Source · Select Committees · Public Accounts Committee
Recommendation 9
9
Accepted
Concerns persist regarding the fitness for purpose of biomass sustainability certification schemes.
Conclusion
We are concerned that the certification schemes that are intended to prove that biomass used in the UK is sustainably sourced may not be fit for purpose.12 DESNZ told us that they and Ofgem have benchmarked these third–party certification schemes to ensure that they are in line with the sustainability criteria.13 We have also received a written submission from Drax setting out how the Sustainable Biomass Programme (SBP), the largest certification scheme, is underpinned by independent audits which conclude on whether suppliers meet the SBP’s standards.14 However, several stakeholders have written to us expressing concern that such schemes are not robust and do not fully account for changes in forest carbon stocks.15 The NAO report concluded that, in the absence of an evaluation of the effectiveness of these arrangements, the government could not demonstrate that its current arrangements are adequate to give it confidence industry is meeting sustainability standards.16
Government Response Summary
The government agrees to complete a comprehensive assessment of its approach to gaining assurance around the sustainability of biomass by Autumn 2025. They will reflect on evaluation and audit processes and incorporate lessons learned into plans for the new Drax contract and Common Framework consultation, and appoint an independent sustainability advisor.
Government Response
Accepted
HM Government
Accepted
1. PAC conclusion: DESNZ has relied for too long on an untested approach to ensure biomass generators are meeting sustainability criteria for receiving financial support. 1. PAC recommendation: DESNZ should complete a comprehensive assessment of the strength of its current approach to gaining assurance around the sustainability of biomass. 1.1 The government agrees with the Committee’s recommendation Target implementation date: Autumn 2025 1.2 The government has been actively assessing its approach to sustainability assurance as part of a commitment to continuous improvement. As part of this commitment, the government is reflecting carefully on all current evaluation and audit processes, and incorporating relevant lessons learned into our plans for the new contract with Drax (and the Common Framework consultation) as part of a commitment to continuous improvement in the sustainability regime for biomass and associated monitoring and assurance. The government has identified opportunities to strengthen this regime ahead of signing the new contract and 28 actively seeks to learn from international best practice and evolving international regulatory frameworks. 1.3 This work will be strengthened further by the forthcoming appointment of an independent sustainability advisor to support the government, Ofgem, and the Low Carbon Contracts Company (LCCC) on biomass sustainability policy and practice. 1.4 However, it is important to recognise that the assurance arrangements under the current Renewables Obligation/Contract for Difference schemes that UK biomass plants operate under are settled until 2027 at the earliest, and the government has already worked closely and extensively with both Ofgem and external consultancies to evaluate these arrangements. 1.5 Moreover, the recent Ofgem investigation into Drax’s sustainability reporting – which led to Drax making a £25 million voluntary redress payment – is evidence that the current assurance regime is working well. Breaches of sustainability reporting under the existing arrangements are thoroughly investigated, and robust action is taken when breaches are found.