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International climate commitments send a strong signal ahead of COP26

23rd April 2021

Reacting to the conclusion of the Leaders Summit on Climate hosted by US President Biden, Nick Molho, Executive Director of the Aldersgate Group, said: “The Leaders Summit on Climate has made a material contribution towards improving the outlook for COP26. The United States have sent a strong signal through their much improved target, with more positive contributions coming from the likes of Japan, Canada and China. The UK Government, which played its part by adopting the target set out in the Sixth Carbon Budget, must now drive increased pledges from all key emitters as well as a doubling down on key outstanding issues, such as climate finance for vulnerable nations and agreeing a clear rule book for carbon markets under the Paris Agreement." 

Nick Molho added: “The International Energy Agency made clear this week that on current trends, 2021 will result in the second biggest annual rise in emissions in history. The UK Government should use its leadership position as host of COP26 to obtain a commitment from all major economies to align economic stimulus investments with the goals of the Paris Agreement and collaborate on delivering a green economic recovery from the COVID-19 crisis. To maximise its influence in the run up to the COP26 climate summit, the UK should also match its ambitious climate targets with a comprehensive and tangible policy plan that will put all sectors of the UK economy on a credible pathway towards net zero emissions. This will serve as a credible example for other major economies to follow.”

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Welcome climate commitment must now be supported by detailed net zero strategy 

20th April 2021

Reacting to the announcement that the UK Government will set an emissions reduction target of 78% by 2035, Nick Molho, Executive Director of the Aldersgate Group, said: “The Government should be commended for adopting the ambitious and evidence-based recommendations from the Climate Change Committee for the Sixth Carbon Budget. The emission cuts set out in the Budget represent essential next steps the UK needs to take to ensure a credible, cost-effective, and timely pathway to net zero emissions by 2050. The inclusion of the UK’s share of international aviation and shipping emissions is a particularly welcome addition, and will help to accelerate the development of sector-specific decarbonisation plans.

"Focus must now turn to strengthening the UK’s policy framework to meet this new target, by putting in place a detailed and cross-departmental net zero strategy that will drive private investment in low carbon goods and services, supply chains, jobs and skills.”

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Reaction to the termination of the Green Homes Grant

28th March 2021

Reacting to the end of the Green Homes Grant, Nick Molho, Executive Director of the Aldersgate Group, said: "The premature end of the Green Homes Grant is a significant disappointment. Improving energy efficiency and slashing heating emissions from the UK’s homes is a vital, foundational step on the journey to achieve net zero emissions. It is also one of the most promising avenues to create jobs in the near-term as the UK economy recovers from the impact of the pandemic. There are many reasons for the difficulties encountered by the Grant, a key one being the lack of an adequately skilled supply chain, itself caused by the absence of a long-term policy on energy efficiency and low carbon heat for many years now."

Nick Molho added: "Beyond the funding provided to local authorities for low income households, the Government must rapidly provide a new, long-term solution for ‘able to pay’ homes. This must include urgent investment to develop energy efficiency and low carbon heat installation skills across the supply chain, binding regulatory standards to require all UK homes to operate at low levels of carbon emissions by 2035, and targeted fiscal or funding incentives to make it attractive for home owners to green their houses. An ambitious Future Homes Standard policy will also be essential to ensure all new homes are ultra-low carbon from the outset. Without a detailed and long-term policy to drive low carbon investment in homes and buildings, the UK will simply not be able to put itself on a pathway to net zero emissions."

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Welcome ambition to cut industrial emissions must come with clear market mechanisms

17th March 2021

Reacting to the publication of the Industrial Decarbonisation Strategy, Nick Molho, Executive Director of the Aldersgate Group said: “We welcome the ambition to cut heavy industrial emissions by at least two-thirds by 2035. With continued ambitious support on innovation and the development of stable market mechanisms, the decarbonisation of heavy industry can provide UK businesses with competitive advantages in the production of low carbon industrial goods and deliver significant benefits in terms of job creation, skills development and the revival of industrial heartlands in many parts of the UK.   
 
The funding under the Industrial Decarbonisation Challenge Fund will make a welcome contribution to the potential development of key technologies like CCUS and hydrogen production, but it is important that such funding continues to be made available in the years to come to help accelerate the demonstration of these technologies at scale.”

Nick Molho added: “Building on efforts to accelerate innovation, it will be essential for the UK Government to put in place a comprehensive set of long-term policies that drives timely and cost-effective private investment in industrial decarbonisation and strengthens the competitiveness of UK businesses in the process. [1] This requires ensuring that the price of carbon under the UK Emissions Trading Scheme is clearly aligned with the net zero target, with the use of free allowances gradually reducing and the UK considering a linkage between the UK and EU ETS on the basis of a shared ambition for climate neutrality.
 
Product standards that drive improvements in resource efficiency and embodied carbon in the production process could be very effective at stimulating private investment and providing a level playing field, with well-designed carbon border adjustment measures also needing to be considered. The development of these policy measures also provides the opportunity to develop collaborative approaches on industrial decarbonisation with other large emitting economies at COP26 and beyond.”
 
Nick Molho concluded: “It is important that the UK’s ongoing approach on industrial decarbonisation does not just focus on industrial clusters. [2] British industries like cement, glass or ceramics are located outside of clusters and face additional challenges to deploying technologies like CCS, particularly due to the uncertain availability of transport and storage infrastructure and limits to economies of scale. Additional and more tailored policy incentives will be required for these dispersed industries, including support for electrification, developing new carbon capture and usage business models and fiscal incentives to drive greater resource efficiency.”

—ENDS—

[1] Aldersgate Group (October 2020) Building a net zero emissions economy: next steps for government and business
 
[2] Aldersgate Group has commissioned Frontier Economics to develop analysis on the policy framework required for decarbonising both industrial clusters and dispersed sites. The final report will include detailed case studies on how those policies will impact businesses in sectors such as steel, cement, chemicals and glass.

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Reactive to Alok Sharma becoming full-time COP26 President

8th January 2021

Responding to the announcement that Alok Sharma will become full-time President of the UN COP26 climate conference, Nick Molho, Executive Director at the Aldersgate Group, said: "The UK has an important role to play as the host of COP26 to drive international ambition to tackle climate change. It is therefore welcome to see Alok Sharma MP taking on the role of COP26 President full-time to focus on this vital agenda. Having hosted the Climate Ambition Summit at the end of December, now is the time to build further international commitments to deliver the increase in global emission reduction targets that climate science is urgently calling for."
 
Nick Molho added: "Domestic progress will be vital to strengthen the UK’s leadership role ahead of and during the international summit. We therefore warmly welcome the appointments of Kwasi Kwarteng MP and Anne-Marie Trevelyan MP to the vital roles of Secretary of State for Business, Energy and Industrial Strategy and Minister of State for Business, Energy and Clean Growth respectively. These roles will be essential in putting the UK on track to meet its net zero emissions target."

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Energy White Paper: rapid energy decarbonisation is vital to net zero

14th December 2020

Today, the Aldersgate Group welcomes the Energy White Paper’s recognition of the central role of rapid energy decarbonisation in creating a net zero economy. To build on today’s important announcements and put the UK on a credible pathway to net zero, the Government should focus in 2021 on aligning the UK ETS with the net zero goal, create the conditions for full power sector decarbonisation by 2035 and develop market mechanisms to stimulate greater private investment in low carbon buildings and heavy industry.

Nick Molho, Executive Director at the Aldersgate Group, said: "The Energy White Paper should be commended for looking beyond just energy and recognising the central role of the power sector in supporting the decarbonisation of a wide range of sectors, including heating, transport and heavy industry. In many ways, the Energy White Paper sets out a low carbon industrial strategy vision for the UK and is based on the right premise that achieving net zero emissions can deliver significant supply chain growth and job creation across many regions of the UK.

The commitment to a UK Emissions Trading Scheme and the ambition to fully decarbonise the power sector are both welcome, but it is clear from the sixth carbon budget that we need a zero carbon power sector by 2035, together with significant investments in grid reinforcements, storage and flexibility services. All of these areas need to become policy priorities in the early 2020s, alongside the development of a carbon price trajectory aligned with the net zero target and a strategic approach to marine planning to support the rapid and environmentally sensitive deployment of offshore wind."

Nick Molho added: "The Government rightly recognised today that progress in energy efficiency and low carbon heat deployment must be accelerated after years of stagnation. Beyond the support provided by the Green Homes Grant, it is essential that binding regulatory standards and supportive fiscal incentives are introduced to stimulate private investment over the next 15 years to retrofit the nation’s buildings and 28 million homes. Low carbon heating installation should become the norm by the early 2030s, and the Future Homes Standard needs to set ambitious requirements in this regard for new buildings from 2025." [1]

Nick Molho concluded: "Significant job creation can be achieved through the decarbonisation of the energy sector and heavy industry, where market mechanisms will be rapidly needed to grow demand for low carbon industrial goods. Supporting the transition of workers from oil and gas towards marine renewables, hydrogen production and carbon capture and storage is therefore essential. This should form part of a broader national strategy to plug the UK’s low carbon skills gap and ensure that the current and future workforce are provided with the skills and re-training they require to access employment opportunities in the transition to a net zero emissions economy. The Aldersgate Group looks forward to supporting the Green Jobs Taskforce in this regard." [2]

- ENDS -

[1] On 5 October, the Aldersgate Group launched a major report, Building a net zero emissions economy, looking at the key policy measures needed in this parliamentary term to put the UK economic on a credible pathway to net zero emissions: https://www.aldersgategroup.org.uk/latest#businesses-call-for-urgent-policy-decisions-to-put-uk-economy-on-track-for-net-zero-emissions

[2] On 15 October, the Aldersgate Group published a policy briefing, Upskilling the UK workforce for the 21st century, calling for a low carbon skills strategy to plug the UK’s skills deficit. The briefing put forward a five-point plan of action which can be accessed here: https://www.aldersgategroup.org.uk/latest#skills-deficit-needs-to-be-urgently-tackled-to-get-to-net-zero

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Climate Ambition Summit: collaboration on carbon markets and net zero delivery key to success of COP26

12th December 2020

The Aldersgate Group welcomes the leadership shown by the UK Government at the Climate Ambition Summit today and the priorities that it outlined for COP26. The Group argued that pressing ahead with a net zero delivery plan for the UK and encouraging greater international collaboration around carbon markets, green economic recovery, and net zero delivery would all increase the chances of success at COP26.

Nick Molho, Executive Director at the Aldersgate Group, said: “The UK Government has made significant progress ahead of COP26 by building an international coalition of the willing at today’s summit. Continued efforts in this area will be vital to deliver the increase in global emission reduction targets that climate science is urgently calling for.

The priority themes chosen for the summit – ranging from energy transitions to green finance and nature-based solutions – all have the potential to deliver global commitments in important areas where accelerated progress is needed. Particular focus should also be paid to delivering progress on carbon markets, and in particular the mechanisms of Article 6 of the Paris Agreement, as these will play a central role in helping countries deliver on their emission reduction commitments."

Nick Molho added: “Having shown leadership through its net zero target and its increased nationally determined contribution for 2030, the UK can help maximise its influence at the summit by adopting the recent recommendations from the Climate Change Committee for the sixth carbon budget and putting in place a comprehensive net zero delivery plan ahead of the COP [1]. With the UK also hosting the G7 summit in 2021, the Government will have a highly strategic and influential role to play in the year ahead and could increase the chances of success at COP26 by encouraging international collaboration on green economic recovery and net zero delivery plan [2]."

—ENDS—

[1] On 5 October, the Aldersgate Group launched a major report, Building a net zero emissions economy, looking at the key policy measures needed in this parliamentary term to put the UK economic on a credible pathway to net zero emissions: https://www.aldersgategroup.org.uk/latest#businesses-call-for-urgent-policy-decisions-to-put-uk-economy-on-track-for-net-zero-emissions

[2] The Aldersgate Group recently commissioned economic analysis from Dimitri Zenghelis & James Rydge at the Grantham Research Institute at the London School of Economics (July 2020), showing the central role of low carbon and natural capital investments in supporting global economic recovery. You can access Rebuilding to last: designing an inclusive and resilient growth strategy after COVID-19 here: https://www.aldersgategroup.org.uk/latest/page:2#rebuilding-to-last-uk-must-not-go-back-to-the-old-normal

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Sixth carbon budget: an unprecedented investment opportunity for UK plc

9th December 2020

Today, the Aldersgate Group welcomed the publication of the Committee on Climate Change’s sixth carbon budget and its recommendation of an emission reduction target of 78% by 2035. The Group argued that this ambitious but feasible target represents a unique investment and supply chain growth opportunity for UK businesses. To be delivered on the ground, today’s carbon budget will need to be supported by rapid policy decisions in areas such as buildings, heavy industry and carbon pricing.

Reacting to the budget, Ana Musat, Head of Policy at the Aldersgate Group, said: “The CCC has set a huge, but feasible, investment challenge for the UK economy for the next 15 years and one where the private sector will have to do most of the heavy lifting. This budget represents an opportunity for the UK to get the economy going again as it emerges from the COVID-19 crisis and to invest in innovation, grow supply chains and create jobs in areas such offshore wind, EV manufacturing, low carbon industrial goods, building renovation and green finance. As more countries take on net zero emissions targets, the export opportunities for the UK could also be significant: by 2030, the global market for low carbon goods will be worth more than £1 trillion a year, representing an increase of 7 to 12 times on today, with the market for low carbon services growing in tandem." [1]

Ana Musat added: “We welcome the recent steps taken by government to meet this ambition, including the publication of the Ten Point Plan and its commitments on offshore wind and the phase out of petrol and diesel vehicle sales. To support the private sector in delivering the ambition of the sixth carbon budget on time and at low cost, the Government now needs to put forward a comprehensive net zero delivery plan, which sets out clear policy signals for all key emitting sectors of the economy. [2]
 
Such a plan should include introducing binding energy efficiency performance standards and fiscal incentives that ensure that all new buildings are ultra-low carbon and that existing homes meet a level of energy efficiency of at least EPC band C by 2035 at the latest. Other key priorities should include strengthening the grid to support the full decarbonisation of the power sector by the end of the decade, setting up a UK Emissions Trading Scheme aligned with the net zero target with a starting price of at least £40 per tCO2 [3] and introducing measures such as product standards and green public procurement to grow the demand for ultra-low carbon industrial goods." [4]

—ENDS—

[1] Ricardo AEA (2017) UK business opportunities of moving to a low carbon economy. Available at: https://www.theccc.org.uk/publication/uk-climate-change-risk-assessment-2017/ 
 
[2] On 5 October, the Aldersgate Group launched a major report, Building a net zero emissions economy, looking at the key policy measures needed in this parliamentary term to put the UK economic on a credible pathway to net zero emissions: https://www.aldersgategroup.org.uk/latest#businesses-call-for-urgent-policy-decisions-to-put-uk-economy-on-track-for-net-zero-emissions
 
[3, 4]  Dimitri Zenghelis & James Rydge (July 2020) Rebuilding to last: designing an inclusive and resilient growth strategy after COVID-19, commissioned by the Aldersgate Group. Available at: https://www.aldersgategroup.org.uk/asset/1684

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UK NDC needs to be supported by comprehensive net zero delivery plan

3rd December 2020

Reacting to the Prime Minister’s announcement that the UK will set its Nationally Determined Contribution (NDC) to at least 68% reduction in greenhouse gas emissions by the end of the decade, Signe Norberg, Head of Public Affairs and Communications at the Aldersgate Group, said: "It is welcome to see the UK announce a NDC which aligns with the Climate Change Committee’s advice and paves the way for achieving our net zero emissions target by 2050. As host of COP26, the UK should galvanise international action on emissions reductions, setting an ambitious precedent for others to follow. For today’s commitment to be credible and facilitate business progress towards decarbonisation, it needs to be paired with a comprehensive and joined-up net zero strategy which builds on the Prime Minister’s 10 Point Plan."

Signe Norberg added: "The government now needs to back this up with clear domestic measures to drive down emissions in hard to abate sectors, such as heavy industry and long-distance transport, and in sectors that are currently not covered by the NDC like shipping and aviation. Creating a robust regulatory framework and the market mechanisms to facilitate at-scale deployment of key technologies will be essential in the months to come."

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Reactive to Spending Review 2020

25th November 2020

Reacting to the Chancellor of the Exchequer’s Spending Review, Nick Molho, Executive Director at the Aldersgate Group, said: “The challenging economic context presented by the Chancellor of the Exchequer today underscores the importance of aligning the UK’s spending commitments with the Prime Minister’s Ten Point Plan and the UK’s climate and environmental goals. The Spending Review’s commitment that the UK’s economic recovery ‘must be green’ sends a positive signal. We welcome the creation of a national infrastructure bank and would urge that the net zero target, the Environment Bill targets and the levelling up agenda are all central to its mandate. To be effective and crowd in private investment at scale, such a bank will also need to be sufficiently well capitalised, with recent analysis commissioned by the Aldersgate Group recommending £20bn paid in capital over 4 years.” [1]

Nick Molho added: “A key task for the Government in the near future will be to introduce new regulations and market mechanisms to drive private low carbon investment in critical areas such as buildings, heavy industry and nature restoration. This will be essential to deliver the Chancellor’s objective of accelerating private investment in infrastructure and putting the UK on a credible pathway for net zero emissions and delivering the goals set out in the 25 Year Environment Plan.” [2]

—ENDS—

[1] On 15 July, the Aldersgate Group published Rebuilding to Last, a report from James Rydge an Dimitri Zenghelis at the Grantham Research Institute at the London School of Economics, looking at the key measures needed to put the UK on path to a sustainable, durable and socially inclusive economic recovery. The report called for the creation of a national investment bank with a paid-up capital of £20bn, with £5bn a year paid for 4 years. The report is accessible here:  https://www.aldersgategroup.org.uk/latest#rebuilding-to-last-uk-must-not-go-back-to-the-old-normal

[2] On 5 October, the Aldersgate Group launched a major report, Building a net zero emissions economy, looking at the key policy measures needed in this parliamentary term to put the UK economic on a credible pathway to net zero emissions: https://www.aldersgategroup.org.uk/latest#businesses-call-for-urgent-policy-decisions-to-put-uk-economy-on-track-for-net-zero-emissions

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Ten Point Plan: a good starting point for a green recovery but a more systemic approach is needed

17th November 2020

Reacting to the Government’s Ten Point Plan, Nick Molho, Executive Director at the Aldersgate Group, said: "The Prime Minister is absolutely right that aligning the UK’s economic recovery strategy can create a significant number of jobs and bring much needed investment to parts of the UK in urgent need of economic opportunities. The Ten Point Plan commitment to phase out the sale of petrol and diesel vehicles by 2030 will send a decisive market signal and we welcome the commitments to extend the Green Homes Grant by a year and the increased ambition around hydrogen and carbon capture."

Nick Molho added: "However, to put the UK economy on a credible pathway for net zero emissions, the Prime Minister must embed the net zero target across all government departments and address the lack of long-term policy commitments that is still holding back progress in some parts of the economy [1]. For example, the Ten Point Plan doesn't address the lack of regulatory drivers in buildings that is currently hampering private investment in energy efficiency and low carbon heat, and it does not recognise the urgent need to set up a well-capitalised national investment bank to grow investment in complex low carbon technologies. For the UK’s domestic policy commitments to be effective, the Government must also not lose sight of the fact that any future trade agreements must be fully supportive and consistent with the net zero target. [2]”

Reacting to the announcement on industrial decarbonisation measures, Nick Molho added: "It’s good to see the Government growing its ambitions for low carbon industrial clusters and hydrogen production. However, with France and Germany each committing €7bn as part of their green hydrogen strategies, much work remains to be done to plug the innovation funding gap and develop the market mechanisms that will support the deployment low carbon industrial technologies at scale."

—ENDS—

[1] On 5 October, the Aldersgate Group launched a major report, Building a net zero emissions economy, looking at the key policy measures needed in this parliamentary term to put the UK economic on a credible pathway to net zero emissions: https://www.aldersgategroup.org.uk/latest#businesses-call-for-urgent-policy-decisions-to-put-uk-economy-on-track-for-net-zero-emissions

[2] The Aldersgate Group recently published a policy briefing setting out the business case for aligning the UK’s trade policy with its climate and environmental goals: https://www.aldersgategroup.org.uk/latest/page:2#uk-trade-policy-must-be-aligned-with-environmental-and-climate-goals

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Focus on low carbon and environment crucial for recovery

10th November 2020

Responding to the Labour Party’s green economic recovery consultation report today, Signe Norberg, Public Affairs Manager at the Aldersgate Group, said: “Focusing on low carbon technologies, skills and services will be crucial as the UK recovers from the COVID-19 pandemic. This will create new jobs, spread opportunities across the country and support our climate and environmental goals. As we have argued in recent reports [1], these opportunities need to be supported by a programme of near-term public investment, the creation of new institutions, such as a National Investment Bank, a low carbon skills strategy and comprehensive policies which can drive long-term private sector investment. The consultation report highlighted by the Labour Party today illustrates the opportunities that lie ahead and the range of actions that are required to achieve them.”  

—ENDS—

[1] Dimitri Zenghelis and James Rydge (2020) Rebuilding to Last: How to Design an inclusive, resilient and sustainable growth strategy after COVID-19. This report was commissioned by the Aldersgate Group: https://www.aldersgategroup.org.uk/latest#rebuilding-to-last-uk-must-not-go-back-to-the-old-normal

Aldersgate Group (2020) Seize the Moment: https://www.aldersgategroup.org.uk/latest/page:2#low-carbon-projects-are-a-key-solution-to-jobs-inequality-and-resilience-concerns

Aldersgate Group (2020) Building a net zero emissions economy https://www.aldersgategroup.org.uk/latest#businesses-call-for-urgent-policy-decisions-to-put-uk-economy-on-track-for-net-zero-emissions

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Business groups call for an ambitious NDC that aligns with net zero target

3rd November 2020

Several business groups - including The Aldersgate Group, the Prince of Wales’s Corporate Leaders Group and the Institutional Investors’ Group on Climate Change - have written to the Prime Minister today to urge him to announce an ambitious Nationally Determined Contribution (NDC) for the UK to mark the upcoming five year of the Paris Agreement and create a positive negotiation dynamic ahead of the crucial COP26 climate summit [1]. The groups argue that an ambitious NDC, which will set the UK’s emission reduction  commitments for 2030 under the Paris Agreement, should be at least in line with the UK’s existing net zero emissions reduction target and consistent with forthcoming advice from the Committee on Climate Change.

The groups recommend that the UK’s updated NDC should be:

  • Aligned with business targets: Many businesses have set their own net zero targets, including a number who have signed the Business Ambition for 1.5 pledge, and investors that are aligning their portfolios to the goals of the Paris Agreement. UK businesses and investors would value a clear signal from the UK Government that ambition for the economy aligns with their own aims.
  • Embedded in UK policy: The NDC should be supported by a comprehensive policy delivery plan to put the UK on a credible pathway to achieve its net zero emissions target, accelerate innovation, grow domestic supply chains and strengthen the UK’s export capabilities in the global low carbon economy [2].
  • Supported by solid plans and ambitions to ensure the UK is well prepared for the impacts of climate change: A more ambitious NDC and plan to achieve the UK’s net zero target should work hand in hand with efforts to ensure the UK is well prepared to adapt to the increasing impacts from climate change. As made clear by the Aldersgate Group previously, this will require careful co-ordination with upcoming targets and policy measures to be introduced in other key areas of policy such as the Environment Bill, the Agriculture Bill and the Planning White Paper.

Following the letter’s publication, Nick Molho, Executive Director of the Aldersgate Group, said: “With stronger climate commitments coming from countries with a large share of global emissions such as Japan, China and the EU, this is a critical time for the UK to set out a more ambitious NDC that is in line with its domestic net zero target and the Committee on Climate Change’s advice. Backed by a credible policy plan, this will allow the UK to create a positive negotiation dynamic and maximise its influence ahead of the COP26 climate summit, whilst giving itself the best chances of building a competitive, net zero emissions economy.”

- ENDS –

[1] A Nationally Determined Contribution (NDC) is a national climate plan, which set out climate actions, policies and measures governments aim to implement in response to climate change. Each country sets out its own NDC and 2020 is the first time countries are required to submit new NDCs since the Paris Agreement was reached.

[2] On 5th October, the Aldersgate Group published Building a net zero emissions economy, which sets out some of the key policy decisions that need to be taken in this parliamentary term to put the UK on a credible pathway to building a competitive, net zero emissions economy. The Group calls on the government to bring these together as part of a comprehensive net zero delivery plan. The report is available here


The future of UK carbon pricing: an Aldersgate Group position paper

14th October 2020

Ahead of the Government’s decision on the future of UK carbon pricing, which is expected in the next few weeks, the Aldersgate Group publishes today a short position paper on the future of carbon pricing in the UK. In this position paper, the Group stresses that the priority for a future carbon pricing regime is for it to set an ambitious, gradually increasing and predictable carbon price trajectory that is in line with the UK’s net zero emissions target and is carefully designed to ensure that domestic industry is adequately supported in the transition to a net zero emissions economy.  

The Group stresses that the two options facing the UK Government - a UK Emissions Trading Scheme (UK ETS) and adopting an economy-wide Carbon Emissions Tax – both have their merit. However, the Group considers that a UK ETS would, on balance, be the most effective of the two schemes. Carbon pricing introduced as a tax instrument is likely to be perceived by investors as the option that is more vulnerable to future political changes, which could undermine the multi-year investment signal that the new carbon pricing regime must provide. It would also provide less continuity with the carbon pricing regime which businesses covered by the EU ETS have been dealing with to date. The Group highlights however that a CET could potentially be used as an interim option whilst a UK ETS is being set up.

Ana Musat, Policy Manager of the Aldersgate Group, said: "Setting up a robust UK ETS underpinned by a growing carbon price floor and aligned with the net zero target could provide a highly effective investment signal in low carbon technologies across the economy. Whilst they have their merit, carbon taxes tend to be perceived as more sensitive to short-term policy changes, which could undermine investor confidence in the stability of a long-term carbon price at a time when low carbon investment should ramp up significantly. However, to guard against any policy gaps until a robust UK ETS is set up and ensure that the whole economy is subject to a form of carbon pricing in the near future, a tax on carbon accompanied by a price floor and a predictable escalator could be used as an interim back-up option."


Increase in offshore wind ambition takes UK closer to full decarbonisation of power sector

6th October 2020

Reacting to the Prime Minister’s upcoming announcement today to increase the UK’s ambition on offshore wind, Nick Molho, Executive Director of the Aldersgate Group said: “The Prime Minister’s announcement to increase the UK’s offshore wind ambition to 40GW by 2030 is a very important milestone in the UK’s continued efforts to decarbonise its power sector. To deliver this target in a timely and economically beneficial way, the Government must provide the sector with sufficiently ambitious, regular and predictable project auctions throughout the 2020s. The much needed commitment to invest in port infrastructure is a welcome commitment and should be matched by a clear focus on low carbon skills, both of which are essential to grow domestic supply chains and create jobs in the sector.”  

Nick Molho added: “Ahead of the Prime Minister’s ten point plan for a green industrial revolution, it is essential that Ofgem’s final determinations for RIIO-2 – which will set price controls for power companies over the next five years – allow businesses to make the necessary investments to strengthen the transmission and distribution systems, increase the grid’s storage capacity and equip the system operator with the tools it needs to reliably operate a modern power system increasingly based on renewable energy generation.” [1]   


—ENDS—
 
[1] On 5th October, the Aldersgate Group launched a new report, Building a Net Zero Emissions Economy, which sets out key policy measures which need to be taken in this parliamentary term to put the UK economy on track for net zero emissions. The report is available here

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Businesses call for urgent policy decisions to put UK economy on track for net zero emissions

5th October 2020

Following extensive cross-industry and civil society engagement, the Aldersgate Group launches a new report today, setting out some of the key policy decisions that need to be taken in this parliamentary term to put the UK on a credible pathway to building a competitive, net zero emissions economy. The Group calls on the government to bring these together as part of a comprehensive net zero delivery plan.

The report, Building a net zero emissions economy [1], provides an in-depth overview of the near-term policy interventions required across a range of economic sectors to reach the net zero emissions target. Building on growing business [2] and public calls [3] to align the UK’s economic recovery strategy with the net zero target, the report argues that policy decisions in the early 2020s will be essential to grow private sector investment in low carbon technologies and services, strengthen the UK’s economic recovery and support efforts to tackle regional and social inequalities. Having a comprehensive net zero delivery plan in place will also strengthen the UK’s influence as host of the G7 and COP26 summits in 2021.

Based on recent government announcements but also the recognition that the UK is currently off track for meeting its interim targets under the fourth and fifth carbon budgets, the Aldersgate Group calls for an overarching strategy to align policy interventions in the buildings, transport, power, heavy industry, agricultural, land management and finance sectors and calls on the government to put in place a trade and diplomatic policy that is consistent with its net zero target.

Key recommendations include:  

1. Pressing ahead with policy and regulatory measures to cut emissions in buildings, surface transport, power and waste. These are ‘low regret’ areas where the required technological solutions and business models to cut emissions are well known. Building on recent consultations and economic stimulus announcements, government should introduce binding energy efficiency standards for new and existing buildings, continue to support energy efficiency retrofits through the Green Homes Grant and fiscal incentives such as stamp duty rebates and make a decision to phase out the sale of petrol and diesel vehicles by 2030.

Other key recommendations include setting a clear carbon price trajectory for the 2020s that is aligned with the net zero target and ensuring that final decisions on the regulatory framework for the 2021-2026 ‘RIIO-2’ price control period supports the necessary investments that will be required to modernise and complete the decarbonisation of the power sector. 

2. Focusing innovation efforts to support large scale trials of technologies and business models that will be essential to cut emissions in ‘hard to treat’ sectors such as heavy industry, agriculture and aviation. These include at scale trials of Carbon Capture and Storage, hydrogen production and use, battery technology and more resource efficient business models. The report highlights that consolidating recent funding for these technologies will be key in supporting an efficient innovation programme and that trials should work hand in hand with developing new market mechanisms, such as low carbon product standards for industrial goods and CO2 storage incentives. These are essential to grow market demand for low carbon goods and services, provide a level playing field and strengthen the competitiveness of UK businesses.

3. Growing the potential for negative emissions by creating a market for nature-based solutions and supporting scalable trials of potentially promising negative emissions technologies (NETs). The use of nature-based solutions should be supported through a robust carbon price to adequately reflect their contribution to carbon removal and their co-benefits. This will attract more consistent investment from companies looking to offset emissions and deliver against environmental improvement objectives. Nature-based solutions illustrate the importance of ensuring that the net zero delivery agenda works hand in hand with the finalisation of the Environment Bill and the Agriculture Bill.

The Government should use its upcoming £100m competition for greenhouse gas removal technologies as the first step to trial the potential of technologies such as Bioenergy with Carbon Capture and Storage (BECCS) and Direct Air Capture and Carbon Storage (DACCS) [4] and identify some of the market mechanisms that would be needed to support their future deployment.

Given the high cost of NETs and the limited space available for nature-based solutions, the use of negative emission solutions should not undermine the imperative of reducing emissions across all sectors.

4. Strengthening the Government’s Green Finance Strategy by creating a well-capitalised National Investment Bank, with a clear mandate to support investment in complex low carbon projects and direct low carbon investment towards regions in need of economic regeneration.

Other key priorities should include making TCFD-aligned climate risk disclosures mandatory ahead of COP26, continuing to support the British Standards Institute in the development of new green finance management standards, acting on the lessons from the Bank of England’s upcoming climate stress testing of the UK’s largest banks and insurers, and improve the risk profile for green investment through the introduction of a ‘brown penalising factor’ as part of a reform of capital weighting requirements.

5. Tackling the ‘levelling up’ challenge, by managing a just transition towards a durable recovery and a net zero emissions economy. This should include government working closely with businesses, local bodies and educational institutions to help direct low carbon investment and skills funding towards areas of the country worst affected by the pandemic and likely to be impacted by the net zero transition.  Adequate funding and training for Local Authorities and Local Enterprise Partnerships will be essential to ensure that the recovery drives local regeneration and maximises the opportunities afforded by the low carbon transition for businesses and SMEs right across the country. In addition, a new national skills strategy will be essential to help embed sustainability training at all levels of the educational system and through lifelong learning [5].

6. Putting in place a diplomatic and trade policy that is fully consistent with the UK’s net zero and Environment Bill targets. As argued in a recent Aldersgate Group briefing [6], it is essential that future trade agreements promote high standards on the environment and climate change, reduce barriers for trade in low carbon goods and services and protect the UK’s future right to regulate on environmental and climate change policy issues. 

Through its network of climate diplomats and attachés and its position as host of the G7 and COP26 summits in 2021, the UK has a unique opportunity to engineer a global increase in climate ambition. Negotiation priorities for COP26 should include putting forward a strong business case for major emitters to align their economic recovery plans with the need to achieve net zero emissions, agreeing on a mechanism to support developing countries already vulnerable to adverse climate impacts, and finalising a rule book for the market and cooperation mechanisms under Article 6 of the Paris Agreement.

Nick Molho, Executive Director, Aldersgate Group said: ‘Securing a durable recovery from COVID-19 and putting the UK economy on track for net zero emissions are mutually reinforcing goals that are strongly supported by businesses and the public. Actions in this parliamentary term will be essential to achieve both these objectives. The Government has stated its ambition to deliver a green recovery and has made positive stimulus announcements in recent months. But to put the UK economy on a credible pathway for net zero and allow private investment to do most of the heavy lifting, the government must now put together a comprehensive plan to close the existing policy gap.”’

Sue Riddlestone OBE, CEO and co-founder, Bioregional, said: “Our homes are directly responsible for 20% of UK carbon emissions. The report mentions the new Future Homes Standard which, with some adjustments, could see all new homes designed to be net zero carbon in energy use from 2025, in line with the recommendations of the Committee on Climate Change. For our existing homes, we need the government to share its plans and policies to implement the target in the Clean Growth Strategy that all homes reach at least EPC band C of energy efficiency by 2035. We are all in this together and there are a lot of experienced professionals on hand, only too willing to help to co-create policies and programmes that will get the job done.”

Duncan Price, Partner at BuroHappold, said: “We cannot tackle climate change without tackling cities. We need a radical approach to new build development, energy efficiency of existing buildings and future infrastructure delivery. We need clear policy signals, decarbonisation pathways, and business strategies across each of these areas as part of a green recovery.”

Meryam Omi, Head of Sustainability and Responsible Investment Strategy, Legal & General Investment Management, said: “The success of the UK’s ambitious net zero target depends on the government setting out a clear pathway for companies to build aligned strategies and for investors to direct capital into a ‘green’ recovery at scale. From domestic housing to international trade, this report offers timely recommendations to create a vibrant net zero economy, which we believe is beneficial for the UK and UK investors.”

Chris Smith, Managing Director of Michelin Tyre PLC, said: “This report by the Aldersgate Group clearly highlights the levers which will have to be activated in order to face up to the climate emergency. Smart regulation, accelerated innovation and fair environmental trade will be absolutely key. At Michelin, we are confident that COP26 will pave the way towards the necessary decarbonisation of our economies but this will require close collaboration between the public and private sectors as demonstrated in the report”.

Keith Anderson, CEO, ScottishPower said: “If we’re to have any chance of meeting net zero targets, we need to get to work on making it happen – building low carbon homes, getting people into electric cars and constructing new wind farms. As we set out in our 10 practical steps to unlocking net zero, we can do all these things, and do them quickly, with just small changes to existing government rules and regulations. Starting now, we can create jobs and stimulate investment while delivering the long-term environmental benefits and the zero-carbon future we’re all working towards – it’s a no-brainer. Taking action and doing what is needed from both an economic and an environmental perspective is a win-win, meaning we can all achieve a better future, quicker.”

Adam Read, Director of External Affairs at SUEZ, said: “This report is a timely addition to this critical debate. Carbon Net Zero is perhaps the most important target society has ever had to meet, and all sectors must play their part, under a clear framework of priority activity led by Government. The waste sector has achieved a great deal in the last 2 decades in terms of emissions reductions, as a direct result of moving materials away from landfill and its associated methane emissions. But for our sector to make future large scale improvements, we will need to drive a reduction in consumption, improve the performance of current technology solutions and support large scale trials of critical technologies and new business models to cut emissions in hard to treat sectors such as heavy industry, agriculture and long-distance transport.”

Adam Read added: “All sectors must step up to the challenge and look both internally at what they can achieve, and cross-sectorally at what sectors can do together or learn from one another. SUEZ are continuing to embrace this challenge and support our customers and supply chains in active discussions around changes in services and solutions, and welcome greater clarity from Government on short and medium term priority activities and future funding to support innovation and collaboration.”

Anna Turrell, Head of Environment at Tesco, said: “Food is at the heart of our business and we have a role to play in addressing the key sustainability challenges caused by food production and consumption - delivering affordable, healthy, sustainable food for all.  As the UK’s largest retailer, Tesco has a sizeable operational and supply chain footprint. Tesco was the first company to set an approved carbon reduction target aligned to 1.5 degrees in 2017. Since then, we have transitioned our UK, Ireland, Slovakian and Hungarian operations to 100% renewable electricity, and are working to procure an increasing proportion of our demand from onsite and offsite Power Purchase Agreements (PPAs) that generate additional renewable energy in the UK grid.”

Anna Turrell added: “Electricity in our own operations is only part of the footprint. We would like to make further, faster progress and to do that we need an enabling policy and regulatory environment that supports and improves infrastructure for decarbonised logistics and energy systems, as well as supporting our agricultural supply chains to decarbonise whilst restoring nature. Having a comprehensive, joined-up national net zero delivery plan is therefore vital to both the success of the UK’s net zero ambitions and ours as a company.”  

Richard Aylard, Sustainability Director at Thames Water, said: “We’ve reduced emissions by more than a third since 1990, despite the substantial growth in our business over that period, but hitting our ambitious target of net zero carbon emissions by 2030 will require more radical action.

Poo power, together with wind and solar, currently generates around a quarter of our electricity needs, saving our customers around £30m in energy costs each year. Future ambitions include turning fatbergs into biodiesel, creating more wetlands, transferring heat from sewers to warm homes and businesses, and installing power points for low carbon vehicles.

To succeed, these actions will need to be supported by improvements in policy and regulation like those proposed by the Aldersgate Group. Changes including the smarter approach to waste treatment, and access to low-cost renewable power, will help companies like us to achieve further major reductions in emissions.”

Maria Connolly, Head of Clean Energy & Real Estate at law firm TLT, said: “Aldersgate Group’s report calls on the UK government to take bold and decisive action to deliver net zero by 2050. The recommendations in the report are a reflection of the issues that have been raised by the sector as being key to a green recovery over recent months. We’re already seeing positive progress being made in many of these areas from a focus on green investment to the development of nascent technologies such as hydrogen, but further support from the government will be instrumental to drive the pace of change.”

—ENDS—

[1] The report will be debated at an event from 12.00pm to 1.30pm on Monday 5 October. The event will include a keynote speech from Darren Jones MP, Chair of the BEIS Select Committee, and panellists from multiple business sectors. You can register here.

[2] On 1 June 2020, around 200 business leaders – including several Aldersgate Group business members - wrote to Prime Minister Boris Johnson and called for an economic recovery plan aligned with the UK’s net zero target and other environmental goals. More information is available here.

[3] The final report of the UK Citizens’ Climate Assembly published on 10 September 2020 found that 79% of assembly members ‘agreed’ or ‘strongly agreed’ that the UK’s approach to economic recovery should be aligned with the net zero target. The report is available here: https://www.climateassembly.uk/report/

[4] The UK government will shortly launch an innovation programme to develop and demonstrate the potential of direct air capture and other greenhouse gas removal technologies. Projects are expected to start in April 2021: https://www.gov.uk/government/publications/direct-air-capture-and-other-greenhouse-gas-removal-technologies-competition

[5] On 15 October, the Aldersgate Group will launch a new policy briefing on how to design an effective low carbon skills strategy in the UK.

[6] The Aldersgate Group published a policy briefing on 24 June, making the case for aligning the UK’s trade policy with its climate and environmental goals and setting out key measures to be taken in the Trade Bill and future trade agreements. The briefing is available here.


Today's R&D funding announced by the Prime Minister rightly targeted at hard to treat sectors

22nd July 2020

Reacting to the Prime Minister’s funding announcement of £350 million to cut emissions in heavy industry, construction and transport and fuel green economic recovery from the COVID-19 crisis, Ana Musat, Policy Manager at the Aldersgate Group, said: “Today’s R&D funding announcements are rightly targeted at sectors where making progress to cut emissions is both difficult but also essential if the UK is to have an economic recovery with an ambitious climate programme at its core. Investment in decarbonising transport, heavy industry and construction is not only essential for reaching the UK’s net zero target, it will also be key in creating jobs and increasing the competitiveness of industries that tend to be regionally spread out and are important to the UK’s long-term levelling up agenda.”
 
We particularly welcome the announcement related to cutting emissions in the aviation sector, where the pathway for getting to net zero is less clear. Urgently starting trials for key technologies like hydrogen, electrification or sustainable fuels is essential to provide government and businesses more clarity on potential pathways to cut emissions and the technologies and business models that future policies will need to support.”
 
Ana Musat added: “Beyond R&D funding, decarbonising hard to treat sectors like heavy industry or aviation will need to be achieved by and large through private investment, which itself will require clear policy signals before it is committed. An increasing carbon price trajectory from 2020 onwards is essential to incentivise low carbon innovation and measures like product standards could play a key role in driving down embedded carbon emissions in industrial goods as steel and cement and growing the market for ultra-low carbon industrial goods.”

CEMEX

Rebuilding to last: UK must not go back to the old normal

15th July 2020

Today, the Aldersgate Group launches a new report, Rebuilding to Last [1], commissioned to James Rydge and Dimitri Zenghelis at the Grantham Research Institute, London School of Economics and Political Science. This report provides one of the most in-depth economic analyses to date on the current economic situation facing the UK and the investment and policy decisions the government needs to take in the run up to the Autumn Budget if it is to deliver an inclusive, resilient and sustainable recovery after COVID-19.

The report, which comes days after the initial stimulus measures outlined by the Chancellor of the Exchequer in the Summer Economic Update, sets out compelling economic evidence showing that a durable economic recovery needs to be closely aligned with the UK’s climate, environmental and clean growth ambitions. Building on last week’s public stimulus announcements, the authors argue that key institutional changes and major policy commitments will be needed to deliver a transformative and long-term recovery and urge the government to consider these carefully in the run up to the Autumn Budget.    

Reacting to the publication of the report, Nick Molho, Executive Director of the Aldersgate Group, said: “The UK did not seize the opportunity to transform its economy for the better when it responded to the 2008 Global Financial Crisis. Twelve years on, there is mounting economic evidence that a recovery plan based on investment in low carbon infrastructure and industries is one of the most effective ways of creating jobs in the near term and driving greater productivity, innovation and resilience in the long-term. The Government has rightly committed some of its early stimulus spending in areas such as energy efficiency but it must now move to make key policy commitments in areas such as carbon pricing, clean transport, low carbon heating and industrial decarbonisation if it is to deliver lasting and positive change.”

The report argues that stimulating greater investment in low carbon infrastructure, goods and services delivers higher short run economic growth multipliers compared to alternative stimulus investments. The government must avoid returning the UK economy to the short-sighted and unproductive ‘cut public spending’ policies of the past that led to more inequality, historically low productivity growth, and failed to support the UK’s climate targets, with high levels of public sector debt to GDP remaining a decade on. There can be no going back to the old normal.

Dimitri Zenghelis, Senior Visiting Fellow at the London School of Economics and co-author of the report, said: “This is a rare moment in history where the UK has an opportunity to rebuild on a path of clean, resilient and inclusive growth, aligned with the UK’s long term objectives while generating skilled jobs today. The government has made a good start with the summer statement and early stimulus measures will help shore up a more resilient economy over the next two years.

But the government must now turn its rhetoric on green recovery into predictable and credible commitments to build a sustainable economy over next decade and beyond. A clear strategic plan is necessary to develop the skills for the coming decades and leverage private investment. Restoring confidence requires a clear macroeconomic vision to rebuild an economy for everyone, designed to last, creating jobs and generating wealth of real value out of the post-COVID recession.”

Dimitri Zenghelis added: “Sustainable investment creates durable competitive jobs where they are needed most, while also helping to achieve long term objectives around net zero, resilience, productivity and levelling up. It’s time to end unproductive investment in the old, dirty, divided economy and rebuild to last after COVID-19. The government’s strategy needs to expand beyond retrofitting to invest in clean innovation, the roll out of smart systems to manage energy demand, upgrade the electricity grid, replace gas, expand EV facilities, encourage pedestrianisation and cycling in cities as well as manage natural capital.”

The report puts forward a four-point plan of action for government to ensure an inclusive, resilient and sustainable recovery from the COVID-19 crisis and calls for:

  • A programme of near-term public investments that will deliver net job creation across the regions, targeted in particular at energy efficiency retrofits, natural improvement projects such as tree planting and wetland restoration, while rolling out networks of the future based on fast broadband and smart connectivity, electric vehicle charging infrastructure and expanding public transport connections to low-income regions;
  • The creation of new institutions, including a new National Investment Bank with £20bn in paid capital. This Bank would work closely with the National Infrastructure Commission to establish a clean infrastructure pipeline. It would focus on crowding in private sector investment towards complex low carbon projects, such as CCS and hydrogen and attracting investment towards regions in need of economic regeneration. The response to COVID-19 has also highlighted the need to devolve power from Whitehall to the regions, where decision-makers are closer to their citizens both physically and socially, building on the Cities and Local Government Devolution Act 2016;
  • A ‘low carbon skills and levelling up strategy’ to avoid workers falling into long-run unemployment or underemployment after the crisis, including through job guarantees, reskilling support and human capital tax credits for employers. To ensure existing and future workers are fully equipped for the low-carbon transition, measures should be taken to embed sustainability across the educational curriculum, reform apprenticeship standards and T-levels and set up sustainability metrics for tertiary level education courses;     
  • Bold and comprehensive policies to drive long-term private sector investment towards low carbon infrastructure, goods and services. This includes setting up a rising carbon price starting at £40 per tonne to align a future UK Emissions Trading Scheme with the net zero target, and rapidly introducing binding regulatory standards to drive emission cuts in areas such as buildings and vehicles. Public procurement, fiscal and monetary policies must all be made wholly consistent with climate and environmental goals, and the government should bring forward its 2027 target of 2.4% of GDP spend on R&D to support large scale demonstration projects in sectors that are hard to decarbonise such as heavy industry.

James Rydge, Policy Fellow at the Grantham Research Institute and co-author of the report, said: “It is important that institutional reforms are undertaken to expand capacity, rebuild the economy for the long term, create new opportunities for all and manage long-run risks. This requires building a credible industrial strategy to drive the investment forward, rolling out efficient networks on energy, communications and transport and ensuring that all this investment is compatible with a low-carbon economy.”

James Rydge added: “The private sector can drive much of the investment that is needed but it is seeking clarity and certainty from government to start investing again. If adopted, the recovery package this paper sets out will plug important institutional and policy gaps and provide the private sector with the clarity and confidence it needs to invest in productive assets that improve labour productivity and grow jobs now and over the long term.”

—ENDS—

[1] The Aldersgate Group launches a new report today, Rebuilding to Last: designing an inclusive and resilient growth strategy after COVID-19, commissioned to Dimitri Zenghelis and James Rydge at the Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science. 


Launch of COP26 Climate Summit by the Prime Minister: Aldersgate Group reactive

4th February 2020

Reacting to today’s speech by the Prime Minister, Nick Molho, Executive Director of the Aldersgate Group said: “It's encouraging to hear the Prime Minister speak unequivocally about the urgency of acting on climate change. Hosting the most important climate summit since the Paris Agreement places a huge responsibility on the UK’s shoulders. Getting nations around the world to increase their emission reduction pledges at the summit and ensuring that developing economies and vulnerable nations get adequate financial support will be critical to the long-term credibility of global climate talks. A successful outcome at COP26 must therefore become a central, cross-government priority from now on." 

"To maximise its influence at COP26, the government must ensure that its domestic and global climate policy agendas are fully co-ordinated. In practice, this means publishing a policy plan well ahead of the summit, setting out how the UK will put itself on a credible track to achieve its net zero emissions target. It will also require that the UK’s upcoming free trade agreements are consistent with and support the delivery of this target.” [1]
 
Nick Molho added: “Many businesses across the Aldersgate Group membership have already publicly committed to net zero and science-based targets and are taking meaningful action to deliver these. However, government must now recognise that policy support – in particular in areas that are hard to decarbonise – will be essential to help progressive businesses achieve their ambitions and ensure that their competitors are required to follow suit.”

—ENDS—

[1] The Aldersgate Group will publish a new report in March, setting out businesses’ key policy priorities to put the UK on track for net zero emissions. The Group will also publish a new policy briefing in the Spring, setting out how the UK’s free trade policy can be consistent with high environmental standards.  

naturalengland

Legislating net zero target is crucial step forward

11th June 2019

Welcoming the government’s announcement that it will update the Climate Change Act by introducing a 2050 net zero target, Nick Molho, Executive Director at the Aldersgate Group, said: “This is a crucial step forward and a landmark achievement for the Prime Minister and all the ministers and MPs who have supported an increase in the UK’s climate ambition. The message from business is clear: the UK will strengthen the competitiveness of its economy by being the first major economy to legislate an ambitious net zero target – as long as this is supported by a comprehensive policy package.
 
We now look to the Prime Minister’s successor to introduce a robust policy package that puts the UK on a credible path to deliver net zero emissions by 2050 and supports business investment and competitiveness. It is important that the review planned in five years’ time does not undermine the robustness of this package. As we have seen recently in the UK’s offshore wind and recycling sectors, complementing clear targets with ambitious innovation and market creation policies is what rapidly brings down the costs of new technologies and grows domestic supply chains.” 
 
Nick Molho added: “The best way to address competitiveness concerns will be for the government to introduce measures such as product standards to protect British industry from high carbon competition and use its extensive diplomatic network to encourage other emitters to adopt similar targets and grow low carbon trade. Indeed, this announcement puts the UK in a very strong position to host COP26, which will be a crucial opportunity to raise international ambition.”

PARLI

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