London, UK: More should be done to reap the economic benefits that tackling climate change presents, says chair of the Net Zero Review, Chris Skidmore MP.
Skidmore, a former energy minister, in his report, Mission Zero makes 129 recommendations covering areas including the greater role that business can be supported to play, making better use of infrastructure and delivering more energy efficient homes.
Every one is designed to maximise economic investment, opportunities and jobs – all while working towards achieving legally binding targets to reach net zero carbon emissions by 2050.
“We should be proud of the lead the UK has taken in tackling climate change, having exceeded expectations so far in our race to net zero emissions by 2050. As essential as that is environmentally, it also puts us at an economic advantage globally, Skidmore said.
“In developing this report, we have engaged with communities, economists and climate experts from across the country through more than 50 roundtables and 1800 submissions – all of which have led to the Mission Zero findings.
“My recommendations are designed to make the most of this historic opportunity, covering the length and breadth of our economy, so that people in every part of the country can reap the benefits of this both in their communities, and in their pockets,” he said.
Shane Brennan, chief executive, Cold Chain Federation, said: “Chris Skidmore is right that businesses need certainty to make long-term investments.
“Environmental policy has been characterised by U-turns, fads and underfunded promises for too long. Cold chain businesses stand ready to make changes but only if the policy framework is right and we have a long way to go before we can have confidence that this is the case.
“That said, there is a big opportunity in that the technology landscape is exciting, the customer demand is there and there is an obvious climate imperative. Cold Chain Federation is committed to playing our part in delivering a practical business-led transition to a net zero economy for the UK,” Brennan said.
Michelle Gardner, deputy director policy, Logistics UK, said: “The logistics industry is keen to play its role in the de-carbonisation agenda, however as a highly complex industry, this will not happen overnight. Logistics UK is encouraged by the review’s recognition of the opportunities and challenges involved and welcomes a number of recommendations – aimed at supporting industry on this journey – made within the report.
“Logistics, like many other sectors of the UK economy, is facing increasing cost pressures and Logistics UK has long-called for greater certainty from government to allow businesses to plan and invest in the necessary technologies and infrastructure. We are therefore pleased that the review has recommended government provide this long-term certainty to allow businesses confidence in the knowledge that UK policy or funding will not rapidly change without very good reason. We hope this report will help shape future government policy,” Gardner said.
Modal-shift has a significant role to play in the decarbonisation of industry and Logistics UK also welcomes the report’s recommendation that government should continue to work with the sector to set out a clear programme by 2024, to accelerate decarbonisation, building on the Future of Freight Plan.
Professor Lord Stern of Brentford, chair of the Grantham Research Institute on Climate Change, London School of Economics and Political Science, said: “Chris Skidmore and his team deserve great credit for carrying out a rigorous, robust, and inclusive review of the evidence on the economics of the UK’s net-zero transition. In particular, the review has argued convincingly that the transition to a net-zero economy is the growth opportunity of the 21st century, and the UK is well-placed to benefit from the increasing demand for net-zero goods and services, if it makes the right public and private investments.
“It also correctly highlights the critical importance of government creating an environment that is conducive to this investment by providing clarity, certainty, consistency and continuity of policy. I hope the Prime Minister and his government will respond to the review with the urgency and scale required to prevent this enormous economic opportunity from slipping through our fingers. This transition, and the investment and innovation it embodies, are at the core of the UK’s growth story for the coming decade,” he said.
The main recommendations to the government in the Review are as follows:
1) Using infrastructure to unlock net zero
- accelerating the implementation of the British Energy Security Strategy to update the mandate of Ofgem, creating the Future System Operator and accelerating the connection of cheaper renewables such as solar and onshore wind
- developing a cross-sectoral infrastructure strategy by 2025 supporting the building and adaptation of infrastructure for electricity, hydrogen, other liquid and gaseous fuels and CO2 networks that support the green economy
- reforming our approach to planning, so that where locally supported, more solar and onshore wind can be developed more easily, helping communities reap the benefits of cheaper low-carbon electricity
2) Creating sustainable governance structures for net zero
- developing an over-arching government financing strategy by the end of 2023
- establishing an Office for Net Zero Delivery, responsible for placing net zero delivery at the heart of government thinking
3) Backing businesses to go green
- reviewing incentives for investment in decarbonisation, including via the tax system and capital allowances, and protecting British industries from environmental undercutting by progressing plans on carbon leakage measures and providing more detail on the UK’s new Emissions Trading Scheme
- building skills needed for the transition by driving forward the Green Jobs Taskforce recommendations and launching a ‘Help to Grow Green’ campaign, offering information and support to SMEs to plan and invest in the transition
4) Catalysing local action
- reforming the planning system at local and national level to place net zero at its heart
- back at least one Trailblazer Net Zero City, local authority and community, with the aim for these places to reach net zero by 2030
5) Increasing transparency and engaging people
- expanding the government’s public reporting on net zero
- ramping up public information through a new engagement plan, a new carbon calculator on the carbon cost of choices, and a standardised approach to eco-labelling on products
- developing a Net Zero Charter mark, acknowledging ‘best in class’ among firms for their work in reaching net zero
6) Delivering cleaner, cheaper, greener homes
- legislating for the Future Homes Standard, meaning no new homes will be built with a gas boiler from 2025, and for all homes sold to be EPC C by 2033
- adopting a 10-year mission to make heat pumps a widespread technology in the UK and legislate for the end of new and replacement gas boilers by 2033 at the latest
- reforming EPC ratings to create a clearer, more accessible Net Zero Performance Certificate (NZPC) for households
7) Capitalising on international leadership
- conducting a strategic review on the UK’s international climate leadership and introduce environmental and climate protections in future free trade agreements, removing trade barriers to environmental goods and services
8) Setting ourselves up for 2050 and beyond
- ramping up investment in research and development (R&D), with a new net zero R&D and technologies roadmap up to 2050, supporting up to 3 10-year demonstrator projects
The review is split into 2 parts, with the first part exploring the opportunity, and benefits to individuals and the economy, emphasising that the UK must go further and faster to realise economic benefits. The second part sets out a roadmap for how government and industry can work to better exploit the opportunities and catalyse action in individual sectors of the economy, enhancing the role of local authorities, communities, and the individual to deliver the green transition.
Main image courtesy Kogel Trailers.
