From Green Day to Groundhog Day

With only hours to spare before the High Court deadline and parliament packing up for recess, the government published a raft of measures relating to net zero, energy security and green finance – 44 documents in total. Yesterday’s announcements came on what was optimistically dubbed ‘Green Day’ to reflect the expectations of clarity around net zero policy and the heavy weight action required to propel the country towards meeting its net zero target by 2050. However, government officials were quick to set the story straight and dampen spirits in cautiously badging it ‘Energy Security Day’ which hinted towards the level of ambition the announcements contained. Only 24 hours have passed but already Friends of the Earth and Client Earth have noted their intentions to bring the government back to court if they unearth any shortfalls in the net zero strategy, which might not be hard to find given the Government’s own admission that the strategy will not reduce emissions in line with what the CCC’s carbon budget recommends. Lexington’s Responsible Business team have reviewed the announcements and shared their 5 takeaways for businesses, whilst providing a summary of the Chris Skidmore MP session held earlier today.

5 key takeaways

• The transition to net zero is still viewed as a key part of achieving the UK’s energy security and economic goals with the government agreeing that “net zero is the growth opportunity of the 21st century”.
• BUT, NGOs and opposition parties have argued that the measures are merely reheated policy and funding announcements with little new funding commitments and deferred policy. Furthermore, Friends of the Earth have noted that their legal teams will be going through the detail of the net zero strategy with a fine-tooth comb looking for shortfalls that they can slap more legal challenges on.
• The strategy focuses heavily on carbon capture with storage which will provide licence for the government to continue issuing new permits for oil and gas in the UK. While the IPCC and UK’s own CCC have both stated CCUS is required in some form to help us reach net zero, but CCUS is yet to be fully proven at scale and is therefore considered by some a risky bet. Commentators have drawn particular attention to the fact that the level of investment in CCUS (￡20bn) far outweighs the amount invested in renewables – and is not yet underpinned by a fully detailed delivery roadmap. The lack of commitment to more investment in insultation and energy efficiency and removal of barriers to onshore wind represent a missed opportunity to create a more resilient approach – and potentially at a lower cost.
• The lack of clarity and ambition on the UK response to the competition presented by the EU Net Zero Industry Act and the US Inflation Reduction Act for investments in clean technology. Chancellor Jeremy Hunt MP has postponed his response until the Autumn Budget leaving the UK vulnerable position where investment in green technologies could be diverted to regions where stronger policy mechanisms are in place.
• The warning from the IPCC report last week could not have been clearer, action is needed now to bring emissions down fast. However, what we got was a kicking the can down the road approach to big strategic infrastructure decisions with the promise of future new or refreshed roadmaps in areas like CCUS, hydrogen and heat pumps which brings uncertainty and demonstrates a lack of climate ambition.

Chris Skidmore MP response

Following the publication of the Government’s Net Zero Plan, this morning Chris Skidmore MP has provided a thoughtful response to what many are describing as Groundhog Day, as opposed to ‘Green Day.’

?Mr Skidmore began by outlining that, in his judgement, of the 129 separate recommendations made by his mission zero report, the government has taken forward just 53. His general air of disappointment was encapsulated by the government’s decision to not establish an Office for Net Zero Delivery. Mr Skidmore subsequently made an impassioned argument that British businesses have an innate desire to act in an environmentally conscious manner, but require firm leadership from an overarching body, capable of driving forward impartial methods of change whilst ensuring accountability.

?Turning to the discourse of a local environmental agenda, Mr Skidmore’s disappointment bordered on disillusion. He criticised the Government for failing to take advantage of the burgeoning opportunities residing in local communities, calling for increased investment to turbo-charge Britain’s transition towards a green economy.?

Whilst concluding, Mr Skidmore highlighted the vital need for greater investment in key decarbonisation skills, which will characterise the industries of tomorrow. Additionally, he urged the Government to refrain from kicking the can down the road, lest we forgo our assumed position as World leaders in the ongoing battle against climate change.

?The final words were left to Chair of the Environmental Audit Committee Phillip Dune MP who cheerfully suggested that the government has demonstrated a commitment to enacting positive change, albeit not with the urgency many may have hoped for. Mr Dunne then issued a call to arms to the climate conscious amongst us, underling the importance of the Chancellor’s Autumn Statement, during which the government may take a less frugal approach to combatting the climate crisis.