21. The private sector is critical to the net zero transition. Their investment and innovation will bring low carbon technology to the mass market. They will drive many of the benefits we will all experience from net zero, not least economic growth.
22. The UK economy is transitioning towards net zero - with businesses decarbonising and capturing new opportunities. But the Review has heard from the hundreds of businesses consulted that more is needed. In many cases, cross-cutting actions is required - on skills, support for small and medium businesses, and providing the right investment environment. The Review recommends:
• Reviewing incentives for investment: Review how HMT incentivises investment in decarbonisation, including via the tax system and capital allowances
• Protecting industries from environmental undercutting: Progress with the consultation on carbon leakage measures and speed up decision-making to enable Government to implement effective future carbon leakage mitigations from 2026
• Providing a forward look on the ETS: To provide businesses with certainty and increase the incentives to invest in new, green technologies, the government should work within the UK ETS Authority to develop a pathway for the UK ETS until 2040
• Building the skills needed for the transition: Drive forward delivery of the Green Jobs Taskforce recommendations and the commitments from the Net Zero Strategy, reporting regularly on progress starting by mid-2023
• Helping SMEs upskill: Launch a 'Help to Grow Green' campaign, offering information resources and vouchers for SMEs to plan and invest in the transition
23. A more resource efficient economy can drive down costs for businesses and individuals, create new jobs, and reduce exposure to rising commodity prices. The Review recommends a mission to kickstart transition to a circular economy through a joint taskforce on circular business models, working to end the export of plastic waste, and delivery of planned waste reforms.