The net zero growth plan outlines priorities for achieving net zero

The net zero growth plan (NZGP) includes strategies to switch from decades of reliance on imported fossil fuels to less expensive, cleaner domestic energy sources. The UK government outlines their goals of using new nuclear reactors, renewable energy sources including wind and solar, hydrogen, as well as carbon capture, use, and storage (CCUS). The strategy emphasises how it considers it important to take into account the role that UK oil and gas will continue to play in the transition. The net zero growth plan's primary goal is to strengthen the UK's energy security, safeguard it from erratic global energy markets, and support the UK's clean energy transition so that it achieves net zero by 2050.[i]

The NZGP outlined a three-pronged approach to achieve its objectives.

• Providing a clean, secure energy supply- A critical step towards delivering cheaper, cleaner domestic energy and resolving our underlying vulnerability to foreign fossil fuel costs is the transition to a power system that largely relies on low-carbon technologies. In pursuit of this, the NZGP outlines the intentions of the UK government to increase nuclear, solar and wind supplies as well as hydrogen and CCUS innovation. The plan also highlights the need for power grid upgrades and planning legislation reforms.[ii]
• Addressing demand by increasing efficiency for homes and businesses- The low-carbon energy system depends on a considerable decline in overall energy consumption, and improving efficiency will help reduce costs. This entails making homes and businesses far more energy efficient through the use of clean heating technology, improved energy management, and financial investments in such measures. By March 2026, the Great British Insulation Scheme, a new Energy Company Obligation programme introduced by the NZGP, will invest an additional £1 billion in energy efficiency improvements, including loft and cavity wall insulation. The plan also reiterates support for heat networks and heat pumps as well as increasing financial support for them.[iii]
• Supporting the rest of the economy through the transition- Net zero will have to be implemented throughout the rest of the economy. Buildings, industry, transportation, and agriculture can all reduce their carbon footprints with the help of a low-carbon power sector and more electrification. However, some of these similar industries might be more difficult to electrify, necessitating alternative decarbonisation strategies. Increasing industry assistance through the Industrial Energy Transformation Fund (IETF), which is intended to assist companies with high energy use in reducing their energy costs and carbon emissions by investing in energy-efficient and low-carbon technologies.[iv] The IETF will now receive a total of £500 million across all stages, with an increase of £185 million announced by the NZGP for Phase 3. New employment that could need new skills will be created due to the expansion of green industries. The NZGP announces the creation of a Net Zero and Nature Workforce Action Plan in 2024 to support this change and assist individuals in seizing the possibilities the transition will bring. The 2023 Green Finance Strategy, which outlines how the UK will inspire the financial services industry to meet our ambitious objectives, is also announced in the NZGP. The Nature Markets Framework, which outlines the government's strategy for fostering and accelerating the expansion of nature markets, will also be released concurrently. The NZGP also doubles down on ambitions surrounding electric vehicles and the decarbonisation of aviation.[v]

Reactions to the NZGP

Carbon Brief has called the UK’s announcement of its new net zero policy priorities chaotic. According to Carbon Brief, the bundle contains 44 papers totalling 2,840 pages. A "carbon budget delivery plan" included in the package demonstrates that the UK is not on pace to meet its international climate commitment for 2030 under the Paris Agreement. This document, which formally replies to a 2022 High Court decision finding the UK's net-zero strategy unconstitutional, even while it also demonstrates the UK is falling short of its legally mandated sixth carbon budget, is unlikely to fend off the prospect of a fresh legal challenge, according to Carbon Brief.[vi]

Carbon Brief’s reaction also points out that the UK government's "climate compatibility checkpoint," developed in 2021 to ensure that new licences would only be issued if they were in line with the UK's net-zero aim, is not included in the Energy Security Plan. Scientists and environmentalists at the time questioned if this was even conceivable. In spite of a letter to Rishi Sunak, signed by more than 700 UK academics, including climate scientists Prof. Tim Osborn and Prof. Emily Shuckburgh, pleading with him to stop giving new oil and gas licenses, more fossil fuel expansion has occurred. Similar to the UK, many other nations have made commitments to stop awarding new oil and gas licences in order to combat climate change, including France, Ireland, and Denmark.[vii]

Political opponents in the UK have criticised the announcement saying that it simply restates current green policy. Labour's shadow climate secretary Ed Miliband said:

"The government's 'green day' turns out to be a weak and feeble Groundhog Day of re-announcements, reheated policy, and no new investment." Green Party MP Caroline Lucas said: "The greenest thing about this is the recycling of already announced ideas."[viii]

More positive reactions have been seen to the developments put forward with regard to the Green Finance Strategy, which outlined how the government will support green financing for nature-based solutions, including peatland restoration and tree planting, while also assisting farmers in gaining access to new private sector revenue sources. By 2027, the government wants to have raised at least £500 million in private funds in England, with the goal of increasing that amount to more than $1 billion by 2030.[ix]

Alan Lovell, Chair of the Environment Agency, said:

“The appetite to invest in nature exists, and the Green Finance Strategy and the Nature Markets Framework will help unlock that potential and develop markets for a greener UK. The Environment Agency is working with the government to support private sector investment in climate adaptation and nature recovery, including through the Natural Environment Investment Readiness Fund. Financing work like nature-based flood alleviation schemes will help us reduce the economic costs of climate impacts in the coming decades.”[x]

References

[i] UK Government- Powering up Britain

[ii] Ibid

[iii] Ibid

[iv] UK Government- Industrial Energy Transformation Fund (IETF) Phase 2: Spring 2022 (closed to applications)

[v] Ibid

[vi] Carbon Brief- In-depth Q&A: The UK’s ‘green day’ avalanche of climate and energy announcements

[vii] Ibid

[viii] BBC- New UK plan to reach net zero goal faces criticism

[ix] UK Government- Green Finance Boost for Nature in UK

[x] Ibid