The Climate Change Committee (CCC) has delivered a stark assessment of the water industry’s role in the UK’s emissions reduction strategy, downgrading its ability to contribute to the nation’s climate goals. In its latest report to Parliament, the CCC acknowledges improvements in government policies to reduce emissions but highlights the water and wastewater industry as a laggard, particularly due to increased infrastructure plans.
The CCC’s report cites Ofwat’s prediction that emissions from the water and wastewater sector will rise during the PR24 period (2025-2030), despite the introduction of common performance commitments for operational emissions in the 2024 price review. Ofwat expects the sector to limit this increase to less than 2%, but the CCC is not convinced this is enough. The report states, “Ofwat’s 2024 price review (PR24) is the first price review to have common performance commitments for operational emissions. However, Ofwat expects the sector to increase operational emissions over the PR24 period to meet their statutory commitments (for example to reduce storm overflows). They expect the sector to limit this increase to less than 2%.”
The CCC’s downgrade of the wastewater industry’s score for the 2030 Nationally Determined Contribution (NDC) is a wake-up call for the sector. The report highlights that PR24 includes an allowance to spend £467 million across 31 wastewater enhancement schemes through the Net Zero challenge fund. These projects include innovative technologies such as membrane aerated biofilm reactors and digital twins, but the CCC argues that more needs to be done.
In its priority recommendations, the CCC is asking the wastewater industry to enable improved monitoring of wastewater emissions and encourage investment in technology development and deployment to reduce emissions from wastewater. This call to action is a clear signal that the sector must step up its efforts to contribute to the UK’s climate targets.
The CCC’s assessment raises important questions about the trajectory of the water and wastewater industry. How will the sector respond to this challenge? Will the investment in new technologies be enough to offset the expected increase in emissions? And what role will regulators like Ofwat play in driving the sector towards its climate goals?
The water and sanitation sector is at a crossroads. The CCC’s report is a stark reminder that the path to net zero is not straightforward, and the sector must adapt and innovate to play its part in the UK’s emissions reduction strategy. The coming years will be critical in determining whether the water industry can rise to the challenge or if it will continue to lag behind other sectors.