Forty-First Report - Achieving Net Zero: Follow up

Select Committee

Public Accounts Committee HC 642 2 March 2022

Report Status Government responded

Conclusions & Recommendations 29 items (11 recs)

Source View on Parliament website

Government Response (AI assessment · 29 of 29 classified)

Accepted 12

Acknowledged 14

Not Addressed 1

Rejected 2

Recommendations

2 results

27 Rejected

In its 2020 report Achieving net zero, the NAO stated that neither the Department nor...

Recommendation

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 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 associated with achieving the Nationally Determined Contribution (which commits the UK to reducing economy-wide greenhouse gas emissions by at least 68% by 2030 compared to 1990 levels), achieving the Sixth Carbon Budget, contributing to international climate finance, and any UK commitments made at COP26 are already covered either in the current Spending Review settlement, or will be covered by future spending reviews.97 HM Treasury also told us that the Climate Change Committee produces cost estimates over much longer periods, for example 30 years, and the Office for Budgetary Responsibility produces an official estimate of the future costs of climate adaptation and mitigation in its fiscal risks report over an even longer time horizon of 50 years.98 However, HM Treasury cautioned that such estimates contain ‘heroic assumptions’ with errors compounding over potentially very long periods.99 It concluded in its Net Zero Review that costs and benefits will not fall 88 HM Treasury, Net Zero Review Final Report, October 2021, para 2.33 89 IFRS, IFRS Foundation announces International Sustainability Standards Board, consolidation with CDSB and VRF, and publication of prototype disclosure requirements 90 Qq 109–110 91 Net Zero Strategy, page 254, para 30 92 Q 62 93 Q 63 94 Q 64–65 95 Net Zero Strategy, page 254, para 30 96 Q 70; C&AG’s Report, para 17 97 Qq 87–92; UK Government, United Kingdom of Great Britain and Northern Ireland’s Nationally Determined Contribution, 2020 98 Qq 95–96, 105–107 99 Q 95, 97 18 Achieving Net Zero: Follow up evenly, but that it was impossible to forecast how individual households would be affected over the thirty-year transition given consumer costs would be driven by factors including incomes, prefer Show less

Government Response Summary

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.

HM Treasury

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29 Rejected

In addition to direct costs to the Exchequer of achieving net zero, HM Treasury also...

Recommendation

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 Summary

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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