Bloomberg reports that the UK is planning to make changes in its green investment rulebook, which will be published later this year, by allowing some natural gas projects to be recognized as sustainable.
In the transition to green energy gas is necessary to replace goals in energy production. Because of Russia’s war in Ukraine, an effort has been taken globally to try to diversify the oil market and end dependence on Russian oil.
Britain is prioritizing increasing its domestic energy production and with a green label on gas, the extra financing could help contribute to the transition to a low-carbon economy.
Because of the record-high gas prices, the government spoke with the three remaining coal producers in the country to try to convince them not to close until at least next winter, which was the plan for two of them.
Russia’s war is seen by some as an opportunity to push forward the transition toward renewable energy sources and decrease emissions but in the immediate future, emissions may actually increase. Countries all over Europe are rushing to end energy dependence on Russia, forcing them to rely on the increasing use of coal.
The power plants that will utilize the new green gas label will need to acquire permits before the end of 2030 and provide plans to only use renewable or low-carbon gasses by the end of 2035. This change has earned several critics including the director of the Oxford Sustainable Finance Group, Ben Caldecott, who argues that this inclusion of natural gas and recognizing it as green debases a lot of the EU green taxonomy.
The UK energy secretary Kwasi Kwarteng emphasized the government’s focus on developing the North Sea’s oil and gas production to better Britain’s energy security. The global trade and production of gas have a much larger carbon footprint than domestic production, so any action to decrease inputs would be favorable.
Prime Minister Boris Johnson included a plan to phase out coal by 2024 in his campaign at COP 26. The government is advised by The Committee on Climate Change who say that carbon capture and storage technology are necessary after 2035 for gas generation in order to reach emission goals.
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