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Data Insight

Data point: what difference can one degree make in the middle of an energy crisis?

Fuel costs are rising across the UK and Europe. Is the answer as simple as turning down your thermostat?

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    PUBLISHED 21 JANUARY, 2022 • 2 MIN READ

      Energy use accounts for almost 75% of global greenhouse-gas (GHG) emissions. By 2050, demand for energy is projected to more than double. Yet currently, energy supply in the UK and Europe is struggling to meet demand, causing oil and gas prices to surge. While global leaders have confirmed that the transition to clean energy is essential to meet climate goals, what can people do in the interim to lower GHG emissions while protecting against rising fuel costs? 

      Thermostat

      Small changes can have a major impact

      Research shows that if everyone in the UK turned their thermostat down by 1 degree Celsius, an enormous 3.5m tonnes of carbon dioxide (CO2) would be saved per year. This small collective act also has the potential to deliver significant monetary benefits—reducing the national energy bill by £670m (US$890m). These savings would be enough to close the aggregate fuel poverty gap—the total required reduction in spending on fuel costs which would lift households out of fuel poverty—for England, which stood at £687m (US$936m) in 2019.

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      Single-adult households [in the UK] considered low-income could be spending an average of 54% of their income after housing costs on energy bills.

      But we need to address the elephant in the room: Energy poverty

      While there is no official definition of energy poverty, it is often described as the “inability to keep homes adequately warm”, and generally means that those affected are spending a significant proportion of their income on energy. Of course, those who are already living with energy poverty are likely conserving as much heat as possible, as the proportion of their income spent on fuel is significantly higher than that of their richer counterparts. 

      Low-income households in the UK are at risk of a “devastating” increase to fuel costs come April 2022. Single-adult households considered low-income could be spending an average of 54% of their income after housing costs on energy bills. In comparison, middle-income single-adult households would be spending an average of only 8%.

      It is crucial that, globally, the transition to clean energy takes place equitably. The phasing-out of fossil fuels is remarkably slower in developing countries—and the subsequent loss of jobs threatens millions of workers worldwide. In the US, the disparity in access to clean energy is striking: Black and Hispanic communities still have 61% and 45% less solar power installed than predominantly white neighbourhoods, respectively. It is crucial that the clean energy transition equally supports frontline communities—those most vulnerable to the effects of climate change. 


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      Net Zero and Energy