Achieving Net Zero: Follow up

Public Accounts Committee Closed Inquiry
Opened: 21 Sep 2021 Closed: 26 Apr 2022 Parliament page
In March 2021 the Committee warned that Government has “no plan” for achieving Net Zero, two years after setting target in law . With the major international COP 26 climate conference hosted by the UK fast approaching, PAC will question senior officials at DBEIS and HM Treasury on how the … Read more
11 Recommendations
18 Conclusions
1 Report
2 Oral sessions
1 Letter
2 Events
Activity timeline 7 events
28 Apr
2022
Report published
2 Mar
2022
Report published
18 Nov
2021
Correspondence
17 Nov
2021
Oral evidence
17 Nov
2021
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
25 Oct
2021
Oral evidence
25 Oct
2021
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 2 sessions
17 Nov 2021
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Achieving Net Zero: Follow up; Covid-19: Cost tracker update (+ Spending Review)
Cat Little · Cabinet Office Conrad Smewing · HM Treasury Sir Tom Scholar · HM Treasury Steve Field · HM Treasury
25 Oct 2021
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Achieving Net Zero: Follow up
Ben Rimmington · Department for Energy Security and Net Zero Lee McDonough · Department for Energy Security and Net Zero Sarah Munby · Department for Business, Energy and Industrial Strategy
Title HC No. Published Items Response
Forty-First Report - Achieving Net Zero: Follow up HC 642 2 Mar 2022 29 Responded
Recommendations & Conclusions
29 results
2 Recommendation Accepted
Forty-First Report - Achieving Net…
Significant uncertainty remains as to whether consumers will rapidly change their behaviours in line with...
Significant uncertainty remains as to whether consumers will rapidly change their behaviours in line with the expectations of government’s Net Zero Strategy. For government to achieve net zero by 2050 requires extensive consumer engagement with its policies and behaviour change … Read more
Government Response
The government agreed to include consumer take-up relative to expectations and how different social groups are being impacted in its annual progress updates, conduct scenario planning for consumer take-up shortfalls, and evaluate the causes of any consumer take-up shortfalls; this will be implemented by Autumn 2022.
HM Treasury
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3 Recommendation Not Addressed
Forty-First Report - Achieving Net…
Government’s Net Zero Strategy relies heavily on private investment and innovation driving down costs; however,...
Government’s Net Zero Strategy relies heavily on private investment and innovation driving down costs; however, government has a poor track record of providing investor confidence. The Strategy relies on government leveraging billions of pounds of private investment to spur innovation … Read more
Government Response
The response is unrelated to the recommendation, referring to a delayed SEND review instead of technology costs or private investment in Net Zero.
HM Treasury
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4 Recommendation Accepted
Forty-First Report - Achieving Net…
We are disappointed by government’s apparent lack of urgency in clarifying how it will work...
We are disappointed by government’s apparent lack of urgency in clarifying how it will work with local government to achieve net zero. We have previously reported that local authorities have significant scope to influence emissions in their local area, but … Read more
Government Response
The government states that the Net Zero Strategy already sets out how it will work with local government, by creating a Local Net Zero Forum and exploring simplifying funds for net zero initiatives at the local level.
HM Treasury
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5 Recommendation Accepted
Forty-First Report - Achieving Net…
We are concerned that neither the private sector nor the civil service yet have the...
We are concerned that neither the private sector nor the civil service yet have the necessary skills to deliver the Net Zero Strategy. The Department acknowledges that the private sector does not currently have the skills to deliver key aspects … Read more
Government Response
The government agreed to set out its strategy for encouraging the private sector workforce to develop skills needed for net zero, drawing on the Green Jobs Taskforce recommendations, and work with the Cabinet Office to analyze and fill civil service skills gaps through cross-departmental working, training, or recruitment; this will be implemented by Spring 2023.
HM Treasury
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6 Recommendation Accepted
Forty-First Report - Achieving Net…
Increasing focus on its domestic Net Zero Strategy should not detract government from leading global...
Increasing focus on its domestic Net Zero Strategy should not detract government from leading global action to tackle climate change. Climate change is a global challenge which requires a global solution. Government aims to lead by example domestically to help … Read more
Government Response
The government plans to help empower people to make informed choices about the goods and products they buy by exploring how the government better labels these with their emission intensity and environmental impact, including work with the FCA, product labeling, and exploring environmental labeling within food production and disposal.
HM Treasury
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1 Recommendation Accepted
Forty-First Report - Achieving Net…
We took evidence from the Department for Business, Energy & Industrial Strategy (the Department), and...
We took evidence from the Department for Business, Energy & Industrial Strategy (the Department), and HM Treasury, on government’s Strategy to achieve net zero by 2050 and how it will fund the transition to a green economy.
Government Response
The Treasury will continue to conduct a routine review of COVID-19 costs and provide annual public updates for the next two years, including loan costs and costs of specific public services measures.
HM Treasury
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7 Conclusion Accepted
Forty-First Report - Achieving Net…
Although the Strategy relies on private investment, government does not have a good track record...
Although the Strategy relies on private investment, government does not have a good track record of providing investor confidence in climate policy.18 For example, government set out plans for zero carbon homes in 2006, but cancelled these in 2015.19 Even … Read more
Government Response
The government will develop monitoring levels of private investment attracted into Net Zero sectors, taking action to address failures, and provide certainty to investors through net zero sector roadmaps; Automotive , CCUS and Hydrogen Investor Roadmaps have been published.
HM Treasury
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8 Conclusion Accepted
Forty-First Report - Achieving Net…
Despite its track record, the Department considers that the Strategy will have greater permanence than...
Despite its track record, the Department considers that the Strategy will have greater permanence than previous climate policies that have subsequently been reduced or withdrawn.24 This is partly because the Strategy was developed in conjunction with HM Treasury’s 2021–2 to … Read more
Government Response
The government will develop monitoring levels of private investment attracted into Net Zero sectors, taking action to address failures, and provide certainty to investors through net zero sector roadmaps; Automotive , CCUS and Hydrogen Investor Roadmaps have been published.
HM Treasury
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9 Conclusion Acknowledged
Forty-First Report - Achieving Net…
In March 2021 we reported that as much as 62% of future emissions reductions would...
In March 2021 we reported that as much as 62% of future emissions reductions would rely on individual choices and behaviour but that government had not yet properly engaged with the public on substantial behavioural changes that achieving net zero … Read more
Government Response
The government will support the public in making green choices, understanding behavioural factors, and following a Monitoring & Evaluation Framework; Government Chief Scientific Adviser will produce a scenario-based foresight report.
HM Treasury
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10 Conclusion Acknowledged
Forty-First Report - Achieving Net…
Achieving net zero will clearly be challenging.
Achieving net zero will clearly be challenging. The Department stressed that although many of the technologies the strategy relies on are currently very expensive, it is confident that the cost of these will reduce over time.33 For example, a heat … Read more
Government Response
The department estimates that additional capital investment must grow to an average of £50-60 billion per year through the late 2020s and 2030s, and that most of this investment will come from the private sector.
HM Treasury
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11 Conclusion Acknowledged
Forty-First Report - Achieving Net…
We questioned whether the Department was also monitoring and collecting data on the impacts of...
We questioned whether the Department was also monitoring and collecting data on the impacts of net zero policies on individuals and groups with different characteristics.38 The Department pointed to HM Treasury analysis of household exposure to net zero ‘abatement’ costs … Read more
Government Response
The department's annual progress report will include an update on progress against the targets and ambitions set out in the Net Zero Strategy, commentary on contextual changes that might affect the pathway to meeting decarbonisation commitments, and a summary of key areas of progress made against this pathway and the policies and proposals in the Strategy.
HM Treasury
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12 Conclusion Accepted
Forty-First Report - Achieving Net…
We previously reported in 2021 that local authorities have a key role to play in...
We previously reported in 2021 that local authorities have a key role to play in achieving net zero as they have significant scope to influence emissions in their area, by leading decarbonisation of sectors such as housing and transport, and … Read more
Government Response
The government states that the Net Zero Strategy already sets out how it will work with local government, by creating a Local Net Zero Forum and exploring simplifying funds for net zero initiatives at the local level.
HM Treasury
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13 Conclusion Acknowledged
Forty-First Report - Achieving Net…
The Department reiterated that local government is key to achieving net zero particularly in delivering...
The Department reiterated that local government is key to achieving net zero particularly in delivering emission reductions in buildings, transport and waste management.45 Government analysis suggests that more than 30% of emissions reductions to deliver the Sixth Carbon Budget rely … Read more
Government Response
The government agreed to create a Local Net Zero Forum by Summer 2022 to discuss local net zero issues with local government, and explore simplifying and consolidating funds for local net zero initiatives.
HM Treasury
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14 Recommendation Accepted
Forty-First Report - Achieving Net…
The Strategy sets out plans for how central government will work with local government in...
The Strategy sets out plans for how central government will work with local government in pursuit of net zero.49 The Department will take overall responsibility for improving coordination with local government and other local actors on the design and delivery … Read more
Government Response
The government states that the Net Zero Strategy already sets out how it will work with local government, by creating a Local Net Zero Forum and exploring simplifying funds for net zero initiatives at the local level.
HM Treasury
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15 Conclusion Acknowledged
Forty-First Report - Achieving Net…
We questioned how local authorities access funding to help achieve net zero.
We questioned how local authorities access funding to help achieve net zero. The Local Government Association highlighted to us the core issues of uncertainty, spending power and fragmentation in relation to challenges facing council finances.55 The Department considers that the … Read more
Government Response
The government agreed to create a Local Net Zero Forum by Summer 2022 to discuss local net zero issues with local government, and explore simplifying and consolidating funds for local net zero initiatives.
HM Treasury
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16 Recommendation Accepted
Forty-First Report - Achieving Net…
The Energy Systems Catapult highlighted the importance of expanding local authority competence and resources to...
The Energy Systems Catapult highlighted the importance of expanding local authority competence and resources to ensure the capacity and capability to conduct project appraisal and to access funding to help deliver net zero.59 The Department explained that local net zero … Read more
Government Response
The government agreed to create a Local Net Zero Forum by Summer 2022 to discuss local net zero issues with local government, and explore simplifying and consolidating funds for local net zero initiatives.
HM Treasury
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17 Conclusion Acknowledged
Forty-First Report - Achieving Net…
The Department recognises the need to upskill the private sector to have the capacity and...
The Department recognises the need to upskill the private sector to have the capacity and capability to provide goods and services that will contribute to the government’s net zero goals.63 We have recently reported that while the failure of the … Read more
Government Response
The government's response outlines existing plans to work with industry to create a skilled workforce, including green apprenticeships, retraining bootcamps, the Green Jobs Delivery Group, a climate and sustainability strategy for education, heat pump installer training, and spending on training for tradespeople delivering green home energy improvements. It also mentions work to improve Civil Service skills.
HM Treasury
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18 Recommendation Accepted
Forty-First Report - Achieving Net…
The civil service also needs to ensure it has people with the right skills to...
The civil service also needs to ensure it has people with the right skills to address net zero challenges.69 We previously reported that some departments had failed to provide detailed assessments of the climate impacts of their capital expenditure plans … Read more
Government Response
The government plans to work with industry to create the skilled workforce needed to deliver climate targets, including green apprenticeships, retraining bootcamps, setting up the Green Jobs Delivery Group with industry, and publishing a climate and sustainability strategy for education and children’s’ services, while also providing new training offers for all civil servants.
HM Treasury
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19 Conclusion Acknowledged
Forty-First Report - Achieving Net…
We questioned whether there remained a net zero skills imbalance across government.74 The Department told...
We questioned whether there remained a net zero skills imbalance across government.74 The Department told us that it has a high concentration of relevant skills, and there are secondary but still substantial concentrations in the Department for Transport and the … Read more
Government Response
The government's response outlines existing plans to work with industry to create a skilled workforce, including green apprenticeships, retraining bootcamps, the Green Jobs Delivery Group, a climate and sustainability strategy for education, heat pump installer training, and spending on training for tradespeople delivering green home energy improvements. It also mentions work to improve Civil Service skills.
HM Treasury
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20 Conclusion Acknowledged
Forty-First Report - Achieving Net…
In 2020 government established the Government Skills and Curriculum Unit.
In 2020 government established the Government Skills and Curriculum Unit. The Strategy indicates that this Unit is working with the Department to review the skills, training and networks that civil servants need to achieve net zero.76 In addition, the Department … Read more
Government Response
The government plans to work with industry to create the skilled workforce needed to deliver climate targets, including green apprenticeships, retraining bootcamps, setting up the Green Jobs Delivery Group with industry, and publishing a climate and sustainability strategy for education and children’s’ services, while also providing new training offers for all civil servants.
HM Treasury
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21 Conclusion Acknowledged
Forty-First Report - Achieving Net…
The Department recognises that climate change is a global challenge requiring a global solution.
The Department recognises that climate change is a global challenge requiring a global solution. The Strategy identifies international collaboration as a key aim for the UK’s presidencies of COP26 and the G7. The Strategy further commits to lead by example … Read more
Government Response
The government agrees with the Committee’s recommendation. The government plans to help empower people to make informed choices about the goods and products they buy and services they use by exploring how the government better labels these with their emission intensity and environmental impact.
HM Treasury
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22 Conclusion Acknowledged
Forty-First Report - Achieving Net…
We previously reported in 2021 that it was critical that actions to reduce the UK’s...
We previously reported in 2021 that it was critical that actions to reduce the UK’s emissions did not result in moving emissions abroad, so-called ‘carbon leakage’, which would undermine global efforts to tackle climate change. At that time, government did … Read more
Government Response
The government agrees with the committee's recommendation and will explore labelling goods with their emission intensity, working with the FCA on sustainable investment labels, using product labelling for durability, and updating Ecodesign product regulation.
HM Treasury
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23 Conclusion Acknowledged
Forty-First Report - Achieving Net…
In its new Strategy, government recognises the importance of addressing the risk of carbon leakage...
In its new Strategy, government recognises the importance of addressing the risk of carbon leakage so that its net zero interventions do not lead to increased emissions elsewhere, and to ensure that UK industry has confidence to decarbonise.82 The Department … Read more
Government Response
The government plans to help empower people to make informed choices about the goods and products they buy by exploring how the government better labels these with their emission intensity and environmental impact, including work with the FCA, product labeling, and exploring environmental labeling within food production and disposal.
HM Treasury
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24 Conclusion Acknowledged
Forty-First Report - Achieving Net…
The Department told us consumption emissions are more difficult to measure than territorial emissions, the...
The Department told us consumption emissions are more difficult to measure than territorial emissions, the latter being the standard approach of the United Nations Framework Convention on Climate Change (UNFCCC).85 The Department told us that it intends to use product … Read more
Government Response
The government agrees with the committee's recommendation and will explore labelling goods with their emission intensity, working with the FCA on sustainable investment labels, using product labelling for durability, and updating Ecodesign product regulation.
HM Treasury
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25 Conclusion Accepted
Forty-First Report - Achieving Net…
The Strategy commits government to providing an annual public update on progress made in the...
The Strategy commits government to providing an annual public update on progress made in the previous year towards net zero. This will include progress against the ‘targets and ambitions’ set out in the strategy, commentary on contextual changes that might … Read more
Government Response
The government states that the Net Zero Strategy already commits to providing an annual public update on implementation progress, including the items the committee recommends.
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26 Conclusion Acknowledged
Forty-First Report - Achieving Net…
We questioned the Department as to whether it felt measures relating to the energy efficiency...
We questioned the Department as to whether it felt measures relating to the energy efficiency of buildings cast as best endeavours, such as ‘as many as possible’ and ‘as many… as reasonably practicable’ were transparent, clear and effective.92 The Department … Read more
Government Response
The department's annual progress report will include an update on progress against the targets and ambitions set out in the Net Zero Strategy, commentary on contextual changes that might affect the pathway to meeting decarbonisation commitments, and a summary of key areas of progress made against this pathway and the policies and proposals in the Strategy.
HM Treasury
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27 Recommendation Rejected
Forty-First Report - Achieving Net…
In its 2020 report Achieving net zero, the NAO stated that neither the Department nor...
In its 2020 report Achieving net zero, the NAO stated that neither the Department nor HM Treasury collated information on the total costs and benefits of government policies that contribute to achieving net zero.96 HM Treasury told us that costs … Read more
Government Response
The government disagrees with the recommendation, but will write to the Committee by Autumn 2022 setting out the processes for reporting the implementation of net zero policies, including a summary of internal reporting governance.
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28 Conclusion Acknowledged
Forty-First Report - Achieving Net…
The Department pointed to the cost-benefit analysis it prepared as part of government’s consideration for...
The Department pointed to the cost-benefit analysis it prepared as part of government’s consideration for legally adopting the Sixth Carbon Budget, and also its financial resources (expressed as capital and operating expenditure limits) set against different targets including net zero … Read more
Government Response
The government disagrees with the Committee’s recommendation, and restates its plans to write to the Committee by Autumn 2022 setting out the processes for reporting the implementation of the government’s net zero policies, including to Parliament and reiterates the clear performance metrics they have already committed to report against publicly, and a summary of the internal reporting governance in place to ensure net zero by 2050 remains on track.
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29 Recommendation Rejected
Forty-First Report - Achieving Net…
In addition to direct costs to the Exchequer of achieving net zero, HM Treasury also...
In addition to direct costs to the Exchequer of achieving net zero, HM Treasury also recognises the impact of behaviour change reducing tax revenues. Revenues from Fuel Duty and Vehicle Excise Duty amounted to £37 billion in 2019–20, and if … Read more
Government Response
The government disagrees with the Committee’s recommendation but will write to the Committee by Autumn 2022 setting out the processes for reporting the implementation of the government’s net zero policies, including to Parliament.
HM Treasury
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Government Response AI assessment · 29 of 11 classified
Accepted 12
Acknowledged 14
Not Addressed 1
Rejected 2
Total 11 recs + 18 conclusions
Correspondence 1 letter
18 Nov 2021 Correspondence from Sarah Munby, Permanent Secretary, Department for Business, Energy & Industrial Strategy, re follow up from Achieving Net Zero hearing on 25 October, dated 15 October 2021
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