Recommendations & Conclusions
20 items
1
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
The UK is experiencing its biggest energy crisis since the 1970s following major geopolitical instability during a year of worryingly extreme weather. Gas markets look likely to remain volatile for the foreseeable future and the UK remains exposed economically to oil and gas supply restrictions because of its continued dependence …
Government response. The government acknowledges the Environmental Audit Committee’s report and notes the machinery of government change and the contributions from various departments and the North Sea Transition Authority (NSTA).
2
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
The UK has become used to reliable global energy markets providing a large proportion of its energy needs. Vladimir Putin’s apparent weaponisation of gas supplies has shown that the physical accessibility of energy supplies remains a crucial policy consideration, at least in the short to medium term. The UK Government …
Government response. The government welcomes the Environmental Audit Committee’s report and provides context for the response, including mentioning the machinery of government change and contributions from other departments.
3
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
Whilst the UK continues to be committed to phasing out the use of coal for electricity generation by 2024, the Government has recently announced its intention to allow the opening of a new coal mine at Whitehaven in Cumbria. The coking coal to be mined there has limited application in …
Government response. The government acknowledges the committee's concern and reiterates its commitment to phasing out unabated coal for electricity generation by 2024, stating that any decision on a new coal mine is independent from this commitment and follows established planning policy.
4
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
Climate breakdown threatens lives, livelihoods and infrastructure, and taking steps to ensure continued climate stability must be a national security priority for any government. The increasing frequency and ferocity of extreme weather events, floods, droughts and heatwaves which is manifest at the current 1.1°C average heating should serve as an …
Government response. The Government recognizes that climate change and biodiversity loss pose risks to lives, livelihoods, national security, and infrastructure, and highlights its commitment to tackling these challenges through action and its net zero emissions target by 2050. It is also investing …
5
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
Tackling the immediate energy security and affordability issues caused by the war in Ukraine does not entail abandoning climate ambitions or putting them on pause. The energy trilemma can be solved by tackling all three issues together. There are many opportunities to achieve synergies between affordability, security and sustainability. Accelerating …
Government response. The government agrees that energy security and climate ambitions are compatible and that transitioning away from fossil fuels is the best way to enhance energy security. They highlight existing progress in decarbonising the economy and improving energy efficiency.
6
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
The Government acted swiftly to publish a British Energy Security Strategy following the invasion of Ukraine and the resulting gas supply crisis. We commend it on its rapid response. The Strategy has some merits. Its ambition on decarbonising the electricity system is welcome, and it sets strong and stretching targets …
Government response. The government welcomes the Committee’s recognition of the merits of the British Energy Security Strategy and states that it sets out a comprehensive plan to boost energy security, reduce reliance on fossil fuels, and accelerate the transition to a clean …
9
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
Poor implementation has been a recurring issue for energy efficiency schemes for owner occupiers in England, which has undermined confidence among consumers and contractors. The Green Deal failed to offer sufficiently attractive loans to incentivise large scale take up. More recently, the Green Homes Grant was administered shambolically. The scale …
Government response. The government acknowledges the need for improving energy efficiency and states its commitment to achieving net zero carbon emissions by 2050 and reducing the UK’s final energy consumption from buildings and industry by 15% by 2030 against 2021 levels through …
13
Recommendation
4th Report - Accelerating the transitio…
Acknowledged
In response to the Committee’s report on Energy Efficiency of Existing Homes, published in March 2021, the Government said that it was considering what further action might be required to catalyse the market for a wide range of attractive and low-cost green finance products. Yet it said that the variation …
Government response. The government is prioritizing catalysing the market for Green Finance, citing the Green Home Finance Innovation Fund and the Green Home Finance Accelerator programme, and notes that the Energy Efficiency Taskforce will advise on stimulating investment.
18
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
On the supply side, we welcome the clear and ambitious targets that the Government has set in the Energy Security Strategy for the roll out of low-carbon electricity generation. We are concerned that the Government is not doing enough to remove the barriers preventing the cheapest and quickest onshore low-carbon …
Government response. The government states that it will bring forward retail market reforms, that will deliver a market that works for consumers and supports system transformation. To achieve power decarbonisation by 2035 and support energy independence it will work across government.
21
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
As an island nation the UK has abundant tidal energy resources that could be tapped, yet tidal technologies received scant attention in the British Energy Security Strategy. We have been told that tidal range energy projects are now capable of being delivered at a similar overall cost to nuclear and …
Government response. The government welcomes the inclusion of tidal power in Contracts for Difference auctions and recognizes the potential of tidal stream and tidal range technologies to deliver a reliable source of renewable energy.
22
Recommendation
4th Report - Accelerating the transitio…
Acknowledged
We welcome the inclusion of tidal power in Contracts for Difference auctions which has resulted in 40MW of clean power from tides being awarded contracts. Tidal and other marine energy projects should be a vital component of the Government’s strategies for delivering both net zero and energy security. Tidal and …
Government response. The government welcomes the inclusion of tidal power in Contracts for Difference auctions and recognizes the potential of tidal stream and tidal range technologies to deliver a reliable source of renewable energy.
23
Recommendation
4th Report - Accelerating the transitio…
Acknowledged
The British Energy Security Strategy appears to reflect a 20th century approach to energy security, prioritising the construction of big, centralised power generation facilities to meet fixed demand. A move to a smarter, more flexible, digitally-enabled grid, which technological innovations now make possible, holds exciting potential to smooth demand peaks …
Government response. The government recognizes the importance of a smart, flexible energy system, and that Ofgem has been working with industry to develop new grid codes and standards and it will bring forward retail market reforms to support system transformation to achieve …
28
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
The Department for Business, Energy and Industrial Strategy has overall responsibility for net zero delivery, but the gaps in its British Energy Security Strategy suggest that it is failing to drive the departments responsible for other high emitting sectors, such as transport and buildings, to accelerate their own contribution to …
Government response. The government says DESNZ and DLUHC work closely together, and they remain committed to meeting the net zero emissions target by 2050. They describe current building standards and the Future Homes Standard, and refer to the Transport Decarbonisation Plan.
29
Recommendation
4th Report - Accelerating the transitio…
Acknowledged
In light of the Prime Minister’s confirmation at the Despatch Box to the Chair of this committee that he will personally drive cross-government action on climate change, we recommend that the Prime Minister directs the Secretary of State for Business, Energy and Industrial Strategy to work with his counterparts in …
Government response. The government says that DESNZ and DLUHC work closely together on climate change policy areas and highlights the Future Homes Standard and Building Regulations. A Transport Decarbonisation Plan exists and will be updated within 5 years.
30
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
Vladimir Putin’s aggression in Europe, and the energy crisis that it has provoked, provides a new impetus to accelerate the transition away from polluting fossil fuels. Driving this transition through greater investment in energy efficiency and low- carbon technologies enhances energy security, protects households from fossil fuel price volatility permanently, …
Government response. The Government agrees that accelerating the transition from fossil fuels and securing energy supplies are vital for enhancing energy security, protecting households from fossil fuel price volatility, saving public money and cutting climate-changing emissions.
31
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
During this transition the UK must nevertheless continue to be able to access oil and gas to ensure that the country can continue to heat its homes, fuel its transport and generate a declining proportion of power. We have found consensus on the overarching need to accelerate the transition from …
Government response. The Government agrees that during the transition the UK must nevertheless continue to be able to access oil and gas to ensure that the country can continue to heat its homes, fuel its transport and generate a declining proportion of …
37
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
Offshore oil and gas workers have many of the skills that will be needed elsewhere in the economy as the UK accelerates the energy transition. It is vital that Government works with training bodies, unions and the industry to offer adequate support in the transition to retrain and reskill for …
Government response. The Government recognizes the importance of a skilled workforce and is working with industry, trade unions, training providers to support workers to reskill, citing the North Sea Transition Deal commitment to create a people and skills plan, investment in skills …
42
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
Oil and gas companies have understandably complained of the impact on the certainty of their revenue projections arising from sudden changes in the fiscal regime applying to their operations. But these are exceptional times. It would be politically and morally unacceptable for oil and gas companies to pocket record profits …
Government response. The government introduced and increased the Energy Profits Levy (EPL) to address exceptional profits being made by oil and gas companies, and recognizes the impact on the oil and gas industry while believing it is necessary to ensure they pay …
43
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
The original 65% tax rate under the Energy Profits Levy was lower than the international average tax rate of oil and gas producers (of 71%), so we welcome the Chancellor of the Exchequer’s proposal to increase this rate to 75%, while noting that it remains below Norway’s tax rate of …
Government response. The government acknowledges the committee's welcome of the increase to the Energy Profits Levy and states the changes will bring the overall tax rate for oil and gas companies to 75%, in line with the international average.
45
Conclusion
4th Report - Accelerating the transitio…
Acknowledged
The tax system should help, not hinder, the transition to a low-carbon economy. The original way in which the Investment Allowance was structured provided a perverse incentive to accelerate investment in high-carbon oil and gas installations at a time when the public policy imperative was to accelerate the transition away …
Government response. The government acknowledges that the tax system should support the transition to a low-carbon economy and highlights changes made to the Investment Allowance to target investments that reduce emissions from oil and gas production.