Net Zero Review to be delivered before end of year

A “rapid” review of the government’s approach to achieving net zero by 2050 has been officially launched, with a deadline to deliver recommendations to the energy secretary by the end of December.

The review, led by former energy minister Chris Skidmore, is designed to deliver a “pro-growth and pro-business” decarbonisation strategy.

First announced alongside the Energy Price Guarantee earlier this month, the review aims to update last year’s Net Zero Strategy. The Department for Business, Energy and Industrial Strategy (BEIS) said this was due to the impact of the Ukraine conflict, soaring energy price and high inflation. However, the department had already been ordered to update the strategy by the High Court, after a successful legal challenge by the Good Law Project.

The brief terms and references that have been published to launch the review promise an approach that delivers “maximum economic growth and investment”; supports energy security – in particular to “rapidly increase and strengthen UK energy production and supply”; and minimises costs borne by businesses and consumers, “particularly in the short-term”.

Skidmore will consult with the energy sector, investors, consumers and experts to reach his conclusions, as well as holding a series of roundtables across the country.

He said his intention was to spark “fresh policy ideas that can ensure we deliver a ‘big bang’ moment for net zero”.

He added: “This review seeks to ‘double down’ on how we can ensure that our energy transition happens at the same time as maximising the economic opportunity for businesses and households across the country, providing huge opportunities for innovation, investment, exports and jobs. I want to ensure that net zero isn’t just viewed as the right thing to do for our environment- but becomes an essential driver of economic growth.”

Jacob Rees-Mogg, the BEIS secretary, insisted the government remained committed to reaching its net-zero targets but cautioned “with Russia weaponising energy across Europe we must make sure we do so in a way that increases energy security and does not place undue burdens on businesses or consumers”.

He added: “I’m kicking off a three-month review today to find the best ways of making this happen – speaking to as many people in as many sectors and regions as possible, to ensure the review generates fresh policy ideas that can ensure we deliver a ‘big bang’ moment for net zero.”

Skidmore and Rees-Mogg have already shown conflicting views on how best to ensure security of supply. The latter has expressed the need to examine “all avenues available to us”, including fracking and has dismissed critics of this technology as being funded by “Putin’s regime”. However, Skidmore was quoted by the Financial Times today as saying it would be better to invest in renewable energy rather than “potentially investing in a [fracking] industry that will leave you with stranded assets”.

He said the “death blow” for the industry came last week when the founder of fracking company Cuadrilla said there was no chance of the industry taking off in the UK in the near term because of the geological challenges.

Last week, the UK government reaffirmed its 2050 target for net zero as part of its updated Nationally Determined Contribution to the Paris Agreement ahead of COP27. However, at the same time it has pushed back its legal requirement to respond to the Climate Change Committee’s latest progress report by six months, to 31 March 2023. This is the same point at which it is required by the High Court to update the Net Zero Strategy.

The challenges inherent with delivering an affordable net zero in a way that does compromise security of supply will be discussed at the Utility Week Forum on 8-9 November in London. Find our more here.