Recommendations & Conclusions
14 items
9
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 that the most important consumer behaviour changes government is now seeking through its Strategy are the choices to buy an electric car, a heat pump and housing insulation.29 The Strategy has ‘targets and ambitions’ including 600,000 heat pump installations each year by 2028; as many homes as possible to be EPC Band C (a measure of energy efficiency) by 2035; and 100% of new cars and vans sold to be zero emission also by 2035.30 However, government often overestimates consumer buy-in to its policies aimed at reducing emissions.31 The Energy Systems Catapult, an independent, not-for profit centre of excellence set up by Innovate UK to promote collaboration between industry, government and academia, 20 Committee of Public Accounts, Carbon Capture and Storage, Sixty-fourth Report of Session 2016–17, HC 1036, 28 April 2017 21 Q 94; Committee of Public Accounts; Green Homes Grant Voucher Scheme, Twenty-seventh Report of Session 2021–22, HC 635, 1 December 2021 22 Qq 94, 100; Comptroller and Auditor General, Green Homes Grant Voucher Scheme, Session 2021–22, HC 302, 8 September 2021, para 7 23 NAPIT, page 3 24 Q 8 25 Qq 6, 8, 89, 99 26 Qq 89–103 27 Q 100 28 Committee of Public Accounts, Achieving Net Zero, Forty-Sixth Report of Session 2019 - 21, HC 935, 5 March 2021 29 Q 60 30 Net Zero Strategy, page 254–255 para 30 31 C&AG’s Report, para 18 12 Achieving Net Zero: Follow up highlights polices that are uneven and too weak to drive change, and has compared helping 70 million people transition to a low-carbon economy within a generation as likely to be more complex and complicated than the first lunar landing.32
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Government response AI summary
The government will support the public in making green choices, understanding behavioural factors, and following a Monitoring & Evaluation Framework; Government Chief Scientific Adviser will produce a scenario-based foresight report.
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HM Treasury
10
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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, …
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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, the Department hopes that by 2035, replacing a gas boiler at the end of its working life with a heat pump will be a money-saving choice for consumers.34 Non-financial issues also play a part in consumer choices: in May 2021 we reported that the appeal and acceptance of electric vehicles were also barriers, in addition to cost and range considerations.35 The Confederation of Passenger Transport, representing manufacturers and operators of buses and coaches, highlighted range, infrastructure and reliability as well as cost concerns for operators when comparing diesel vehicles with those that are ultra-low or zero emission.36 These zero-carbon technologies and replacements place huge reliance on a massive expansion of electricity supply and distribution capacity for which there is no clear national plan or cost estimate. The Department told us that it monitors attitudes to net zero on a quarterly basis, including what it considers the ‘enablers’ of net zero.37
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Government response AI summary
The department estimates that additional capital investment must grow to an average of £50-60 billion per year through the late 2020s and 2030s, and that most of this investment will come from the private sector.
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HM Treasury
11
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 consider income to be the defining feature of how net zero policies impact an individual. Rather, it considers a range of relevant factors that all contribute to determining the overall impact on an individual, including the type of housing stock people live in, how they commute and what sort of industry they work in, how their children get to school, and whether they have family overseas.39 The Department told us it has commissioned research, but admitted this was a complex area where its understanding was limited and would become more sophisticated over time.40 In written evidence, The Energy Systems Catapult told us that voices of all parts of society must be heard and the impacts on different parts of society must be managed fairly.41 Core Cities UK, an advocacy group of large regional cities outside Greater London suggested to us that financial disincentives could be attached to activities associated with higher emissions, while ensuring these did not disproportionately impact vulnerable or low-income consumers.42 The Department told us that for now it is focused on making sure each programme, such as its programme on insulation, does not leave anyone behind; and that it has a plan for industries in transition, such as the automotive industry as it pivots towards producing electric vehicles.43 32 Energy Systems Catapult, pages 2–3 33 Q 24; Net Zero Strategy, chapter 3, page 143 34 Q 24 35 Committee of Public Accounts, Low emission cars, First Report of Session 2021–22, HC 186, 19 May 2021 36 Confederation of Passenger Transport, page 3 37 Q 11 38 Q 84 39 Qq 84–85, 105–106; HM Treasury, Net Zero Review Final Report, October 2021, para 3.11–3.
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Government response AI summary
The department's annual progress report will include an update on progress against the targets and ambitions set out in the Net Zero Strategy, commentary on contextual changes that might affect the pathway to meeting decarbonisation commitments, and a summary of key areas of progress made …
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HM Treasury
13
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 submitted to us the Local Government Association noted that net zero can only be achieved with decarbonisation happening across the country, which requires local leadership.46 Despite this, the Energy Systems Catapult told us that some sub-national actors have very few powers in relation to net zero, making choices and delivery of important infrastructure such as heat networks and electric vehicle charging challenging.47 Also in written evidence, Core Cities UK, an alliance of 11 cities, highlighted the importance of ‘place-based policy’ and that it was therefore critical that government continues to devolve powers to cities and city regions.48
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Government response AI summary
The government agreed to create a Local Net Zero Forum by Summer 2022 to discuss local net zero issues with local government, and explore simplifying and consolidating funds for local net zero initiatives.
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HM Treasury
15
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 areas that really need support, for example to address poor social housing stock, can get it.56 However, in 2021 the NAO found that a fragmented funding landscape dominated by competitive funds brings the risk that money does not go to where the need or opportunity is greatest, and it can make it difficult for local authorities to plan for the long term.57 The Department accepts that there are alternative methods, including devolving funding to local authorities, but rejects that this approach is inherently better. The Strategy suggests that longer term, co-ordinated funding can enhance innovation and investment, reduce bureaucracy, and encourage efficient and integrated decision making. The Department told us it is committed to making funding to local authorities simpler.58
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Government response AI summary
The government agreed to create a Local Net Zero Forum by Summer 2022 to discuss local net zero issues with local government, and explore simplifying and consolidating funds for local net zero initiatives.
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HM Treasury
17
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 and timetable it was also hampered by a lack of workers with the necessary skills.64 The Department agreed that the private-sector workforce does not currently have the necessary skills in sufficient quantities; however, it is confident that the commitments in the Strategy will motivate individuals to seek training and allow government to, for example, hit its target of installing 600,000 heat pumps a year by 2028.65 The Department told us that the industry is also confident that it can retrain heating engineers as heat pump engineers, and the Heat Pump Association runs 55 Local Government Association, para 2.11 56 Q 17 57 C&AG’s Report, Local government and net zero in England, Session 2021–22, HC 304, 16 July 2021, para 17 58 Q 17 59 Energy Systems Catapult, page 4 60 Q 17 61 Q 18 62 Q 18 63 Q 69 64 Committee of Public Accounts, Green Homes Grant Voucher Scheme, Twenty-seventh Report of Session 2021–22, HC 635, 1 December 2021 65 Qq 68–69 Achieving Net Zero: Follow up 15 a course aimed at training those with transferrable skills in less than a week.66 However, NAPIT told us that short courses do not go far enough to create a workforce confident in installing clean-heat measures.67 NAPIT also flagged to us a paper by the Institute of Public Policy Research warning of possible workforce shortages as more than one in three construction workers are over 50 years old, and the proportion of workers aged below 30 has declined over the last five years.68
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Government response AI summary
The government's response outlines existing plans to work with industry to create a skilled workforce, including green apprenticeships, retraining bootcamps, the Green Jobs Delivery Group, a climate and sustainability strategy for education, heat pump installer training, and spending on training for tradespeople delivering green home …
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HM Treasury
19
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 us that these two other departments had invested in these skills over the last year, and that more departments would follow suit.75
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Government response AI summary
The government's response outlines existing plans to work with industry to create a skilled workforce, including green apprenticeships, retraining bootcamps, the Green Jobs Delivery Group, a climate and sustainability strategy for education, heat pump installer training, and spending on training for tradespeople delivering green home …
Read full response →
HM Treasury
20
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 by, for example, embedding climate considerations in the Policy Profession Standards, the competency framework for civil servants developing policy, and introducing climate training into the Civil Service Fast Stream.77 66 Q 69 67 NAPIT, page 2 68 NAPIT, page 2 69 Net Zero Strategy, chapter 4, page 258–259, paras 54–58 70 Committee of Public Accounts, Achieving Net Zero, Forty-Sixth Report of Session 2019–21, HC 935, 1 March 2021, para 14 71 Q 71 72 Committee of Public Accounts, Specialist Skills in the civil service, Thirty-Second Report of Session 2019–21, HC 686, 11 December 2020, para 7 73 Cabinet Office, Declaration on Government Reform, June 2021, part 2 74 Q 71 75 Q 71 76 Net Zero Strategy, page 258, paras 54–55 77 Q 86; Net Zero Strategy, page 249, para 5; page 258–9, paras 56–58 16 Achieving Net Zero: Follow up Contributing to reducing global emissions
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Government response AI summary
The government plans to work with industry to create the skilled workforce needed to deliver climate targets, including green apprenticeships, retraining bootcamps, setting up the Green Jobs Delivery Group with industry, and publishing a climate and sustainability strategy for education and children’s’ services, while also …
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HM Treasury
21
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 strong foundation of domestic action.78 However, its credibility can legitimately be questioned when the government has delayed the introduction of new Greening Government Commitments which set targets to reduce emissions from central government departments and arm’s-length bodies and has not been clear about how its consideration of an application to open a new coal mine in Cumbria, and extraction of fossil fuels at the Cambo oil field off the coast of Shetland fit into its net zero strategy.79 OGUK, a representative organisation for the UK offshore oil and gas industry, told us that in March, together with the Department and Oil and Gas Authority, it published the North Sea Transition Deal. Both OGUK and the Department expect the deal to harness the expertise of the UK offshore oil and gas industry to help meet net zero, and that it is the first deal of its kind by a G7 country.80
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Government response AI summary
The government agrees with the Committee’s recommendation. The government plans to help empower people to make informed choices about the goods and products they buy and services they use by exploring how the government better labels these with their emission intensity and environmental impact.
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HM Treasury
22
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 to reduce emissions in the UK transferred emissions to other countries, and HM Treasury told us that it was considering the feasibility of a tax based on carbon embedded in imports (a carbon border adjustment tax) to reduce the risk of pushing emissions abroad.81
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Government response AI summary
The government agrees with the committee's recommendation and will explore labelling goods with their emission intensity, working with the FCA on sustainable investment labels, using product labelling for durability, and updating Ecodesign product regulation.
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HM Treasury
23
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 problems with carbon leakage, and that Defra report the UK’s ‘carbon footprint’, which includes consumption emissions relating to imports from China, the EU or the rest of the world. The Department told us that Defra’s data show a declining trajectory.83 However, it should be noted that Defra classes these as experimental statistics because of inherent uncertainties in the estimation of emissions.84
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Government response AI summary
The government plans to help empower people to make informed choices about the goods and products they buy by exploring how the government better labels these with their emission intensity and environmental impact, including work with the FCA, product labeling, and exploring environmental labeling within …
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HM Treasury
24
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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- …
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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- term levers to prevent carbon leakage.86 In its Strategy, government stated its intentions to launch a call for evidence on consumer-focused demand-side low-carbon products as a first step to address issues on product standards by Spring 2022.87 HM Treasury’s Net Zero 78 Qq 42–43; Net Zero Strategy, pages 284, 285 paras 2 and 7 79 Q 2; UK Government Minister meets with energy firm over Cambo - GOV.UK (www.gov.uk) 80 Q 28; OGUK 81 Committee of Public Accounts, Achieving Net Zero, Forty-Sixth Report of Session 2019 - 21, HC 935, 5 March 2021 82 Q 112; Net Zero Strategy, page 122 para 9 83 Qq 33, 37; Defra, UK’s Carbon Footprint 1997 - 2018 84 Defra, UK’s Carbon Footprint 1997 – 2018; Note dated 15 November 2021 from Department for Business, Energy & Industrial Strategy para 2 85 Qq 33–34 86 Q 37 87 Qq 37–38; Net Zero Strategy, page 131 para 61 Achieving Net Zero: Follow up 17 Review also concluded that carbon leakage was an area where it too needed to do further work.88 On 3 November the International Financial Reporting Standards Foundation (IFRS) announced ‘prototype’ climate sustainability disclosure requirements.89 HM Treasury told us that government would consider how these will be interpreted for the public sector, but was unable to give us a timeframe for their application.90 Reporting progress and costs
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Government response AI summary
The government agrees with the committee's recommendation and will explore labelling goods with their emission intensity, working with the FCA on sustainable investment labels, using product labelling for durability, and updating Ecodesign product regulation.
Read full response →
HM Treasury
26
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 buildings, and the flexibility was intentional to take into consideration the diversity of building stock.93 The Department indicated that these measures were intended to provide a sense of direction, and confirmed under further questioning that it will also report more detailed metrics against these measures to allow progress to be tracked over time.94 However, interim targets and detailed milestones will not be included for all measures set out in the Strategy.95
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Government response AI summary
The department's annual progress report will include an update on progress against the targets and ambitions set out in the Net Zero Strategy, commentary on contextual changes that might affect the pathway to meeting decarbonisation commitments, and a summary of key areas of progress made …
Read full response →
HM Treasury
28
Conclusion
Forty-First Report - Achieving Net Zero…
Acknowledged
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 …
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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 us that it was possible for it to make aggregated calculations of how much money it and other departments were assigning to net zero objectives.102 We asked if costs and spend against net zero could be collated and tracked in the same way the NAO has captured Covid-19 costs through its publicly available Covid Cost Tracker. HM Treasury told us that it was looking at the best way to attribute costs and give a clear account of what is being spent in a way that would be meaningful and helpful, but it and the Department recognised that net zero costs may not always be clearly identifiable as such.103
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Government response AI summary
The government disagrees with the Committee’s recommendation, and restates its plans to write to the Committee by Autumn 2022 setting out the processes for reporting the implementation of the government’s net zero policies, including to Parliament and reiterates the clear performance metrics they have already …
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HM Treasury