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Paris climate deal could make energy more expensive

Near enough every country on earth sent a delegate to Paris for UN sponsored global climate talks this month. These world leaders reached a monumental agreement to limit global average temperatures to a rise “well below” 2 degrees Celsius compared to pre-industrial levels – a level of warming deemed to be the point when dangerous climate change could threaten life on Earth. Part of the conference’s final document commits countries to “pursue efforts” to limit global warming to 1.5 degrees Celsius above pre-industrial levels. Pursuing these efforts could lead to more stringent energy policies from the UK government that could make gas and electricity more expensive for homes and businesses in the country. The UK Climate Change Act already commits Britain to drastically committing its greenhouse gas emissions to 80 percent of 1990 levels by 2050. This commitment though was based on the goal of limiting global warming to 2 degrees Celsius. Going “well below” this figure will cost more money and will likely result in new taxes and levies on energy.

End of the fossil fuel era

Some international public figures including Al Gore argued that the agreement signalled the end of the fossil fuel era suggesting that the climate talks could have far reaching consequences for industry, security and the financial markets. For US Vice President Al Gore said: ““This universal and ambitious agreement sends a clear signal to governments, businesses, and investors everywhere: the transformation of our global economy from one fuelled by dirty energy to one fuelled by sustainable economic growth is now firmly and inevitably under way.” European renewable energy stocks rallied earlier this week after some high profile investors called for the markets to be bold and re-evaluate any fossil fuel accounts on investment books. Goldman Sachs’ analysts described the Paris deal as the most important since the 1997 Kyoto Protocol and said that it would bolster the fast growing low carbon-emissions economy estimated to be worth $600 billion-plus.

Published by Utility Helpline on