Breakthrough Agenda is a key example of the progress brought about by UK leadership. In line with the UK approach to carbon budgets and tackling high-emitting sectors, the Glasgow Breakthrough Agenda, brought together 45 world leaders committed to working together internationally to accelerate the development and deployment of clean technologies and sustainable solutions needed to meet the Paris Agreement goals. This means delivering clean and affordable technology globally by 2030. These could provide an effective delivery mechanism of the COP26 Pledges and Government should continue to push for delivery and expansion of these agendas. It was supported by 45 leaders covering 70% of global GDP and all regions of the world. The five Breakthroughs cover global clean technology development and deployment in five key sectors of the economy; power, road transport, steel, hydrogen, and agriculture covering a total of 50% of global emissions.
1106. Government needs to consider how to build on the Breakthrough progress at COP27 with its partners. At COP27, in response to recommendations in the first annual Breakthrough Agenda report in 2022 from the International Energy Agency, International Renewable Energy Agency and UN High Level Action Champions, signatory countries backed 28 specific coordinated international actions to be delivered by COP28 across these sectors to speed progress towards the 2030 goals. Delivering the first five Breakthroughs could create 20 million new jobs globally and add over $16 trillion across both emerging and advanced economies. The intention to launch new Breakthroughs was also announced at COP27, including a Buildings Breakthrough (by France and the Kingdom of Morocco) and a Cement Breakthrough (by Canada). The Breakthrough Agenda is now the first formal joint project under the joint oversight of the Clean Energy Ministerial (CEM) and Mission Innovation, embedding it firmly in both the clean energy international architecture and the annual COP cycle. The Government needs to consider how to build on this substantial progress, working with its Breakthrough co-leads to deliver Priority Actions, while encouraging further expansion of the Breakthroughs into other sectors over time, and expanding the list of countries signed up to each 2030 Breakthrough sectoral goal.
1107. Establishing leadership at a time of uncertainty. The current context of an increasingly pressured global order exposed to insecurity, slowing growth and constrained energy, food and water supplies means that international attention is often diverted away from delivering on net zero. Combined with fractious international dynamics, there is a risk that international action on net zero will be limited, which will put 1.5°C out of reach with huge economic, social and political consequences.
1108. Without power as COP president, the UK is no longer the obvious global leader on climate change which presents a challenge to pursuing the UK's interests in the transition to the global low-carbon economy. However, the UK has over a decade's worth of experience in working bilaterally and multilaterally on climate change, and has a strong track record in the COP negotiations in pushing for ambition, in delivering high quality climate finance with real world impacts, and in using its diplomatic network of climate attaches to great effect.
1109. The UK also has credibility and influence globally because of its domestic credentials, such as being a first mover on climate legislation and having a strong climate policy and regulatory framework that other countries look to emulate. Setting an example in the UK's domestic policy context helps promote our position as leaders in a global context. With the UK being a global green finance centre and the UK Government a key player in many international climate initiatives, the UK is in a unique position to pave the way for investments in green technologies and solutions globally.
1110. The UK's ability to engage and influence net zero globally must be maintained and enhanced, maximising opportunities to the UK. This also means ensuring that UK's climate diplomacy remains credible and resourced in climate negotiations at G7 and G20 as well as through developing climate knowledge and skills across the FCDO's diplomatic networks and UK trade negotiators.
1111. UK global leadership can increase demand for UK goods and services. The UK Government should continue to use levers such as convening power, expertise, strategic relationships, finance and technical support to crowd in a critical mass of actors needed to drive change at speed and scale. The total value of UK low carbon and renewable exports was £6.1 billion in 2020,784 which is equivalent to around 1% of total UK exports (£609.9 billion),785 but low carbon goods and services exports are expected to be worth £1 trillion-£1.8 trillion globally in 2030. As such, the UK's international leadership can not only accelerate the transition but shape it in line with UK interests, help put UK business at the forefront and establish strategic relationships with countries which will be at the forefront of the clean energy economy of the future. As such, international leadership and partnerships benefit the UK and help drive domestic economic opportunities. If decarbonisation happens at a global scale this will create markets for low carbon technologies and bring down costs through global demand, ultimately supporting UK domestic objectives of economic growth through the net zero transition.
1112. Government should conduct a strategic review of the UK's international climate leadership and ensure the 2030 Strategic Framework on Climate and Nature provides practical direction for the UK's international climate and nature leadership. In the wake of its COP presidency, the UK Government should consider how it will build on this to retain its role as an international climate leader. This is particularly important in order for the Government to continue to promote and protect UK economic interests, including international collaboration on issues like R&D. The review should address how current activities contribute to these objectives.