Government has no plan for transitioning to net zero

The Public Accounts Committee says that after taking two years to publish its plan for achieving the target of net zero by 2050, the government still has ‘no clear plan for how the transition to net zero will be funded’.

To achieve its net zero goal by 2050, the government has committed more than £25 billion up to 2024–25. MPs on the committee claim that the government has unveiled a plan without answers to the key questions of how it will fund the transition to net zero, including how it will deliver policy on and replace income from taxes such as fuel duty, or even a general direction of travel on levies and taxation.

On top of this, the government has no reliable estimate of what the process of implementing the net zero policy is actually likely to cost British consumers, households, businesses and government itself.

The PAC says that the government is relying heavily on rapidly changing consumer behaviours together with technological innovations driving down the costs of green options but it is not clear how it will support and encourage consumers to purchase greener products.

Dame Meg Hillier, chair of the Public Accounts Committee, said: “Government is relying heavily on rapidly changing consumer behaviours and technological innovations to drive down the costs of green options, but it is not clear how it will support and encourage consumers to purchase greener products or incentivise businesses and drive change.

“Every government department has a responsibility for delivering policies towards the target of net zero but two years after enshrining the ‘Net Zero’ by 2050 target in law, the government has unveiled a plan without answers to the key questions of how it will fund the transition to net zero - including how it replace significant income from taxes such as fuel duty.

“The government’s net zero strategy requires government, local government, regulators, businesses, and consumers working all together to deliver its targets. A top-down strategy from government won’t deliver on its own. There is a risk that a series of disconnected initiatives announced by central government will not bring about the changes that are now set out in law.”