British carbon tax leads to 93% drop in coal-fired electricity


british carbon tax

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Carbon Price Support, the UK carbon tax on power, slashed coal generation, cut CO2 emissions, boosted gas and imports via interconnectors, and signaled effective electricity market decarbonization across Great Britain and the EU.

 

Key Points

A UK power-sector carbon tax that drove coal off the grid, cut emissions, and shifted generation toward gas and imports.

✅ Coal generation fell from 40% to 3% in six years

✅ Rate rose to £18/tCO2 in 2015, boosting the coal-to-gas switch

✅ Added ~£39 to 2018 bills; imports via interconnectors eased prices

 

A tax on carbon dioxide emissions in Great Britain, introduced in 2013, has led to the proportion of electricity generated from coal falling from 40% to 3% over six years, a trend mirrored by global coal decline in power generation, according to research led by UCL.

British electricity generated from coal fell from 13.1 TWh (terawatt hours) in 2013 to 0.97 TWh in September 2019, and was replaced by other less emission-heavy forms of generation such as gas, as producers move away from coal in many markets. The decline in coal generation accelerated substantially after the tax was increased in 2015.

In the report, 'The Value of International Electricity Trading', researchers from UCL and the University of Cambridge also showed that the tax—called Carbon Price Support—added on average £39 to British household electricity bills, within the broader context of UK net zero policies shaping the energy transition, collecting around £740m for the Treasury, in 2018.

Academics researched how the tax affected electricity flows to connected countries and interconnector (the large cables connecting the countries) revenue between 2015—when the tax was increased to £18 per tonne of carbon dioxide—and 2018. Following this increase, the share of coal-fired electricity generation fell from 28% in 2015 to 5% in 2018, reaching 3% by September 2019. Increased electricity imports from the continent, alongside the EU electricity demand outlook across member states, reduced the price impact in the UK, and meant that some of the cost was paid through a slight increase in continental electricity prices (mainly in France and the Netherlands).

Project lead Dr. Giorgio Castagneto Gissey (Bartlett Institute for Sustainable Resources, UCL) said: "Should EU countries also adopt a high carbon tax we would likely see huge carbon emission reductions throughout the Continent, as we've seen in Great Britain over the last few years."

Lead author, Professor David Newbery (University of Cambridge), said: "The Carbon Price Support provides a clear signal to our neighbours of its efficacy at reducing CO2 emissions."

The Carbon Price Support was introduced in England, Scotland and Wales at a rate of £4.94 per tonne of carbon dioxide-equivalent and is now capped at £18 until 2021.The tax is one part of the Total Carbon Price, which also includes the price of EU Emissions Trading System permits and reflects global CO2 emissions trends shaping policy design.

Report co-author Bowei Guo (University of Cambridge) said: "The Carbon Price Support has been instrumental in driving coal off the grid, but we show how it also creates distortions to cross-border trade, making a case for EU-wide adoption."

Professor Michael Grubb (Bartlett Institute for Sustainable Resources, UCL) said: "Great Britain's electricity transition is a monumental achievement of global interest, and has also demonstrated the power of an effective carbon price in lowering dependence on electricity generated from coal."

The overall report on electricity trading also covers the value of EU interconnectors to Great Britain, measures the efficiency of cross-border electricity trading and considers the value of post-Brexit decoupling from EU electricity markets, setting these findings against the global energy transition underway.

Published today, the report annex focusing on the Carbon Price Support was produced by UCL to focus on the impact of the tax on British energy bills, with comparisons to Canadian climate policy debates informing grid impacts.

 

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Sustainable Marine now delivering electricity to Nova Scotia grid from tidal energy

Sustainable Marine tidal energy delivers in-stream power to Nova Scotia's grid from Grand Passage, proving low-impact, renewable generation and advancing a floating tidal array at FORCE and Minas Passage in the Bay of Fundy.

 

Key Points

The first in-stream tidal project supplying clean power to Nova Scotia's grid, proven at Grand Passage.

✅ First to deliver in-stream tidal power to Canada's grid

✅ Demonstration at Grand Passage informs FORCE deployments

✅ Low-impact design and environmental monitoring validated

 

Sustainable Marine has officially powered up its tidal energy operation in Canada and is delivering clean electricity to the power system in Nova Scotia, on the country’s Atlantic coast, as the province moves to increase wind and solar projects in the years ahead. The company’s system in Grand Passage is the first to deliver in-stream tidal power to the grid in Canada, following provincial approval to harness Bay of Fundy tides that is spurring further development.

The system start-up is the culmination of more than a decade of research, development and testing, including lessons from Scottish tidal projects in recent years and a powerful tidal turbine feeding onshore grids, managing the technical challenges associated with operating in highly energetic environments and proving the ultra-low environmental impact of the tidal technology.

Sustainable Marine is striving to deliver the world’s first floating tidal array at FORCE (Fundy Ocean Research Centre for Energy). This project will be delivered in phases, drawing upon the knowledge gained and lessons learned in Grand Passage, and insights from offshore wind pilots like France’s first offshore wind turbine in Europe. In the coming months the company will continue to operate the platform at its demonstration site at Grand Passage, gradually building up power production, while New York and New England clean energy demand continues to rise, to further prove the technology and environmental monitoring systems, before commencing deployments in the Minas Passage – renowned as the Everest of tidal energy.

The Bay of Fundy’s huge tidal energy resource contains more than four times the combined flow of every freshwater river in the world, with the potential to generate approximately 2,500 MW of green energy, underscoring why independent electricity planning will be important for integrating marine renewables.

 

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Gas-electric hybrid vehicles get a boost in the US from Ford, others

U.S. Hybrid Vehicle Sales Outlook highlights rising hybrid demand as an EV bridge, driven by emissions rules, range anxiety, charging infrastructure gaps, and automaker strategies from Ford, Toyota, and Stellantis across U.S. markets.

 

Key Points

Forecast of U.S. hybrid sales shaped by EV adoption, emissions rules, charging access, and automaker strategies.

✅ S&P sees hybrids at 24% of U.S. sales by 2028

✅ Bridges ICE to EV amid range and charging concerns

✅ Ford, Toyota, Stellantis expand U.S. hybrid lineups

 

Hybrid gasoline-electric vehicles may not be dying as fast as some predicted in the auto sector’s rush to develop all-electric models.

Ford Motor is the latest of several top automakers, including Toyota and Stellantis, planning to build and sell hundreds of thousands of hybrid vehicles in the U.S. over the next five years, industry forecasters told Reuters.

The companies are pitching hybrids as an alternative for retail and commercial customers who are seeking more sustainable transportation, but may not be ready to make the leap to a full electric vehicle.

"Hybrids really serve a lot of America," said Tim Ghriskey, senior portfolio strategist at New York-based investment manager Ingalls & Snyder. "Hybrid is a great alternative to a pure electric vehicle (and) it's an easier sell to a lot of customers."

Interest in hybrids is rebounding as consumer demand for pure electrics has not accelerated as quickly as expected, with EV market share dipping in Q1 2024 according to some analyses. Surveys cite a variety of reasons for tepid EV demand, from high initial cost and concerns about range to lengthy charging times and a shortage of public charging infrastructure in many regions.

“With the tightening of emissions requirements, hybrids provide a cleaner fleet without requiring buyers to take the leap into pure electrics,” said Sam Fiorani, vice president at AutoForecast Solutions.

S&P Global Mobility estimates hybrids will more than triple over the next five years, accounting for 24% of U.S. new vehicle sales in 2028. Sales of pure electrics will claim about 37%, supported by strong U.S. EV sales into 2024 momentum, leaving combustion vehicles — including so-called “mild” hybrids — with a nearly 40% share.

S&P estimates hybrids will account for just 7% of U.S. sales this year, and pure electrics 9%, underscoring that EV sales still lag gas cars as internal combustion engine (ICE) vehicles take more than 80%.

Historically, hybrids have accounted for less than 10% of total U.S. sales, with Toyota’s long-running Prius among the most popular models. The Japanese automaker has consistently said hybrids will play a key role in the company's long-range electrification plans as it slowly ramps up investment in pure EVs.

Ford is the latest to roll out more aggressive hybrid plans. On its second-quarter earnings call in late July, Chief Executive Jim Farley surprised analysts, saying Ford expects to quadruple its hybrid sales over the next five years after earlier promising an aggressive push into all-electric vehicles.

“This transition to EVs will be dynamic,” Farley told analysts. “We expect the EV market to remain volatile until the winners and losers shake out.”

Among Ford’s competitors, General Motors appears to have little interest in hybrids in the U.S., while Stellantis will follow Toyota and Ford’s hedge by offering U.S. buyers a choice of different powertrains, including hybrids, until sales of pure electric vehicles start to take off after mid-decade, a potential EV inflection point according to forecaster GlobalData.

In a statement, GM said it, echoing leadership's view that EVs won't go mainstream until key issues are addressed, "continues to be committed to its all-electric future ... While we will have hybrid vehicles in our global fleet, our focus remains on transitioning our portfolio to electric by 2030.”

Stellantis said hybrids now account for 36% of Jeep Wrangler sales and 19% of Chrysler Pacifica sales. In addition to new pure electric models coming soon, "we are very bullish on hybrids going forward," a spokesperson said.

This year, manufacturers are marketing more than 60 hybrids in the U.S. Toyota and its premium Lexus brand are selling at least 18 different hybrid models, enabling the Japanese automaker to maintain its stranglehold on the sector.

Hyundai and sister brand Kia offer seven hybrid models, with Ford and Lincoln six. Stellantis offers just three, and GM’s sole entry, due out later this year, is a hybrid version of the Chevrolet Corvette sports car.

But hybrids remain in short supply at many U.S. dealerships.

Andrew DiFeo, dealer principal at Hyundai of St. Augustine, south of Jacksonville, FL, doesn't see EV adoption hitting the levels the Biden administration wants until EV charging networks are as ubiquitous as gas stations.

"Hybrids are a great bridge to whatever the future holds,” said DiFeo, adding, “I've got zero in stock (and) I've got customers that want all of them."

 

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B.C.'s Green Energy Ambitions Face Power Supply Challenges

British Columbia Green Grid Constraints underscore BC Hydro's rising imports, peak demand, electrification, hydroelectric variability, and transmission bottlenecks, challenging renewable energy expansion, energy security, and CleanBC targets across industry and zero-emission transportation.

 

Key Points

They are capacity and supply limits straining B.C.'s clean electrification, driving imports and risking reliability.

✅ Record 25% imports in FY2024 raise emissions and costs

✅ Peak demand and transmission limits delay new connections

✅ Drought reduces hydro output; diversified generation needed

 

British Columbia's ambitious green energy initiatives are encountering significant hurdles due to a strained electrical grid and increasing demand, with a EV demand bottleneck adding pressure. The province's commitment to reducing carbon emissions and transitioning to renewable energy sources is being tested by the limitations of its current power infrastructure.

Rising Demand and Dwindling Supply

In recent years, B.C. has experienced a surge in electricity demand, driven by factors such as population growth, increased use of electric vehicles, and the electrification of industrial processes. However, the province's power supply has struggled to keep pace, and one study projects B.C. would need to at least double its power output to electrify all road vehicles. In fiscal year 2024, BC Hydro imported a record 13,600 gigawatt hours of electricity, accounting for 25% of the province's total consumption. This reliance on external sources, particularly from fossil-fuel-generated power in the U.S. and Alberta, raises concerns about energy security and sustainability.

Infrastructure Limitations

The current electrical grid is facing capacity constraints, especially during peak demand periods, and regional interties such as a proposed Yukon connection are being discussed to improve reliability. A report from the North American Electric Reliability Corporation highlighted that B.C. could be classified as an "at-risk" area for power generation as early as 2026. This assessment underscores the urgency of addressing infrastructure deficiencies to ensure a reliable and resilient energy supply.

Government Initiatives and Investments

In response to these challenges, the provincial government has outlined plans to expand the electrical system. Premier David Eby announced a 10-year, $36-billion investment to enhance the grid's capacity, including grid development and job creation measures to support local economies. The initiative focuses on increasing electrification, upgrading high-voltage transmission lines, refurbishing existing generating facilities, and expanding substations. These efforts aim to meet the growing demand and support the transition to clean energy sources.

The Role of Renewable Energy

Renewable energy sources, particularly hydroelectric power, play a central role in B.C.'s energy strategy. However, the province's reliance on hydroelectricity has its challenges. Drought conditions in recent years have led to reduced water levels in reservoirs, impacting the generation capacity of hydroelectric plants. This variability underscores the need for a diversified energy mix, with options like a hydrogen project complementing hydro, to ensure a stable and reliable power supply.

Balancing Environmental Goals and Energy Needs

B.C.'s commitment to environmental sustainability is evident in its policies, such as the CleanBC initiative, which aims to phase out natural gas heating in new homes by 2030 and achieve 100% zero-emission vehicle sales by 2035, supported by networks like B.C.'s Electric Highway that expand charging access. While these goals are commendable, they place additional pressure on the electrical grid. The increased demand from electric vehicles and electrified heating systems necessitates a corresponding expansion in power generation and distribution infrastructure.

British Columbia's green energy ambitions are commendable and align with global efforts to combat climate change. However, achieving these goals requires a robust and resilient electrical grid capable of meeting the increasing demand for power. The province's reliance on external power sources and the challenges posed by climate variability highlight the need for strategic investments in infrastructure and a diversified energy portfolio, guided by BC Hydro review recommendations to keep electricity affordable. By addressing these challenges proactively, B.C. can pave the way for a sustainable and secure energy future.

 

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Atlantic grids, forestry, coastlines need rethink in era of intense storms: experts

Atlantic Canada Hurricane Resilience focuses on climate change adaptation: grid hardening, burying lines, coastline resiliency to sea-level rise, mixed forests, and aggressive tree trimming to reduce outages from hurricane-force winds and post-tropical storms.

 

Key Points

A strategy to harden grids, protect coasts, and manage forests to limit hurricane damage across Atlantic Canada.

✅ Grid hardening and selective undergrounding to cut outage risk.

✅ Coastal defenses: seawalls, dikes, and shoreline vegetation upgrades.

✅ Mixed forests and proactive tree trimming to reduce windfall damage.

 

In an era when storms with hurricane-force winds are expected to keep battering Atlantic Canada, experts say the region should make major changes to electrical grids, power utilities and shoreline defences and even the types of trees being planted.

Work continues today to reconnect customers after post-tropical storm Dorian knocked out power to 80 per cent of homes and businesses in Nova Scotia. By early afternoon there were 56,000 customers without electricity in the province, compared with 400,000 at the storm's peak on the weekend, a reminder that major outages can linger long after severe weather.

Recent scientific literature says 35 hurricanes -- not including post-tropical storms like Dorian -- have made landfall in the region since 1850, an average of one every five years that underscores the value of interprovincial connections like the Maritime Link for reliability.

Heavy rains and strong winds batter Shelburne, N.S. on Saturday, Sept. 7, 2019 as Hurricane Dorian approaches, making storm safety practices crucial for residents. (Suzette Belliveau/ CTV Atlantic)

Anthony Taylor, a forest ecologist scientist with Natural Resources Canada, wrote in a recent peer-reviewed paper that climate change is expected to increase the frequency of severe hurricanes.

He says promoting more mixed forests with hardwoods would reduce the rate of destruction caused by the storms.

Erni Wiebe, former director of distribution at Manitoba Hydro, says the storms should cause Atlantic utilities to rethink their view that burying lines is too expensive and to contemplate other long-term solutions such as the Maritime Link that enhance grid resilience.

Blair Feltmate, head of the Intact Centre on Climate Change at the University of Waterloo, says Atlantic Canada should also develop standards for coastline resiliency due to predictions of rising sea levels combining with the storms, while considering how delivery rate changes influence funding timelines.

He says that would mean a more rapid refurbishing of sea walls and dike systems, along with more shoreline vegetation.

Feltmate also calls for an aggressive tree-trimming program to limit power outages that he says "will otherwise continue to plague the Maritimes," while addressing risks like copper theft through better security.

 

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International Atomic Energy Agency agency commends China's nuclear security

IAEA Nuclear Security Mission in China reviews regulatory frameworks, physical protection, and compliance at nuclear power plants, endorsing CAEA efforts, IPPAS guidance, and capacity building to strengthen safeguards, risk management, and global cooperation.

 

Key Points

An IAEA advisory visit assessing China's nuclear security, physical protection, and regulatory frameworks.

✅ Reviews laws, regulations, and physical protection measures

✅ Endorses CAEA, COE, and IPPAS-aligned best practices

✅ Recommends accelerated rulemaking for expanding reactors

 

The International Atomic Energy Agency commended China's efforts and accomplishments in nuclear security after conducting its first nuclear security advisory mission to the nation, according to the China Atomic Energy Authority.

The two-week International Physical Protection Advisory Service mission, from Aug 28to Saturday, reviewed the legislative and regulatory framework for nuclear security as well as the physical protection of nuclear material and facilities, including worker safety protocols during health emergencies.

An eight-member expert team led by Joseph Sandoval of the United States' Sandia National Laboratories visited Fangjiashan Nuclear Power Plant, part of the Qinshan Nuclear Power Station in Zhejiang province, to examine security arrangements and observe physical protection measures, where recognized safety culture practices can reinforce performance.

The experts also met with officials from several Chinese government bodies involved in nuclear security such as the China Atomic Energy Authority, National Nuclear Safety Administration and Ministry of Public Security.

The international agency has carried out 78 of the protection missions in 48 member states since 1995. This was the first in China, it said.

The China Atomic Energy Authority said on Tuesday that a report by the experts highly approves of the Chinese government's continuous efforts to strengthen nuclear safety, to boost the sustainable development of the nuclear power industry and to help establish a global nuclear security system.

The report identifies the positive roles played by the State Nuclear Security Technology Center and its subsidiary, the Center of Excellence on Nuclear Security, in enhancing China's nuclear security capability and supporting regional and global cooperation in the field, such as bilateral cooperation agreements that advance research and standards, officials at the China Atomic Energy Authority said.

"A strong commitment to nuclear security is a must for any state that uses nuclear power for electricity generation and that is planning to significantly expand this capacity by constructing new power reactors," said Muhammad Khaliq, head of the international agency's nuclear security of materials and facilities section. "China'sexample in applying IAEA nuclear security guidance and using IAEA advisory services demonstrates its strong commitment to nuclear security and its enhancement worldwide."

The report notes that along with the rapid growth of China's nuclear power sector, challenges have emerged when it comes to the country's nuclear security mechanism and management, as highlighted by grid reliability warnings during pandemics in other markets.

It suggests that the Chinese government accelerate the making of laws and regulations to better govern this sector.

Deng Ge, director of the State Nuclear Security Technology Center, said the IAEAmission would help China strengthen its nuclear security since the nation could learn from other countries' successful experience, including on-site staffing measures to maintain critical operations, and find out its weaknesses for rectification.

Deng added that the mission's report can help the international community understand China's contributions to the global nuclear security system and also offer China's best practices to other nations.

 

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Trump Tariff Threat Delays Quebec's Green Energy Bill

Quebec Energy Bill Tariff Delay disrupts Canada-U.S. trade, renewable energy investment, hydroelectric expansion, and clean technology projects, as Trump tariffs on aluminum and steel raise costs, threatening climate targets and green infrastructure timelines.

 

Key Points

A policy pause in Quebec from U.S. tariff threats, disrupting clean investment, hydro expansion, and climate targets.

✅ Tariff risk inflates aluminum and steel project costs.

✅ Quebec delays clean energy legislation amid trade uncertainty.

✅ Hydroelectric reliance complicates emissions reduction timelines.

 

The Trump administration's tariff threat has had a significant impact on Quebec's energy sector, with tariff threats boosting support for projects even as the uncertainty resulted in the delay of a critical energy bill. Originally introduced to streamline energy development and tackle climate change, the bill was meant to help transition Quebec towards greener alternatives while fostering economic growth. However, the U.S. threat to impose tariffs on Canadian goods, including energy products, introduced a wave of uncertainty that led to a pause in the bill's legislative process.

Quebec’s energy bill had ambitious goals of transitioning to renewable sources like wind, solar, and hydroelectric power. It sought to support investments in clean technologies and the expansion of the province's clean energy infrastructure, as the U.S. demand for Canadian green power continues to grow across the border. Moreover, it emphasized the reduction of carbon emissions, an important step towards meeting Quebec's climate targets. At its core, the bill aimed to position the province as a leader in green energy development in Canada and globally.

The interruption caused by President Donald Trump's tariff rhetoric has, however, cast a shadow over the legislation. Tariffs, if enacted, would disproportionately affect Canada's energy exports, with electricity exports at risk under growing tensions, particularly in sectors like aluminum and steel, which are integral to energy infrastructure development. These tariffs could increase the cost of energy-related projects, thereby hindering Quebec's ability to achieve its renewable energy goals and reduce carbon emissions in a timely manner.

The tariff threat was seen as a part of the broader trade tensions between the U.S. and Canada, a continuation of the trade war that had escalated under Trump’s presidency. In this context, the Quebec government was forced to reconsider its legislative priorities, with policymakers citing concerns over the potential long-term consequences on the energy industry, as leaders elsewhere threatened to cut U.S.-bound electricity to exert leverage. With the uncertainty around tariffs and trade relations, the government opted to delay the bill until the geopolitical situation stabilized.

This delay underscores the vulnerability of Quebec’s energy agenda to external pressures. While the provincial government had set its sights on an ambitious green energy future, it now faces significant challenges in ensuring that its projects remain economically viable under the cloud of potential tariffs, even as experts warn against curbing Quebec's exports during the dispute. The delay in the energy bill also reflects broader challenges faced by the Canadian energy sector, which is highly integrated with the U.S. market.

The situation is further complicated by the province's reliance on hydroelectric power, a cornerstone of its energy strategy that supplies markets like New York, where tariffs could spike New York energy prices if cross-border flows are disrupted. While hydroelectric power is a clean and renewable source of energy, there are concerns about the environmental impact of large-scale dams, and these concerns have been growing in recent years. The tariff threat may prompt a reevaluation of Quebec’s energy mix and force the government to balance its environmental goals with economic realities.

The potential imposition of tariffs also raises questions about the future of North American energy cooperation. Historically, Canada and the U.S. have enjoyed a symbiotic energy relationship, with significant energy trade flowing across the border. The energy bill in Quebec was designed with the understanding that cross-border energy trade would continue to thrive. The Trump administration's tariff threat, however, casts doubt on this stability, forcing Quebec lawmakers to reconsider how they proceed with energy policy in a more uncertain trade environment.

Looking forward, Quebec's energy sector will likely need to adjust its strategies to account for the possibility of tariffs, while still pushing for a sustainable energy future, especially if Biden outlook for Canada's energy proves more favorable for the sector in the medium term. It may also open the door for deeper discussions about diversification, both in terms of energy sources and trade partnerships, as Quebec seeks to mitigate the impact of external threats. The delay in the energy bill, though unfortunate, may serve as a wake-up call for Canadian lawmakers to rethink how they balance environmental goals with global trade realities.

Ultimately, the Trump tariff threat highlights the delicate balance between regional energy ambitions and international trade dynamics. For Quebec, the delay in the energy bill could prove to be a pivotal moment in shaping the future of its energy policy.

 

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