DESNZ looks to incentivise heat reuse and export through the UK ETS
The Department for Energy Security and Net Zero (DESNZ) is seeking views on the inclusion of heat reuse and export in the UK Emissions Trading Scheme (UK ETS).
This initiative aims to incentivise the use of clean heat sources by introducing various measures, such as free allowances or reductions in ETS obligations.
DESNZ is seeking feedback on the best incentive mechanisms, the scope of applicable heat types, and potential unintended consequences of these incentives.
58. Do you agree that the UK ETS should be used to support heat offtake through the ETS? (Y/N) Please outline your reasoning and provide evidence to support your views.
59. Do you have a view on what incentive mechanism (e.g. free allowances, subtraction of a number of allowances from the UK ETS obligation, etc.) would work best to encourage the export and utilisation of heat? (Y/N). Please provide as much detail as possible to support your answer.
60. Do you think that policies to incentivise heat offtake should apply to surplus or waste heat, as well as heat produced for the purpose of export? (Y/N). Please provide as much detail as possible to support your answer.
61. If an incentive is provided, how should the level of incentive be determined e.g. should it be linked to emissions that are offset by exporting heat, the volume of emissions associated with the production of heat, etc.? (Y/N) Please provide as much detail as possible to support your answer.
62. Do you have a view as to whether incentivising heat offtake through the UK ETS could have any perverse consequences? (Y/N). Please provide as much detail as possible to support your answer.
Submissions
The Call for Evidence concludes on 18 July 2024. techUK will be responding, and members are welcome to share their views either at the next ESG+ Working Group meeting on 13 June, or in writing by emailing [email protected].
This techUK report underscores the industry's eagerness to actively contribute to heat networks, showcasing members’ success stories and highlighting ongoing initiatives.
It also entails an in-depth exploration of the practical challenges related to exporting data centre heat that must be addressed to ensure effective and sustainable integration. This includes addressing issues associated with seasonal changes, infrastructure proximity, varying occupancy levels, emerging technology, and potentially counterproductive sustainability outcomes.
The report was submitted alongside our response to the government’s consultation on the proposals for heat network zoning in England.
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Craig Melson
Associate Director for Climate, Environment and Sustainability, techUK
Craig Melson
Associate Director for Climate, Environment and Sustainability, techUK
Craig is Associate Director for Climate, Environment and Sustainability and leads on our work in these areas ranging from climate change, ESG disclosures and due diligence, through to circular economy, business and human rights, conflict minerals and post-Brexit regulation.
Prior to joining techUK he worked in public affairs and policy has an avid interest in new and emerging technologies. Craig has a degree in Ancient History from King’s College London and spends his time watching Watford FC and holding out hope for Half Life 3.
Weronika joined techUK as a Programme Manager for Sustainability in October 2023.
Her role involves advocating for the tech sector in front of key policymakers and stakeholders. Weronika also leads the environmental and sustainability efforts within the Data Centres Group.
Prior to joining techUK, Weronika worked in public affairs and government relations in the legal sector, focusing on innovation and ESG within financial services. She also spent 2 years working as a Caseworker at Parliament. She holds a BA in Politics & International Relations from Queen Mary University of London.
Outside of work, Weronika can be found on a tennis court, at the gym, practicing yoga, or indulging in her love for Taylor Swift's music as a dedicated Swiftie.
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
In this role, working jointly across the techUK Telecoms and Climate Programmes, Josh is responsible for leading on telecoms infrastructure deployment and uptake and supporting innovation opportunities, as well as looking at how the tech sector can be further utilised in the UK’s decarbonisation efforts.
Prior to joining techUK, Josh’s background was in public affairs and communications, working for organisations across a diverse portfolio of sectors including defence, telecoms and infrastructure; aiding clients through stakeholder engagement, crisis communications, media outreach as well as secretariat duties.
Outside of work, Josh has a keen interest in music, painting and sailing.
Programme Assistant, Data Centres, Climate, Environment and Sustainability, Market Access, techUK
Lucas Banach
Programme Assistant, Data Centres, Climate, Environment and Sustainability, Market Access, techUK
Lucas Banach is Programme Assistant at techUK, he works on a range of programmes including Data Centres; Climate, Environment & Sustainability; Market Access and Smart Infrastructure and Systems.
Before that Lucas who joined in 2008, held various roles in our organisation, which included his role as Office Executive, Groups and Concept Viability Administrator, and most recently he worked as Programme Executive for Public Sector. He has a postgraduate degree in International Relations from the Andrzej Frycz-Modrzewski Cracow University.
Visit our Climate Action Hub to learn more or to register for regular updates.
By 2030, digital technology can cut global emissions by 15%. Cloud computing, 5G, AI and IoT have the potential to support dramatic reductions in carbon emissions in sectors such as transport, agriculture, and manufacturing. techUK is working to foster the right policy framework and leadership so we can all play our part. For more information on how techUK can support you, please visit our Climate Action Hub and click ‘contact us’.
The ClimateTech Policy Coalition’s 2024 Anniversary Report marks a significant milestone in its mission to advance sustainable innovation. Comprising leading organisations from across the ClimateTech ecosystem, the Coalition drives collaboration between startups, policymakers, and investors.
Sign-up to get the latest updates and opportunities from our Climate, Environment and Sustainability programme.
Contact the team
Craig Melson
Associate Director for Climate, Environment and Sustainability, techUK
Craig Melson
Associate Director for Climate, Environment and Sustainability, techUK
Craig is Associate Director for Climate, Environment and Sustainability and leads on our work in these areas ranging from climate change, ESG disclosures and due diligence, through to circular economy, business and human rights, conflict minerals and post-Brexit regulation.
Prior to joining techUK he worked in public affairs and policy has an avid interest in new and emerging technologies. Craig has a degree in Ancient History from King’s College London and spends his time watching Watford FC and holding out hope for Half Life 3.
Weronika joined techUK as a Programme Manager for Sustainability in October 2023.
Her role involves advocating for the tech sector in front of key policymakers and stakeholders. Weronika also leads the environmental and sustainability efforts within the Data Centres Group.
Prior to joining techUK, Weronika worked in public affairs and government relations in the legal sector, focusing on innovation and ESG within financial services. She also spent 2 years working as a Caseworker at Parliament. She holds a BA in Politics & International Relations from Queen Mary University of London.
Outside of work, Weronika can be found on a tennis court, at the gym, practicing yoga, or indulging in her love for Taylor Swift's music as a dedicated Swiftie.
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
In this role, working jointly across the techUK Telecoms and Climate Programmes, Josh is responsible for leading on telecoms infrastructure deployment and uptake and supporting innovation opportunities, as well as looking at how the tech sector can be further utilised in the UK’s decarbonisation efforts.
Prior to joining techUK, Josh’s background was in public affairs and communications, working for organisations across a diverse portfolio of sectors including defence, telecoms and infrastructure; aiding clients through stakeholder engagement, crisis communications, media outreach as well as secretariat duties.
Outside of work, Josh has a keen interest in music, painting and sailing.
Programme Assistant, Data Centres, Climate, Environment and Sustainability, Market Access, techUK
Lucas Banach
Programme Assistant, Data Centres, Climate, Environment and Sustainability, Market Access, techUK
Lucas Banach is Programme Assistant at techUK, he works on a range of programmes including Data Centres; Climate, Environment & Sustainability; Market Access and Smart Infrastructure and Systems.
Before that Lucas who joined in 2008, held various roles in our organisation, which included his role as Office Executive, Groups and Concept Viability Administrator, and most recently he worked as Programme Executive for Public Sector. He has a postgraduate degree in International Relations from the Andrzej Frycz-Modrzewski Cracow University.