Mission Zero!

Last week saw the publication of Chris Skidmore’s review into the Government’s net zero policy.

The review, entitled “Mission Zero”, was commissioned by the previous Prime Minister to explore how the UK can meet its net zero targets in a way that is pro-business and pro-growth.

We, together with others from across the sector, provided input into the review. We argued that the transition to a net zero economy can create jobs, boost productivity, support new industries and attract investment.

You can read our response in full here

What does the report say?

Chris Skidmore makes 129 recommendations in his review, covering a wide range of industries and issues. The recommendations are more evolutionary than revolutionary, and build on existing Government policy, but have generally been welcomed by many across the sector.

The recommendations include changes in how Government and Parliament oversee and deliver the net zero agenda, with recommendations for new net zero select committees and a new Office for Net Zero Delivery in Government. Chris Skidmore also makes a series of recommendations aimed at local government, including reforms to the planning system, to encourage net zero developments.

You can read the full report here

What does the report mean for our sector?

Investment

The review contains a series of recommendations aimed at encouraging investment into net zero by creating a more stable and attractive environment for investors.

Specific recommendations include:

• appointing a Ministerial champion to oversee the design of new funding schemes, alongside a forum and consultation process aimed at improving net zero investment;
• a review of how regulation can better support the net zero agenda;
• a review how policy incentivises investment in decarbonisation, including via the tax system and capital allowances; and
• a review of green research and development (R&D) incentives.
   

Energy

A key focus of the report is on the decarbonisation of the energy sector.

Specific recommendations include:

• a cross-sectoral infrastructure strategy to adapt and build gas, CO2 and electricity networks;
  a reform of markets to rebalance gas and electricity prices;
• the creation of taskforces to drive onshore renewable power development. This includes working with local government on planning regimes; and
• continued support for hydrogen heating trials, and the creation of a 10 year delivery plan to scale up hydrogen production.
   

Buildings

There is a real emphasis in the report on energy efficiency, with specific recommendations aimed at improving the energy performance of both domestic and non-domestic buildings.

Specific recommendations include:

• providing certainty by 2024 on the new and replacement gas boiler phase out date to drive industry and investor confidence. The review recommends bringing the proposed date of 2035 forward and legislating for 2033;
• a range of support for heat pumps, including the creation of two new heat pump factories in the UK;
• requiring all consultations on the Future Homes Standard (FHS) to be brought forward by 2025. This includes a consultation on mandating new homes to be built with solar panels;
• requiring all homes sold by 2033 to have an EPC rating of C or above (with certain exclusions);
• requiring all non-domestic buildings, both rented and owned, to be EPC B by 2030, and all new non-domestic buildings to be EPC B by 2025; and
• reforms to EPC ratings.
   

What happens next?

The report was commissioned by the previous Prime Minister, so it remains to be seen how the current Prime Minister and administration respond.

But we understand that the Government will be formally responding later this year.

Watch this space!