Chris Skidmore MP led the four-month Net Zero Review process
Chris Skidmore’s hotly anticipated Review of the government’s approach to net zero calls for policy clarity and rapid delivery of Net Zero Strategy
The government must move "further and faster" to realise the economic benefits from the net zero transition, by giving businesses the long-term policy clarity, tax incentives, and legislated targets they need to ensure the UK economy capitalises on the "historic opportunity" presented by global climate action.
That is the headline message from today's hotly-anticipated Net Zero Review, the culmination of a four-month independent assessment of the government's approach to the 2050 target led by Conservative MP Chris Skidmore, who today unequivocally called on the government to not only stay the course with its net zero commitments, but accelerate decarbonisation efforts or risk the UK being left behind by its competitors.
The sweeping 340-page report - which saw its publication date brought forward to today after details from the repoirt leaked overnight - sets out 129 recommendations that are designed to ensure the UK seizes the opportunities associated with the development of a green economy, setting out the critical role for businesses, local councils, and infrastructure in maximising net zero investment, jobs, and commercial opportunities.
Titled 'Mission Zero', the report argues the government's Net Zero Strategy, which was launched in October 2021, provides broadly the right direction for the UK economy. But it also warns that rapid action is needed to translate the strategy into actionable policies that can drive sufficient green investment and clean tech deployment. As such, the report echoes sentiment repeatedly expressed by many working in the UK's burgeoning green economy, who have long called for the government to ramp up investment and fast track crucial policy decisions that could unlock a raft of low carbon infrastructure projects.
"We should be proud of the lead the UK has taken in tackling climate change, having exceeded expectations so far in our race to net zero emissions by 2050," Skidmore said. "As essential as that is environmentally, it also puts us at an economic advantage globally. We lead in areas including clean technologies, science, manufacturing and green finance - areas that, if managed right, can lead to new jobs and strong economic growth."
The Review calls for reforms to governance structures, taxation, and planning policy, backed by greater transparency over the government's approach to net zero in order to improve public engagement and ensure the UK continues to provide international leadership on climate action.
It also calls for the establishment of a new Office for Net Zero Delivery in Whitehall to ensure the UK's decarbonisation agenda is placed at the heart of all government thinking, echoing calls made by a raft of organisations, including the government's own Climate Change Committee.
However, the most striking aspect of the Review is provided by its focus on the need for the government to now actually deliver and promote policies it has already signalled are in the pipeline through its existing consultations and strategies.
For example, it suggests the government's existing Future Homes Standard should be put into legislation to ensure no new homes are built with a gas boiler from 2025, new boilers are phased out altogether from 2033, and that every home sold from 2033 provides a minimum energy efficiency standard of EPC rating C. The report comes just days after the government faced fierce criticism from landlords over its failure to confirm new energy efficiency rules for rented properties, despite concluding a consultation on the proposed reforms two years ago.
The Skidmore Review also urges the government to strengthen its existing Energy Security Strategy with clear goals and long-term funding for solar, onshore wind and nuclear, and endorses recommendations from the Green Jobs Taskforce for the government to better prepare Britain's workforce for the net zero transition.
In addition significant emphasis is placed on the role of local authorities and communities in delivering on climate goals, including through calls for a fresh approach to planning that enables local residents to reap the benefits of cheap solar and onshore wind power - an approach the government has signalled it is already considering.
Elsewhere, the report calls for a review of the Treasury's tax regime to better incentivise investment in decarbonisation, alongside the delivery of an overarching government green financing strategy by the end of this year and a strategic review of the UK's international climate efforts, including through its trade policies.
The government should also develop a cross-sectoral infrastructure strategy by 2025 to support the development of development of clean electricity, hydrogen, and carbon capture storage and utilisation (CCUS) networks, backed by greater investment in net zero R&D efforts, according to the Review.
Moreover, it suggests the public should be more actively engaged in the net zero transition through greater transparency, a new 'carbon calculator' for totting up the CO2 costs of consumer choices, and a standardised approach to eco-labelling on products.
To that end, it recommends the government develop a 'Net Zero Charter Mark' to "acknowledge 'best in class' among firms in terms of their role in the transition to net zero" so as to to help consumers and investors identify businesses with strong, robust green credentials.
To be granted a Net Zero Charter Mark, companies would have to adopt Science Based Targets, develop a clear net zero transition plan, and disclose the climate-related financial risks to their business, according to the Review.
"My recommendations are designed to make the most of this historic opportunity, covering the length and breadth of our economy, so that people in every part of the country can reap the benefits of this both in their communities, and in their pockets," Skidmore added.
The Review also categorically rejects claims from some Conservative MPs that the net zero transition is proving unaffordable, calculating that the average UK home will be between £400 and £6,000 cumulatively better off by 2050 because clean technologies such as electric vehicles and greener homes are significantly cheaper to run. It acknowledges that the upfront cost of some clean technologies will be considerable and calculates that a small percentage of poorer households, totalling just under 500,000 homes, could see the costs of the transition exceed the benefits. But it argues that effective policies, financing offers, and relatively modest subsidies can drive down the cost of clean technologies and ensure no household loses out financially from the transition.
The Review marks the culmination of the former Minister's whirlwind Autumn tour of the UK, which saw him travel to all four home nations to collect views and evidence from businesses, councils, and the public on how to ensure the net zero transition benefits both communities and the economy.
A public consultation carried out alongside the Review garnered over 1,800 responses which fed into the process alongside views collected from more than 50 roundtables across the country, making it one of the largest public engagement exercises to date on the UK's net zero target.
Business Secretary Grant Shapps praised Skidmore's efforts as he welcomed today's Review, adding that the report "offers a range of ideas and innovations for us to consider as we work to grasp the opportunities from green growth".
"With a wealth of talent and expertise, and a track record to be proud of, the UK is well placed to ensure that tackling climate change also brings new jobs and investment for businesses and communities," Shapps said.
The Review's launch had been scheduled for Monday, but following its leak to several newspapers yesterday, it publication is thought to have been pulled forward, prompting frustration among some green figures who had been hoping to see a major push across Parliament and the media to promote the Review's pro-net zero messages.
It remains to be seen what impact the Review's message will have on government policy, but many in the green economy will be hoping it provides a launchpad for the UK's net zero agenda to play a far more central role in the Prime Minister Rishi Sunak's plans in 2023 and beyond, as he seeks to battle inflationary pressures and soaring energy bills. Sunak faced criticism from green groups earlier this month, after the net zero transition and climate action were notably absent from his list of priorities for the year. But the Skidmore Review will add further weight to long-standing calls from businesses and campaigners that the net zero transition provides the most effective mechanism for the government to deliver long term economic growth.
More is expected to become clear when the government delivers an updated Net Zero Strategy before the end of March in line with an order from the High Court last summer, which concluded its existing Strategy lacked requisite detail and was therefore unlawful.
Business groups, meanwhile, gave strong backing for the findings of Skidmore's Review. The CBI's decarbonisation director Tom Thackray said the Review made clear there was "no growth without green in the future".
"The review expertly shows that accelerating the UK transition gives us the best chance of capitalising on a global economic opportunity," he said. "But with fierce international competition we need bold and decisive policies from government to keep us ahead of the pack."
Nick Molho, executive director at the Aldersgate Group, added that amid challenging economic and social conditions in the UK "a rapid shift towards net zero offers much needed investment, competitiveness and job creation opportunities for UK businesses and investors".
"The Skidmore Review is absolutely right to emphasise that the net zero transition is a major pro-business and pro-investment opportunity," he said. "The government should use the recommendations of this review to produce an updated and strengthened Net Zero Strategy early this year."
Politicians, however, stressed that the Review underscored the government's failure to date to fully grasp the opportunities that the net zero transition could provide.
Green Party MP Caroline Lucas said the Review "has to spell and end to the government's current approach of ducking, dodging and delaying action".
"The overriding message from this review is one of urgency," she said. "We don't have a moment to lose in our race to tackle the climate emergency - yet this Tory Government is content to flip-flop on fracking, greenlight new oil & gas and approve a climate-busting coal mine."
Green groups also called for a far more urgent approach to delivering net zero. Greenpeace UK policy director Doug Parr underscored the health and economic dangers of continuing to rely on high carbon infrastructure and fossil fuels which have cause "devastating floods and heatwaves to budget-busting energy bills".
"Moving away from this destructive energy system is not just necessary and possible - it's also a great economic opportunity," he said. "Those who want to slow down climate action are the equivalent of 19th-century canal owners urging caution over the new-fangled railways. A 100 per cent renewable energy system and climate-friendly food production are feasible and cost-effective so we should stop faffing about and get on with it."
