Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Despite its track record, the Department considers that the Strategy will have greater permanence than...
Conclusion
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that the Strategy will have greater permanence than previous climate policies that have subsequently been reduced or withdrawn.24 This is partly because the Strategy was developed in conjunction with HM Treasury’s 2021–2 to 2024–5 multi-year spending review, and partly because it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 targets and trajectories which are grounded in legal commitments to carbon budgets up to 2033–7, and then ultimately net zero by 2050.25 However, it is arguable as to whether three-year departmental budgets can provide sufficient confidence to the private sector.26 HM Treasury told us that it does not want to give overconfidence or false confidence to the partners it works with in the private sector.27 Influencing consumer behaviours
Government Response
Not Addressed
HM Government
Not Addressed
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 proportionate action to address failures. This includes interventions to provide certainty to investors through the net zero sector roadmaps that sets out the United 31 Kingdom’s policy position and attractiveness of the United Kingdom’s business environment, as announced by the Prime Minister. In March and April 2022 government published Automotive , CCUS and Hydrogen Investor Roadmaps as part of a sequence of roadmaps over the course of the year. 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 crucial government builds investor confidence into net zero technologies and infrastructure. 3.4 The policies and spending brought forward in the Net Zero Strategy mean that since the Ten Point Plan, the government has mobilised £26 billion of government capital investment for the green industrial revolution. Through the Ten Point Plan, Net Zero Strategy and the British Energy Security Strategy the government has set out a strong framework for investment with a clear signal to investors in our commitment to net zero by 2050. These strategies will drive an unprecedented £100 billion of private sector investment by 2030 into new British industries including offshore wind and support around 480,000 clean jobs by the end of the decade. Already Bloomberg New Energy Finance (BNEF) estimate around £22.5 billion of new investment was committed in the United Kingdom in 2021 across low carbon sectors (including renewables, hydrogen, carbon capture and storage, nuclear, sustainable materials, energy storage and electrified transport and heat). The 2021 Global Investment Summit saw 18 deals worth £9.7 billion supporting green growth announced, with 2022 seeing a range of investments announced across electric vehicle manufacturing and gigafactories. More recently, the Prime Minister hosted UK-Australia investment roundtable led to investment of £28.5 billion by top Australian investors for clean energy, technology and infrastructure projects across the United Kingdom. 3.5 The government continues to make steps to mobilise private investment, including establishing a new Office for Investment and UK Infrastructure Bank.