Source · Select Committees · Public Accounts Committee

Recommendation 1

1 Accepted

Committee took evidence from departments regarding net zero innovation and related funding.

Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Energy Security and Net Zero (DESNZ) and the Department for Science, Innovation and Technology (DSIT) about net zero innovation. We also took evidence from HM Treasury.1
Government Response Summary
The government states the "recommendation is implemented" and describes its existing pragmatic approach to net zero, detailing actions like delaying the EV phase-out and increasing heat pump grants.
Government Response Accepted
HM Government Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented As the Prime Minister set out, the transition to net zero must be pragmatic, proportionate and credible, while taking into account that some measures under previous plans would have imposed significant upfront costs on families. For example, delaying the Electric Vehicle phase out date will allow consumers to choose the vehicle that best suits their budget, whether that means opting for an Electric Vehicle now or waiting to take advantage of falling prices over the coming decade. The Zero Emission Vehicle mandate for the next seven years will require manufacturers to sell an increasing share of zero emission vehicles each year and help charge-point and car manufacturers develop their business plans and develop supply chains. The government will also be introducing an exemption to the fossil fuel boiler phase out so that those households who cannot make the switch no longer need to. At the same time, the grants available for heat pumps have increased to £7,500, providing additional support to families to upgrade their heating systems. This, alongside policies such as the Clean Heat Market Mechanism, will grow the market, reducing prices in the long term. The Climate Change Committee published analysis in October on the impact of these recent announcements, and from their 2023 Annual Progress Report, they have increased confidence in the UK meeting the forth Carbon Budget. Through the Net Zero Strategy and Powering Up Britain, government has published two detailed plans setting out unprecedented levels of detail on the UK’s plans to reach net zero. Each year the Department for Energy Security and Net Zero (DESNZ) publish updated forecasts of future emission projections and will continue to do so.