1. Recent bills

In the 2022 Queen’s Speech, the government announced it would be introducing a new Energy Security Bill.[1] The government said the purpose of this bill was to improve the UK’s energy security, reduce energy prices for consumers and support investment in clean technologies. This legislation was introduced as the Energy Bill in the House of Lords on 6 July 2022. The Energy Bill received royal assent at the end of the 2022–23 session.

In June 2021, shortly after the 2021 Queen’s Speech, the government published the Downstream Oil Resilience Draft Bill. The draft bill included proposals intended to improve the resilience of the UK’s supply of oil-based fuel. Further information on these proposals is provided in the House of Lords Library briefing ‘Queen’s Speech 2022: Energy and climate change’ published in May 2022. This bill was not included in the 2022 Queen’s Speech. However, proposals based on those in the draft bill were included in the Energy Bill.[2]

On 26 October 2023, the Financial Times reported the King’s Speech may include new legislation relating to future oil and gas drilling in the North Sea[3] Subsequently, the Observer and the Times both reported the government was planning to announce legislation in the King’s Speech to establish a new annual system for awarding oil and gas licences[4] However, at the time of writing, the government has yet to confirm that any new bills concerning energy security will be included in the King’s Speech.

2. Net zero targets

In 2019, the UK committed itself to reach net zero greenhouse gas emissions by 2050.[5] This target was made legally binding by the Climate Change Act 2008 (2050 Target Amendment) Order 2019. The government has also committed to cutting greenhouse gas emissions by at least 68% by 2030 compared to 1990 levels.[6] Since 2019, the government has published several policy documents outlining how it intended to meet this commitment. These include most recently the government’s ‘Net zero strategy’, subtitled ‘Build back greener’, published on 19 October 2021 and updated in April 2022.

In January 2022, the then Department for Business, Energy and Industrial Strategy published ‘Mission zero: Independent review of net zero’. This review had been commissioned by the government in September 2022 and was chaired by Chris Skidmore (Conservative MP for Kingswood and a former minister of state at the department). The review concluded that, while the government had had some successes in its progress towards achieving net zero, it was not on target to achieve all its commitments.[7] Specifically, the report stated the UK was “not matching world-leading ambition with world-leading delivery”.[8] Further information on the conclusion of this independent review is provided in the House of Lords Library briefing, ‘Mission zero: Independent review of net zero’, published in January 2023.

In June 2023, the UK’s independent statutory advisory body, the Climate Change Committee (CCC), then chaired by Lord Deben (Conservative), published its ‘2023 progress report to Parliament’. In this report, the CCC concluded it was less confident the UK was on track to achieve its net zero target than it had been the previous year. The CCC argued the government lacked “urgency” in implementing its planned green energy transition. It also argued the UK needed to regain a clear international leadership role on climate.

3. Creation of Department for Energy Security and Net Zero

On 7 February 2023, the government announced the creation of a new department, the Department for Energy Security and Net Zero (DESNZ).[9] Grant Shapps was appointed secretary of state for energy security and net zero. He was replaced in August 2023 by the current secretary of state, Claire Coutinho, following his move to the Ministry of Defence. In a statement to the House of Commons in March 2023, the minister for energy security and net zero, Graham Stuart, said the purpose of the new department was as follows:

We will deliver amongst the cheapest wholesale electricity prices in Europe, powered primarily by renewables, domestically sourced, ensuring the security of our energy supply. We will maintain our position as a global leader on the net zero transition, ensuring we bring the world with us to meet this global challenge.[10]

In the same month DESNZ published a new energy plan entitled ‘Powering up Britain’. This restated the government’s commitment to achieving net zero carbon emissions by 2050. ‘Powering up Britain’ was accompanied by an update of the government’s British energy security strategy, first published in April 2022.[11]

The government has published several policy plans for specific parts of the energy sector. These include the ‘UK hydrogen strategy’, first published in August 2021, and the ‘Hydrogen strategy update to the market’, published in August 2023. The government has said its ambition is for the UK to achieve up to 10 gigawatts of low carbon hydrogen production capacity by 2030, with at least half of this coming from electrolytic hydrogen.[12]

The government has also said it would support the expansion of carbon capture, usage and storage (CCUS) by helping to establish and develop new low carbon industrial clusters.[13] In the 2023 spring budget, Chancellor of the Exchequer Jeremy Hunt announced the government would provide £20bn of funding to deliver four new CCUS clusters by 2030.[14] In August 2022, the government announced 20 projects that had been shortlisted for the next stage of the CCUS clusters process.[15]

4. Recent net zero policy announcements

In July 2023, Prime Minister Rishi Sunak said that, while the government remained committed to making progress toward net zero, he wanted this to be done in a “proportionate and pragmatic way that doesn’t unnecessarily give people more hassle and more costs in their lives”.[16] This statement was reported as a response to the recent win by the Conservatives in the Uxbridge and South Ruislip by-election, where the issue of the expansion of the London ultra low emission zone (ULEZ) was considered to be a factor in the campaign. Mayor of London Sadiq Khan had announced the extension of the ULEZ to include outer areas of London such as Uxbridge in November 2022, arguing this was necessary to “clean up London’s toxic air and tackle the climate emergency”.[17]

On 20 September 2023, Mr Sunak gave a speech setting out what he described as the government’s “new approach to achieving net zero”.[18] Mr Sunak argued the government’s recent approach did not account for additional costs to households and disruption to people’s lives. He said net zero measures risked “losing the consent of the British people” and that therefore the government would adopt a “more pragmatic, proportionate, and realistic approach […] that eases the burdens on working people”.[19]

Mr Sunak said his government remained committed to meeting its net zero targets. However, he said this could be achieved in a “fairer, better way” by changing the following policies. He announced the government would:

  • Push back the planned date for phasing out the sale of new petrol and diesel cars and vans from 2030 to 2035.
  • Delay the planned date for phasing out the installation of new oil and liquefied petroleum gas (LPG) boilers and new coal heating for off-gas-grid homes from 2026 to 2035. The government has announced it intends to consult on options for the decarbonisation of off-grid properties in 2024.[20]
  • Increase the cash grants available as part of the government’s boiler upgrade scheme by 50% to £7,500.
  • Exempt some households from the requirement to phase out fossil fuel boilers, including gas. The government has said this exemption was “expected to cover about a fifth of homes, including off-gas-grid homes”.[21]
  • Reverse the plans to introduce a new requirement for landlords to upgrade the energy efficiency of their properties in order to meet an energy performance certificate (EPC) rating of C by 2025.[22] This planned requirement had been announced previously in the government’s 2021 ‘Heat and buildings strategy’.

In addition to these measures, Mr Sunak said he planned to change the way the government’s legally binding carbon budgets are agreed in Parliament. Carbon budgets place a restriction on the total amount of greenhouse gases the UK can emit over a 5 year period.[23] Currently, the carbon budget is passed using delegated legislation. Most recently, the sixth budget was enshrined in law by the Carbon Budget Order 2021. Mr Sunak criticised this process, saying this statutory instrument had only been debated in the House of Commons for 17 minutes. The government has said it will ensure that in the future “Parliament gives full scrutiny to all future measures that might be needed to fulfil the carbon budget”.[24]

The CCC published a response to Mr Sunak’s announcement on 12 October 2023.[25] The committee argued it remained concerned about the likelihood of the UK meeting its net zero targets. It also criticised the government saying the recent policy changes had not been accompanied by estimates of their potential effect on emissions or evidence supporting the government’s claim that the UK’s overall net zero targets could still be met.

Shadow Secretary of State for Climate Change and Net Zero Ed Miliband criticised these policy changes, accusing the government of “dither and delay”.[26] Mr Miliband argued its decision to delay the deadlines for the transition to electric vehicles and the phasing out of fossil fuel boilers for off-gas-grid homes would lead to higher costs for households in the long term. He also said it had created uncertainty for businesses looking to invest in the UK. He accused the government of failing to provide any evidence that it was on track to meet its net zero targets.

The House of Lords Environment and Climate Change Committee is currently conducting an enquiry into electric vehicles.[27] In September 2023, the chair of the committee, Baroness Parminter (Liberal Democrat), wrote to the secretary of state for transport, Mark Harper, asking the government how the decision to delay the ban on the sale of new petrol and diesel vehicles from 2030 to 2035 would impact the UK’s ability to meet its 2050 net zero target.[28] The House of Commons Environmental Audit Committee and the Energy Security and Net Zero Committee have also written to Rishi Sunak and Claire Coutinho respectively to ask for further information on the government’s assessment of the impact of these announcements on carbon emissions.[29]

Specifically, the chair of the Environmental Audit Committee, Philip Dunne, asked the government whether it intended to publish a revised version of its ‘Carbon budget delivery plan’ to reflect these policy changes. The plan, last published in March 2023, set out the government’s proposals for meeting the emissions targets in the most recent and previously published carbon budgets. Responding to Mr Dunne on behalf of the prime minister on 19 October 2023, Ms Coutinho said the government remained committed to its existing carbon reduction targets.[30] She also said the government did not intend to publish an updated version of the plan, arguing it would not be appropriate to do so “every time there is a change in economic data, a policy or wider factor”.

At the time of writing the government has yet to respond to the letters from the House of Lords Environment and Climate Change Committee and the House of Commons Energy Security and Net Zero Committee publicly.

5. Zero-emission vehicle mandate

The House of Lords Environment and Climate Change Committee chair’s letter to Mark Harper also asked whether the government still intended to introduce its planned zero-emission vehicle (ZEV) mandate.[31] The government announced as part of its 2023 ‘Net zero strategy’ that it would establish a ZEV mandate setting manufacturers a target for the proportion of new cars and vans sold each year that were zero emission vehicles.[32] The government said the ZEV mandate would be from 2024 onwards.

After a technical consultation on the design of the ZEV mandate in 2022, in March 2023 the government launched a joint consultation with the Welsh government, Scottish government and the Department for Infrastructure in Northern Ireland on the final proposals.[33] The UK government published a joint response to this consultation with the devolved administrations in September 2023.[34] It said the overall design of the trading schemes and ZEV mandate scheme’s function would remain unchanged from the consultation. The response also confirmed the mandate would apply to England, Wales and Scotland from January 2024 and in Northern Ireland when the Northern Ireland Assembly is able to pass the required legislation.[35]

On 16 October 2023, Mark Harper announced the government had laid the Vehicle Emissions Trading Schemes Order 2023, the statutory instrument establishing the ZEV mandate in England.[36] He also confirmed the mandate would be set at 22% in 2024 and would increase each subsequent year, reaching 80% by 2030.

The CCC has welcomed the publication of the ZEV mandate, describing it as:

[…] an important policy measure that will encourage the production of electric vehicles, by setting minimum requirements on the zero-emission share of each manufacturer’s new car and van sales that increase each year out to 2030, and therefore progressively help deliver the decarbonisation of the transport sector.[37]

It also welcomed “the clarity that is provided to vehicle manufacturers by the timely introduction of the ZEV mandate”.[38]

6. Energy security

In her speech to the Conservative Party conference, Claire Coutinho restated the government’s ambition to protect and improve the UK’s energy security, reduce household energy bills and achieve the UK’s net zero targets.[39] She said, in order to achieve this, the government would continue to support the North Sea oil and gas industry and the expansion of nuclear energy. She also said the government was investing in carbon capture and storage, offshore wind and the hydrogen industry. However, she repeated the prime minister’s argument that a new approach to achieving net zero carbon emissions was needed in order to “ensure we take our people with us”.

During her speech, Ms Coutinho announced:

  • Six companies had been shortlisted to build new small modular nuclear reactors. These were Rolls Royce, GE-Hitachi, Électricité de France (EDF), Holtec, Nuscale and Westinghouse. She said the final decision would be taken in early 2024.
  • The government would make it easier to install solar panels on industrial rooftops, warehouses, car parks and factories. She said this was intended to avoid solar farms from “covering our countryside”.
  • The government would allocate an additional £80mn to insulate social homes through the social housing decarbonisation fund.[40]

7. Electricity transmission infrastructure

In his September 2023 speech, Mr Sunak said the government would reform the UK’s energy infrastructure.[41] He said this would include the publication of a new spatial plan and changes to the way national grid connections are made, to ensure that “those ready first would connect first”.

In July 2022, the government announced the establishment of an electricity networks commissioner to act as an independent advisor on the electricity transition network.[42] In August 2023, the electricity networks commissioner, Nick Winser, published a report setting out proposals for accelerating the deployment of electricity transmission infrastructure.[43] Mr Winser noted in his report that there had been very few new transmission circuits built in the last 30 years and argued the current process for deploying transmission infrastructure was “complex” and involved many different parties. He made several recommendations, including on the establishment of an energy system delivery board, chaired by the government and including Ofgem, the future system operator and the owners of transmission infrastructure. He also recommended guidelines should be established for sharing the benefits of new or upgraded transmission lines with local communities affected.

The government has written to thank Mr Winser for his report but has yet to publish its response.[44] On 16 October 2023, Claire Coutinho told the House of Commons the government would provide further details of its policy on reforming the UK’s energy infrastructure, including a new spatial plan, in its response to Mr Winser’s report. She said:

We will be setting out for the first time a geo-spatial plan, looking at planning and looking at all the different connection points to make sure we have an overall strategy for the country, which will immeasurably speed up the connection process.[45]

8. Read more


Cover image by the Centre for Ageing Better and Independent Age.

References

  1. HM Government, ‘Queen’s Speech 2022: Background briefing notes’, 10 May 2022, p 32. Return to text
  2. House of Lords Library, ‘Energy Bill [HL]’, 14 July 2022, pp 18–21. Return to text
  3. Financial Times (£), ‘Rishi Sunak set to put crime and energy at heart of King’s Speech’, 26 October 2023. Return to text
  4. Guardian, ‘Rishi Sunak to “double down” on anti-green policies in King’s Speech’, 28 October 2023; and Times (£), ‘Rishi Sunak to go anti-green for speech in move away from Labour’, 30 October 2023. Return to text
  5. Department for Business, Energy and Industrial Strategy, ‘UK becomes first major economy to pass net zero emissions law’, 27 June 2019. Return to text
  6. Department for Energy Security and Net Zero, ‘UK’s nationally determined contribution, updated September 2022’, 23 September 2022. Return to text
  7. Department for Business, Energy and Industrial Strategy, ‘Mission zero: Independent review of net zero’, 26 September 2022, p 32. Return to text
  8. As above, p 21. Return to text
  9. 10 Downing Street, ‘PM: Making government deliver for the British people’, 7 February 2023. Return to text
  10. House of Commons, ‘Written statement: Powering up Britain (HCWS690)’, 30 March 2023. Return to text
  11. Department for Energy Security and Net Zero, ‘Powering up Britain: Energy security plan’, March 2023. Return to text
  12. Department for Energy Security and Net Zero, ‘Hydrogen strategy update to the market’, August 2023, p 5. Return to text
  13. Department for Energy Security and Net Zero, ‘Powering up Britain: Energy security plan’, March 2023, p 9. Return to text
  14. HM Treasury, ‘Spring budget 2023’, March 2023, HC 1183 of session 2022–23, p 93; and Department for Energy Security and Net Zero, ‘Powering up Britain: Energy security plan’, March 2023, p 55. Return to text
  15. Department for Business, Energy and Industrial Strategy, ‘UK’s industrial heartlands boosted by next stage of carbon capture clusters’, 12 August 2022. Return to text
  16. Guardian, ‘Politics live with Andrew Sparrow: Rishi Sunak says net zero strategy must be “proportional and pragmatic”—as it happened’, 24 July 2023. Return to text
  17. Mayor of London, ‘Five million more Londoners to breathe cleaner air as ultra low emission zone will be expanded London-wide’, 25 November 2022. Return to text
  18. 10 Downing Street, ‘PM speech on net zero’, 20 September 2023. Return to text
  19. As above. Return to text
  20. House of Commons, ‘Written question: Fuel oil (199999)’, 18 September 2023. Return to text
  21. 10 Downing Street, ‘PM recommits UK to net zero by 2050 and pledges a “fairer” path to achieving target to ease the financial burden on British families’, 20 September 2023. Return to text
  22. House of Commons Levelling Up, Housing and Communities Committee, ‘Reforming the private rented sector: Government’s response to the committee’s fifth report of session 2022–23’, 20 October 2023, HC 1935 of session 2022–23, p 5. Return to text
  23. Department for Business, Energy and Industrial Strategy, ‘Guidance: Carbon budgets’, 13 July 2021. Return to text
  24. 10 Downing Street, ‘PM recommits UK to net zero by 2050 and pledges a “fairer” path to achieving target to ease the financial burden on British families’, 20 September 2023. Return to text
  25. Climate Change Committee, ‘CCC assessment of recent announcements and developments on net zero’, 12 October 2023. Return to text
  26. HC Hansard, 16 October 2023, cols 104–5. Return to text
  27. House of Lords Environment and Climate Change Committee, ‘Electric vehicles’, accessed 23 October 2023. Return to text
  28. House of Lords Environment and Climate Change Committee, ‘Letter from Baroness Parminter to Mark Harper, secretary of state for the Department for Transport’, 21 September 2023. Return to text
  29. House of Commons Environmental Audit Committee, ‘Letter from the Environmental Audit Committee chair to the prime minister regarding net zero policy’, 29 September 2023; and House of Commons Energy Security and Net Zero Committee, ‘Letter to the secretary of state relating to the government’s net zero policy’, 28 September 2023. Return to text
  30. House of Commons Environmental Audit Committee, ‘Letter from the secretary of state at the Department for Energy Security and Net Zero, responding to the committee’s letter to the prime minister of 29 September regarding net zero policy’, 19 October 2023. Return to text
  31. House of Lords Environment and Climate Change Committee, ‘Letter from Baroness Parminter to Mark Harper, secretary of state for the Department for Transport’, 21 September 2023. Return to text
  32. HM Government, ‘Net zero strategy: Build back greener’, October 2021, p 152. Return to text
  33. HM Government, Welsh Government, Transport for Scotland and Department for Infrastructure (Northern Ireland), ‘Consultation on a zero emission vehicle (ZEV) mandate and CO2 emissions regulation for new cars and vans in the UK’, March 2023. Return to text
  34. HM Government, Welsh Government, Transport Scotland and Department for Infrastructure (Northern Ireland), ‘Zero emission vehicle (ZEV) mandate consultation: Summary of responses and joint government response’, September 2023. Return to text
  35. As above, p 7. Return to text
  36. HC Hansard, 16 October 2023, col 81. Return to text
  37. Climate Change Committee, ‘Letter: Zero-emission vehicle mandate’, 25 September 2023. Return to text
  38. As above. Return to text
  39. Conservative Party, ‘Claire Coutinho, secretary of state for energy security and net zero addressed Conservative Party conference 2023 in Manchester’, 2 October 2023. Return to text
  40. Department for Energy Security and Net Zero, ‘Social housing decarbonisation fund’, 2 October 2023. Return to text
  41. 10 Downing Street, ‘PM speech on net zero’, 20 September 2023. Return to text
  42. Department for Business, Energy and Industrial Strategy, ‘New electricity networks commissioner appointed to help ensure home-grown energy for Britain’, 6 July 2022. Return to text
  43. Department for Energy Security and Net Zero, ‘Accelerating electricity transmission network deployment: Electricity networks commissioner’s recommendations’, 4 August 2023. Return to text
  44. Department for Energy Security and Net Zero, ‘Government welcomes report on electricity networks as critical to Britain’s energy security’, 4 August 2023. Return to text
  45. HC Hansard, 16 October 2023, col 113. Return to text