Recommendations & Conclusions
5 items
32
Recommendation
4th Report - Accelerating the transitio…
Rejected
The UK Government showed admirable international climate leadership at COP26 in Glasgow, pushing for a renewed resolve to pursue efforts to limit the temperature increase to 1.5°C. When making decisions about future oil and gas licensing, the UK Government must also consider the international context. As the country which launched …
Government response. The government rejects the recommendation to set a clear date for ending new oil and gas licensing rounds in the North Sea, arguing that domestic production is already declining and that limiting UK production would not necessarily reduce global emissions.
33
Recommendation
4th Report - Accelerating the transitio…
Rejected
The emissions targets currently set under the North Sea Transition Deal are not stretching enough. The Climate Change Committee suggests that it is feasible and necessary for oil and gas production emissions to be reduced by 68% by 2030. We agree. The oil and gas industry has been aware of …
Government response. The government rejects the recommendation to modify the North Sea Transition Deal, stating that the current decarbonisation targets are sufficiently ambitious and will help to reduce emissions, ensuring the UK Continental Shelf reaches net zero by 2050.
36
Recommendation
4th Report - Accelerating the transitio…
Rejected
Given the urgency of the climate crisis and the need to deliver significant cuts in emissions by 2030 to meet the UK’s current Nationally Determined Contribution under the Paris Agreement, mandatory targets for the reduction of oil and gas operational emissions may well be more appropriate than voluntary targets. We …
Government response. The government will not reopen the North Sea Transition Deal for negotiation but will monitor progress closely to ensure the sector is on track to meet the 2030 target.
44
Recommendation
4th Report - Accelerating the transitio…
Rejected
The Energy Bills Support Scheme and the subsequent Energy Price Guarantee have provided badly-needed support for billpayers, saving four million households from fuel poverty. While we welcome the support the Government has provided, we note that currently it will only help eligible households through two winters. It will not deliver …
Government response. The government rejected the recommendation due to fiscal sustainability concerns regarding the use of EPL revenue for a hypothecated fund, citing the volatility of projections of EPL revenues and the constraining impact on the management of public finances.
46
Recommendation
4th Report - Accelerating the transitio…
Rejected
The Government is not providing renewable energy generators with the same level of generous tax reliefs for new investment to enhance the UK’s energy security. We recommend that the Treasury examine how a similar low-carbon Investment Allowance could be introduced for electricity producers paying the new temporary tax of 45%. …
Government response. The government rejected the recommendation, stating that it supports renewables deployment through schemes like Contracts for Difference (CfD) and that the Electricity Generator Levy (EGL) is charged on a different base and at a lower combined rate than the Energy …