31
Accepted
Fairness is fundamental to the legitimacy of the Seventh Carbon Budget.
Conclusion
Fairness is fundamental to the legitimacy of the Seventh Carbon Budget. Where transition costs are experienced early and unevenly, while benefits arrive later or are less visible, public consent cannot be assumed. The current approach to funding energy policy risks placing disproportionate burdens on households with the fewest options, while weakening incentives to move away from fossil fuels. If unaddressed, this risks undermining a central delivery pathway for the Seventh Carbon Budget. (Conclusion, Paragraph 129)
Government Response Summary
The government states that its published Impact Assessment and equality analysis already consider distributional impacts and fairness in the net zero transition, and that further impacts will be considered in detail as part of developing the CB7 delivery plan.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
Working towards net zero and adapting to climate change is essential to prevent widening inequalities, because we know that if we do not act, the impacts of climate change will more severely impact vulnerable groups. Alongside the decision to set the seventh carbon budget level, the government has published an Impact Assessment which includes a distributional analysis and co-benefits analysis. This assessment draws on evidence on how the net zero transition will affect different groups and considers how fairness can be embedded at the centre of policies to mitigate risks for vulnerable groups. In addition, in line with the Public Sector Equality Duty, an equality analysis has been undertaken to inform the ministerial decision to set CB7 at the recommended level. This analysis assesses, at a proportionate and appropriate level, how setting CB7 interacts with equality outcomes, drawing on the Impact Assessment, including its distributional and co-benefits analysis. The equality analysis makes clear that the decision on the CB7 level does not determine the specific policies through which it will be delivered. Impacts on groups who may face disproportionate costs or barriers during the transition will ultimately depend largely on the design, sequencing and implementation of individual policies. These impacts will be considered in more detail as part of the development and agreement of the CB7 delivery plan. The Clean Energy Jobs Plan explains how we will help workers in all parts of the country benefit from these opportunities: supporting our existing workforce to find new opportunities, training up the next generation, and helping our young people to get good jobs. In addition, the Fuel Poverty Strategy for England seeks to ensure that 1 million households are supported to achieve warm homes.
Source
Committee
Environmental Audit Committee
Inquiry
The Seventh Carbon Budget
Report
8th Report - The Seventh Carbon Budget
04 Mar 2026
HC 1327
Timeline
Recommendation age
0.4 yrs
Report published
04 Mar 2026