The government agrees with the Committee’s recommendation [PAC Rec 1]. Target implementation date: Autumn 2025. The government has been actively assessing its approach to sustainability assurance as part of a commitment to continuous improvement. As part of this commitment, the government is reflecting carefully on all current evaluation and audit processes, and incorporating relevant lessons learned into our plans for the new contract with Drax (and the Common Framework consultation) as part of a commitment to continuous improvement in the sustainability regime for biomass and associated monitoring and assurance. The government has identified opportunities to strengthen this regime ahead of signing the new contract and actively seeks to learn from international best practice and evolving international regulatory frameworks. This work will be strengthened further by the forthcoming appointment of an independent sustainability advisor to support the government, Ofgem, and the Low Carbon Contracts Company (LCCC) on biomass sustainability policy and practice. However, it is important to recognise that the assurance arrangements under the current Renewables Obligation/Contract for Difference schemes that UK biomass plants operate under are settled until 2027 at the earliest, and the government has already worked closely and extensively with both Ofgem and external consultancies to evaluate these arrangements. Moreover, the recent Ofgem investigation into Drax’s sustainability reporting – which led to Drax making a £25 million voluntary redress payment – is evidence that the current assurance regime is working well. Breaches of sustainability reporting under the existing arrangements are thoroughly investigated, and robust action is taken when breaches are found. The government agrees with the Committee’s recommendation [PAC Rec 2a]. Target implementation date: Autumn 2025. As part of the planning for the implementation of the new sustainability criteria, the department is working closely with LCCC and Ofgem to develop robust, transparent monitoring arrangements. This includes assessing the cost and resource implications of any new or strengthened thresholds and Monitoring, Reporting and Verification (MRV) requirements, and ensuring that these are proportionate and represent value for money. In particular, the department is committed to ensuring that Ofgem is appropriately resourced to deliver its ongoing support for the assurance of biomass sustainability. DESNZ also expects the independent sustainability advisor to play a role in ensuring the ongoing effectiveness of these strengthened sustainability arrangements. The government agrees with the Committee’s recommendation [PAC Rec 2b]. Target implementation date: December 2025. DESNZ recognises the importance of transparency in ensuring public confidence in the sustainability of the biomass used in UK electricity generation. As such, the department is considering options to publish the plans for sustainability enforcement under the new contract with Drax. The department also works closely with Ofgem and LCCC to co-develop the role both parties will play in sustainability assurance and ensure this is resourced appropriately. Ofgem recover costs from the licensed companies they regulate. Licensees must pay an annual licence fee, which is set to cover Ofgem’s costs. Ofgem’s overall budget is agreed at a Spending Review. Any additional oversight responsibilities must be considered in the round to ensure they are proportionate and represent good value for money.