The Net Zero Strategy: The Reaction
BusinessGreen rounds up the best of the reaction from the low carbon economy to the government’s flagship roadmap for achieving net zero emissions by 2050
The Net Zero Strategy has been published, and the response is decidedly mixed.
The Prime Minister and the Business Secretary contend the long-awaited Strategy is world-leading vision that sets an example to the rest of the world ahead leaders meeting for critical talks at the upcoming COP26 Climate Summit. They claim the broad-ranging roadmap will deliver hundreds of thousands of new green jobs and unlock tens of billions of pounds of private investment, cementing the UK’s place as a leader in multiple clean technologies. “Our strategy for net zero is to lead the world in ending our contribution to climate change, while turning this mission into the greatest opportunity for jobs and prosperity for our country since the industrial revolution,” the Prime Minister writes in the introduction to the report, which combines a raft of new policy plans and spending commitments with previous announcements designed to decarbonise the UK’s energy, buildings, transport, heavy industry and finance sectors.
But the wide-ranging strategy has elicited a somewhat less effusive response from the green economy. While the government’s new ambition for no new gas boilers to be sold after 2035 and a pledge to introduce zero emission vehicle sales targets for carmakers have received plaudits from campaigners and business leadres alike, commentators have also been quick to argue the government’s green vision suffers from a number of shortcomings. Critics have called for a clearer signal from Ministers as to how they plan to phase out oil and gas exploration, manage the transition away from high carbon industries, and protect the UK’s natural carbon sinks. They have pointed out the plan remains thin on detail for how the government plans to bring down the costs of crucial clean technologies for consumers, scale up energy efficiency improvements, plug looming green skills shortages, and encourage people to embrace lower carbon diets.
Here, BusinessGreen rounds up the reaction to the stategy.
Prime Minister Boris Johnson said:
“The UK’s path to ending our contribution to climate change will be paved with well-paid jobs, billions in investment and thriving green industries – powering our green industrial revolution across the country. By moving first and taking bold action, we will build a defining competitive edge in electric vehicles, offshore wind, carbon capture technology and more, whilst supporting people and businesses along the way. With the major climate summit COP26 just around the corner, our strategy sets the example for other countries to build back greener too as we lead the charge towards global net zero.”
Business Secretary Kwasi Kwarteng said:
“There is a global race to develop new green technology, kick-start new industries and attract private investment. The countries that capture the benefits of this global green industrial revolution will enjoy unrivalled growth and prosperity for decades to come – and it’s our job to ensure the UK is fighting fit. Today’s plan will not only unlock billions of pounds of investment to boost the UK’s competitive advantage in green technologies, but will create thousands of jobs in new, future-proof industries – clearly demonstrating that going green and economic growth go hand in hand.”
Shadow business secretary Ed Milliband said:
“This is a plan torpedoed by the Treasury. Once again, it has failed to recognise that the prudent, responsible choice is to sufficiently invest in a green transition. Homeowners are left to face the costs of insulation on their own, industries like steel and hydrogen are left hobbled in the global race without the support they need, and the government cannot even confirm they will meet their climate target for 2035.
“While Labour has a bold climate investment pledge of £28bn extra each and every year to 2030, the government offers a tiny fraction of that. This does not meet our ambitions for British industries to thrive, prosper and lead the world or show the government leadership required to tackle climate breakdown and bring the benefits of a green transition to Britain.”
CBI chief policy director Matthew Fell said:
“The Net Zero Strategy and [Spending] Review fills in some of the blanks on how we realise the UK’s decarbonisation ambitions. What’s clear is that Government plans can only be achieved alongside swift action from businesses. Undoubtedly many of these initiatives will help firms better understand how to unleash more innovation and investment – and put us at the forefront of global climate action ahead of COP26.
“Establishing a grant scheme for heat pumps will help deliver the ambitious roll out we need in the years ahead and bring down the cost of the technology. Extra funding for EV charge points and manufacturing of vehicle batteries will accelerate emissions reductions and boost green growth and jobs in our economy. Cash for innovation projects will help make the most of our world leading science and technology advances.
“But there are still some pieces of puzzle missing. Strong consumer incentives to make homes more energy efficient and delivering business models to make carbon capture and hydrogen projects more investable need to be brought forward urgently. To truly transform the UK economy based on sustainable and green growth, we need to push further and faster and make key decisions on how to finance the transition to net zero. An honest conversation needs to happen here in the UK about how we pay to go green”.
Green Alliance executive director Shaun Spiers said:
“Net zero is the best route to a thriving, prosperous UK, so the government is right to invest in a clean, green economy. Ahead of COP26, the world needed the UK to show climate leadership at home. There is always more to do, but mandating car manufacturers to sell more clean vehicles, supporting the switch to heat pumps and cleaning up our energy grid are essential steps to cutting emissions over the coming decade.
“But we need a more ambitious response from the Chancellor at the spending review to turn these promises into jobs, growth and benefits to consumers. And if the government truly wants to level up the country, we’ll need much more investment once the dust has settled on the COP26 Glasgow climate summit.”
Energy UK CEO Emma Pinchbeck said:
“The energy industry has led the way in reducing emissions in the UK – rapidly expanding our sources of clean power and investing billions every year. We will play a central role in the drive to reach net zero and by committing to have a decarbonised power system in place in the 2030s, our sector will also be providing the clean power needed to transform other sectors like housing and transport. The energy industry has shown what is possible with the right policies in place and is ready to invest further helping create jobs and growth across the country.”
Energy and Climate Intelligence Unit (ECIU) acting director Sepi Golzari-Munro said:
“This strategy is an economic and political plan as well as a climate one. By providing clarity on the key next steps on the path to net zero, it sets businesses and the economy in the right direction. By responding to public concern on climate change and supporting households to make this transition, it addresses political pressure for strong action while looking to protect lower income households. And by getting the country on track for net zero, the PM is setting an example to world leaders, ahead of the Glasgow climate summit, of how to deliver this crucial goal while boosting jobs and keeping costs down. As the most detailed net zero strategy submitted to the UN by any nation, it will augment the UK’s credibility ahead of the negotiations.
“Nevertheless, there is still a shortfall in funding, particularly on home insulation, where current levels fall well below those set out in the Conservative party manifesto and what the Climate Change Committee and Office for Budget Responsibility suggest is needed. Land use and agriculture also stand out as areas where there is an obvious gap in ambition, with peatland restoration in particular needing further action. Reaching net zero will require a comprehensive look across sectors to ensure that every part of the economy contributes to – and benefits from – the transition to this cleaner and more secure future.”
Drax CEO Will Gardiner said:
“The government’s Net Zero Strategy, published today, is a key step forward as the UK looks towards a zero-carbon future. It’s also a clear endorsement of the vital role that Drax will continue to play in helping the UK reach its net zero targets. It highlights the significant contributions that both our negative emissions technology, bioenergy with carbon capture and storage (BECCS), and the expansion of our pumped storage hydro capacity, could play in generating renewable energy in the UK, for the UK, whilst also addressing the climate crisis.
“It is important the government now advances its plans to develop business models for greenhouse gas removal technologies so as to enable companies like Drax to invest in these and ensure their deployment in the 2020s.”
CDP chief impact officer Nicolette Bartlett said:
“The UK’s new net zero strategy is expected to be a bold, comprehensive, and forward-looking policy piece that ties together the government’s green ambition, but it must be seen as the minimum of what needs to be done. The strategy is reflective of the momentum of corporate progress we have seen this year and outlines policy which seeks to drive down emissions, tackle climate impacts and reverse ecosystem degradation.
“Alongside the net zero strategy, next steps for mandatory sustainability-related disclosure in the UK are expected to be announced, beyond the current TCFD Roadmap. Mandatory disclosure provides the bedrock for ambitious action for both companies and investors to identify and tackle growing environmental risks towards a low-carbon economy and therefore should aim to introduce regulation economy-wide. Such regulation should also embed international standards for greatest cohesion between key jurisdictions.
“This high-quality mandatory disclosure regulation should allow for better tracking of companies’ and countries’ progress towards net zero and integrate impacts on people and planet (aka dynamic materiality), beyond value creation. In addition, the new net zero strategy must be accompanied by equally ambitious plans for nature – there is no way of managing global warming without preserving the planet’s biodiversity, forests and oceans. Overall, the global goal of net-zero by 2050 needs to be matched by an equally clear global goal of net positivity for nature.”
Wildlife Trusts chief executive Craig Bennett said:
“It’s good to see the government releasing more detail about their net zero plans at last – but they don’t seem to have fully recognised the role that nature can play. The nature and climate crises are intrinsically linked – we can’t solve one without the other. But there’s little new for nature today and minimal extra investment to enhance nature’s powers to help mitigate and adapt to climate change. Instead, old policies are being recycled – and it’s not enough.
“Worse still, there are significant gaps in the strategy – vastly more peatland restoration is needed and the Government needs to ban peat burning right now or else they’ll undermine their own efforts to repair this valuable carbon-storing habitat. No commitments have been made to protect the seabed – a glaring absence. What’s more, by focusing on technologies like nuclear power – which cannot supply the clean power we need in time – the natural environment will be put at further risk.”
Oxfam’s head of government relations Sam Nadel said:
“Solid progress has been made today, but let’s not pretend this is mission accomplished. One key omission is the absence of any commitment to end new licences for oil and gas exploration, and to phase out production. With plans for a new coal mine in Cumbria, and the approval of the new Cambo oil field near Shetland hanging in the balance, the Government’s stated priority of encouraging other countries to phase out coal looks very shaky.
“This strategy sets the bar high compared with many other countries, but the Prime Minister’s ambition to ‘lead the world’ does not end here. The COP26 Climate Summit is 12 days away and yet pledges by other governments to cut greenhouse gas emissions put us on course for an increase in global emissions by 2030. The long-standing target to provide $100bn in climate finance also remains unmet.”
Energy Networks Association chief executive David Smith said:
“The Prime Minister has made it clear that customer choice is a central component of the Net Zero Strategy. The variety of technologies being developed and deployed for heat, transport, buildings and industry provides this exact choice. With regulation to support strategic, early investment, our energy networks will unlock net zero by connecting these technologies and making sure the right infrastructure is in the right place at the right time.”
Positive Money senior economist Danisha Kazi said:
“As the country hosting this year’s crucial COP summit in Glasgow, the UK government’s approach to net zero falls short on many fronts. Relying on the private sector to raise £90bn by 2030 – the same amount that has been invested in renewables over the last nine years – simply amounts to business as usual. Given the scale of the crisis, with the International Energy Agency saying that investment in clean energy needs to more than triple to around £3tr by 2030, the figures announced by the government today are a drop in the ocean.
“Huge levels of public investment will be needed to ensure a fair green transition, so it is concerning that the government’s net zero review is pushing back on this by warning about costs being passed onto ‘future taxpayers’. Public spending to build new infrastructure and create the green jobs of the future will not be a burden on future generations, but a prudent investment that will pay for itself and deliver huge dividends for the whole of society.
“There is also nothing about the emissions the City of London are responsible for through the billions of pounds they are pouring into fossil fuels overseas. To reach net zero by 2050 the International Energy Agency has said no new fossil fuel projects are required – the government needs to ensure its Green Finance Strategy reflects this.”
Association for Renewable Energy and Clean Technology CEO Dr Nina Skorupska said:
“We are pleased that the government will implement a progressive ZEV Mandate and increase support for EV charging infrastructure, alongside measures on peat restoration and woodland growth. This continues to send a clear message to industry and consumers that zero-emission vehicles are the future of road transport in the UK. Having clearly defined zero-emission vehicle sales targets for automotive manufacturers will allow industry to accurately forecast growth in zero-emission vehicle sales. This will provide the confidence needed to increase private investment in EV charging infrastructure, improving the quantity and quality of the UK’s growing EV charging infrastructure network.”
“There is much work to be done across the economy to prepare for net zero and this is therefore a vital strategy, which we look forward to seeing develop in the coming years.”
SSE chief executive Alistair Phillips-Davies said:
“Delivering net zero will require huge investment in low-carbon technologies, and the way to bring that forward is to set a clear, long-term policy framework. So it is extremely helpful to see government today building out the key pillars of its approach as this gives low-carbon investors and developers like SSE confidence to keep investing on the required scale.
“The recent situation with energy markets underlines the need to invest in more indigenous clean energy sources, and critically the flexible solutions to back them up. The ambition has always been there and now we have a more detailed roadmap as we approach COP26. Next we need to get on and deliver; and we are looking forward to working with government to make the ambitions of net zero a reality.”
National Grid chief engineer David Wright said:
“In the lead up to COP26, the UK has certainly raised the bar on ambition to tackle climate change – and we now need to see what this means in practice. Today’s strategy builds on the 10 Point Plan, the Energy White Paper and a number of strategies that have been published in recent months, outlining what is needed to deliver a net zero future.
“Now the focus needs to be on implementation and investment in infrastructure and technologies. We’re at a critical stage in the journey where net zero is possible with the technologies and opportunities we have today and, in order to deliver on this, we have to accelerate and ramp up efforts to deploy long-term solutions at scale.”
