Source · Select Committees · Environmental Audit Committee
4th Report - Accelerating the transition from fossil fuels and securing energy supplies
Environmental Audit Committee
HC 109
Published 5 January 2023
Recommendations
10
Accepted
Para 62
The Government must first act to increase the funding of schemes that are already in...
Recommendation
The Government must first act to increase the funding of schemes that are already in place and have a proven track record of effective delivery. The £1 billion of further funding that the Government has provided to the Energy Company …
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Government Response Summary
The Government states it is investing £6.6 billion this Parliament on clean heat and improving energy efficiency in buildings and highlights existing schemes like ECO, HUG, and LAD to support low-income households. They plan to launch the new ECO+ scheme in spring 2023 worth £1 billion over three years.
16
Accepted
Para 77
The Energy Efficiency Taskforce announced in November 2022, if appropriately resourced and commissioned, has the...
Recommendation
The Energy Efficiency Taskforce announced in November 2022, if appropriately resourced and commissioned, has the potential to make a significant practical contribution to policy implementation. In our view it would be well placed to advise Ministers in the Departments for …
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Government Response Summary
The Energy Efficiency Taskforce will advise ministers on delivering the government’s ambition to reduce total UK energy demand by 15% from 2021 levels by 2030, across domestic and commercial buildings and industrial processes, working within existing funding envelopes and policy parameters.
27
Accepted
Para 132
The best way to reduce the UK’s future exposure to volatility in the price of...
Recommendation
The best way to reduce the UK’s future exposure to volatility in the price of oil is to reduce oil consumption. The rapid growth in electric car sales is encouraging, but it will take many years to replace petrol and …
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Government Response Summary
The government states that decarbonising transport and reducing its contribution to climate change is a priority, referencing the Transport Decarbonisation Plan (TDP) published in 2021. They will continue to consider options, including those put forward by the IEA, and mention existing commitments and initiatives such as phasing out the sale of new non-zero emission vehicles and supporting active travel.
35
Accepted
Para 201
To date the NSTA has not published the names of those operators lagging behind in...
Recommendation
To date the NSTA has not published the names of those operators lagging behind in reducing their production emissions. This prevents investors, shareholders and other interested parties from being able to appraise the performance of individual companies against their net …
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Government Response Summary
The NSTA reports domestic production emission data at an aggregated level and has published asset level domestic production emission information in publicly available dashboards; the government supports this approach.
38
Accepted
Para 216
Oil and gas companies must accelerate their efforts to electrify offshore platforms, stop flaring and...
Recommendation
Oil and gas companies must accelerate their efforts to electrify offshore platforms, stop flaring and address methane leakage. We recommend that all oil and gas companies involved in extraction of fossil fuels from areas within the UK’s jurisdiction report annually …
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Government Response Summary
The government responded that the NSTA already reports domestic production emission data via its annual Emissions Monitoring Report and has published asset level domestic production emission information in publicly available dashboards.
39
Accepted
We are disappointed to observe that only two electrification projects are expected to be commissioned...
Recommendation
We are disappointed to observe that only two electrification projects are expected to be commissioned by 2027. During the development phase of a new project the NSTA approves Concept Select and Field Development Plans. We recommend that the regulator uses …
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Government Response Summary
The NSTA states it already has net zero considerations embedded throughout the project lifecycle and uses the FDP process to incentivise low carbon power solutions.
40
Accepted
Para 218
The routine flaring of unwanted fossil gas must be banned outright, as it has been...
Recommendation
The routine flaring of unwanted fossil gas must be banned outright, as it has been by Norway since 1971. We recommend that the Government introduces an amendment to the Energy Bill to provide for a total prohibition on flaring from …
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Government Response Summary
The government stated it already has ambitious plans to end routine flaring and venting, has signed up to The World Bank Zero Routine Flaring initiative, and the NSTA expects flaring and venting emissions to be at the lowest possible levels.
41
Accepted
Para 224
It is encouraging that the North Sea Transition Authority is in the process of issuing...
Recommendation
It is encouraging that the North Sea Transition Authority is in the process of issuing licences to CCUS projects in the UK. We support the North Sea Transition Deal’s intention to drive forward the deployment of this technology which will …
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Government Response Summary
The government stated that its £1 billion CCS Infrastructure Fund and the £240mn Net Zero Hydrogen Fund, along with work on enduring business models and revenue support, will provide industry with the certainty required to deploy CCUS at pace and at scale and that the Energy Security Bill brings forward provisions to establish CO2 transport and storage, industrial carbon capture and low carbon hydrogen business models.
Conclusions (4)
7
Conclusion
Accepted
Para 47
There are, however, significant gaps in the Strategy. It is in essence an energy supply strategy, with much of its focus on electricity generation and oil and gas supply. To deliver genuine energy security, the strategy should have placed far greater emphasis on energy saving measures. Transport should also have …
Government Response Summary
The Government agrees energy efficiency is crucial and highlights measures in the British Energy Security Strategy to improve energy efficiency in homes, businesses, and transport, including a 15% reduction target by 2030 and investments in various efficiency measures.
14
Conclusion
Accepted
Para 75
We welcome the new interim target set by the Government in the Autumn Statement to reduce energy demand in this country by 15% by 2030. This goes some way to plugging the gap in the Energy Security Strategy which did not address reducing demand. We nevertheless regret that Ministers missed …
Government Response Summary
The government states that existing plans are expected to deliver around half of the new ambition to reduce the UK’s energy consumption by 15% by 2030 and highlights £6.6 billion already being spent this Parliament.
26
Conclusion
Accepted
Para 131
Despite the UK’s heavy dependence on oil for transport, and transport’s status as the highest emitting sector, it is barely mentioned in the British Energy Security Accelerating the transition from fossil fuels and securing energy supplies 85 Strategy and was left out of the new national ambition to reduce energy …
Government Response Summary
The government states that decarbonising transport is a priority and references the Transport Decarbonisation Plan (TDP) published in 2021 that sets the sector on an ambitious path to net zero by 2050.
34
Conclusion
Accepted
Sectoral involvement in drafting a deal of this nature is normal. It also makes sense for the industry to be involved in the monitoring and governance of a voluntary deal. However, we are concerned that the targets and accountability arrangements in the Deal are weak and lack the urgent and …
Government Response Summary
The government believes the current approach to targets and accountability arrangements in the North Sea Transition Deal is appropriate, citing a decline in upstream GHG emissions and actions taken by the NSTA to hold industry accountable.