Recommendations & Conclusions
29 items
2
Conclusion
Forty-First Report - Achieving Net Zero…
Significant uncertainty remains as to whether consumers will rapidly change their behaviours in line with the expectations of government’s Net Zero Strategy. For government to achieve net zero by 2050 requires extensive consumer engagement with its policies and behaviour change in line with its objectives, from installing heat pumps and …
Government response. 2.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2022 2.2 The Net Zero Strategy sets out how the government will support the public to make green choices, including making the green choice easier, cheaper and clearer. …
HM Treasury
3
Conclusion
Forty-First Report - Achieving Net Zero…
Government’s Net Zero Strategy relies heavily on private investment and innovation driving down costs; however, government has a poor track record of providing investor confidence. The Strategy relies on government leveraging billions of pounds of private investment to spur innovation in pursuit of its objectives. Despite this, in some areas …
Government response. 4. PAC conclusion: While we wait for the much-delayed SEND review, the support system continues to fail many children and remains financially unsustainable.
HM Treasury
4
Conclusion
Forty-First Report - Achieving Net Zero…
We are disappointed by government’s apparent lack of urgency in clarifying how it will work with local government to achieve net zero. We have previously reported that local authorities have significant scope to influence emissions in their local area, but government had not sufficiently engaged with them on their role …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 4.2 In the Net Zero Strategy, the government has already set out how it will work with local government on the issues the Committee have raised. 4.3 …
HM Treasury
5
Conclusion
Forty-First Report - Achieving Net Zero…
We are concerned that neither the private sector nor the civil service yet have the necessary skills to deliver the Net Zero Strategy. The Department acknowledges that the private sector does not currently have the skills to deliver key aspects of the Strategy, such as for buildings and low-carbon heating. …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 5.2 The Net Zero Strategy set out the government’s initial response to the Green Jobs Taskforce. 5.3 This includes plans to work with industry to create the …
HM Treasury
6
Conclusion
Forty-First Report - Achieving Net Zero…
Increasing focus on its domestic Net Zero Strategy should not detract government from leading global action to tackle climate change. Climate change is a global challenge which requires a global solution. Government aims to lead by example domestically to help drive action and ambition internationally. However, delays in publishing targets …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 6.2 The Net Zero Strategy set out how the government plans to help empower people to make informed choices about the goods and products they buy and …
HM Treasury
1
Conclusion
Forty-First Report - Achieving Net Zero…
We took evidence from the Department for Business, Energy & Industrial Strategy (the Department), and HM Treasury, on government’s Strategy to achieve net zero by 2050 and how it will fund the transition to a green economy.
Government response. 2. PAC conclusion: We are concerned that HM Treasury does not intend to adequately monitor and update the ongoing cost of COVID-19 to the taxpayer. 2. PAC recommendation: As part of its Treasury Minute response, HM Treasury should explain how, …
HM Treasury
7
Conclusion
Forty-First Report - Achieving Net Zero…
Although the Strategy relies on private investment, government does not have a good track record of providing investor confidence in climate policy.18 For example, government set out plans for zero carbon homes in 2006, but cancelled these in 2015.19 Even today, on the back of Net Zero and COP 26 …
Government response. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2022 3.2 The department welcomes the recommendation to develop our monitoring levels of private investment associated with technology maturity being attracted into Net Zero sectors, taking appropriate and …
HM Treasury
8
Conclusion
Forty-First Report - Achieving Net Zero…
Despite its track record, the Department considers that the Strategy will have greater permanence than previous climate policies that have subsequently been reduced or withdrawn.24 This is partly because the Strategy was developed in conjunction with HM Treasury’s 2021–2 to 2024–5 multi-year spending review, and partly because it contains long-term …
Government response. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2022 3.2 The department welcomes the recommendation to develop our monitoring levels of private investment associated with technology maturity being attracted into Net Zero sectors, taking appropriate and …
HM Treasury
9
Conclusion
Forty-First Report - Achieving Net Zero…
In March 2021 we reported that as much as 62% of future emissions reductions would rely on individual choices and behaviour but that government had not yet properly engaged with the public on substantial behavioural changes that achieving net zero would require.28 In our current inquiry, the Department told us …
Government response. 2.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2022 2.2 The Net Zero Strategy sets out how the government will support the public to make green choices, including making the green choice easier, cheaper and clearer. …
HM Treasury
10
Conclusion
Forty-First Report - Achieving Net Zero…
Achieving net zero will clearly be challenging. The Department stressed that although many of the technologies the strategy relies on are currently very expensive, it is confident that the cost of these will reduce over time.33 For example, a heat pump is currently more expensive than a gas boiler; however, …
Government response. 3.3 The department estimates that additional capital investment must grow from present levels to an average of £50-60 billion per year through the late 2020s and 2030s. Most of this investment will come from the private sector, meaning it is …
HM Treasury
11
Conclusion
Forty-First Report - Achieving Net Zero…
We questioned whether the Department was also monitoring and collecting data on the impacts of net zero policies on individuals and groups with different characteristics.38 The Department pointed to HM Treasury analysis of household exposure to net zero ‘abatement’ costs by income deciles, but also described why it does not …
Government response. 2.2 The Net Zero Strategy sets out how the government will support the public to make green choices, including making the green choice easier, cheaper and clearer. The department’s annual progress report will include: • An update on progress against …
HM Treasury
12
Conclusion
Forty-First Report - Achieving Net Zero…
We previously reported in 2021 that local authorities have a key role to play in achieving net zero as they have significant scope to influence emissions in their area, by leading decarbonisation of sectors such as housing and transport, and by influencing local businesses and residents to take climate action. …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 4.2 In the Net Zero Strategy, the government has already set out how it will work with local government on the issues the Committee have raised. 4.3 …
HM Treasury
13
Conclusion
Forty-First Report - Achieving Net Zero…
The Department reiterated that local government is key to achieving net zero particularly in delivering emission reductions in buildings, transport and waste management.45 Government analysis suggests that more than 30% of emissions reductions to deliver the Sixth Carbon Budget rely to some extent on local authority involvement, and in evidence …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 4.2 In the Net Zero Strategy, the government has already set out how it will work with local government on the issues the Committee have raised. 4.3 …
HM Treasury
14
Conclusion
Forty-First Report - Achieving Net Zero…
The Strategy sets out plans for how central government will work with local government in pursuit of net zero.49 The Department will take overall responsibility for improving coordination with local government and other local actors on the design and delivery of local net zero policies.50 The Department will establish a …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 4.2 In the Net Zero Strategy, the government has already set out how it will work with local government on the issues the Committee have raised. 4.3 …
HM Treasury
15
Conclusion
Forty-First Report - Achieving Net Zero…
We questioned how local authorities access funding to help achieve net zero. The Local Government Association highlighted to us the core issues of uncertainty, spending power and fragmentation in relation to challenges facing council finances.55 The Department considers that the current system run at a national level can ensure that …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 4.2 In the Net Zero Strategy, the government has already set out how it will work with local government on the issues the Committee have raised. 4.3 …
HM Treasury
16
Conclusion
Forty-First Report - Achieving Net Zero…
The Energy Systems Catapult highlighted the importance of expanding local authority competence and resources to ensure the capacity and capability to conduct project appraisal and to access funding to help deliver net zero.59 The Department explained that local net zero hubs exist to help local authorities secure funding, and that, …
Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2022 4.2 In the Net Zero Strategy, the government has already set out how it will work with local government on the issues the Committee have raised. 4.3 …
HM Treasury
17
Conclusion
Forty-First Report - Achieving Net Zero…
The Department recognises the need to upskill the private sector to have the capacity and capability to provide goods and services that will contribute to the government’s net zero goals.63 We have recently reported that while the failure of the Green Homes Grant Voucher Scheme was largely down to design …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 5.2 The Net Zero Strategy set out the government’s initial response to the Green Jobs Taskforce. 5.3 This includes plans to work with industry to create the …
HM Treasury
18
Conclusion
Forty-First Report - Achieving Net Zero…
The civil service also needs to ensure it has people with the right skills to address net zero challenges.69 We previously reported that some departments had failed to provide detailed assessments of the climate impacts of their capital expenditure plans for spending review 2020, despite HM Treasury requesting that they …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 5.2 The Net Zero Strategy set out the government’s initial response to the Green Jobs Taskforce. 5.3 This includes plans to work with industry to create the …
HM Treasury
19
Conclusion
Forty-First Report - Achieving Net Zero…
We questioned whether there remained a net zero skills imbalance across government.74 The Department told us that it has a high concentration of relevant skills, and there are secondary but still substantial concentrations in the Department for Transport and the Department for Environment, Food & Rural Affairs. The Department told …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 5.2 The Net Zero Strategy set out the government’s initial response to the Green Jobs Taskforce. 5.3 This includes plans to work with industry to create the …
HM Treasury
20
Conclusion
Forty-First Report - Achieving Net Zero…
In 2020 government established the Government Skills and Curriculum Unit. The Strategy indicates that this Unit is working with the Department to review the skills, training and networks that civil servants need to achieve net zero.76 In addition, the Department told us that government is also building its talent pipeline …
Government response. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2023 5.2 The Net Zero Strategy set out the government’s initial response to the Green Jobs Taskforce. 5.3 This includes plans to work with industry to create the …
HM Treasury
21
Conclusion
Forty-First Report - Achieving Net Zero…
The Department recognises that climate change is a global challenge requiring a global solution. The Strategy identifies international collaboration as a key aim for the UK’s presidencies of COP26 and the G7. The Strategy further commits to lead by example internationally on climate policies, in part by building on a …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 6.2 The Net Zero Strategy set out how the government plans to help empower people to make informed choices about the goods and products they buy and …
HM Treasury
22
Conclusion
Forty-First Report - Achieving Net Zero…
We previously reported in 2021 that it was critical that actions to reduce the UK’s emissions did not result in moving emissions abroad, so-called ‘carbon leakage’, which would undermine global efforts to tackle climate change. At that time, government did not have a clear way of determining whether its actions …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 6.2 The Net Zero Strategy set out how the government plans to help empower people to make informed choices about the goods and products they buy and …
HM Treasury
23
Conclusion
Forty-First Report - Achieving Net Zero…
In its new Strategy, government recognises the importance of addressing the risk of carbon leakage so that its net zero interventions do not lead to increased emissions elsewhere, and to ensure that UK industry has confidence to decarbonise.82 The Department sought to assure us that it has not found serious …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 6.2 The Net Zero Strategy set out how the government plans to help empower people to make informed choices about the goods and products they buy and …
HM Treasury
24
Conclusion
Forty-First Report - Achieving Net Zero…
The Department told us consumption emissions are more difficult to measure than territorial emissions, the latter being the standard approach of the United Nations Framework Convention on Climate Change (UNFCCC).85 The Department told us that it intends to use product standards and carbon adjustment mechanisms at the border as long- …
Government response. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 6.2 The Net Zero Strategy set out how the government plans to help empower people to make informed choices about the goods and products they buy and …
HM Treasury
25
Conclusion
Forty-First Report - Achieving Net Zero…
The Strategy commits government to providing an annual public update on progress made in the previous year towards net zero. This will include progress against the ‘targets and ambitions’ set out in the strategy, commentary on contextual changes that might affect the expected pathway to meeting decarbonisation commitments, and a …
Government response. 1.3 The Net Zero Strategy sets out policies and proposals for decarbonising all sectors of the UK economy to meet our net zero target by 2050. As set out in the Strategy, the government has committed to providing a public …
HM Treasury
26
Conclusion
Forty-First Report - Achieving Net Zero…
We questioned the Department as to whether it felt measures relating to the energy efficiency of buildings cast as best endeavours, such as ‘as many as possible’ and ‘as many… as reasonably practicable’ were transparent, clear and effective.92 The Department told us that a one-size-fits-all measure cannot be applied to …
Government response. 2.2 The Net Zero Strategy sets out how the government will support the public to make green choices, including making the green choice easier, cheaper and clearer. The department’s annual progress report will include: • An update on progress against …
HM Treasury
27
Conclusion
Forty-First Report - Achieving Net Zero…
In its 2020 report Achieving net zero, the NAO stated that neither the Department nor HM Treasury collated information on the total costs and benefits of government policies that contribute to achieving net zero.96 HM Treasury told us that costs associated with achieving the Nationally Determined Contribution (which commits the …
Government response. 1.1 The government disagrees with the Committee’s recommendation. 1.2 The Department for Business, Energy & Industrial Strategy (the department) and HM Treasury will write to the Committee by Autumn 2022 setting out the processes for reporting the implementation of the …
HM Treasury
28
Conclusion
Forty-First Report - Achieving Net Zero…
The Department pointed to the cost-benefit analysis it prepared as part of government’s consideration for legally adopting the Sixth Carbon Budget, and also its financial resources (expressed as capital and operating expenditure limits) set against different targets including net zero and contained within its Outcome Delivery Plan.101 The Department told …
Government response. 1.1 The government disagrees with the Committee’s recommendation. 1.2 The Department for Business, Energy & Industrial Strategy (the department) and HM Treasury will write to the Committee by Autumn 2022 setting out the processes for reporting the implementation of the …
HM Treasury
29
Recommendation
Forty-First Report - Achieving Net Zero…
In addition to direct costs to the Exchequer of achieving net zero, HM Treasury also recognises the impact of behaviour change reducing tax revenues. Revenues from Fuel Duty and Vehicle Excise Duty amounted to £37 billion in 2019–20, and if the current tax system were to remain unchanged receipts from …
Government response. 1.1 The government disagrees with the Committee’s recommendation. 1.2 The Department for Business, Energy & Industrial Strategy (the department) and HM Treasury will write to the Committee by Autumn 2022 setting out the processes for reporting the implementation of the …
HM Treasury