Critique the UK's net zero environmental policy

CRITIQUE OF THE UK’S NET ZERO ENVIRONMENTAL POLICY Student’s Name Course Professor’s Name University City (State) Date Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc166637553 \h 3Analysis of the UK’s Net Zero Environmental Policy PAGEREF _Toc166637554 \h 4Background and Policy Framework PAGEREF _Toc166637555 \h 4Economic and Environmental Policy PAGEREF _Toc166637556 \h 5Empirical Analysis of the UK’s Net Zero Strategy PAGEREF _Toc166637557 \h 6UK’s Net Zero Strategy in Different Sectors PAGEREF _Toc166637558 \h 6Social, Economic and Financial Impacts PAGEREF _Toc166637559 \h 9Role of Innovation in Achieving Zero Target PAGEREF _Toc166637560 \h 10Challenges and Critiques PAGEREF _Toc166637561 \h 11International Comparison and Lessons Learned PAGEREF _Toc166637562 \h 13Conclusion and Recommendation PAGEREF _Toc166637563 \h 14Reference List PAGEREF _Toc166637564 \h 15 Introduction Countries that are prioritizing climate change responsiveness have a strong emphasis on the idea of acquiring a ‘net zero’ emission. The net zero indicates maintaining an equilibrium between the released greenhouse gases in the environment and the gases that are eliminated. It aids in slowing down global warming and counteracts the environmental impact (Fankhauser et al., 2022). Averchenkova, Fankhauser, and Finnegan (2021) assessed that it is highlighted in the Paris Agreement that the temperature increases should be kept below 2 degrees Celsius on top of pre-industrial levels, the net zero balance is significant in abiding by the global efforts for this cause. Considerably, the United Kingdom has introduced an inclusive tactic that targets reducing greenhouse gas emissions and achieving net zero by 2050; this strategy was drafted due to global dedication towards the cause. The UK has become the first major economy to achieve net zero in the long run by preserving the goal by introducing the Climate Change Act 2008. Additionally, the climate change policy substructure is drafted to encircle initiatives that include energy production, transportation, industrial processes, and housing to assist the goal. The key goal behind these measures is to shift renewable energy sources, enhance advancements towards energy efficiency, and bring groundbreaking technology like storage and carbon capture. Therefore, the following paper aims to critically analyze the effective impact and complications faced by the UK’s strategy towards a net zero emission target. It reviews the strategic measures taken by the government, the policy procedures, and investments in various domains. Also, the research investigates approaches through which these policies play a role in the economy and society. With the help of critical analysis, the UK’s net zero strategy is critiqued by comparing it with other global projects to understand the broad scope of escalating outcomes. Analysis of the UK’s Net Zero Environmental Policy Background and Policy Framework Crucial laws like the Clean Air Act of 1956 have molded the environmental policy journey in the UK. Considering the commission to manage the program, the UK Act backs the zero emission target by 2050 (Sasse et al., 2020). Phasing out vehicles, encouraging investments in green technology, and maximizing renewable energy are some measures involved in the UK’s method that display their devotion towards utilizing net zero objectives in the local policies and continuing to guide the global climate endeavor that reduces carbon capture cost overall. Figure 1: Reduction in Industrial carbon Cost (UK Government, 2023) This is reflected by how the UK is devoted to staying ahead in making global climate change attempts (UK Government, 2023). Hence, the holistic approach is focused on unifying the global goals and local policies by generating progressive laws and participating in negotiations regarding the global climate. Economic and Environmental Policy While analyzing the UK’s goal to acquire net zero emissions by 2050, it is important to grasp the technicalities of economics and environmental policies. The environmental complications can be confronted by building a substructure utilizing the basic concepts of the economy like public goods, Coase theorem, market failures, and externalities. Externalities can be defined as efforts made by companies or individuals that affect others regardless of the benefits and costs involved. According to Ward, Michalek, and Samaras (2021), a negative externality is caused when a cost or harm is evident, while a positive externality is demonstrated by advantageous outcomes that are not included in market prices. An exemplary case for negative externalities is the greenhouse gas emission that shows ecological costs are under the influence of the civilization more than they are under the emitter. Climate stability and clean air are shared resources of the public that are accessible and non-competitive, which can result in market insufficiency and require government involvement. Moreover, according to the Coase theorem, individuals can discuss terms among themselves without government involvement if property rights are plainly set up and the cost involved in making amends is low. In terms of climate change, the price involved in reaching agreements is high with ubiquitous effects; hence, there is a need to put regulations into play. While tackling carbon emissions, carbon pricing plays an essential role. Emissions trading schemes (ETS) and carbon taxes are part of it. The emitters are charged with a direct payment for greenhouse gas emissions by implementing carbon taxes (Tsai and Lin, 2024). Hence, a cap and trade system is implemented in the UK ETS, through which a limit is set on the total emission that a business can purchase or sell. It provides versatility to the company in terms of emission reduction demands through different approaches. In terms of the UK’s economy, the net zero emission strategies can significantly improve it. New opportunities and advanced technologies like electric vehicles and renewable energy sectors can be brought to light by changing into a greener economy. This transition can witness job opportunities and maximized economic growth as it will attract more investments in these industries (Dooks, 2023). Taking the example of the offshore wind sector in the UK, it is evident that government policies attracted local and foreign investments, which resulted in the expansion of this sector. Hence, taking measures against climate change can help eliminate risks related to harsh weather conditions and complications of shifting away from non-renewable energy sources. In the longer run, it aids in structuring an economically stable condition (Wood-Robertson, 2021). The UK’s devotion to the net zero approach has made it a pioneer in green finance and helped bring investments that precede sustainability. Empirical Analysis of the UK’s Net Zero Strategy The UK has implemented several specific strategies in different industries due to its dedication to acquiring net zero emissions by 2050. UK’s Net Zero Strategy in Different Sectors The UK has taken many measures to eliminate greenhouse gas emissions. Evans and Viisainen (2023) reported that the lowest greenhouse gas emission in the UK was recorded in 2023, which had been reduced by 5.7% since 1987. The GDP of the UK has increased by 82%, and the greenhouse gas emissions are 53% lower than the levels recorded in 1990. In 2023, an 11% reduction in gas demand led to a decrease in emission rates, as illustrated in the figure below. Figure 3: Reduction in Greenhouse Gas Emission in the UK (Evans and Viisainen, 2023) The reason behind it was the growth in electricity imports witnessed after the French nuclear fleet restoration, along with the weak fundamental need due to price hikes and higher-than-usual temperatures. To reach the goal of 2050, the UK will have to control emissions from transport, the agricultural sector, industry, and buildings. The research by National Grid (2024) proposed that adopting a power framework that relies on renewable energy sources and provides 100% zero-carbon energy is an important aspect of the strategy that will help the UK reach its goal for 2050. Renewable sources from individuals had a crucial role in the cause in 2023. Wind power generated 29.4% of electricity in the UK, and solar energy generated 4.9%. In contrast, biomass, energy acquired from burning organic, renewable material, accounted for 5% of renewable sources, while tidal and hydropower added 1.8%. By combining renewable and low-carbon energy resources like nuclear, it is evident that green infrastructure is following the correct course towards achieving the 2035 target set by the government and acquiring net zero emission within the time range. The government of the UK has brought to light extensive initiatives that are targeted towards accelera...