What is the UK Net Zero Review?
The government-commissioned Mission Zero, UK Net Zero Review by Chris Skidmore MP presents the opportunities that net zero can offer the UK economy and how the government can seize them through policy and legislation.
Chris Skidmore MP and his team collated over 1,800 pieces of written evidence for this UK-wide public consultation, from individuals, businesses (including Planet Mark), local councils and Universities.
The comprehensive analysis has over 350 pages and 129 individual recommendations for UK Government to seize the ‘£1 trillion boost’ for British business that net zero presents and, ultimately, how the UK can reach its net zero target by 2050.
Why is it important?
We will likely see a cascade of tightening and targeted policies and regulatory requirements based on the review’s recommendations to help bolster the UK’s Net Zero Strategy.
The headline for businesses to understand is that the cascade of policies and regulatory requirements for net zero will lead to their biggest customers approaching them for carbon footprint data and net zero action plans within the next 12-24 months.
Seizing the opportunities and mitigating the pressure of net zero as an early adopter will present ‘the economic opportunity of the 21st century’ and commercial resilience for businesses.
Recommendations from the Net Zero review.
The review’s recommendations span numerous sectors, proposing better action and greater ambition from the UK Government. Our Director of Policy and Partnerships, Andrew Griffiths, has broken down some of the top industry-wide and sector specific recommendations businesses should be aware of:
Major recommendations affecting all sectors
Mandating Carbon Footprint Reporting: Once more developed, the Transition Plan Taskforce standards should be made mandatory for both listed and private firms.
Standard Setting: The Government should endorse and implement the International Sustainability Standards Board (ISSB) standards as soon as possible for net zero reporting.
Increasing Transparency with Consumers: A standardised carbon calculator and approach to ecolabelling should be developed to keep consumers well informed.
Net Zero Progress figures: The UK Government should review how often it publishes data on UK emissions – and report GDP in the context of net zero progress.
Sustainable Governance Structures: The ‘Office for Net Zero Delivery’ and ‘Net Zero Select Committees’ should be built in both parliamentary houses to uphold the delivery of the UK’s Net Zero target.
SME’s
SME Consideration in Policy: Net Zero Policy Development must consider knock-on impact on SMEs.
Helping SMEs upskill: Launch a ‘Help to Grow Green’ campaign, offering information resources and vouchers for SMEs to plan and invest in the transition.
Reducing the ‘prisoner effect’. Green actions by SMEs are often constrained due to their tenant status in a building. Government should establish a task force of suppliers, SMEs, landlords and business groups to agree on how to cut energy use in rented premises by 2023.
Utilise role models: The UK Government should develop an SME Role models programme which provides mentoring for micro businesses and the self-employed by 2023.
Real Estate/ Construction/ Energy
Accelerate Built Environment Strategy Implementations: Deliver the Heat and Buildings Strategy without further delay and move forward with the Future Homes Standard mandate to be in effect by 2025 – all homes sold to be EPC level ‘C’ by 2033.
Net Zero Buildings: Consider A Net Zero Homes Standard and a Net Zero Performance Certificate for future housing.
Phasing Out Gas Boilers: Regulate for the end of new or replacement of gas boilers by 2033 at the latest, with a 10-year mission to make heat pumps widespread.
Net Zero Retrofit Hubs: Create a national programme for ‘Net Zero Retrofit Hubs’ to help facilitate local retrofit delivery.
Low Carbon Materials Public Procurement Plan: Develop a public procurement plan for low-carbon construction and materials by the end of 2023.
Transport and Logistics
Delivering Sustainable Fuels: The government should publish the Low Carbon Fuels Strategy in 2023 and the necessary legislation for the sustainable aviation fuels (SAF) mandate to apply from 2025.
Decarbonisation of Transport: Future of Transport Bill should be brought forward and should deliver a ‘Zero Emission Vehicle’ mandate to apply from 2024.
Decarbonisation of Freight and Rail: Building on the ‘Future of Freight Plan’, the government should set out a programme by 2024 to accelerate the decarbonisation of freight and rail through electrification and new technologies.
Electric Vehicle Charging: Equalise VAT on EV charging privately (currently 5%) and publicly (currently 20%) to make it more accessible to those who can’t do off-road parking and home charging.
What should your business do about this?
The Net Zero Review will set in motion an acceleration of net zero policy and legislation. Seizing the business opportunities now will put your business in the best place to comply with new mandatory requirements regarding net zero.
Where to start?
Start measuring your baseline today: Businesses within the supply chain of a large businesses will likely be approached for their carbon footprint data this year. We’re already seeing companies such as Tesco and Waitrose reach out to all suppliers requiring them to submit carbon footprint data, sometimes with only three months’ notice.
Set a Credible Net Zero Target and Interim Goals: Your business should set out its long-term vision for eliminating your Scope 1, 2 and 3 emissions which is gaining far greater emphasis in legal and tender requirements.
Develop a Short/Medium-Term Plan: Build a plan to reduce your business’s emissions within the next 12-24 months; more companies are asking for these as part of procurement and tenders.
Check out Industry-specific Requirements: Sector-specific requirements sit across several sectors, such as real estate, finance, SMEs, manufacturing, energy, retail and agriculture (some of these were highlighted above).
The Mission Zero, UK Net Zero Review came at a critical time for the UK Government as it plans to republish its UK’s Net Zero strategy this month. Several of the recommendations from the review will likely play out as actions, policies and standards in this strategy. Making sure that you understand how your business can work toward net zero will be advantageous as we accelerate the UK’s path to net zero.
