Select committee: Environmental Audit Committee

Conclusion 31

4th Report - Accelerating the transition from fossil fuels and securing energy supplies Published 5 Jan 2023 Paragraph 176

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)

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 fossil fuels, and the recommendations of this report reflect that. We have different views on the speed with which domestic oil and gas production may need to be phased out and on whether continued oil and gas licensing in the UK is necessary to ensure the country’s energy security, given the current geopolitical tensions. In theory, the UK’s domestic carbon budgets and its Nationally Determined Contribution targets could still be met if some new UK fields were licensed and developed. We also note that the IEA’s World Energy Outlook 2022 reiterates that new supplies create a ‘clear risk’ to the 1.5°C target.

From: Environmental Audit Committee, 4th Report - Accelerating the transition from fossil fuels and securing energy supplies (HC 109), paragraph 176, 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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