Source · National Audit Office

Achieving net zero

This report applies experience from auditing cross-government challenges to highlight the risks government needs to manage to achieve net zero.

Published: 4 Dec 2020 Recommendations: 24 Type: Value for Money NAO confirmed: 24 Department: Cabinet Office
Dept: Cabinet OfficeDepartment for Business, Energy & Industrial StrategyDepartment for Environment, Food & Rural AffairsHM Treasury Topics: Climate change and net zeroEnergy and environment nao.org.uk → PDF →

Recommendations

24 items
20 accepted 4 partially accepted 22 implemented

Recommendation 1

Addressee: Department for Energy Security and Net Zero · Source location: Page 8, paragraph 10, first bullet point

BEIS, working with HM Treasury, Cabinet Office and the other departments with responsibility for aspects of net zero should:
• set out how it will manage the risks we have identified in this report (paragraphs 2.11 to 2.18) to creating collective responsibility for net zero; and

Response position: Accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 2

Addressee: Department for Energy Security and Net Zero · Source location: Page 8, paragraph 10, second bullet point

• establish regular review points, starting with a review by the end of 2021, to consider the effectiveness of the arrangements, including those established within departments such as carbon boards, and whether changes are required.

Response position: Accepted

Delivery: Implemented · Q4 2021-22 · Confirmed by NAO

Recommendation 3

Addressee: Cabinet Office · Source location: Page 9, paragraph 10, third bullet point

Cabinet Office should:
• ensure the next iteration of Single Departmental Plans creates a cross-government plan for achieving net zero; and

Response position: Accepted

Delivery: Implemented · Q2 2021-22 · Confirmed by NAO

Recommendation 4

Addressee: Cabinet Office · Source location: Page 9, paragraph 10, fourth bullet point

• utilise its programme of work aimed at modernising and reforming the civil service to increase the visibility of net zero within the civil service and develop key skills, such as in climate science, data analysis and systems thinking, that will be necessary to achieve net zero.

Response position: Accepted

Delivery: Implemented · Q1 2022-23 · Confirmed by NAO

Recommendation 5

Addressee: HM Treasury · Source location: Page 9, paragraph 10, fifth bullet point

HM Treasury should:
• publish analysis shortly after the next Comprehensive Spending Review, which will allocate high-level budgets to departments in the medium term, demonstrating its impact on expected emissions; and

Response position: Accepted

Delivery: Implemented · Q3 2022-23 · Confirmed by NAO

Recommendation 6

Addressee: HM Treasury · Source location: Page 9, paragraph 10, sixth bullet point

• ensure its guidance that informs public spending decisions, such as on policy appraisal (the Green Book) and guidance for accounting officers, requires departments to evaluate the impact of policies on the achievement of the net zero target, and is consistently adhered to.

Response position: Accepted

Delivery: Implemented · Q4 2022-23 · Confirmed by NAO

Recommendation 7

Addressee: Department for Energy Security and Net Zero · Source location: Page 9, paragraph 11, first bullet point

BEIS and MHCLG should:
• ensure that local authorities’ perspectives are incorporated into the formation of sector strategies and the overall net zero strategy; and

Response position: Accepted

Delivery: No longer relevant · Confirmed by NAO

Recommendation 8

Addressee: Department for Energy Security and Net Zero · Source location: Page 9, paragraph 11, second bullet point

• ensure local authorities have the skills and capacity to mobilise the action that is required locally across all sectors.

Response position: Partially accepted

Delivery: Implemented · Q2 2023-24 · Confirmed by NAO

Recommendation 9

Addressee: Department for Energy Security and Net Zero · Source location: Page 10, paragraph 11, third bullet point

BEIS, working with other government departments, should:
• consider how to extend its coordination arrangements beyond central government departments to include the perspectives of other public bodies.

Response position: Partially accepted

Delivery: Implemented · Q2 2023/24 · Confirmed by NAO

Recommendation 10

Addressee: Department for Energy Security and Net Zero · Source location: Page 10, paragraph 12, first bullet point

Cabinet Office and HM Treasury, working with BEIS, should:
• ensure that existing and planned arrangements to help departments reduce their own greenhouse gas emissions align with achieving net zero. In particular, ensure that the new Greening Government Commitment targets, due for release in April 2021, are sufficiently ambitious to set an example to businesses in the UK; and

Response position: Accepted

Delivery: Implemented · Q2 2023-24 · Confirmed by NAO

Recommendation 11

Addressee: Department for Energy Security and Net Zero · Source location: Page 10, paragraph 12, second bullet point

• ensure that similarly ambitious targets extend to all significant sources of emissions from the public sector, including schools and the NHS.

Response position: Partially accepted

Delivery: Implemented · Q2 2023-24 · Confirmed by NAO

Recommendation 12

Addressee: Department for Energy Security and Net Zero · Source location: Page 11, paragraph 13, first bullet point

BEIS should:
• prepare contingency plans that consider how to provide greater certainty and transparency around its net zero plans even if a full strategy is not possible prior to COP26 given the ongoing uncertainty around the impact of COVID-19.

Response position: Accepted

Delivery: No longer relevant · Confirmed by NAO

Recommendation 13

Addressee: Department for Energy Security and Net Zero · Source location: Page 12, paragraph 14, first bullet point

BEIS should:
• identify and evaluate the elements of the net zero strategy which are uncertain and develop a plan to reduce this over time, including assigning responsibilities for managing reduction in uncertainty (such as by carrying out sufficient research or piloting); and

Response position: Accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 14

Addressee: Department for Energy Security and Net Zero · Source location: Page 12, paragraph 14, second bullet point

• set out its timetable for when key decisions in the pathway to net zero will need to be taken.

Response position: Accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 15

Addressee: Department for Energy Security and Net Zero · Source location: Page 12, paragraph 15, first bullet point

BEIS should:
• ensure that the main interdependencies within the achievement of net zero are understood by the relevant departments involved;

Response position: Accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 16

Addressee: Department for Energy Security and Net Zero · Source location: Page 12, paragraph 15, second bullet point

• ensure the net zero strategy takes account of the main interdependencies between different work streams; and

Response position: Accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 17

Addressee: Department for Energy Security and Net Zero · Source location: Page 12, paragraph 15, third bullet point

• set out its plan for managing interdependencies in the future, including who is responsible for managing each interdependency and how it will review progress on a regular basis.

Response position: Accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 18

Addressee: Department for Energy Security and Net Zero · Source location: Page 13, paragraph 15, fourth bullet point

All departments with lead responsibility for decarbonising sectors (BEIS, Defra, DfT and MHCLG) should:
• work on widening government’s understanding of links between achieving net zero and other government aims, such as for clean air and ‘levelling up’; and

Response position: Accepted

Delivery: Implemented · Q4 2022-23 · Confirmed by NAO

Recommendation 19

Addressee: Department for Energy Security and Net Zero · Source location: Page 13, paragraph 15, fifth bullet point

• use this understanding to establish how trade-offs between net zero and other aims will be managed, including the prioritisation of resources

Response position: Accepted

Delivery: Implemented · Q4 2022-23 · Confirmed by NAO

Recommendation 20

Addressee: Department for Energy Security and Net Zero · Source location: Page 13, paragraph 16, first bullet point

BEIS, Cabinet Office and HM Treasury should:
• develop and monitor a set of clear, relevant and consistent data on the progress of net zero policies across government along with a process for escalating issues when the data show policies are off track.

Response position: Accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 21

Addressee: Department for Energy Security and Net Zero · Source location: Page 14, paragraph 17, first bullet point

BEIS and HM Treasury should:
• collate information on how much government is spending to achieve net zero overall, including how much it has committed and how much it has actually spent. This should include the costs of policies that go through consumers’ bills.

Response position: Accepted

Delivery: Implemented · Q4 2023-24 · Confirmed by NAO

Recommendation 22

Addressee: Department for Energy Security and Net Zero · Source location: Page 14, paragraph 18, first bullet point

BEIS, with input from other departments, should:
• establish a public engagement strategy that sets out how government will ensure ongoing buy-in to the changes required by the transition to net zero. This should include consideration of how it will tailor its messages for audiences with different characteristics, including ethnic minorities; age groups; geographical locations; and income levels; and

Response position: Partially accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 23

Addressee: Department for Energy Security and Net Zero · Source location: Page 14, paragraph 18, second bullet point

• ensure it has data that enable it to monitor the cumulative social and economic impact on different individuals and communities of the transition to net zero so that government can consider whether to change course if it deems the burden is falling overly onto specific groups.

Response position: Accepted

Delivery: Implemented · Q4 2023-24 · Confirmed by NAO

Recommendation 24

Addressee: Department for Energy Security and Net Zero · Source location: Page 15, paragraph 19, first bullet point

BEIS and HM Treasury should:
• establish progress measures and monitoring arrangements that enable them to track whether they are achieving the required investment from the private sector.

Response position: Accepted

Delivery: Implemented · Q3 2024-25 · Confirmed by NAO

Public Accounts Committee follow-up

2 reports

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.