Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Accepted
Tolerable failure level for net zero innovation Framework remains undefined by DESNZ.
Recommendation
The uncertain and longer-term nature of innovation makes some level of failure inevitable.48 DESNZ, however, has yet to define what level of failure it could tolerate across the Framework, instead placing reliance on risk management by departments at programme and project level.49 The business case for each innovation programme includes a risk statement that needs to be consistent with a department’s overall risk appetite, which we were told ranges from medium to very high. DESNZ told us that it funds some high-risk projects and deliberately takes a range of risks to maximise the returns across its portfolio of projects.50
Government Response Summary
The government agrees that the Net Zero Innovation Board's sub-group will develop an overall government risk appetite statement for net zero R&I programmes by Spring 2024.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: Spring 2024 6.2 The Net Zero Innovation Board, through its Innovation Delivery sub-group, will consider risk appetite and tolerance for programmes in the current net zero R&I portfolio as set out in the Delivery Plan and develop an overall government risk appetite statement by Spring 2024. 6.3 This Innovation Delivery Board will regularly monitor progress of the portfolio at each of its meetings. DESNZ intends to publish a progress update on the Net Zero Research and Innovation Framework Delivery Plan ahead of the next Spending Review. This will include a view on the progress and timescales for the development of different technologies.