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Mission zero: key takeaways

Chris Skidmore MP has completed his independent review into net zero, calling for faster action from government to seize the opportunities of green growth.

01 Feb 2023, 3 min read

The Review was the largest government stakeholder exercise ever conducted into net zero, with 1,800 responses from businesses across the low carbon economy, civil society, and academics. The CBI has welcomed the review, seeing it as aligned with our own position that net zero is a vital lever for economic growth, and recognising many of our own recommendations for how the UK can accelerate green growth.

Three key takeaways:

  1. The Skidmore Review has set out a clear and detailed case for the size of the economic opportunity of net zero, and the need to accelerate investment to avoid losing our competitive edge.
    1. The final document finds that “net zero is the economic opportunity of the 21st century”, with potential global market opportunity of £1 trillion by 2030 for British business.
    2. There are some areas the UK is particularly well positioned to take advantage of – offshore wind, carbon capture and storage (CCUS), and green finance in particular.
    3. However, the review presses that the UK is losing ground as other countries push on more aggressively and we need to act quickly to fully realise the opportunity. Repeatedly namechecked throughout the report was the US’ Inflation Reduction Act and the EU’s Fit for 55, although it recognises that channelling huge sums of public money is not the only way to gain market share in green technologies.

  1. The review identifies areas of reform to ensure a more cost effective and efficient transition.
    1. The impact that consistent delays and policy uncertainty are having on investor confidence are consistently highlighted throughout – e.g. streamlining planning decisions for offshore wind. To begin addressing the impact of these delays, the report set out 25 of the recommendations that need to be delivered by 2025 (20 by 2025), but also emphasises the simple need to deliver on what has already been committed – e.g. business models or key consultations.
    2. A lack of clear long term policy signals and short termism in budget setting. To this end, a key recommendation of the report is to consider funding commitments for key technologies (like CCUS) extending beyond this parliament to 2030 at the next Spending Review. Roadmaps and interim targets for key technologies including hydrogen, solar, and onshore wind are also recommended to give clearer investor signals.
    3. The urgent need for reforms to the planning system to enable a more rapid and strategic rollout of renewable and low carbon technologies.

  1. Clear themes emerge:
    1. A desire for more integrated thinking and better cross government coordination
    2. The empowerment of regions and communities, with the argument that each community will have a different path to net zero which local leaders are best placed to understand and shape.
    3. The issues around short-termism in budget setting, and the need for a more strategic approach to attract private finance.

Next steps on Net Zero review

The CBI remains closely engaged with the government team who are working on the government response to the Review and will continue to feed in the cross-sector perspective of business at the heart of the net zero transition.

Please get in touch with Charley Roberts if you have any views or questions concerning the recommendations of the report.