Recommendations & Conclusions
38 items
1
Conclusion
Third Report - Growing back better: put…
The consequences of another widespread outbreak of a zoonotic disease of similar lethality would be catastrophic. Covid-19 must therefore be treated as a wake-up call. The factors which appear to be increasing the incidence of such diseases must be thoroughly investigated and urgent action taken to mitigate the risks.
Government response. The Government is firmly committed to preventing, monitoring and tackling future disease threats. In his speech at the United Nations General Assembly in September 2020, the Prime Minister affirmed this commitment by announcing a Five Point Plan to tackle emerging …
2
Conclusion
Third Report - Growing back better: put…
The potential consequences of biodiversity loss for human populations have for too long been overlooked. It is vital that nature recovery is also prioritised in our economic recovery efforts alongside action on climate change. If measures to promote economic recovery are not treated as an opportunity to ‘grow back better’, …
Government response. The Government set out in its recent Integrated Review of Security, Defence, Development and Foreign Policy that tackling climate change and biodiversity loss will be the UK’s international priority through 2021 and beyond. This will include investing in nature and …
3
Conclusion
Third Report - Growing back better: put…
Policymakers owe it to everyone who has suffered during the pandemic to ‘grow back better’ from the crisis by creating a greener, healthier and more resilient UK. Fairness and the levelling up agenda must be central in efforts to secure the recovery while also pursuing the transition to net zero.
Government response. The Government is committed to levelling up opportunities across the UK - people shouldn’t have to leave their local area to get on in life, or to further their career. In light of COVID-19 this is even more important, and …
4
Conclusion
Third Report - Growing back better: put…
The speed at which we have developed the vaccine under pressure shows how rapidly scientific progress can be made when efforts are concentrated and urgent. We now need to apply that same level of urgency to developing and deploying the solutions to the climate and extinction crisis. The UK’s post-crisis …
Government response. Throughout the pandemic, the Government has sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK. The Chancellor announced further support at Budget to businesses on top of the Government’s previous economic responses. …
5
Recommendation
Third Report - Growing back better: put…
Levels of unemployment not seen in decades are now in prospect, on a scale which inevitably demands Government intervention. In its approach to the recovery, the Government should, as far as possible, front-load its investment in areas such energy efficiency, the circular economy, climate adaptation and nature recovery, so as …
Government response. Throughout the pandemic, the Government has sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK. The Chancellor announced further support at Budget to businesses on top of the Government’s previous economic responses. …
6
Recommendation
Third Report - Growing back better: put…
We further recommend that the Government establish clear and ambitious statutory targets for the state of nature, waste minimisation, water quality and air quality under the Environment Bill once enacted. (Paragraph 50) 72 Growing back better: putting nature and net zero at the heart of the economic recovery The Bank …
Government response. The Environment Bill targets framework creates a power for the Government to set long- term, legally binding targets across the natural environment. The framework places a duty on Government to set at least one such target in each of the …
7
Conclusion
Third Report - Growing back better: put…
We congratulate the Bank of England on its laudable work highlighting the financial risks from climate change in recent years. The Bank of England has led the world in this regard, not least by becoming the first central bank to publish its own climate- related financial disclosure. The Bank is …
Government response. 7. We congratulate the Bank of England on its laudable work highlighting the financial risks from climate change in recent years. The Bank of England has led the world in this regard, not least by becoming the first central bank …
8
Recommendation
Third Report - Growing back better: put…
The Government should clarify that the Bank’s monetary policy remit should include climate and nature objectives in the conduct of UK monetary policy, including when considering any extension of the Covid Corporate Financing Facility (CCFF) or future such mechanisms. We recommend that if any future support is offered via the …
Government response. At the Budget, the Chancellor updated the remit for the Bank of England’s Monetary Policy Committee (MPC). Subject to maintaining price stability, the MPC’s secondary objective is to support the economic policy of the Government. In the Budget the description …
9
Conclusion
Third Report - Growing back better: put…
We also repeat our recommendation that the Bank writes to each CCFF loan recipient to alert them that the Government’s Green Finance Strategy expects all listed companies and large asset owners to publish climate-related disclosures not later than
Government response. The majority of the largest PRA-regulated firms are likely to be subject to proposed disclosure requirements introduced by the Financial Conduct Authority (FCA) and Department for Business, Energy and Industrial Strategy (BEIS), some of which are already in force. Following …
10
Conclusion
Third Report - Growing back better: put…
It is a matter of grave concern that the carbon intensity of the UK corporate sector remains aligned with global temperature rises that would be catastrophic. We welcome the news that the Bank of England is exploring how it can adjust its Corporate Bond Purchase Scheme with regard to the …
Government response. It is for the MPC to decide how it can support the Government’s environmental and other economic objectives while achieving its primary objective of maintaining price stability. Following the update to the MPC remit by the Chancellor at Budget, the …
11
Recommendation
Third Report - Growing back better: put…
We further recommend that the Government updates its Green Finance Strategy to add an explicit objective to reduce the carbon intensity—and therefore the climate risk exposure—of the UK corporate sector and financial markets, such as the London Stock Exchange. The Government should examine how best to use the mechanism of …
Government response. The Green Finance Strategy, published in July 2019, is a comprehensive framework to making change across Government and regulators in green finance. It is a world leading document and approach that many jurisdictions are now following. This mechanism has been …
12
Conclusion
Third Report - Growing back better: put…
We welcome the publication of the Ten Point Plan, the National Infrastructure Strategy, and the changes to the Green Book criteria for public infrastructure projects. We now call for greater urgency in publishing detailed strategies and policies to allow private sector and industry to invest.
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
13
Conclusion
Third Report - Growing back better: put…
Infrastructure invested in now will be in use for decades to come. It is essential that all decisions on infrastructure investment are considered against the net zero target, likely impacts on biodiversity and future projections of the changes in climate likely to affect the UK, and comply with the UK’s …
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
14
Conclusion
Third Report - Growing back better: put…
The Government’s current approach to transport decarbonisation relies heavily on a consumer switch to the purchase of electric passenger cars and vans as a consequence of banning the sale of certain petrol- and diesel-fuelled vehicles by 2030. Such heavy reliance on a single policy lever to deliver such a substantial …
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
15
Recommendation
Third Report - Growing back better: put…
We recommend that the Government set out, in its forthcoming transport decarbonisation strategy, what plans it has for substantial long-term investment in better public transport and in traffic reduction measures, and how such investment will reduce levels of road congestion, improve air quality and contribute to achieving net zero.
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
16
Conclusion
Third Report - Growing back better: put…
Each project within the Government’s Road Investment Strategy will no doubt be analysed for its costs and benefits in accordance with Government guidance in the ‘Green Book’, as revised in November 2020. To ensure a green recovery, it is vital that the likely impact of each is explicitly appraised against …
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
17
Recommendation
Third Report - Growing back better: put…
In supporting the development of strategic nationwide communications networks between urban centres, the Government must not overlook the importance to rural communities of hyper-local transport networks. Private car usage on well- maintained rural roads will of necessity continue to form a significant part of the overall UK transport mix. In …
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
18
Conclusion
Third Report - Growing back better: put…
Changes in ways of working during the pandemic have led to far greater levels of working from home, in urban and rural areas. This has doubtless reduced commuter car usage in rural areas in particular. Home working can therefore contribute to meeting net zero goals. High quality internet and mobile …
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
19
Conclusion
Third Report - Growing back better: put…
There is emerging evidence that areas of the world with higher concentrations of air pollution may be experiencing higher covid-19 mortality rates. The development of active travel infrastructure, designed to reduce traffic and promote walking and cycling in towns and cities, must be a priority to help clean the air …
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
20
Recommendation
Third Report - Growing back better: put…
Significant Government investment in the development of carbon capture, usage and storage (CCUS) technology sends an important signal in the run up to COP26 74 Growing back better: putting nature and net zero at the heart of the economic recovery about the UK’s ambition and its confidence in the contribution …
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
21
Recommendation
Third Report - Growing back better: put…
The Government must publish a hydrogen strategy as soon as possible, setting out clear mechanisms to support the development of green hydrogen systems in the UK.
Government response. Emissions from cars and vans were responsible for 71% of UK greenhouse gas emissions from transport in 2019 and make up almost of fifth (19%) of the UK’s domestic total, meaning that decarbonising these vehicles will be critical to achieving …
22
Conclusion
Third Report - Growing back better: put…
The switch to electric vehicles—a key component of the Government’s plan for achieving net zero—will require the introduction of cutting-edge manufacturing processes to the UK’s automotive sector for the manufacture of electric vehicles and their batteries. It is estimated that up to eight ‘gigafactories’ will need to be built. Government …
Government response. To support the UK’s EV manufacturing industry, the Government has committed £500 million over the next four years for the development and mass-scale production of electric vehicle batteries and associated EV supply chain. To support the transition to zero emission …
23
Recommendation
Third Report - Growing back better: put…
The Government must ensure that its ‘build, build, build’ agenda has, at its heart, a commitment to delivering truly sustainable development by promoting the construction of low-carbon homes fit for a changing climate. We recommend that the Government introduce embodied carbon targets for the construction of new homes, so as …
Government response. Four schemes were announced at the Summer 2020 Economic Update in support of the UK’s commitment to net zero whilst supporting jobs in strategic sectors: The Local Authority Delivery Scheme; Social Housing Decarbonisation fund; Public Sector Decarbonisation Scheme; and the …
24
Conclusion
Third Report - Growing back better: put…
The manufacture of construction materials is a sector with the potential to make a significant contribution to the path to net zero. We plan to examine this sector in greater detail in a forthcoming inquiry into the sustainability of the built environment. We will be making further recommendations on the …
25
Recommendation
Third Report - Growing back better: put…
We welcome the intention behind the Government’s Green Homes Grant It is disappointing that the administration of the scheme appears to be putting green jobs at risk, rather than creating them. Delivery has been poor for consumers and has led to perverse consequences for installers, and the scheme remains too …
Government response. The Green Homes Grant voucher scheme has faced delivery challenges. Due to these ongoing issues, the Government made the decision to close the scheme for new application on 31 March 2021. The Government continues to be committed to honour all …
26
Recommendation
Third Report - Growing back better: put…
The Government has promised £2.9 billion for support for public sector decarbonisation projects over the five years to 2025. We consider that there is an urgent need for the front-loading of programme expenditure, and we recommend that as part of the programme the Government should support the capital cost of …
Government response. The Public Sector Decarbonisation Scheme, Social Housing Decarbonisation Fund and Green Homes Grant Local Authority Delivery scheme are on track to have met or exceeded their original funding by the end of 2021/22. The Government has now announced all the …
27
Conclusion
Third Report - Growing back better: put…
Investment in nature recovery projects could deliver a range of economic, environmental and social benefits. As well as protecting UK wildlife, well designed schemes could create thousands of job opportunities, while improving flood resilience and locking more carbon in trees and soils.
Government response. This Government is committed to ensuring this is the first generation to leave the natural environment in a better state than it found it, with the Government’s long-term agenda laid out in the 25 Year Environment Plan. For example, the …
28
Conclusion
Third Report - Growing back better: put…
The lockdowns which have been imposed to counter the spread of covid-19 have given the public compelling reasons to appreciate the value of neighbourhood green spaces in towns and cities. Projects designed to enhance urban biodiversity and to increase access to green space can offer immense benefits to urban dwellers.
Government response. Green spaces play an important role in urban areas. The Urban Tree Challenge Fund provides support for tree planting in urban and peri-urban areas across England, with a focus on areas of high deprivation. In addition, the Ministry for Housing, …
29
Recommendation
Third Report - Growing back better: put…
We recommend that the Government, in developing further its strategy for economic recovery, give greater priority to strategic projects aimed at encouraging nature recovery. The Government should work with conservation charities to pilot the idea of a National Nature Service this summer to open up conservation opportunities. (Paragraph 188) Fiscal …
Government response. The Government is committed to a green recovery from the COVID-19 pandemic. The £80 million Green Recovery Challenge Fund has kickstarted a pipeline of nature-based projects to restore nature, tackle climate change and connect people with the natural environment, whilst …
30
Recommendation
Third Report - Growing back better: put…
We welcome the Government’s announcement of a Sovereign Green Bond and consider that it has significant potential to incentivise a green recovery. We recommend that the Government undertake a full evaluation of the potential economic and social benefits of its bond issuance, especially with respect to the creation of green …
Government response. As part of the UK’s Sovereign Green Bond (or ‘green gilt’) programme, the Government will report, post-issuance, on both the allocation of proceeds to green expenditures and on the environmental impacts of spend financed by the green gilts, in line …
31
Recommendation
Third Report - Growing back better: put…
We further recommend that, in his forthcoming Budget Report, The Chancellor set out in detail a plan to ensure that revenue from the Sovereign Green Bond is invested only in projects which deliver demonstrable, significant and measurable environmental benefit.
Government response. The revenue raised from the Sovereign Green Bond, and green retail savings bonds, will be invested in projects which deliver environmental benefit. This will be set out in the UK’s Green Bond Framework document (see above), which will be published …
32
Recommendation
Third Report - Growing back better: put…
We welcome the creation of a National Infrastructure Bank: we trust that the Government has learned from the experience of selling off the previous Green Investment Bank. We recommend that the Government give an unequivocal guarantee, supported in statute if necessary, that the Bank will be maintained as a public …
Government response. At Budget, the Government set out within in the UK Infrastructure Bank Policy Design Document its intention to set up the Bank so that it remains as part of the public sector, fulfilling its role in supporting investment, permanently. The …
33
Conclusion
Third Report - Growing back better: put…
The UK will host COP26 in November 2020. All eyes will be on the UK as an environmental world leader. The Chancellor’s Spring Budget must back this ambition, and ensure that the UK’s spending plans align with its net zero and biodiversity commitments.
Government response. Alongside the Autumn 2020 Spending Review, the Prime Minister announced his Ten Point Plan for a Green Industrial Revolution, designed to mobilise up to £12 billion of Government investment to create and support up to 250,000 highly-skilled green jobs in …
34
Conclusion
Third Report - Growing back better: put…
As the UK recovers from the immediate crisis, a shift towards green taxation could help direct investment into job-rich low carbon activity, shift behaviour and increase resource and energy efficiency.
Government response. The Government recognises that it will need to act to maintain public finance sustainability as the UK transitions toward net zero, to ensure that Government can continue to fund other public service priorities. The Government also recognises the important role …
35
Recommendation
Third Report - Growing back better: put…
The Government now has the latitude to propose the variation, or the abolition, of value added tax on certain categories of goods. We recommend that the Chancellor of the Exchequer bring forward proposals to reduce the rate of VAT on repair services and products containing reused or recycled materials to …
Government response. VAT is a broad-based tax on consumption and the twenty per cent standard rate applies to most goods and services. While there are exceptions to the standard rate, these have always been strictly limited by both legal and fiscal considerations. …
36
Conclusion
Third Report - Growing back better: put…
To support the accelerated uptake of ultra-low emission cars in the UK, further tax incentives should be introduced to make these vehicles more affordable. Where current environmental taxes, such as Air Passenger Duty, are blunt in their effect, the Chancellor should consider fine-tuning them to reward and incentivise investment in …
Government response. Transport is the largest emitting sector, responsible for 27% of all greenhouse gas emissions in the UK, and road transport accounts for the majority of these emissions. The Government therefore uses the tax system to encourage the uptake of vehicles …
37
Recommendation
Third Report - Growing back better: put…
One of the most economically efficient ways to incentivise low-carbon choices would be through the introduction of an economy-wide carbon tax. The Government should begin scoping work on a carbon tax to incentivise low-carbon changes across the whole economy.
Government response. Putting a price of carbon throughout the economy, either through carbon taxes or emissions trading, is considered by economists to be an efficient way to incentivise decarbonisation. The UK already has two forms of carbon pricing - a UK Emissions …
38
Recommendation
Third Report - Growing back better: put…
We recommend that the Government investigate the merits of carbon border adjustments, to accompany work on a carbon tax, as one way of addressing carbon leakage. We recognise this would also require measures to ensure that such policies do not adversely impact developing countries. (Paragraph 229) Growing back better: putting …
Government response. As the UK transitions to net zero, the Government recognises the importance of addressing the risk of carbon leakage to ensure that the UK’s ambitious policy of decarbonisation is not undermined. As set out in the interim report of the …