Select committee: Public Accounts Committee
Conclusion 12
22nd Report - Government’s support for biomass
Published 25 Apr 2025
Addressed to HM Treasury
Public Accounts Committee Government support for biomass All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
In its Biomass Strategy, published in August 2023, DESNZ committed to develop and consult on a common sustainability framework which could be applied to all new future biomass schemes across different sectors of the economy. This consultation has yet to be launched, although DESNZ assured us that it would happen at some point in 2025.25 The strategy also committed DESNZ to consider whether it should strengthen the land criteria in its support schemes so that 100% of woody biomass would have to be sustainably sourced, rather than the 70% stipulated by the existing government support schemes.26 DESNZ and Ofgem both agree that if the threshold for sustainable biomass moved from 70% to 100%, then the assurance regime would also need to be tighter.27 Any changes will have resource implications for Ofgem. It assured that it could gear up with the necessary skills, “subject [to support from] DESNZ and Treasury “.28 The NAO’s experience of auditing other areas of government highlights how gaining assurance over more stringent rules requires a commitment of more resources to monitoring and compliance.29 19 Q 13 20 Q 13 21 Q 14 22 Qq 18–19 23 Q 18 24 Qq 18–19 25 Q 8 26 C&AG’s Report, para 11 27 Qq 14, 20 28 Q 15 29 C&AG’s Report, para 11 11
From: Public Accounts Committee, 22nd Report - Government’s support for biomass (HC 715), 25 April 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Twenty-second Report of Session 2024-26
The government responded to the whole report on 4 June 2026.
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty-second report from Session 2024-25
Published 10 July 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations on biomass, with target implementation dates between autumn 2025 and spring 2027, but disagrees on adding BECCS transition clauses to the Drax contract and says the KPMG reports are not a matter for it.
- On assessing its sustainability assurance approach, the government agrees, with a target date of autumn 2025, and says it is reflecting on evaluation and audit processes for the new Drax contract. It states the Ofgem investigation is evidence "the current assurance regime is working well".
- On a new oversight regime, the government agrees (target December 2025) and is "considering options to publish" its sustainability enforcement plans under the new Drax contract. It says any additional Ofgem oversight responsibilities "must be considered in the round".
- The government disagrees with adding clauses to the transitional support agreement to prompt Drax to transition to BECCS. It says such requirements would expose the government to "an unacceptable level of legal risk" until a full assessment of power BECCS is finalised.
- On the KPMG reports, the government says "This is not a matter for the government to consider", as the reports remain Drax's property and it is for Drax to decide whether to release them.