Former energy minister Chris Skidmore has today published Mission zero: Independent review of net zero, an independent review of the UK government’s approach to delivering its net zero target, that highlights the critical importance of government creating an environment that is conducive to this investment by providing clarity, certainty, consistency and continuity of policy.
He said the UK’s leadership on tackling climate change has led to changes at home and around the world – with more than 90% of the world’s GDP now committed to net zero, however, his review makes 129 recommendations, all to seize opportunities from creating a green economy.
Skidmore urged ministers to grasp the “historic opportunity”, highlighting how the government’s Net Zero Strategy offers the right direction, and the right policies to do so.
”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.
Skidmore’s proposals include:
- backing business – these include reviewing incentives for investment in decarbonisation, including via the tax system, and launching a ‘Help to Grow Green’ campaign offering information and advice to small businesses so they can plan ahead;
- backing local action – these include reforming the planning system to put net zero at its heart nationally and locally, and backing at least one Trailblazer Net Zero City, local authority and community that can work towards reaching net zero by 2030;
- using infrastructure to unlock net zero – including developing a cross-sectoral infrastructure strategy by 2025 to support the building and adaptation for new green energy sources such as hydrogen to support the green economy.
Stephanie Pfeifer, chief executive officer of Institutional Investors Group on Climate Change (IIGCC), said: “Chris Skidmore’s Net Zero Review rightly highlights the significant opportunities presented by the transition to a green economy – from job creation to economic growth, the benefits afforded by net zero to the UK are multiple, significant and clear. Yet to seize the opportunities presented by net zero will require a significant increase in private investment across the UK economy, particularly in infrastructure and renewable energy technologies.”
She said that to meet the ever-increasing requirement for more capital, investors need the UK government to not only maintain – and where possible – exceed its existing net zero ambition, but to set a clear and stable policy vision underpinned by near-term actions and milestones.
Pfeifer added: “Today’s review is a timely reminder of both the net zero opportunity and the importance of clear, long-term government policy. Investors will now be keenly awaiting the government’s response to Chris Skidmore’s review and specifically how they propose to further unlock the necessary investment to keep the UK ahead in the global race to net zero.”
Ed Matthew, campaigns director at independent think tank E3G, said: “This review has confirmed what business already knows. Net zero is not only essential to human survival, it is the greatest economic opportunity of our time. To unleash this extraordinary potential requires net-zero to be put at the heart of the government’s economic mission, policies and investment. The prime minister must act immediately to deliver Mission Zero.”
Kate Levick, associate director, sustainable finance at E3G, added: “The global climate transition will also be a global race to capture economic growth opportunities. The UK needs a Net Zero Investment Plan for financing the transition, together with a broad set of additional actions to green the financial sector and scale up green investment. We particularly welcome the review’s support for taking forward the Sustainability Disclosures Regime, including mandatory transition plans and a green taxonomy.”
James Alexander, CEO of the UK Sustainable Investment and Finance Association (UKSIF), has urged the government to “meaningfully engage with its recommendations” for the real economy and financial services, and to more clearly recognise the enormous short and long-term economic benefits of the UK’s transition.
“Many investors will be particularly pleased to see the review emphasise the importance of greater policy clarity, with the unclear policy landscape continuing to be a major barrier for our members in driving lending and investment towards decarbonising the economy,” he noted.
“It is positive too that the review recognises the necessity for good disclosures across the economy, including the need to implement the International Sustainability Standard Board’s standards as well as the UK’s Green Taxonomy as soon as possible,” Alexander said. “We will continue to make this case to government, which will be critical to facilitate investors’ efforts to address sustainability risks and opportunities.”
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