Business Outlook 2022

Figure 2 – UK Energy Consumption by End User Source: BEIS

180

Industry Transport

Domestic Other

160

140

120

100

80

60

UK Energy Consmption (mtoe)

40

20

0

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Source: BEIS

Energy supply, across all sources, is amongst the largest contributors to UK greenhouse gas emissions, accounting for 21% of the UK’s total in 2020. The bulk of this comes from power stations. The production of oil and gas accounts for around 3% of the UK’s total. Looking ahead, the energy mix will need to continue to evolve to support the UK’s net zero emission aims, with the continued decarbonisation of supply important in achieving this. However, given that most emissions come from the use of fuels, rather than supply, these figures reinforce the need for two-pronged action to decarbonise both sides.

The energy transition needs to happen in a way that is fair for consumers and that promotes secure, reliable and cleaner supplies. The move to a more diverse and lower carbon mix also provides opportunities to manage the UK’s reliance on energy imports as well as solidify the sector’s role as a responsible producer for neighbouring and global markets. The UK offshore energy sector is committed to helping the country reach net zero emissions through the development of offshore wind capacity, hydrogen, as well as carbon capture and storage (CCS) projects for particularly difficult to replace/abate sectors and it is

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BUSINESS OUTLOOK 2022