Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
DESNZ views "pulling the plug" on underperforming net zero projects as low probability.
Conclusion
We asked at what point DESNZ would pull the plug for a project that might not succeed. It explained that it carries out a review process across its portfolio using evidence and modelling to understand the impact of a low-carbon technology.51 DSIT added 41 Qq 33, 42, 43 42 C&AG’s Report, para 2.12, Qq 49, 50, 58 43 C&AG’s Report, para 2.29 44 Qq 50, 51, 61, 63 45 Q 58 46 Qq 49, 61 47 Qq 58, 60 48 Qq 8, 14, 47 49 Qq 8, 19; C&AG’s Report, para 19 50 Qq 8, 9, 10 51 Qq 10, 19 Support for innovation to deliver net zero 13 that technologies with higher potential will start to receive more investment, whereas technologies with less potential would scale down; it suggested that pulling the plug on a project would be a “relatively low-probability scenario”.52
Government Response Summary
The government agrees and commits that the Net Zero Innovation Board, via its sub-group, will develop an overall government risk appetite statement for net zero R&I programmes by Spring 2024. The Board will also regularly monitor portfolio progress, and DESNZ intends to publish an update on the Delivery Plan.
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.