Third Report - Growing back better: putting nature and net zero at the heart of the economic recovery

The government states its firm commitment and outlines a Five Point Plan to tackle zoonotic threats, including proposing a UK centre for zoonotic disease research, establishing a Global One Health Intelligence Hub, and leveraging presidencies of G7 and COP26 to drive international activity.

The government outlines significant commitments to prioritise nature recovery, including making it an international priority, investing £3 billion in nature-based solutions, and implementing domestic initiatives through the Environment Bill and the Green Recovery Challenge Fund.

The government commits to its "levelling up" agenda and details specific initiatives, including funding for skills, 8 Freeports, the £4.8 billion Levelling Up Fund, and investments in green industries like floating offshore wind, energy storage, and biomass, all aimed at creating a greener and more resilient UK.

The government acknowledges the importance of accelerating investment for a green recovery, highlighting existing commitments such as £2.5 billion for building decarbonisation, an £80 million Green Recovery Challenge Fund, and the Ten Point Plan for a Green Industrial Revolution.

The government outlines significant existing investments that align with front-loading for a green jobs boost, including £2.5 billion for building decarbonisation, an £80 million Green Recovery Challenge Fund, and the Prime Minister’s Ten Point Plan mobilising up to £12 billion to create green jobs.

The government states that the Environment Bill creates a duty to set long-term, legally binding targets in priority areas and is working towards a public consultation on proposed targets for early 2022, thus deferring the actual establishment of targets.

The government acknowledges the committee's congratulation of the Bank of England's leadership in highlighting climate-related financial risks and publishing its own climate disclosure by quoting the committee's text.

The government states the Chancellor updated the Bank of England's Monetary Policy Committee remit to include environmental sustainability and net zero objectives. However, for future CCFF support, it refers to broader intentions for mandatory TCFD-aligned disclosures across the economy by 2025, rather than a specific requirement for CCFF recipients.

The government's response details broader regulatory changes for mandatory climate-related financial disclosures by listed and large private companies but does not address the specific recommendation for the Bank of England to write to CCFF loan recipients to alert them.

The government states it is for the MPC to decide but notes the Bank of England will provide more information on its proposed approach to adjusting the Corporate Bond Purchase Scheme in the coming months, aiming to adapt by Q4 2021.

The government accepts the recommendation in principle by committing to implement fully mandatory TCFD-aligned disclosures, which will require organisations to provide information to build awareness of climate risks, inform investment decisions, and drive the transition to a lower carbon economy.

The government details its investments and policies for decarbonising transport, including ending petrol/diesel car sales and funding EVs, but does not specifically address the call for greater urgency in publishing detailed strategies for private sector and industry investment.

The government details its investments and policies for decarbonising transport, including ending petrol/diesel car sales and funding EVs, but does not address the recommendation to make nature recovery integral to all infrastructure plans from the start.

The government rejects the premise that it relies on a single policy lever for transport decarbonisation, detailing a multi-faceted approach including significant investments in EV charging and grants, tax incentives, and substantial funding for other clean transport technologies like cycling, buses, and R&D.

The government details its investments and policies for decarbonising transport, including ending petrol/diesel car sales and funding EVs, but does not specifically set out its plans for substantial long-term investment in better public transport and traffic reduction measures within the forthcoming strategy.

The government details its investments and policies for decarbonising transport, including ending petrol/diesel car sales and funding EVs, but does not address the recommendation for explicit appraisal of Road Investment Strategy projects against environmental commitments before approval.

The government details its investments and policies for decarbonising transport, including ending petrol/diesel car sales and funding EVs, but does not specifically address the importance of hyper-local transport networks or investment in low-carbon infrastructure for rural communities.

The government response discusses investments in decarbonising transport, including electric vehicles, cycling, buses, and various low-emission transport technologies, but does not address the recommendation to guarantee access to reliable internet and mobile connectivity.

The government commits £5 billion for cycling and buses over the current parliament as part of major investments in clean transport, which directly supports the development of active travel infrastructure.

The government response discusses investments in decarbonising transport, including electric vehicles, cycling, buses, and various low-emission transport technologies, but does not address the recommendation to set out a CCUS strategy.

The government response details investments in various transport decarbonisation technologies, including a Hydrogen Transport Hub, but does not commit to publishing a comprehensive hydrogen strategy as recommended.

The government has accepted the need for support, committing £500 million over four years for the development and mass-scale production of electric vehicle batteries and supply chain, alongside £1.88 billion for charging infrastructure and grants.

The government highlights several schemes for decarbonising existing buildings and encouraging green homes, but does not address the specific recommendation to introduce embodied carbon targets for the construction of new homes.

The government outlines several existing schemes, including the Local Authority Delivery Scheme and Social Housing Decarbonisation Fund, which committed £1.3 billion for improving energy efficiency in 2021/22, as part of its efforts towards net zero and decarbonisation.

The government rejected the recommendation to overhaul and extend the Green Homes Grant scheme, opting instead to close it for new applications from 31 March 2021 due to delivery challenges, with remaining funding to be reallocated.

The government states that existing initiatives, including the Public Sector Decarbonisation Scheme and Social Housing Decarbonisation Fund, are already on track to provide significant funding for energy efficiency upgrades in public sector buildings and social housing, with additional funding announced for local authorities.

The government reiterates its commitment to improving the natural environment and highlights the £80 million Green Recovery Challenge Fund, which is already funding projects to restore nature, create jobs, and build skills.

The government agrees with the importance of urban green spaces and details existing initiatives such as the Urban Tree Challenge Fund, the National Model Design Code, and Local Nature Recovery Strategies, which aim to enhance urban biodiversity and improve access to green spaces.

The government accepts in part, outlining its commitment to a green recovery and highlighting the £80 million Green Recovery Challenge Fund, which supports nature-based projects, creates conservation jobs, and engages communities in nature restoration, but does not address piloting a National Nature Service.

The government commits to reporting post-issuance on the allocation of green bond proceeds, their environmental impacts, and important social co-benefits such as job creation, with further details to be provided in a Framework document.

The government confirms that revenue from the Sovereign Green Bond will be invested in projects with environmental benefits, and a Green Bond Framework document, detailing the selection process and committing to post-issuance environmental impact reporting, will be published by the end of June.

The government commits to establishing the UK Infrastructure Bank as a permanent public sector institution via legislation. However, while the Bank's initial focus includes climate change, the government will only review the case for including nature recovery in its mandate before legislation is brought forward.

The government outlines its Ten Point Plan for a Green Industrial Revolution, which mobilises £12 billion investment to create green jobs and aligns with net zero and biodiversity commitments, further supported by green gilts and the new UK Infrastructure Bank.

The government recognises the role of taxation in encouraging environmental impact reduction and directing investment, citing existing carbon pricing mechanisms like the Carbon Price Support.

The government rejects the recommendation to reduce VAT on repair services, products with reused/recycled materials, and green home upgrades, citing significant fiscal costs and the need to balance revenue losses.

The government highlights existing tax benefits for zero and ultra-low emission vehicles, including zero Vehicle Excise Duty and favourable company car tax rates until 2024-25, and mentions a £1.88 billion commitment for plug-in grants and charging infrastructure. It states it keeps taxes under review and is consulting on reforms to Air Passenger Duty.

The government states that the Treasury’s Net Zero Review will consider the role of tax, alongside other levers, in meeting net zero, and highlights existing carbon pricing mechanisms like the UK ETS and Carbon Price Support.

The government recognises carbon border adjustment mechanisms (CBAMs) as a potential approach to addressing carbon leakage but does not commit to investigating their merits, instead highlighting implementation challenges and compliance issues with trade rules.