Chris Skidmore MP report on Net Zero: the industry responds

Rt Hon Philip Dunne MP, chair, Environmental Audit Committee: “Chris Skidmore’s Net Zero Review report demonstrates, unequivocally, the countless opportunities net zero brings. His emphasis on clarity and leadership cannot be overstated. In some areas the UK Government has made major advances in tackling climate change, and its stated ambition is undoubted. But inconsistent policies and a lack of coherence across government in implementation, with little effective cross departmental governance, does not give confidence to those sectors that will drive real change and develop green skills.
“Getting the tools in place to deliver net zero makes economic sense, and can cement our role as a world leader in tackling climate change. The benefits are too critical to get this wrong.
“The review reflects many issues the Environmental Audit Committee has been calling for over the years. Just last week we recommended that all new builds should have solar panels installed, and that the government must consider the potential of onshore wind. In our work on hydrogen, we recognised that the sector is lacking the clarity from the government: a clear plan is necessary.”

Dan McGrail, chief executive, RenewableUK: “Chris Skidmore’s Review emphasises the importance of creating a tax and regulatory environment which encourages investment into the UK at a time when we are struggling to compete for investment against countries with attractive incentives for renewable energy like the USA. That’s why it’s vital that the government considers the signals Treasury is sending to clean energy investors following the introduction of the Electricity Generators Levy, which kicked in at the start of this year and is now putting investment at risk. A stable policy environment is vital at a time renewable developers and their supply chain are under massive financial pressures just like any other sector, to ensure we maximise investment in renewables. Given this, the government needs to look at what more could be done to increase investor confidence.
“The Review rightly acknowledges that one of the main barriers facing the growth of the renewable energy sector is that it can take 6 to 10 years for renewable projects to get a grid connection. … To ensure grid capacity is delivered, the government needs to take the same kind of agile and empowered approach as was used for developing the Coronavirus vaccine, with the Prime Minister bringing all relevant bodies together to address this urgently.
“If the government is looking to increase the economic benefits of the UK’s decarbonisation ambitions, the Review sets out some really clear easy wins. Setting targets for new onshore wind and solar capacity would certainly increase investor confidence and ensure we can decarbonise our electricity system by 2035. The review rightly underlines the vital importance of using a wide range of renewables to strengthen Britain’s energy security, including innovative technologies like floating wind, tidal stream and green hydrogen. It also recognises that deployment of these technologies hinges on timely investment in port infrastructure and reform of our clean power auction system to grow the UK’s renewable energy supply chain”.

Matt Rooney, head of engineering policy, IMechE: “The task to achieve Net Zero is the most ambitious engineering challenge ever undertaken. But, as the Net Zero Review highlights, the benefits outweigh the costs.
“There is a significant economic opportunity for the UK to lead on developing technologies that are necessary for decarbonisation, including offshore wind and advanced nuclear.
“Important technologies for meeting Net Zero, notably carbon capture and storage, will be geographically dispersed around the country and so will assist with the government’s ‘levelling-up’ agenda.
“There are potential obstacles to achieving the rapid decarbonisation required, one of which being a lack of technical skills…”

Ruth Herbert, chief executive, CCSA: “The Net Zero review recognises the crucial role of CCUS and hydrogen in delivering Net Zero, including recommendations to accelerate the cluster programme and confirm the long-term funding envelope for deployment. The forthcoming Spring Statement is a perfect opportunity to do this and start driving investment and economic growth across the UK’s industrial regions.
“The Net Zero Review included site visits to North Wales and the Liverpool bay area and I am therefore delighted to see that the Review has highlighted the opportunities that can be created by CCUS; to deliver regional growth and local jobs so these communities can benefit from the net zero transition.
“The recent delays to the UK’s cluster programme mean that the government must now take forward the actions in the Review as swiftly as possible to ensure the UK can deliver its ambition of four operational CCUS clusters by 2030.”

Tom Greatrex, chief executive, Nuclear Industry Association: “The Net Zero Review underlines what every reputable and credible analysis has shown – nuclear is an integral part of a future secure, clean power mix.
“Rather than further procrastination, the government should respond with pace and urgency to establish the promised Great British Nuclear body to deliver the programme of new nuclear capacity we need – both large stations and small modular reactors.
“We support the call for nuclear deployment targets for 2035 rather than 2050, and the need for a fleet of stations to provide Britain with a backbone of clean, reliable and price predictable power to cut the UK’s reliance on burning dirty, volatile and insecure gas.
“If the UK does not act now, our future energy security and the future of our climate will be at stake.”

Siobahn Meikle, managing director – UK & Ireland, Eaton: “Recognising the need for a ‘long term, stable, investment plan’ is a step forward that we welcome. It is vital that the UK government now takes these recommendations on board and commits to unleashing the ‘wall of capital’ from the private sector that is so desperately needed if the country is to achieve NetZero targets. As a global power management company, we’ve seen other parts of the world move quicker to unlock private investment to reduce carbon emissions – in particular when it comes to removing unnecessary barriers preventing the deployment of solar and storage within existing buildings. We need to move much faster in the UK, too.”

Jonathan Maxwell, Founder and chief executive, SDCL: “The inefficiency of the energy system, in that most energy is wasted, is most of the problem when it comes to achieving net zero. Yet the Skidmore Review dedicates very little of its report to addressing this issue. Of course we welcome the recommendations that relate to energy efficiency, and in particular support the proposals for regulations to be set for existing buildings to achieve minimum energy efficiency standards by 2030 and the need for the public sector to lead by example. But there is an urgent need for the government to do much more, and much more quickly…
“We are astonished that none of the ‘ten priority missions’ involve the largest and lowest cost source of carbon emission reductions and productivity gains for the UK, which is energy efficiency improvements in the commercial, industrial, public and transport sectors. Energy efficiency for households is identified as a priority, but this is dealing with a smaller part of the biggest problem.”
“While low carbon additions to centralised Grid generation are badly needed, this will not happen overnight. Adding new energy into an inefficient system would be an obvious missed opportunity when energy efficiency can be delivered at scale and quickly and in the meantime. Efficiency should be the priority. We simply don’t have the time or energy to waste.”

David Lloyd, general manager, Connected Energy Performance: “…The report offers the clearest signal yet that unlocking low carbon potential across our built environment – a sector which contributes 40% of global emissions – is critical to tackling both climate change and seizing on future opportunities. Another area that is highlighted is the limited skilled personnel available, which will put pressure on achieving Net Zero goals across all industries.

Businesses must consider implementing data driven energy efficient technology to drive real insights, AI/ML driven technologies to control their energy efficiency, and utilising heat pumps. Solar and new lighting technology coupled with renewable energy and green supply will accelerate us past these commitments if we all act quickly to reduce energy intensity and secure our energy supply for the long term. We have the platforms to ensure effective government and environmental compliance, it’s just a case of implementing them…”