Select Committee · Public Accounts Committee

Achieving Net Zero

Status: Closed Opened: 17 Dec 2020 Closed: 17 May 2021 2 recommendations 21 conclusions 1 report

In June 2019, government committed in law to achieving ‘net zero’ greenhouse gas emissions by 2050, to deliver on the commitments it made in signing the Paris Agreement in 2016. Government also aimed to set an example for other countries to follow in the run-up to hosting the 26th United Nations’ Climate Change Conference of …

Reports

1 report
Title HC No. Published Items Response
Forty-Sixth Report - Achieving Net Zero HC 935 5 Mar 2021 23 Responded

Recommendations & Conclusions

23 items
2 Conclusion Forty-Sixth Report - Achieving Net Zero

The Department is not yet reporting on the programmes across government that are crucial to...

The Department is not yet reporting on the programmes across government that are crucial to the delivery of net zero in a way that enables Parliament or the public to scrutinise progress. In early 2019, government established new arrangements for coordinating the departments involved in achieving net zero. The Department …

Government response. 2: PAC conclusion: The Department is not yet reporting on the programmes across government that are crucial to the delivery of net zero in a way that enables Parliament or the public to scrutinise progress. 2: PAC recommendation: The Department …
HM Treasury
3 Conclusion Forty-Sixth Report - Achieving Net Zero

HM Treasury has not yet clarified how it will ensure net zero is given adequate...

HM Treasury has not yet clarified how it will ensure net zero is given adequate weight in the assessment of government policies and projects. Achieving net zero will be an all-encompassing challenge requiring all parts of government to contribute to reducing emissions. Therefore, government must build net zero into the …

Government response. 3.1 The government agrees with the Committee’s recommendation. Target implementation date: May 2021 3.2 At Spending Review 2020, guidance required departments to include the greenhouse gas emissions of bids, and their impact on meeting carbon budgets and net zero. Guidance …
HM Treasury
4 Recommendation Forty-Sixth Report - Achieving Net Zero

Government does not have a clear way of determining whether its actions to reduce emissions...

Government does not have a clear way of determining whether its actions to reduce emissions in the UK are transferring emissions to other countries. The net zero target applies to emissions generated within the UK and does not include emissions from the production of goods that are imported. This approach …

Government response. 4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 4. 2 BEIS is jointly leading a cross-government work programme with HMT on the issue set out in this re commendation (often referred to as ‘carbon leakage’). …
HM Treasury
5 Conclusion Forty-Sixth Report - Achieving Net Zero

Government has not adequately communicated to the general public the changes that individuals will need...

Government has not adequately communicated to the general public the changes that individuals will need to make in the transition to net zero emissions. Achieving Net Zero 7 Achieving net zero will depend on individuals choosing to change their behaviour, from personal lifestyle choices, as well as decisions that rely …

Government response. 5.1 The government agrees with the Committee’s recommendation. Ta rget implementation date: Autumn 2021 5.2 Reaching net zero will not only require changes to our energy systems with new technologies and inf rastructure, but also shifts in how we as …
HM Treasury
6 Recommendation Forty-Sixth Report - Achieving Net Zero

The Department has not sufficiently engaged with local authorities on their role in the achievement...

The Department has not sufficiently engaged with local authorities on their role in the achievement of net zero across the UK. Local authorities have significant scope to influence emissions in their area, both by leading decarbonisation of sectors (such as housing and transport) and by influencing local businesses and residents …

Government response. 6. 1 The government agrees with the Committee’s recommendation. Ta rget implementation date: Autumn 2021 6. 2 The department agrees that there should be a clearer statement of the respective responsibilities at na tional, regional and local level, and of …
HM Treasury
1 Conclusion Forty-Sixth Report - Achieving Net Zero

On the basis of a report by the Comptroller and Auditor General, we took evidence...

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business, Energy and Industrial Strategy (the Department) and HM Treasury about achieving net zero.1

Government response. Based on a report by the National Audit Office, the Committee took evidence, on Thursday 28 January 2021 from the Department for Business, Energy and Industrial Strategy (the Department) and HM Treasury. The Committee published its report on 5 March …
HM Treasury
7 Conclusion Forty-Sixth Report - Achieving Net Zero

The government originally planned to publish many of its strategies during 2020.

The government originally planned to publish many of its strategies during 2020. Publication was later than it previously intended, partly because of reprioritisation of Government activity in response to the coronavirus crisis.9 For example, the publication of the Heat and Buildings strategy was delayed from August 2020 and is yet …

HM Treasury
8 Conclusion Forty-Sixth Report - Achieving Net Zero

In early 2019, government established new coordination arrangements for the departments involved in achieving net...

In early 2019, government established new coordination arrangements for the departments involved in achieving net zero. The arrangements include: cabinet committees for climate action strategy (chaired by the Prime Minister) and implementation; a Climate Change National Strategy Implementation Group (NSIG) of senior officials from the main departments involved; a net …

HM Treasury
9 Conclusion Forty-Sixth Report - Achieving Net Zero

We asked what the Department was doing to ensure that it would be able to...

We asked what the Department was doing to ensure that it would be able to track progress towards net zero when responsibility was shared across departments. The Department told us that the new coordination structures provided it with clarity on total emissions and the level of emissions for which each …

HM Treasury
10 Conclusion Forty-Sixth Report - Achieving Net Zero

We asked the Department about the recent decision to allow deep coal mining in Whitehaven,...

We asked the Department about the recent decision to allow deep coal mining in Whitehaven, Cumbria and how this aligned with the government’s intention to move away from depending on fossil fuels and towards cleaner energy sources. The Department told us that the mine in question was for coking coal …

HM Treasury
11 Conclusion Forty-Sixth Report - Achieving Net Zero

Net zero is an all-encompassing challenge that will affect every part of government.

Net zero is an all-encompassing challenge that will affect every part of government. It will not be achieved if it is not sufficiently prioritised when departments make decisions that could impact on greenhouse gas emissions.18 We asked whether other departmental priorities, such as building enough homes, could supersede net zero …

HM Treasury
12 Conclusion Forty-Sixth Report - Achieving Net Zero

The Treasury’s Green Book guidance requires all policy, programme and project proposals to consider environment...

The Treasury’s Green Book guidance requires all policy, programme and project proposals to consider environment and climate impacts, including UK greenhouse gas emissions. The Department noted that this was another means by which the compatibility of departments’ decisions with net zero could be taken into account.20 HM Treasury has recently …

HM Treasury
13 Conclusion Forty-Sixth Report - Achieving Net Zero

We asked what impact measures such as the Green Book guidance had on major infrastructure...

We asked what impact measures such as the Green Book guidance had on major infrastructure projects like High Speed 2. The Department told us that departments were each responsible for ensuring that the projects within their areas remained below their overall emissions envelope and that it did not micromanage individual …

HM Treasury
14 Conclusion Forty-Sixth Report - Achieving Net Zero

We asked the Treasury why, in its updated Green Book, it had not introduced a...

We asked the Treasury why, in its updated Green Book, it had not introduced a specific requirement for policies to explain how they aligned with net zero. The Treasury told us that the guidance already required Departments to consider greenhouse gas emissions as part of their appraisal process.24 The NAO …

HM Treasury
15 Conclusion Forty-Sixth Report - Achieving Net Zero

Limiting global temperature rises to reduce the climate change impacts will require a global reduction...

Limiting global temperature rises to reduce the climate change impacts will require a global reduction in greenhouse gas emissions. The net zero target applies to emissions generated in the UK and does not include emissions generated in the production of goods imported into the UK. This is consistent with internationally-agreed …

Government response. 4: PAC conclusion: Government does not have a clear way of determining whether its actions to reduce emissions in the UK are transferring emissions to other countries. 4: PAC recommendation: The Department should review how policies aimed at reducing UK- …
HM Treasury
16 Conclusion Forty-Sixth Report - Achieving Net Zero

We asked how the Department would ensure that the impact of the UK’s progress towards...

We asked how the Department would ensure that the impact of the UK’s progress towards net zero would not inadvertently result in higher emissions elsewhere. The 23 Q 45 24 Q 62 25 Q 54; C&AG’s Report, para 2.13 26 Qq 32 & 62 27 C&AG’s report, para 1.2; Climate …

Government response. 4: PAC conclusion: Government does not have a clear way of determining whether its actions to reduce emissions in the UK are transferring emissions to other countries. 4: PAC recommendation: The Department should review how policies aimed at reducing UK- …
HM Treasury
17 Conclusion Forty-Sixth Report - Achieving Net Zero

We asked about the feasibility of a tax based on carbon embedded in imports (a...

We asked about the feasibility of a tax based on carbon embedded in imports (a carbon border adjustment tax) to reduce the risk of pushing emissions abroad. The Treasury told us that it was considering this as part of its net zero review. It explained that it needed to further …

Government response. 4: PAC conclusion: Government does not have a clear way of determining whether its actions to reduce emissions in the UK are transferring emissions to other countries. 4: PAC recommendation: The Department should review how policies aimed at reducing UK- …
HM Treasury
18 Conclusion Forty-Sixth Report - Achieving Net Zero

Achieving net zero will depend on people changing their habits and lifestyles, adopting new technologies,...

Achieving net zero will depend on people changing their habits and lifestyles, adopting new technologies, and in some cases big personal investments. For example, buying zero- emission vehicles, such as electric vehicles, instead of cars that run on petrol or diesel; changing the way they heat their homes by replacing …

Government response. 5: PAC conclusion: Government has not adequately communicated to the general public the changes that individuals will need to make in the transition to net zero emissions. 5: PAC recommendation: The Department should, in the next 12 months, develop a …
HM Treasury
19 Conclusion Forty-Sixth Report - Achieving Net Zero

We asked the Department what it was doing to ensure the step change needed by...

We asked the Department what it was doing to ensure the step change needed by members of the public to achieve net zero and how it was communicating to people about the decisions or changes they needed to make and when. The Department told us that so far, a lot …

Government response. 5: PAC conclusion: Government has not adequately communicated to the general public the changes that individuals will need to make in the transition to net zero emissions. 5: PAC recommendation: The Department should, in the next 12 months, develop a …
HM Treasury
20 Conclusion Forty-Sixth Report - Achieving Net Zero

Government investment in new technologies, such as carbon capture and storage, could benefit particular regions...

Government investment in new technologies, such as carbon capture and storage, could benefit particular regions of the UK and support the government’s levelling up agenda, which aims to create opportunity for everyone in all regions and address disparities in economic and social outcomes.35 We asked the Department about ensuring the …

HM Treasury
21 Conclusion Forty-Sixth Report - Achieving Net Zero

Local authorities have a key role to play in achieving net zero.

Local authorities have a key role to play in achieving net zero. They have significant scope to influence emissions in their area, for example, by leading decarbonisation of sectors such as housing and transport. These represent a substantial proportion of UK emissions, and where the emissions reduction challenge will vary …

Government response. 6: PAC conclusion: The Department has not sufficiently engaged with local authorities on their role in the achievement of net zero across the UK. 6: PAC recommendation: Government should respond with a coherent National Fiscal and Policy Framework. This should …
HM Treasury
22 Conclusion Forty-Sixth Report - Achieving Net Zero

In written evidence, the LGA told us that there was a long-term funding gap in...

In written evidence, the LGA told us that there was a long-term funding gap in government’s ambitions to decarbonise housing. In February 2020, the LGA’s Climate Change Survey 2020 found that nine out of 10 councils had declared a climate emergency and 80% had set a carbon neutral target.40 But …

Government response. 6: PAC conclusion: The Department has not sufficiently engaged with local authorities on their role in the achievement of net zero across the UK. 6: PAC recommendation: Government should respond with a coherent National Fiscal and Policy Framework. This should …
HM Treasury
23 Conclusion Forty-Sixth Report - Achieving Net Zero

The Department acknowledged that it needed to consider place-related aspects to achieving net zero and...

The Department acknowledged that it needed to consider place-related aspects to achieving net zero and how local authorities could be involved in co-ordinating the changes needed in areas such as transport and energy.42 The Department told the National 36 Qq 52-53, 65-67 37 C&AG’s Report, para 2.19-2.21 38 Local Government …

Government response. 6. 2 The department agrees that there should be a clearer statement of the respective responsibilities at national, regional and local level, and of how it proposes to work with local authorities. 6. 3 The department already works closely with …
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
28 Jan 2021 Julian Critchlow · Department for Business, Energy and Industrial Strategy, Sarah Munby · Department for Business, Energy and Industrial Strategy, Steve Field · HM Treasury View ↗

Correspondence

3 letters
DateDirectionTitle
18 Nov 2021 Correspondence from Steve Field Director, Climate, Energy and Environment, HM T…
18 May 2021 Correspondence from Tom Scholar, Permanent Secretary, HM Treasury, re Forty Six…
23 Feb 2021 Correspondence from Sarah Munby, Permanent Under-Secretary of State, Department…