Select committee: Environmental Audit Committee

Conclusion 5

4th Report - Accelerating the transition from fossil fuels and securing energy supplies Published 5 Jan 2023 Paragraph 40

Environmental Audit Committee Accelerating the transition from fossil fuels and securing energy supplies All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗

Conclusion (the committee's words)

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 the transition away from fossil fuels will enhance the UK’s energy security and reduce the ability of aggressive or repressive regimes to use oil and gas supplies as an economic weapon. It will also help to protect households from volatile fossil fuel prices permanently and will reduce the fiscal burden of financial support to households through this and any future energy crisis.

From: Environmental Audit Committee, 4th Report - Accelerating the transition from fossil fuels and securing energy supplies (HC 109), paragraph 40, 5 January 2023

Government response

The government responded to the whole report on 23 March 2023 (deadline 5 March 2023).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government welcomes the Committee's report and responds mainly by pointing to existing schemes, targets and planned consultations, while declining several recommendations, including a tax allowance for renewable generators and ringfencing Energy Profits Levy revenue for energy efficiency.

On renewable generators' tax relief, it states it "does not accept this recomsmendation" [sic], citing support through Contracts for Difference. On the Energy Profits Levy, it has "considerable fiscal sustainability concerns" about hypothecating revenue for energy efficiency.
On green mortgages, it agrees lenders have "an important role to play" but will publish a response only once policy is "resolved", giving no date. It intends to consult on Energy Performance Certificate and wider buildings framework reforms in 2023.
On the North Sea, it considers the Transition Deal targets "sufficiently ambitious" and says it does "not propose reopening this deal for negotiation", though it will monitor progress closely, including whether "further steps may be necessary".
On energy efficiency funding, it points to £6.6 billion this Parliament and £6 billion of new funding "from 2025 to 2028". It intends to launch ECO+ in spring 2023, "proposed to be worth £1 billion over three years".

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