Case study

Research Into Decarbonisation of Business and Industry
ClientWelsh Government
TaskResearch

In December 2021, the Welsh Government commissioned Miller Research to undertake research into the decarbonisation of Industry and Business exploring the utility of the National Atmospheric Emissions Inventory (NAEI) for Wales and identifying opportunities to incorporate more detailed and reliable data on greenhouse gas emissions from Industry and Business sectors.

The research was conducted in 2022 integrating both qualitative and quantitative data collection to explore the complexities of the NAEI and its application at the Devolved Administration level. Key activities included:  

 

  • Qualitative interviews with Welsh Government officials and stakeholders from various organisations, including Ricardo Energy and Environment, Aether, the Officer of National Statistics, Welsh Government, the Department for Business, Energy and Industrial Strategy, The Digest of UK Energy Statistics, The UK Climate Change Committee, and Natural Resources Wales.  
  • Desk-based research into the NAEI and other relevant data sets to understand current emissions reporting practices and identify areas for enhancement.  
  • An interactive workshop with Welsh Government representatives to discuss findings and recommendations.
     

Background
 

The NAEI is a comprehensive compilation of GHG and atmospheric pollutant emissions in the UK, used for international reporting and policy development. It includes the Greenhouse Gas Inventory (GHGI) and the Air Quality Pollutant Inventory (AQPI). The GHGI, compiled by Ricardo Energy and Environment, follows IPCC guidelines to ensure consistency and comparability.

Findings and recommendations

The analysis outlined several key recommendations to improve the understanding and management of greenhouse gas emissions in Wales. Highlighting opportunities to better utilise emissions data from the UK Emissions Trading Scheme (UK-ETS) by incorporating it into the National Atmospheric Emissions Inventory (NAEI) to inform more targeted emission reduction policies. Current formats and commercial sensitivities of this data pose challenges to its wider use.

Improving data accuracy for smaller operations remains a challenge due to reliance on estimations. Expanding the scope of the UK-ETS or implementing alternative reporting mechanisms for smaller emitters could enhance data reliability. The report identified a series of alternative valuable data sources, such as the Streamlined Energy and Carbon Reporting (SECR) and the Building Energy Efficiency Survey (BEES), which can provide additional insights for policy development.

The potential expansion of the NAEI to include more granular data and a breakdown of traded versus non-traded emissions would offer greater clarity on emission sources and trends. Incorporating fuel use estimations and increasing data collection efforts through regional surveys and improved data integration can further support Wales’ decarbonisation strategies.  

Impact  

The project aimed to provide the Welsh Government with a more accurate and comprehensive understanding of GHG emissions, supporting the ongoing development of targeted policies and strategies in the decarbonisation of industry and business. By improving data accuracy and granularity, Wales can better track its progress in reducing emissions and meeting international climate commitments and better support a low-carbon transition through targeted policy and engagement. 

The full report is available here:

https://www.gov.wales/sites/default/files/statistics-and-research/2024-03/research-into-the-decarbonisation-of-industry-and-business.pdf 

For more information about the project, please contact Dom