- Report finds Government did not consider what levels of
longer-term investment might be required up to 2050 to support
net zero tech
- Warns of lack of clarity for businesses and lack of support
for consumers
A lack of long-term planning from the Government risks
jeopardising the UK’s legally-mandated pledge to achieve net zero
carbon emissions by 2050, particularly in the context of the
government's announcement in September 2023 to delay the phasing
out of new fossil fuel vehicles and heating systems.
In a wide-ranging report published today, the Public Accounts
Committee (PAC) warns that too often the Government’s plans for
supporting the progression of net zero technologies are
short-term, putting at risk the large amounts of private
investment needed to achieve net zero by 2050.
The report finds that the Government, when setting out timescales
for new technologies to be delivered in 2021, did not consider
what levels of long-term public investment might be required up
to 2050 to support new technologies to deliver net zero. This is
despite the Government believing that long-term public investment
will be needed to encourage the private sector to invest. To hit
the 2050 target, new low-carbon investment in the UK from both
public and private sectors will have to increase by two to three
times each year from last year’s estimated total of £23 billion.
Most of this increase would need to come from a private sector
encouraged to invest by Government action.
The PAC’s inquiry also identified a lack of clarity and support
from government for both businesses and consumers. The Government
is dependent on businesses on the ‘supply’ side delivering
successful innovation to reach net zero, but the report finds
that businesses are finding sources of public sector funding
difficult to navigate and access. On the ‘demand’ side, the
report warns that developing new technology may be taking
priority over focusing on the practical challenges consumers
might face in taking them up. The PAC is calling on the
Government to specifically assess these challenges.
The report further contains warnings on oversight and
transparency in supporting innovation to deliver net zero. There
is no single person or organisation with responsibility for
overseeing the performance of government support for innovation.
The lack of such oversight risks a lack of targeted support, a
clear focal point for businesses and researchers, and continuing
barriers to market deployment.
On transparency, the PAC finds that there is no clear mechanism
for publicly reporting progress on government support for
technologies which are priorities for achieving net zero such as
offshore wind and nuclear advanced modular reactors. Without such
a mechanism, it is not clear whether initial expectations for
particular technologies are being met.
Chair's comment
, Chair of the Committee, said:
“Our Committee has warned time and again of the damage that can
be done to delivering policy by the lack of long-term planning
and funding from government. There is no more critical area where
this is true than on net zero. If the Government continues to
leave businesses to peer through a haze of uncertainty, then that
investment will not be forthcoming. Businesses and consumers need
certainty.
On supporting innovation for net zero, the Government needs to
agree with itself on what success looks like, what failure looks
like, and report transparently on progress. Such basic building
blocks being absent four years after a pledge critical to our
very way of life was made is disappointing. The Government must
call an end to this faltering approach, or risk spelling out to
industry, the public and the world that the UK is simply not
serious about tackling climate change.”
