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  • CBI responds to the Review of Net Zero

CBI responds to the Review of Net Zero

The CBI welcomed the opportunity to highlight business commitment and the need for strong government leadership in the government’s approach to delivery of its net zero target.

08 Nov 2022, 3 min read

The review sought views from across the full spectrum of stakeholders in the net zero transition, with specific questions for consumers alongside business. The CBI focused on the perspective of business but sought to centre the need for decarbonisation that focuses on the needs of the changing society during the transition.  The full government Call for Evidence can be read here.

Overview of the CBI’s response

The CBI used the review to reiterate the strength of business commitment to the net zero transition, and the readiness of the business community to deliver on addressing the challenges and meeting the opportunities of decarbonisation. Delivering net zero in the right way can open up new global markets, deliver new job opportunities, and spur increased investment, innovation, and regional growth. The new context that business finds itself in, post covid-19 pandemic and the war in Ukraine giving rise to a global energy crisis, has by no means shaken business commitment to the net zero transition. Instead, the message we put forth that we consistently hear from business is that this only affirms the imperative of decarbonising, and the need to move faster than ever before.

The CBI’s response highlighted areas where government action can ensure the UK takes full advantage of the green growth opportunities on the route to net zero. We emphasised that although the UK currently is competitive as a green market due to the efficiency of our legislative and institutional frameworks at driving private investment into the transition, the UK needs to move fast to capitalise on this position. The pace of delivery on key green technologies is currently not matching demand, risking investor confidence.

We therefore highlighted decisive government actions that can enable a private sector-led green transition, delivering growth and opportunity for all.

In order to capture the green growth opportunity, the following core principles should be adhered to:

  1. Deliver the needed public investment and policy levers to enable the growth of green markets.
  2. Support businesses and households to weather the current energy crisis.
  3. Make the UK the global financial centre for green finance to create an environment that attracts green investment in a credible and structured manner
  4. Ensure the UK workforce is equipped with the skills needed to lead on the transition.
  5. Use trade and international investment as a tool to spur the net zero transition, while ensuring the development of new green export markets for UK business to explore.
  6. Deliver a just transition to net zero.
  7. Green the tax system.
  8. Work to address the risk of carbon leakage and an imbalanced global playing field.
  9. Economic and environmental regulators should be given a clear remit to contribute and report towards achieving the UK’s net zero target.
  10. Continue to pursue an ambitious leadership position on climate and nature.

See the CBI’s full response here.

Next steps on Net Zero review

The CBI remains closely engaged with the BEIS team conducting the review, and will continue to feed in the cross-sector perspective of business at the heart of the net zero transition. The review will report in December 2022, and the CBI will remain engaged in the delivery of any outcomes of the report.