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 . 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. ”
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."
 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
 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
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 , 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.”
 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
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 . 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:
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 –
 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.
 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.
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."
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.” 
 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.
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 , 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  and public calls  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)  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 .
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 , 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.”
 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.
 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.
 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/
 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
 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.
 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.
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.”
Today, the Aldersgate Group launches a new report, Rebuilding to Last , 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:
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.”
 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.
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.” 
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.”
 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.
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.”
More than 130 leading UK businesses, investors and business networks, including the CBI, Anglian Water, the John Lewis Partnership, BT, Aviva, Arup, Coca-Cola and Kingfisher, are today calling on the UK Government to put climate neutrality by 2050 into legislation immediately.
In an open letter, CEOs from across the economy are urging the UK to accept the recommendations of the Committee on Climate Change and lead the way by becoming the first major economy to legislate for an ambitious, domestic decarbonisation target that delivers net zero by 2050 at the latest.
The letter, signed by 131 businesses, investors and business networks, states: ‘As leading businesses and investors, we are determined to support an affordable transition and drive innovation. Many of us are setting our own net-zero and science-based targets. We are also increasingly investing in and purchasing clean energy, using low emission and electric vehicles, converting land to carbon sinks and improving energy efficiency throughout our operations and portfolios – and making new green jobs in the process.
‘We are doing this because we see the threat that climate change poses to our businesses and to our investments, as well as the significant economic opportunities that come with being an early mover in the development of new low-carbon goods and services. But we need effective, long-term policies to support the investment and innovation required if the UK is to accelerate the necessary transition and ensure it is delivered fairly.’
The signatories come from both multi-national and national businesses, across industry sectors, including energy, finance, consumer goods, retail, construction, water and communication.
The business and investment networks supporting this initiative include the CBI, The Prince of Wales’s Corporate Leaders Group (CLG), the Aldersgate Group, and the Institutional Investors Group on Climate Change (IIGCC), representing more than 190,000 businesses, more than 7 million workers, and more than £20trillion in assets under management.
The signatories acknowledge the urgency of the climate crisis, calling on the UK to legislate immediately to end its contribution to global warming within 30 years.
Welcoming the publication of the Committee on Climate Change’s advice today , the Aldersgate Group urges the government to press ahead with setting a net zero target. This must be underpinned by a comprehensive policy package to deliver net zero emissions and support business investment and competitiveness. Today’s report from the CCC follows the recent publication of two reports from the Aldersgate Group, setting out how innovation and business investment in ultra-low carbon technologies can be accelerated to achieve net zero emissions by 2050. 
Nick Molho, Executive Director, Aldersgate Group, said: “The CCC’s advice provides powerful analytical backing for the growing calls to update our 2050 target to deliver the Paris Agreement’s 1.5°C goal. Setting a net zero target without delay is essential to provide investment clarity for the new business models and high capital cost infrastructure required to drive down emissions. To put the UK on a credible path to net zero, the government should accelerate its efforts to meet existing carbon budgets in areas such as buildings and transport and should ensure that a net zero target is accompanied by industry-led decarbonisation roadmaps, as has been done in Sweden.”
Nick Molho added: “A net zero target could provide a significant industrial opportunity for UK businesses to lead in the development and export of ultra-low carbon goods and services. However, a policy framework to accelerate innovation and support British businesses investing in low carbon technologies and solutions is essential. This requires urgently trialling key technologies such as carbon capture and storage and hydrogen at scale, introducing market standards to drive demand for low carbon goods and provide a level playing field for businesses, and using the UK’s diplomatic network to encourage low carbon trade and the adoption of net zero targets globally.”
Peter Simpson, CEO, Anglian Water, said: ”We fully support the CCC’s recommendation to tighten the UK’s climate change target to net zero by 2050. At Anglian, we have seen first hand how ambitious carbon targets can disrupt established practice, drive innovation, and significantly reduce costs and environmental impacts. This experience has convinced us that more ambitious targets are not only essential but are also good for business. That is why the water industry has agreed to go even further and achieve net zero carbon emissions for the sector by 2030.”
Steve Waygood, Chief Responsible Investment Officer, Aviva Investors, said: “The CCC’s report makes a significant contribution, showing that a net zero economy is necessary, feasible and desirable. We urge the Government to accept the CCC’s recommendations and set out a comprehensive plan to raise the investment needed to deliver the net zero target. The forthcoming Green Finance Strategy presents a key opportunity for this and we urge the government to bring forward an ambitious package that includes fiscal and regulatory levers to ensure finance flows are consistent with a net zero economy and ensures the UK leads the world in green finance.”
Andy Wales, Chief Digital Impact and Sustainability Officer, BT Group, said: “Policymakers setting more ambitious targets will encourage the entire supply chain to make their own bold commitments and generate greater positive momentum towards a net zero future. BT is working to drive change with our own target to be net zero by 2045 but there is no doubt industry needs collaboration and policy support to realise it.”
Duncan Price, Director of Sustainability, BuroHappold, said: “BuroHappold welcomes the Committee on Climate Change recommendation that the UK government should legislate for net zero greenhouse gas emission by 2050. We know from our research for C40 Cities that clean transport, buildings and industry can deliver significant air quality, health and economic benefits. We need government to support a series of ‘no regrets’ actions including adopting ambitious energy efficiency targets for new and existing buildings and, working together with the UK construction and property industry, adopt the UK Green Building Council’s framework for net zero carbon buildings.”
Tom Delay, CEO, the Carbon Trust: “The Committee on Climate Change report on reaching net zero emissions by 2050 fundamentally makes the best in the world even better, by strengthening the ambition of the UK’s Climate Change Act. It sends an important message - it is possible, it is worthwhile and we don’t have to compromise. Crucially net zero captures the public mood in the UK which is increasingly demanding urgent action on climate change and this should help to carry the Committee’s recommendations over the line by securing the necessary political backing. The vast majority of businesses already recognise the opportunities that a net zero economy will bring and we expect them to embrace this ambitious goal."
Iain Patton, CEO, EAUC, said: “Universities and colleges are supportive of the recommendation to increase the UK’s GHG emissions cutting target to 100% by 2050. To reach net zero by 2050, it is critical the Government invests in the enabling infrastructure and skilled people required to ensure a low carbon society. Higher and Further Education is in a prime position to undertake much of the Research and Development required to achieve net zero emissions and has a big role to play in educating and upskilling young people and those already in the workforce on this agenda. Universities and colleges are working hard towards incredibly ambitious carbon reduction targets, with 80 UK institutions committed to divesting from fossil fuels already. We will continue to work with institutions to ensure they fulfil their potential on this topic.”
Nick Blyth, Policy Lead on Climate Change and Corporate Sustainability, IEMA, said: “In supporting a binding Net Zero target, IEMA believes there is a leadership and skills imperative. Innovation as a priority extends from the technical right through to leadership and collaborative skills. It is vital to equip companies and organisations with sustainability skills, in order to enable their rapid and successful transition.”
Benet Northcote, Director, Corporate Responsibility, the John Lewis Partnership, said: "It's clear that rapid action is needed to avoid global climate breakdown and the UK should lead the way with an ambitious and binding zero emissions target as recommended by the CCC, along with clear decarbonisation roadmaps. It would help businesses like ours who have already committed to net zero operations ramp up decarbonisation efforts even further and unlock investment and innovation needed to cut emissions across the board."
Andy Walker, Technical Marketing Director, Johnson Matthey, said: “There is no doubt that setting a Net Zero target raises the bar. UK plc can meet this challenge, which will also ensure the UK maintains a global leadership position in the technologies required to stabilise our climate. However, this is not just a question of waiting for new technologies to be discovered but, importantly, providing the policy framework that allows us to deploy the technologies we currently have – and at scale.”
John Bromley, Head of Clean Energy Strategy, Legal & General, said: "We welcome the recommendations of the CCC and encourage the government to adopt them. People and the economy benefit from prosperous low carbon jobs and a healthy environment while businesses and investors need policy certainty to plan and innovate. Adopting the net zero target would be an important step to meet both goals."
Mike Barry, Director of Sustainable Business, Plan A, Marks & Spencer, said: “The imperative for transformational action to build a low carbon society and economy is clear. The Committee on Climate Change’s call for a bold Net Zero 2050 target is welcome as is its detailed analysis of the UK’s potential pathway to get there. Now is the time for Government and business to respond decisively by scaling the many known solutions we have today and innovating the remaining hard to solve challenges. In doing so, we can respond to rapidly shifting societal expectations, provide global leadership and position the UK to win in a new, green global economy.”
Julian Brown, Vice President and UK Country Manager, MHI Vestas Offshore Wind, said: “Today’s recommendation by the CCC sets an ambitious, and much needed, vision for a low carbon UK economy. Quite simply, to achieve net zero by 2050, the UK will need to unleash the full power of the renewable energy sector. With MHI Vestas driving wind turbine innovation and industrial investment to help deliver at least 30 GW of offshore wind by 2030, the offshore wind industry is well-positioned to play a leading role in the drive to meet these targets.”
Matthew Wright, Managing Director, Ørsted UK, said: “The CCC report highlights that the action needed to decarbonise the UK is both achievable and affordable. As a company that has divested its fossil fuel business to invest only in renewable energy, we are convinced that we can transition to a world that runs entirely on green energy and that this transition creates a great economic opportunity for the UK.
75GW of offshore wind by 2050 is definitely achievable. The cost of offshore wind has already reduced to the point where it is comparable with conventional generation, and it’s continuing to fall. The UK has a rapidly expanding supply chain supporting the offshore wind sector, which is creating thousands of new jobs, and we are confident of attracting the tens of billions of pounds of investment required to make this a reality.”
Matthew Knight, Head of Business Development, Siemens plc, said: “Siemens UK welcomes the CCC report on net zero. Businesses need to respond to the urgency and scale of the climate challenge and Siemens is committed to make our own operations net zero by 2030. Government and politicians have an import role to play. Climate change transcends politics and we call for immediate cross-party commitment to deliver net zero emissions by 2050 in line with the CCC report.
Net zero is a big challenge and businesses need to make big investments to deliver it. Government can help by setting clear policy direction, creating the right market conditions through financial mechanisms such as carbon pricing, training and skills and setting standards through regulation to raise the bar. We are committed to work with government to make this ambitious target a reality for society and future generations.”
Steve Robertson, Chief Executive, Thames Water, said: “Climate change is perhaps the biggest challenge facing humanity and will directly impact on the provision of water and sanitation both here in the UK and the rest of the world. We recognise the need to urgently reduce greenhouse gases entering the atmosphere so to help build a better future for our customers and the environment, we’ve committed to work towards delivering net zero emissions by 2030. We continue to develop our plan on how we’ll achieve this but are proud to be stepping up our ambition and encourage others to do the same if we’re to collectively reduce the impact of climate change.”
Bevis Watts, CEO, Triodos Bank UK, said: “Now is the time for much faster action and a clear and credible plan and policy. The government must also look beyond specific climate policy and influence climate change through an ambitious Green Finance Strategy. In the Netherlands, they have a climate agreement in place mandating the financial sector to measure and reduce the carbon footprint of finance and investment. With the right political will, the banking sector is uniquely placed to lead the transition to the sustainable economy. We need disclosure rules in the UK such as those recommended by the Taskforce for Climate-related Financial Disclosures (TCFD) and efforts to account for carbon on bank balance sheets such as the Platform for Carbon Accounting Financials (PCAF).”
Frazer Mackay, UK Managing Director of Water, Energy & Industry, WSP, said: “Net Zero makes perfect long-term business sense on the basis that the cost of inaction will outweigh the cost of action. A Net Zero goal is exactly the type of aspiration that will galvanise industry to step up its efforts to decarbonise as an immediate priority. It will embolden WSP’s engineers and planners to leverage their ingenuity to devise innovative solutions to break the vicious circle between carbon emissions and economic growth.”
- ENDS -
 The UK has an existing target of at least an 80% emission reduction between now and 2050 against 1990 levels under the Climate Change Act. Following the publication of a report in October 2018 from the Intergovernmental Panel on Climate Change calling on the world economy to achieve net zero emissions by mid-century to limit global warming to 1.5C, the CCC was asked by Minister of State Rt Hon Claire Perry MP, along with the Scottish and Welsh governments and support from senior Northern Ireland officials, to review the UK’s long-term climate targets in light of the IPCC’s report. The CCC published its advice today, recommending that the UK increase the current goal under the Climate Change Act to achieve net zero emissions of greenhouse gases by 2050. The advice is available here: www.theccc.org.uk.
 The Aldersgate Group published two reports on 4th April 2019 on the business implications of achieving net zero emissions by 2050. The first report, Accelerating innovation towards net zero, from Vivid Economics and the UK Energy Research Centre (UKERC) commissioned by the Aldersgate Group, sets out key recommendations to accelerate innovation based on a review of case studies of rapid innovations. The second report, Zeroing in: capturing the opportunities from a UK net zero emission target, from the Aldersgate Group, establishes key policy measures that should accompany a UK net zero emissions target to maximise industrial opportunities for UK businesses and avoid unintended consequences. Both reports are available here.
Reacting to the Spring Statement presented to Parliament today by the Chancellor Philip Hammond, Nick Molho, Executive Director of the Aldersgate Group said: “The Chancellor’s clear commitment to reaping the opportunities of our shift to a carbon neutral economy and improving our natural environment is very welcome. For too long, Chancellor's speeches have been at odds with government commitments in these areas and businesses will welcome the signal that this is a genuine cross-government mission.
We look forward to seeing further details of the proposal to increase the proportion of green gas in the grid and the development of the Future Homes Standard. Cutting the carbon intensity of the gas grid and building new homes with low carbon heating and high energy efficiency standards are key low regret policies which will allow the government to learn by doing and avoid costly retrofits further down the line. In the same vein, the confirmation that government will mandate net gain for biodiversity will be welcomed by business and ensure new developments deliver much-needed improvements for the natural environment.”
Nick Molho added: “The announcement of a three-year spending review to be concluded at this year’s Budget will be a further opportunity for the Chancellor to put his money where his mouth is. The next twenty months are going to be crucial – both in the UK and globally – to increase ambition on climate action and tackle biodiversity decline. A spending review that supports the ongoing implementation of the Clean Growth Strategy and 25 Year Environment Plan will ensure the UK reinforces its leading role on these issues on the world stage.”
Today the Aldersgate Group publishes a new report, Shifting emissions into reverse gear , setting out key policies needed to deliver deep cuts in surface transport emissions. It argues that improving the overall efficiency of the transport system will be just as important as investing in new technologies and infrastructure and therefore calls on the government to take an integrated system approach to decarbonising transport, rather than treating each mode of transport separately.
This report will be launched at an event hosted by RELX Group from 1:00pm – 3:00pm on Monday, 11th March .
UK carbon emissions have fallen by over 42% since 1990 , thanks mainly to actions in the power sector. However, there has been relatively little overall change in the level of greenhouse gas (GHG) emissions from the transport sector over the same period, which is now the largest emitting sector of the UK economy accounting for 28% of GHG emissions . This is happening in a context where 33% of UK drivers are more dependent on their car now than a year ago .
Making substantial cuts in surface transport emissions, which accounts for the majority of domestic transport emissions , is therefore essential to delivering the UK’s climate targets cost-effectively. Decarbonising transport could also provide significant social and economic benefits for the UK, for example by tackling poor air quality, now the most significant risk to public health in the UK  and growing the manufacturing base for low and zero emission vehicles, a global market estimated to reach £1-2tn per year by 2030, and £3.6-7.6tn per year by 2050 .
Given the significant challenges faced by the UK’s automotive industry in light of recent announcements by Honda, Nissan, Ford and Jaguar Land Rover , the UK cannot afford to be left behind in the global race to design and manufacture low and zero emission vehicles.
To deliver deep cuts in surface transport emissions and maximise the environmental, social and economic opportunities from the transition to a zero carbon transport system, government policy should:
1. Establish an integrated road and rail strategy to ensure that the most environmentally and economically beneficial infrastructure projects are taken forward. This should include shifting more road freight onto the UK rail network and developing a national bus strategy.
2. Devolve long-term funding and key powers to local authorities to cut emissions from short journeys. With 72% of journeys in urban areas being under five miles , local authorities have a key role to play to cut emissions. Similar to the stable budgets given to Network Rail and Highways England, the government should devolve long-term revenue and capital funding to local authorities so they can develop their own integrated transport strategies and empower them to require new housing developments to be better connected to sustainable forms of transport. As part of this, the decline in funding to supported bus services and the development of cycling and walking networks must be urgently reversed to cut car dependence for local journeys.
3. Improve local air quality by moving the most polluting journeys outside of urban areas, through supporting the development of Urban Consolidation Centres (UCCs) to reduce inner-city freight traffic and implementing an ambitious national network of Clean Air Zones (CAZs) with common standards.
4. Grow the UK’s global manufacturing base for Low and Zero Emission Vehicles, by setting rapidly tightening CO2 emission standards for vehicles after the UK leaves the EU, guaranteeing upfront purchase grants for electric vehicles until they reach cost parity to help drive the market until the mid-2020s, and delivering widely accessible electric vehicle charging infrastructure, with a particular focus on areas where the business case is more complex such as in rural locations.
5. Provide targeted innovation support to complex parts of the transport sector where zero emission technologies are not yet deployable at scale, such as long distance journeys and Heavy Commercial Vehicles (HCVs). This should include trialling different technologies on UK roads and rail lines, such as hydrogen and renewable biomethane, and pursuing an ambitious rail electrification strategy to close the gap with the UK’s continental neighbours .
6. Use measures announced under the Resources and Waste Strategy to drive greater resource efficiency across the UK transport system. Measures such as extended producer responsibility schemes and product standards have an important role to play to incentivise the use of more resource efficient components such as long-lasting performance tyres, the re-use and reconditioning of electric vehicle batteries for second-life appliances and a much greater use of secondary materials in vehicle manufacturing.
Nick Molho, Executive Director, Aldersgate Group, said: “With emissions flatlining for several years now, government needs to fundamentally rethink its transport policy and work across departments to deliver the modern and ultra-low emission transport system the UK needs. This means taking an integrated view of the whole transport system to ensure that new transport infrastructure projects deliver the best environmental and economic outcomes, empowering local authorities to develop low-carbon transport systems, incentivising greater resource efficiency across the automotive industry and targeting innovation support to technologies that can help cut emissions in difficult areas such as heavy commercial vehicles, long-distance journeys and rail.”
Nick Molho added: “Given the significant challenges faced by the UK’s automotive industry following the announcements by Jaguar Land Rover, Ford, Nissan and Honda, the UK cannot afford to be left behind in the global race to design and manufacture zero emission vehicles. To ensure the UK is at the forefront of the shift to cleaner mobility, the government must commit to long-term financial and regulatory measures that will grow that market, such as through predictable purchase grants and tightening vehicle emission standards.”
Justin Laney, General Manager of Fleet, John Lewis Partnership, said: “Radical change is needed to decarbonise long distance heavy trucks. These vehicles are the most challenging to tackle, but also the ones that deliver the biggest benefit. Our view at the John Lewis Partnership is that biomethane is the best solution for the next 20 to 25 years, and after that electrification, whereby trucks are supplied by power from an electrified overhead line. Government has been very supportive of low carbon trials, and it is important that continues, combined with creating the right tax and fuel duty regime that provides a sound, long term business case.”
Andy Walker, Technical Marketing Director, Johnson Matthey, said: “The coming decade will see more change in the automotive sector than we have seen in the previous 100 years, and it is clear that if the UK is to meet its climate targets and deliver deep cuts in emissions, greater innovation across the transport sector will be essential. At Johnson Matthey, we are driving innovation in battery and fuel cell capability to meet the needs of an electric vehicle future. To put UK businesses at the forefront of the global race to decarbonise transport, further policy support is needed to ensure the UK remains one of the best places in the world to design and manufacture low and zero emission technologies.”
Alexander Law, Public Affairs Manager, Michelin Group, said: “It is only by decisive action that we will be able to decarbonise the transport sector, and meet the aims of the Paris Agreement. Decarbonisation requires the collaboration of all the relevant stakeholders, the four Cs: countries and cities which have the power to bring in smart regulations, companies which can find the technical solutions and civil society which pushes for change for the better. At Michelin, our purpose is to provide a better way forward for goods and services by ensuring that mobility is sustainable and resource efficient. But we cannot do this alone, the solutions will only be found collectively.”
Chris Fry, Director, Infrastructure & Regeneration, Ramboll, said: “Like squeezing a balloon, reducing emissions in one part of the transport system has tended to increase them elsewhere. Ramboll welcomes the integrated approach outlined in this new report, which will enable a step change in transport decarbonisation, unleash opportunities in the clean growth economy and help to create liveable places. It is by combining new technologies with a people-centric approach – for example in the design of Nordhaven (Copenhagen) as a carbon neutral, “five minute city” – that we can develop effective and feasible solutions to decarbonising. This makes it an incredibly exciting time to be in the sector.”
Christina Downend, Climate Change Manager, Tesco, said: "Efficient and widely accessible charging infrastructure will be key to accelerate the uptake of electric vehicles, and businesses can take a lead. At Tesco, we want to be the UK’s leading electric vehicle energy provider and make it easier for customers to switch to clean vehicles. That’s why we have committed to roll out over 2,400 charging bays across our 600 stores within the next three years. But government must also accelerate it's own ambition on this agenda, such as by guaranteeing upfront purchase grants on electric vehicles and establishing the UK as one of the best places to develop new electric vehicle technologies."
Giles Perkins, Head of Future Mobility, WSP, said: “There’s a huge opportunity to rapidly cut transport emissions since forecasts show electric cars will be cheaper to own and run than petrol and diesel in the mid 2020s, if not sooner. It’s essential that the UK has the charging infrastructure ready to go for this future, learning from leaders, like Norway, where 4 in 10 of the cars sold this January were fully electric or hydrogen-powered. The move to electric fleets requires action from local authorities, developers as well as national Government, and provides tremendous opportunity for innovation and business leadership.”
Jonathan Hampson, General Manager, Zipcar, said: “Car sharing is at an all time high and Zipcar UK, the UK’s leading car sharing network, has a rapidly growing membership of over 250,000 members and is playing a key role in changing public attitudes to private vehicle ownership. Zipcar UK is cutting emissions by reducing the UK’s dependence on private cars and bringing electric vehicles into the mainstream, with over 300 electric cars in our fleet so far.
However, to accelerate current momentum towards car sharing and meet our vision to be fully electric by 2025, we need the government to roll out efficient and widely accessible charging infrastructure and certainty that the government’s upfront purchase grants for electric vehicles will remain in place. Beyond this we need government to encourage local authorities to integrate car sharing within their local transport systems.”
 The Aldersgate Group publishes a new report today called Shifting emissions into reverse gear: priorities for decarbonising transport available at the following link from 00.01 Monday 11 March 2019 http://www.aldersgategroup.org.uk/latest#system-wide-approach-key-to-cut-transport-emissions
 This event will be held from 1.00pm – 3.00pm on Monday 11th March at RELX Group, 1-3 Strand, London, WC2N 5JR. Chaired by Joan Walley, Chair of the Aldersgate Group, the event will feature a panel with Justin Laney, General Manager - Fleet, John Lewis Partnership; Andy Walker, Technical Marketing Director, Johnson Matthey; Alexander Law, Public Affairs Manager, Michelin Tyre; Chris Fry, Director, Infrastructure & Regeneration, Ramboll; Justin Moss, Strategic Development Manager, Siemens; Christina Downend, Climate Change Manager, Tesco. Please email firstname.lastname@example.org to attend.
 BEIS (February 2018) 2017 UK Greenhouse Gas Emissions, Final Figures
 Committee on Climate Change (June 2018) Reducing UK emissions: 2018 Progress report to Parliament
 RAC (September 2018) Report on Motoring 2018: The frustrated motorist
 Cars, vans and heavy good vehicles account for 87% of domestic transport emissions. Committee on Climate Change (June 2018) Reducing UK emissions: 2018 Progress Report to Parliament
 Public Health England (14 November 2018) ‘Health matters: air pollution’ https://www.gov.uk/government/publications/health-matters-air-pollution/health-matters-air-pollution
 HM Government (July 2018) The Road to Zero: Next steps towards cleaner road transport and delivering our Industrial Strategy
 SMMT (31 January 2019) ‘UK Automotive on red alert as ‘no deal’ threat sees manufacturing and investment plummet’ https://www.smmt.co.uk/2019/01/uk-automotive-on-red-alert-as-no-deal-threat-sees-manufacturing-and-investment-plummet/
 DfT (July 2018) Future of Mobility: a call for evidence
 42% of the UK’s railway is electrified compared to 76% in the Netherlands, 71% in Italy and 61% in Spain. Institution of Mechanical Engineers (February 2018) Decarbonising Rail: Trains, energy and air quality
Reacting to the new Offshore Wind Sector Deal published today, Nick Molho, Executive Director at the Aldersgate Group, said: “We welcome the release today of the Offshore Wind Sector Deal, especially its commitment to boost the supply chain and ensure job opportunities are spread across the country, and its 2030 ambition to achieve a 40% female workforce. Other pledges, such as introducing an Offshore Energy Passport to facilitate work across offshore sectors and driving a greater focus on jobs and skills for young people, will cement offshore wind at the centre of the UK’s energy system, bringing jobs, investment and export opportunities to regions across the UK.
The government’s objective to reduce project costs in the 2020s will materialise if there is a sufficiently high and stable volume of projects in the coming decade. This requires building on the government’s commitment to hold auctions every two years and further clarifying the process, volume and exact timings of auctions as soon as possible so that the industry is clear about the opportunity ahead.”
Reacting to Secretary of State Greg Clark's speech on the Cost of Energy Review, Nick Molho, Executive Director at the Aldersgate Group said: "The Secretary of State announced some important principles today that give a better sense of the government's long-term energy policy direction. However, if the UK is to have an affordable and low carbon power system, the government's upcoming policy paper needs to tackle how cheap and mature forms of renewable energy can have a route to market, how interconnection links with the EU will continue to grow after Brexit, what the carbon price trajectory will look like in the 2020s and how large consumers of electricity can be rewarded for providing flexibility services to the grid ."
 UCL (2018) UK industrial electricity prices: competitiveness in a low carbon world http://www.aldersgategroup.org.uk/latest#removing-barriers-to-mature-renewables-key-to-lowering-industrial-electricity-prices
Reacting to the Budget presented to Parliament today by the Chancellor Philip Hammond, Nick Molho, Executive Director of the Aldersgate Group said: “Despite some positive announcements on industrial energy efficiency and plastics, today’s budget – and the way in which it was presented – did little to match the commitment to clean growth the government showed during Green GB Week. The creation of an industrial energy transformation fund is welcome and targets public funding at an essential part of the economy that needs support to cut its emissions, but it would be made even more effective if combined with measures to support a renewed roll-out of onshore renewable energy to lower power prices for industry .”
Nick Molho added: “As the red book recognises today, ‘the economy of the future will be low carbon and green’ and the UK is well positioned to compete in this global transition. It is essential that the government backs its commitment to clean growth in the next Spending Review and upcoming legislation. Priorities should include introducing new regulations and fiscal incentives to accelerate energy efficiency investments in domestic and commercial buildings, accelerating the phase out of polluting vehicles and roll out of electric vehicles, providing clear visibility to investors on carbon pricing and introducing an ambitious Environment Bill with legally binding goals that drives improvements in the natural environment.”
 UCL (2018) UK industrial electricity prices: competitiveness in a low carbon world http://www.aldersgategroup.org.uk/latest#removing-barriers-to-mature-renewables-key-to-lowering-industrial-electricity-prices
Reacting to the UK government’s announcement today that it is commissioning independent advice from the Committee on Climate Change on the setting of a net zero target, Nick Molho, Executive Director of the Aldersgate Group said: “Just a week after the publication of the IPCC report highlighting the importance of limiting temperate rises to 1.5°C, the Prime Minister and her government deserve credit for making a formal referral to the CCC to investigate how a net zero emissions target could be set in the UK. The development of such a target, which is receiving growing public and cross-party support , could provide significant supply chain growth and export opportunities for the UK if it is accompanied by a clear plan of action.” 
Nick Molho added: “In parallel with the CCC developing its advice, it is essential that the government continues progress on its Clean Growth Strategy to deliver on current climate targets. Greater policy detail is urgently needed to drive energy efficiency improvements in commercial and domestic buildings, increase the take-up of zero emission vehicles and support the growth of onshore renewable energy which is key to deliver affordable industrial power prices . Targeted innovation support will also increasingly be needed to support businesses in sectors where emission cuts are more complex to achieve such as agriculture, heavy industry and long-distance transport.”
 Bright Blue (2018) Hotting up: Strengthening the Climate Change Act ten years on
63% of UK adults when the UK to be a global leader in tackling climate change and 64% of UK adults agree the UK should aim to cut its carbon emission to zero in the next few decades. https://brightblue.org.uk/wp-content/uploads/2018/05/Hotting-up.pdf
See also Cross-party MP joint letter on net zero emissions target ahead of 2050: https://www.theclimatecoalition.org/joint-letter
 The UK cut its emissions by 43% since 1990, leading the G7, and grew its economy by over 70% in the same period. With strengths in areas such as offshore wind and electric vehicle manufacturing, energy efficient building design, green financial and legal services, and ICT solutions, UK businesses have a strong basis from which to accelerate emission cuts and be at the forefront of the development of the new clean technologies and services which the world economy will increasingly demand. See Committee on Climate Change (2018) Reducing UK emissions – 2018 Progress Report to Parliament https://www.theccc.org.uk/wp-content/uploads/2018/06/CCC-2018-Progress-Report-to-Parliament.pdf
 UCL (2018) UK industrial electricity prices: competitiveness in a low carbon world http://www.aldersgategroup.org.uk/latest#removing-barriers-to-mature-renewables-key-to-lowering-industrial-electricity-prices
Reacting to the publication today of the International Panel on Climate Change’s special report on 1.5 degrees, Nick Molho, Executive Director of the Aldersgate Group said: “This report from the world’s leading climate scientists is clear that there are compelling environmental, economic and social benefits to limiting the increase in global temperatures to 1.5 degrees as envisaged in the Paris Agreement. Whilst achieving such a target will require challenging emission cuts across the economy, important progress has already been made and an increase in ambition would unlock a significant innovation and investment opportunity.
The UK cut its emissions by 43% since 1990, leading the G7, and grew its economy by over 70% in the same period.  With strengths in areas such as offshore wind and electric vehicle manufacturing, energy efficient building design and green financial and legal services, UK businesses have a strong basis from which to accelerate emission cuts and be at the forefront of the development of the new clean technologies and services which the world economy will increasingly demand.”
Nick Molho added: “Major economies now need to increase their existing emissions reduction pledges under the Paris Agreement and adopt net zero emissions targets in line with the conclusions of the IPCC report. The Prime Minister made the right call when she announced at the UN General Assembly that the UK will be joining the Carbon Neutrality Coalition, especially as this follows growing public backing  and cross-party support for a net zero target. 
The government must now begin work towards legislating for such a target in the UK, by rapidly acting on its commitment to seek the Committee on Climate Change’s advice on how the UK can ensure its climate targets are aligned with the 1.5 degrees goal. Backed by detailed policies, such a target would accelerate investment in ultra-low emission goods, services and infrastructure and support the innovation needed to tackle emission cuts in more challenging sectors such as land management, agriculture, long-distance transport and heavy industry.”
Steve Waygood, Chief Responsible Investment Officer, Aviva Investors, said: "Aviva Investors understands the business imperative of tackling climate change. The Economist Intelligence Unit estimated that, left unabated, climate change will cost the global economy $43tn in today’s prices. This is not a risk we can afford to take.
Keeping global temperature increases to 1.5 degrees will help safeguard our investment portfolios and protect our customers savings. The long term negative financial consequences of climate change are far, far greater than the short term financial risks of transitioning to the Paris Agreement. Today’s report reiterates the need for policymakers to accelerate action to reduce carbon emissions and meet the agreed aims of the Paris Agreement.”
Gabrielle Ginér, Head of Environmental Sustainability, BT, said: “Recognising the need to limit global warming to 1.5 degrees, BT set a science-based target in line with a 1.5 degree trajectory in September 2017. Our target is to reduce the carbon emissions intensity of our operations by 87% by 2030 against a 2016/17 baseline. We welcome this report by the IPCC and hope that other organisations and policymakers will follow suit in setting 1.5 degree targets.”
Pia Heidenmark Cook, Chief Sustainability Officer, IKEA Group, said: “This latest IPCC report on climate change reinforces the urgent need for action from every part of society. The science and facts are clear and that is why IKEA has set an ambition to be climate positive by 2030, reducing more greenhouse gas emissions than what the IKEA value chain emits.
Setting stretching science based targets is essential for achieving this. We will contribute by decarbonising our energy use including electricity and heating, using zero-emissions deliveries, moving to a circular business model and enabling millions of customers and co-workers to take climate action in their everyday lives.
We firmly believe that together with other businesses joining the climate action movement, we can help to create a positive future and avoid the worst impacts of climate change.”
Benet Northcote, Director, Corporate Responsibility, John Lewis Partnership, said: “The Paris Accord was a great moment of hope as countries came together to tackle the challenge of climate change. Today's IPCC report confirms that it is possible to achieve what we need to, but only if everyone responds with speed and ambition. It is not too late, but there can be no delay.
Fortunately, we know what is needed and I am pleased that the John Lewis Partnership is responding in our operations and through our supply chains. We have already cut our operational emission intensity by nearly 70% since 2010 and over the coming months we will be unveiling the next stage in our plans to reduce our environmental impact and emissions even further. Waitrose & Partners continues to lead in its commitment to truly sustainable agriculture, while John Lewis & Partners is pioneering circular economy solutions that will lessen humanity's impact on the environment."
Meryam Omi, Head of Sustainability and Responsible Investment Strategy, Legal & General Investment Management, said: “Climate science is unequivocal in showing the benefits of action to finance a low-carbon future. But we have to act now. From large investors to individuals who choose their own pension fund, our option must be the one that makes sense financially and for the planet.”
Mike Barry, Director of Sustainable Business, Plan A, Marks & Spencer, said: “The IPCC continues to provide the sound science we need to make profound decisions about how we run the economy globally. It’s a powerful reminder that business as usual is unsustainable and even climate action 1.0, as inspired by COP21, is insufficient. We need to take bolder, faster action and shift our mind-set to one of embracing the inevitability and opportunity of the low carbon economy.”
Nicolas Beaumont, Senior Vice President Sustainable Development and Mobility, Michelin Group, said: “Michelin is firmly committed to the full implementation of the Paris Agreement and the subsequent necessity to limit the increase of temperatures to 1.5 degrees. Fighting climate change is essential and not an option and it is only by working together that we will be able to face this challenge. That’s why Michelin has set up its annual global summit Movin’On which aims to go from ambition to action while bringing together all stakeholders from the transport sector to invent the mobility of the future.
We welcome any initiative by the UK government to decarbonise the transport sector, by encouraging electric and hydrogen powertrains, and by ensuring the effective pricing of carbon. This will help us ensure we continue to bring to market the most effective products and services, through our continuous R&D efforts and by reducing the CO2 impact of our offerings. Now more than ever, our aim is to ensure that transport is safe, green, efficient and accessible.”
Sarah Handley, Carbon Neutral Programme Manager, Siemens plc, said: "By providing innovative technologies, Siemens is a leading partner for decarbonisation for our customers and society. We welcome the IPCC’s report on the benefits of limiting global warming to 1.5 degrees which supports the urgency of delivering the Paris Agreement goals. Siemens has set targets to achieve net zero-carbon status by 2030. We urge the government to review the UK Climate targets to help shape the low carbon economy."
Danielle Lane, UK Country Manager, Vattenfall, said: “Vattenfall strongly welcomes the IPCC’s new special report on the Paris Agreement. We are seriously concerned that the combined effect of the pledges for reduced GHG emissions in national plans to date may cause the temperature to continue to rise above 3 °C. It is vital that governments take heed of the IPCC report and let it guide them when updating their respective pledges under the Paris Agreement to ensure that these conform with global objectives.”
David Symons, UK Director of Sustainability, WSP, said: “Ambitious carbon free strategies drive business innovation and growth. That’s why the UK must continue to be a leader and why we’re challenging all our colleagues to design Future Ready buildings and transport networks – ready for the future as well as today. And business has to lead too. At WSP we’ve set a target to be carbon neutral by 2025 – because we want to do the right thing and because our colleagues want us to lead.”
 Committee on Climate Change (2018) Reducing UK emissions – 2018 Progress Report to Parliament https://www.theccc.org.uk/wp-content/uploads/2018/06/CCC-2018-Progress-Report-to-Parliament.pdf
 Bright Blue (2018) Hotting up: Strengthening the Climate Change Act ten years on
63% of UK adults when the UK to be a global leader in tackling climate change and 64% of UK adults agree the UK should aim to cut its carbon emission to zero in the next few decades. https://brightblue.org.uk/wp-content/uploads/2018/05/Hotting-up.pdf
 Cross-party MP joint letter on net zero emissions target ahead of 2050: https://www.theclimatecoalition.org/joint-letter
UK expertise to help developing countries tackle climate change and move to cleaner energy: https://www.gov.uk/government/news/uk-expertise-to-help-developing-countries-tackle-climate-change-and-move-to-cleaner-energy?utm_source=116d819e-3284-4ce7-ba27-0f20242c25f3&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
Labour announces zero net greenhouse gas emissions by 2050: http://www.itv.com/news/2018-09-24/labour-to-commit-to-zero-net-greenhouse-gas-emissions-by-2050/
Coinciding with the global Zero Emission Vehicles Summit held in Birmingham today, the Aldersgate Group launches a new briefing, Driving ambition: accelerating the transition to zero emission vehicles,  setting out key business recommendations for rapidly cutting road transport emissions in the UK. The Group argues that to significantly cut emissions in line with climate targets and put the UK at the forefront of the zero emission vehicle industry, government must provide much greater clarity on regulations, fiscal incentives and innovation support to drive manufacturing and demand.
Transport is now the largest-emitting sector of the UK economy, accounting for 28% of UK greenhouse gas emissions in 2017, with road transport the most significant form of emissions within the sector. Hitting the UK’s current climate targets requires the transport sector to cut emissions by 46% by 2030.  While the need to decarbonise is urgent, the opportunities of doing so for the UK are also great. The global market for low emission vehicles could be worth £1-2tn per year by 2030, and £3.6-7.6tn per year by 2050  and significantly cutting emissions from road transport would deliver air quality and health benefits. The UK is well placed to capture a significant part of this low emission vehicle global market, with just one Nissan plant in Sunderland producing a fifth of all electric vehicles sold in Europe in 2016. 
To seize this economic and environmental opportunity, the Aldersgate Group urges the government to:
Nick Molho, Executive Director of the Aldersgate Group said: “Significantly cutting emissions from road transport is both an urgent environmental imperative and a unique economic opportunity for the UK. We will only get there however if the government provides much greater clarity on how vehicle emissions need to reduce in the 2020s, provides stable grant and tax incentives to drive consumer demand and stands ready to take the necessary measures to ensure that manufacturers play their part in meeting the public and business demand for clean vehicles.”
“If we are to fully decarbonise transport by 2050, technological changes are only part of the picture. The government also needs to plan ahead and consider the shifts in travel patterns and infrastructure needs that are required to improve the overall efficiency of the transport system, from passenger travel to freight transport.”
The Aldersgate Group will be exploring some of wider issues involved in decarbonising the transport sector in a comprehensive report early next year. This will include planning long-term improvements to the accessibility, affordability and reliability of public transport (including working with cities and local authorities), encouraging a shift from road freight to rail, preparing for connected and autonomous vehicles, as well as facilitating disruptor businesses such as car sharing services.
 The briefing can be found here.
 Committee on Climate Change Progress report to Parliament 2018: https://www.theccc.org.uk/wp-content/uploads/2018/06/CCC-2018-Progress-Report-to-Parliament.pdf
 Road to Zero (2018): https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/724391/road-to-zero.pdf
 Green Alliance: How the UK can lead the electric vehicle revolution (2018)
 Bloomberg New Economic Forecast: Electric Vehicle Outlook 2018