Production and Consumption Transformations (PACT) Centre

To meet the UK’s 2030 Greenhouse Gas (GHG) emission target we need to reduce GHG emissions by nearly 5%/year, three times the 1.5%/year reduction rate achieved since 1990. Previous reductions have come mainly from decarbonising the power sector and offshoring heavy industry, where it is becoming increasingly difficult to deliver further substantial GHG reductions.

The UK is at a watershed moment where future reductions will have to be delivered differently from the past. It is simply not possible to rely on the policy of ‘electrifying everything and provide zero carbon electricity’ without also considering systems of production and consumption. This requires broader consideration of how to align patterns of production and consumption with climate targets that can deliver short term goals (by 2030) and reduce risks in the long-term (by 2050).

Whilst the carbon intensity of the economy is high (79% of UK energy demand is provided by fossil fuels), there is a critical role for energy demand reduction and material efficiency measures. At the same time, the transformation of production and consumption needs to be socially just.

On the production side, this will require managing the transformation of labour markets and skills provision to protect workers in affected sectors. On the consumption side, monetary and non-monetary costs and benefits associated with the transition need to be distributed fairly. A socially just transformation of production and consumption systems in line with climate targets is a complex systems problem that requires a detailed investigation into the intersecting and intertwined economic, social and political realities.