UK Inquiry Tracker

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

Treasury minutes: Government response to the Committee of Public Accounts on the Forty First report from Session 2021-22

2 Mar
2022

Report published

Forty-First Report - Achieving Net Zero: Follow up

18 Nov
2021

Correspondence

Correspondence from Sarah Munby, Permanent Secretary, Department for Business, Energy & Industrial Strategy, re follow up from Achieving Ne…

17 Nov
2021

Oral evidence

Achieving Net Zero: Follow up; Covid-19: Cost tracker update (+ Spending Review)

17 Nov
2021

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Covid-19: Cost tracker update (+ Spending Review)

25 Oct
2021

Oral evidence

Achieving Net Zero: Follow up

25 Oct
2021

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Achieving Net Zero: Follow up

Oral evidence sessions 2 sessions

17 Nov 2021

View on parliament.uk

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

View on parliament.uk

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

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Forty-First Report - Achieving Net Zero: Follow up	HC 642	2 Mar 2022	29	Responded

Recommendations & Conclusions

14 results

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 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 would require.28 In our current inquiry, the Department told us that the most important consumer behaviour changes government is now seeking through its Strategy are the choices to buy an electric car, a heat pump and housing insulation.29 The Strategy has ‘targets and ambitions’ including 600,000 heat pump installations each year by 2028; as many homes as possible to be EPC Band C (a measure of energy efficiency) by 2035; and 100% of new cars and vans sold to be zero emission also by 2035.30 However, government often overestimates consumer buy-in to its policies aimed at reducing emissions.31 The Energy Systems Catapult, an independent, not-for profit centre of excellence set up by Innovate UK to promote collaboration between industry, government and academia, 20 Committee of Public Accounts, Carbon Capture and Storage, Sixty-fourth Report of Session 2016–17, HC 1036, 28 April 2017 21 Q 94; Committee of Public Accounts; Green Homes Grant Voucher Scheme, Twenty-seventh Report of Session 2021–22, HC 635, 1 December 2021 22 Qq 94, 100; Comptroller and Auditor General, Green Homes Grant Voucher Scheme, Session 2021–22, HC 302, 8 September 2021, para 7 23 NAPIT, page 3 24 Q 8 25 Qq 6, 8, 89, 99 26 Qq 89–103 27 Q 100 28 Committee of Public Accounts, Achieving Net Zero, Forty-Sixth Report of Session 2019 - 21, HC 935, 5 March 2021 29 Q 60 30 Net Zero Strategy, page 254–255 para 30 31 C&AG’s Report, para 18 12 Achieving Net Zero: Follow up highlights polices that are uneven and too weak to drive change, and has compared helping 70 million people transition to a low-carbon economy within a generation as likely to be more complex and complicated than the first lunar landing.32 Show less

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 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 by income deciles, but also described why it does not consider income to be the defining feature of how net zero policies impact an individual. Rather, it considers a range of relevant factors that all contribute to determining the overall impact on an individual, including the type of housing stock people live in, how they commute and what sort of industry they work in, how their children get to school, and whether they have family overseas.39 The Department told us it has commissioned research, but admitted this was a complex area where its understanding was limited and would become more sophisticated over time.40 In written evidence, The Energy Systems Catapult told us that voices of all parts of society must be heard and the impacts on different parts of society must be managed fairly.41 Core Cities UK, an advocacy group of large regional cities outside Greater London suggested to us that financial disincentives could be attached to activities associated with higher emissions, while ensuring these did not disproportionately impact vulnerable or low-income consumers.42 The Department told us that for now it is focused on making sure each programme, such as its programme on insulation, does not leave anyone behind; and that it has a plan for industries in transition, such as the automotive industry as it pivots towards producing electric vehicles.43 32 Energy Systems Catapult, pages 2–3 33 Q 24; Net Zero Strategy, chapter 3, page 143 34 Q 24 35 Committee of Public Accounts, Low emission cars, First Report of Session 2021–22, HC 186, 19 May 2021 36 Confederation of Passenger Transport, page 3 37 Q 11 38 Q 84 39 Qq 84–85, 105–106; HM Treasury, Net Zero Review Final Report, October 2021, para 3.11–3. Show less

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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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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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

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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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

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

HM Treasury

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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

HM Treasury

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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.

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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