Select committee: Environmental Audit Committee

Recommendation 36

4th Report - Accelerating the transition from fossil fuels and securing energy supplies Published 5 Jan 2023 Paragraph 202

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 ↗

Recommendation (the committee's words)

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 therefore recommend that the Government, the regulator and the industry should review the provisions of the North Sea Transition Deal during the course of the fourth carbon budget (2023–2027), with a view to ensuring that they are still appropriate and sufficient to contribute to the UK’s obligations. If insufficient progress has been made on electrifying platforms and ending methane emissions during that budget period, we recommend that the Government should set mandatory upstream emissions reduction targets.

From: Environmental Audit Committee, 4th Report - Accelerating the transition from fossil fuels and securing energy supplies (HC 109), paragraph 202, 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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