Chancellor coughs up just £30m extra for net-zero goal

Sajid Javid has awarded just £30 million extra for efforts to meet the 2050 net zero emissions target in his first spending review.

The Department for Business, Energy and Industrial Strategy (BEIS) settlement for 2020/21, announced as part of the cross-government spending review by the chancellor today (4 September) , includes an additional £30 million to “accelerate progress” on developing decarbonisation schemes.

It says these schemes are designed to move the UK towards its net zero greenhouse gas emissions target by 2050.

Further details on how the UK will make progress towards the net zero goal will be set out in the National Infrastructure Strategy which according to the statement is due to be published this autumn.

But the £30 million awarded for decarbonisation is dwarfed by the commitment to provide £191 million of continued funding to support the UK’s withdrawal from the EU.

Overall, BEIS saw a budget increase of 2.1 per cent compared to the current financial year, which is just over half the overall rise 4.1 per cent in spending across government.

Shadow chancellor John McDonnell, responding to Javid’s statement, dismissed the sums as a “miniscule amounts” in the context of the “existential” challenge posed by climate change.

He said: “The chancellor has given no sign that he understands the scale of the climate emergency facing us and the urgency in which a significant government response is needed.

“He mentions climate but allocates what is essentially minuscule amounts of funding to address what is an existential threat to our society.”

The full spending review document also listed £250 million for the international climate and environment funds, including the Green Climate Fund “to limit global warming to well below 2C and help developing countries prepare for its impacts”.

The Treasury’s statement also said a £200 million funding boost for improved bus services is partly designed to promote decarbonisation.

The department for environment, food and rural affairs (DEFRA) is to get £432 million of “Brexit funding”, which the Treasury said would go towards “protecting and harnessing value from the natural environment”.

Chair of the National Infrastructure Commission Sir John Armitt said:“The chancellor is right to recognise the UK must up its game on infrastructure, but any revolutionary plans for digital connectivity, improvements to failing urban transport networks and expanding clean energy must be translated into effective actions.

“The government must therefore ensure its forthcoming National Infrastructure Strategy is truly long-term in outlook, backed by clear goals and stable and ambitious funding, and genuinely committed to a change in approach. Such a transformative shift is essential if our country is to thrive and cope with the challenges of a growing population and the impacts of climate change.”

“Fortunately the chancellor has in our National Infrastructure Assessment a costed, strategic and deliverable blueprint for how that can be achieved. We hope he is true to his word and accepts our expert advice.”

Matthew Pennycook, a member of the energy and climate change select committee, said: “Eighteen weeks ago parliament declared a climate emergency. The Committee on Climate Change have made clear that 2% of GDP needs to be directed toward decarbonisation if we’re to meet our 2050 net zero target. Yet the Chancellor today allocated only £30m toward it. A staggering failure.”

During their bids to become Conservative leader, both Javid and prime minister Boris Johnson backed the 2050 net-zero target which was legislated by the latter’s predecessor Theresa May.

In a break from recent practice, today’s spending review covered just one year instead of three.