CBI urges government to close net-zero policy gap quickly

The Confederation of British Industry (CBI) has put pressure on the government to make up for lost time during the pandemic by ensuring that its decarbonisation policy framework is in place by the end of this year.

A swathe of policies, which were due to have been taken forward during the first half this year, have been shelved as the government’s attention has been monopolised by the response to the coronavirus pandemic.

In a new document, entitled “Principles for a low-carbon, sustainable and net-zero aligned economic recovery post Covid-19”, the business body calls on ministers to make progress on policy consultations already in the pipeline.

The energy white paper and the National Infrastructure Strategy, both of which are overdue, should be published “as soon as possible”, while taking into account the impact of the pandemic and the delivery of a clean and resilient recovery.

Other priority actions include responding by the end of this year to the Department of Transport’s recently published consultation on bringing forward to 2035 phase-out of internal combustion engine cars and vans. This response should include a revised plan for how the government will support the transition to a new phase out date.

In addition, the paper says the planned roadmap for decarbonising heat in buildings should be published by the autumn. The Heat and Buildings Strategy, which was originally due to appear this summer, should support the roll-out of heat pump solutions heat network investment and hydrogen-based solutions, according to the CBI.

The paper also says that the delivery of a national energy efficiency programme is “long overdue”. Of the £9.2 billion earmarked for energy efficiency improvements in last year’s Conservative manifesto, the £3.8 billion allocated for a Social Housing Decarbonisation Fund should be prioritised.

It says local councils and housing associations can make rapid progress on energy efficiency projects and so deliver quick wins in terms of new jobs.

The CBI also urges the government to use some of its £2.9 billion scheme to improve the energy efficiency of the public estate to upgrade school buildings while they are closed.

The empty state of the buildings, which are likely to remain so until the autumn, creates an opportunity to more easily carry out energy efficiency work, which would normally be highly disruptive, it says: “With a phased return to schooling likely, there is a clear opportunity to target buildings that will be empty until the autumn, delivering immediate employment over the summer months.”

The CBI report appears a day after another document by the Policy Exchange backed government support for hydrogen

The report by the influential right of centre thinktank says there is a strong argument for increasing government capital investment to support R&D in technologies, which will help the UK to hit its carbon targets. These include hydrogen, which the report describes as “attractive” given its “versatility and cheapness”.

The report also says there is a case for funding local authorities and social landlords to take measures to make their buildings energy efficient.