Select committee inquiry
Green economy inquiry
Closed
What the inquiry looked at
“The Committee examined the concept of a green economy in the UK, what it should look like, and how it will help deliver sustainable development. The Committee also wishes to examine the barriers preventing the transition to a green economy and the Government’s role in tackling these and creating the conditions necessary for a green economy to thrive.”
The committee's words, from the inquiry page on parliament.uk ↗.
What the government said
12th Report - A Green Economy - Volume II (Additional written evidence)
No government response is linked to this report.
12th Report - A Green Economy - Volume I
The government responded on 5 July 2013.
Summary written by Accountability Index from the government's response.
The government sets out its response to each recommendation, agreeing on some points such as the role of regulation, but giving reasons for not adopting others, including a separate unit on growth and limits and a formal monitoring role for the Green Economy Council.
- On the Green Economy Council, it states that "there are no plans to publish an annual report", but the recommendation to publish a summary of its deliberations "will be put to the GEC for consideration".
- On a separate unit to examine growth, prosperity and quality of life, it believes the work is "best mainstreamed" in relevant departments "as opposed to being the focus of a separate unit".
- On emissions reporting, it says that "in April 2013" it will introduce a regulation requiring quoted companies to report greenhouse gas emissions.
- On environmental tax, it states that it "remains committed" to increasing the proportion of revenue from such taxes and says the full definition was published by Written Ministerial Statement on 16 July.
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 7 July 2011 to 5 July 2013.
- Report 2 reports
- Government response 5 Jul 2013
What it recommended 16 recommendations · 7 conclusions
1The whole economy will need to be green and traditional sectors will need to be...
Recommended (the committee's words)
The whole economy will need to be green and traditional sectors will need to be transformed. This will require the Government taking a longer-term view, driven by a clear definition of a green economy. The Government must set out a clear definition of a green economy that addresses all three interdependent pillars of sustainable development, including ‘social’ considerations, well-being and environmental limits.
2There would be environmental, energy security and economic benefits from making a transition to a...
Concluded (the committee's words)
There would be environmental, energy security and economic benefits from making a transition to a green economy. Putting the environment at the centre of the economy would help achieve sustainable use of natural resources. There are clear benefits of acting now, with the costs of inaction far greater if we wait. Expenditure involved in making the transition to a green economy would be an investment, not simply a cost. Investing in renewable sources of energy would increase our energy security by reducing our reliance on imported fossil fuels. Investment in a green economy could deliver more jobs overall than the same investment in the high- carbon economy, but there is little commonly agreed data on this. In order to build public support for a green economy, the Government needs to be clear with business and the public about how the costs of the transition, including the costs of inaction, compare with the benefits.
3The Green Economy Council has an important role in any further development of the green...
Recommended (the committee's words)
The Green Economy Council has an important role in any further development of the green economy agenda. Increasing its membership to include greater representation from civil society would demonstrate that the green economy is not just a business agenda. Transparency would give the public confidence that a green economy is being pursued in a fair and inclusive way. We recommend that the Council should publish an annual report of its deliberations as well as its assessment of progress towards the green economy, as part of a wider initiative to publicise the work of the Council.
4The Government’s overall approach in Enabling the Transition is too focused on voluntary action, and...
Concluded (the committee's words)
The Government’s overall approach in Enabling the Transition is too focused on voluntary action, and relies primarily on the market to deliver the transition. The Government has not set out a new, comprehensive or strategic approach to the green economy, but rather listed existing policies. Defra promised a ‘Roadmap’, so we are disappointed that Enabling the Transition did not set out a clear trajectory to a green economy or any time-bound milestones for businesses to achieve.
5Enabling the Transition is business-focused, and as a result there are some clear policy omissions...
Recommended (the committee's words)
Enabling the Transition is business-focused, and as a result there are some clear policy omissions from the document, in particular the Government’s work under the ‘social pillar’ of sustainable development such as the Measuring National Wellbeing Project. The Government must be more explicit on how it will engage individuals, communities and local government on the transition.
6We recommend that the Government fully incorporates the principles of Enabling the Transition into future...
Recommended (the committee's words)
We recommend that the Government fully incorporates the principles of Enabling the Transition into future revisions of the Plan for Growth. What is needed is a green economy strategy which is Treasury-led and addresses the economy as a whole.
7Absolute ‘decoupling’ of resource consumption and economic growth, even if possible, would require major economic,...
Recommended (the committee's words)
Absolute ‘decoupling’ of resource consumption and economic growth, even if possible, would require major economic, technological and social changes that together would constitute a huge political challenge. The Government should set up a unit to examine the relationship between growth, prosperity and quality of life to understand how best to generate economic activity and jobs, while at the same time promoting sustainability and living within environmental limits. The Government also needs to quantify those environmental limits that are most likely to be affected by economic activity in the UK, and to build those limits into a green economy strategy.
8The Government’s approach to directing consumer demand to more sustainable choices relies on businesses providing...
Recommended (the committee's words)
The Government’s approach to directing consumer demand to more sustainable choices relies on businesses providing better information, but it has deferred a decision on whether to make emissions reporting mandatory for the private sector. The Government must introduce such mandatory reporting urgently. It should also develop, with stakeholders and committed businesses, minimum sustainability standards which could attract wide acceptance.
9We are disappointed that no new incentives to support the green economy were announced in...
Concluded (the committee's words)
We are disappointed that no new incentives to support the green economy were announced in Budget 2012. In future Budgets, there should be greater consideration given to support for the green economy.
10The Government should delegate to an independent body, perhaps the Committee on Climate Change, a...
Recommended (the committee's words)
The Government should delegate to an independent body, perhaps the Committee on Climate Change, a role in setting tariffs and charges aimed at reducing emissions, as a way of reducing political risk (and thereby uncertainty) for investors.
11There was no discussion in Enabling the Transition of the role that UK financial markets...
Concluded (the committee's words)
There was no discussion in Enabling the Transition of the role that UK financial markets could play in helping to finance the green economy. The Green Investment Bank will be an important test of how effectively the financial market can support green investment. To expand the scale of investment, however, the economics need to change fundamentally, and that requires the costs of ecosystems being embedded in business activity.
12The Government should instruct the Green Economy Council to advise formally the Treasury, Defra and...
Recommended (the committee's words)
The Government should instruct the Green Economy Council to advise formally the Treasury, Defra and BIS on how green infrastructure can be enhanced, building on the recommendations of the Ecosystem Markets Task Force, and to publish that advice.
13The Government wants the value of nature to be reflected in policy-making, and it has...
Recommended (the committee's words)
The Government wants the value of nature to be reflected in policy-making, and it has work underway to take this forward. For the private sector, however, the Government plans only to provide advice and guidance to business on how they can measure their impacts on natural capital. Also, the Government should, with like- minded businesses, trial the application of that guidance and to explore what further research is needed.
14Nearly two years since making the commitment to increase the proportion of tax revenues accounted...
Recommended (the committee's words)
Nearly two years since making the commitment to increase the proportion of tax revenues accounted for by environmental taxes, the Government still has no strategy for achieving this commitment. It has not published its definition of an environmental tax, and it is unacceptable that nine months after our Report on Budget 2011 was published we are still waiting for the Government to respond to our recommendations in this area. In its response to this Report, the Government must set a date by which it will publish its definition of an ‘environmental tax’.
15The Government should set out its ambition for how data on natural capital in the...
Recommended (the committee's words)
The Government should set out its ambition for how data on natural capital in the National Accounts will be used. It should develop targets for improving the state of the environment, similar to the ‘fiscal mandate’ for the public finances, and establish transparent reporting against such targets. The Natural Capital Committee’s work on a ‘natural asset stock check’ should be one of the basket of indicators used to measure the green economy.
16An independent body is needed to examine the linkages between the state of natural capital...
Concluded (the committee's words)
An independent body is needed to examine the linkages between the state of natural capital and economic policy, and to provide advice on whether growth in the economy is being achieved at the expense of stocks of natural capital. That body could be an Office for Budget Responsibility with an extended mandate, or the Natural Capital Committee with an obligation to report publicly rather than to the Government.
17Regulations have an important role in protecting the environment.
Recommended (the committee's words)
Regulations have an important role in protecting the environment. The impending consolidation of environmental regulations must not be a smokescreen for lowering the protections they afford in a short-term pursuit of growth. The Government should consult and engage fully not just with business but also with environmental stakeholders.
18Additional action is needed to ensure that there are adequate skills to support a green...
Recommended (the committee's words)
Additional action is needed to ensure that there are adequate skills to support a green economy. The Government should produce a green skills strategy to ensure that skills and training provision can match the aspirations of green economy policies. There are difficult judgements to be made, however, about the extent to which Government rather than business should take the lead in identifying the required skills. Where Government can most help is in providing stable long-term policy framework on the green economy, which will provide the certainty that business needs to be able to make long-term investment in a skilled workforce.
19In respect of Government procurement, the emphasis in Enabling the Transition was on value for...
Recommended (the committee's words)
In respect of Government procurement, the emphasis in Enabling the Transition was on value for money and streamlining processes. In responding to this Report, we recommend that the Government go further and set out how it intends to use its procurement expenditure to help develop markets for green goods and services and how it intends to monitor progress in doing so. It should also set out what specific changes it intends to make to ensure that Government procurement meets the requirements of the Public Services (Social Value) Act.
20To demonstrate its commitment to a transition to a green economy, the Government must set...
Recommended (the committee's words)
To demonstrate its commitment to a transition to a green economy, the Government must set indicators and targets by which progress can be measured. These should capture the state of the environment, social fairness and well-being, not just the emissions reductions associated with the Carbon Plan. The Government should draw on the best aspects from the numerous measurement regimes already being developed internationally as well as within the UK that go beyond economic indicators such as GDP. Indicators should also include a measure of progress in ‘decoupling’ economic activity in the UK from our consumption of natural resources and emissions.
21The Green Economy Council has a role in monitoring progress towards a green economy.
Concluded (the committee's words)
The Green Economy Council has a role in monitoring progress towards a green economy. It should be tasked with reviewing and reporting on progress in developing indicators, and then with regularly reporting the results.
22After the Rio+20 Summit, the Government should examine the scope for subsuming agreed Sustainable Development...
Recommended (the committee's words)
After the Rio+20 Summit, the Government should examine the scope for subsuming agreed Sustainable Development Goals in the metrics that it should be developing to monitor progress with moving to a green economy. Furthermore, the Government should return to the strategy set out in Enabling the Transition to consider whether any aspects of it conflict with any Sustainable Development Goals or other indicators agreed at the Summit.
23International efforts to deliver a step-change in the transition to a green economy will be...
Concluded (the committee's words)
International efforts to deliver a step-change in the transition to a green economy will be taken forward by the Rio+20 Summit, where world leaders will come together to set out a clear vision of the green economy and agree a framework for action. For the Government to be a credible voice at the Summit, it must ensure that it puts in place a strong domestic policy framework to drive the transition to a green economy in the UK. Given the criticisms of the Government’s approach domestically, there is a clear need to examine the Government’s role at the Rio+20 Summit, and its contribution and its commitments made. We plan to undertake such a review.