At the end of June 2020, the Committee on Climate Change (the statutory body set up to advise the UK governments) issued its annual report on the UK’s progress in reducing emissions over the last year. It makes for interesting reading – particularly the recommendations for each government department (which focus on specific actions), and the new advice to the government on building a green and resilient economic recovery.
Of course, it is only 12 months since the UK government set a binding target to reduce greenhouse gas emissions to net zero by 2050 (the first major economy to do so). That target has already driven policy – everything from encouraging the shift to electric vehicles, to the proposed changes to Part L of the Building Regulations 2020 and the Future Homes Standard 2025. But the report is clear that 2020 hasn’t been the year of policy progress that was envisaged. Significant efforts are needed to meet the net zero challenge and make progress in preparing for climate change. As we focus on kick-starting the economy post Covid-19, there is a risk that climate change becomes less of a priority. However, the committee sees an opportunity to rebuild the economy in a different way and accelerate the transition to a low-carbon future.
Key recommendations
To help focus the government on building that resilient recovery, the report recommends five key priorities for infrastructure investment. These build on the committee’s May 2020 letter to the UK governments, which highlighted emission reduction and adaption measures that should be brought forward to help boost economic recovery. These include:
• Low-carbon retrofits and buildings that are “fit for the future”: The report notes that where skills exist, such projects can begin immediately – with local planning and regional approaches helping to direct investment to areas most in need of economic stimulus. This is not just about new buildings (which should be low-carbon, energy and water efficient and climate resilient) but also the retrofit of existing buildings, with green energy “passports” for existing homes and targeted deep retrofits. The report notes the need to develop supply chains to support this, including the roll-out of heat pumps and heat networks.
• Natural capital investments – tree planting, peatland restoration and green infrastructure: The report calls for landscape-scale changes across the UK, to deliver benefits for the climate, biodiversity, air quality and flood prevention. That includes tree planting and the restoration of peatland areas, which can increase carbon sequestration and prepare the environment for climate change. It isn’t just large scale projects, though. The committee notes the importance of urban greenspaces – with the need for restoration of parks and urban tree planting and support for the green roof and sustainable drainage industries.
• Strengthening energy system networks: Given the push for the electrification of heat and transport, the report highlights the need to strengthen electricity networks across the UK (with the next electricity network price control period providing an opportunity for Ofgem and industry to accelerate investment in network capacity). The committee highlights the opportunity for joint working to accelerate hydrogen and carbon capture and storage (CCS) infrastructure to support the net zero transition, and the potential for accelerating plans for renewable power generation. On electric vehicles, the report flags the potential for government, regulators, local authorities and industry to work together to accelerate investment in charging points and improve en route destination and on-street electric vehicle charging.
• Infrastructure to make it easy for people to walk, cycle, and work remotely: The report notes the need for dedicated safe spaces for walking and cycling, public transport that is consistent with social distancing measures and further investment in digital technology to ensure that home working remains a widespread option.
• Moving towards a circular economy: The report highlights the benefit of source-separation of wastes, increasing recycling rates and banning the landfilling of biodegradable wastes. Local authorities will need support to invest in waste collection and the necessary infrastructure to increase re-use and recycling, but this will reduce landfill costs, deliver health benefits and create jobs.
The report also highlights opportunities to both support the transition to net zero and stimulate economic recovery by investing in the UK workforce, encouraging low-carbon behaviours and targeted science and innovation funding. We already know that there are significant skills shortages to meet the net zero challenge, and the committee has highlighted the need for new support to train designers, builders and installers for low-carbon heating, energy and water efficiency, passive cooling, ventilation and thermal comfort and flood resilience. The committee also recognises the opportunity to encourage the climate-positive behaviours that emerged as a result of the Covid-19 lockdown – including increased remote working, cycling and walking.
What’s next?
The government has until 15 October 2020 to issue a formal response. By then we’ll have a better idea of the nature of the UK’s economic recovery. The recent mini-budget gives a good indication of the direction of travel, with its focus on job creation and upskilling through the kick-start work placement scheme and the apprenticeship bonus. The £2bn Green Homes Grant (which allows homeowners and landlords to apply for vouchers of up to £5,000 to invest in energy efficiency works, with grants of up to £10,000 available for low-income households) should provide a useful stimulus and meet many of the committee’s recommendations for upgrading buildings, but it remains to be seen whether these steps go far enough to shape a truly green and resilient recovery.
Chris Paul is a partner at Trowers & Hamlins LLP
