25 key actions for 2025

29.  Tackling the biggest challenges will require government and industry work in partnership, over the long term, bringing about a new economy. This will bring green British jobs, and an economy that is solving global challenges and capturing opportunities to export our technologies and expertise. To go further, faster, the Review calls for action on our key 25 for 2025 recommendations:

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Objective

Recommendation

1

Cleaner, greener homes

Provide certainty by 2024 on the new and replacement gas boiler phase out date to drive industry and investor confidence. The Review recommends bringing the proposed date of 2035 forward and legislating for 2033.

Set a legislative target for gas free homes and appliances by the same date, to contribute to a gas free grid in future.

Legislate for all homes sold by 2033 to also have an EPC rating of C or above, with exclusions around certain properties (e.g. listed properties, on grounds of affordability). Government should mandate landlords to include 'average bill cost' alongside EPC (and possible NZPC) rating, when letting out a property. This will help renters understand what costs to expect, while also helping to put a premium on energy efficient homes.

2

Cleaner, greener homes

Bring forward all consultations and work to mandate the Future Homes Standard by 2025 to prevent further delays by ensuring standard applies to all developments. This should include a consultation on mandating new homes to be built with solar and deliver the Net Zero Homes Standard, ensuring that the planning system is flexible enough to enable this.

3

Non-domestic energy efficiency

Legislate by 2025 the minimum energy efficiency rating to EPC B for all non-domestic buildings, both rented and owned, by 2030.

Legislate for EPC B rating for all new non-domestic buildings from 2025.

4

Stable environment for business to plan and invest

Conduct and publish, before Autumn 2023, a review of how we should change regulation for emerging net zero technologies to enable their rapid and safe introduction, to support the net zero transition and boost growth.

5

Stable environment for business to plan and invest

By the end of 2023 HMT should review how policy incentivises investment in decarbonisation, including via the tax system and capital allowances.

6

Stable environment for business to plan and invest

Through their update to the Green Finance Strategy, BEIS and HMT should set out a clear, robust and ambitious approach to disclosure, standard setting, and scaling up green finance - including how it will meet existing commitments to implement Sustainable Disclosure Requirements across the economy; how it will provide a clear, long-term plan for attracting capital to meet net zero ambitions, and how to maintain the UK's position as the leading green finance hub internationally and metrics for success.

7

Stable environment for business to plan and invest

new forum to coordinate across all regulators on the signals they are sending to businesses and investors across sectors about the net zero transition - including Ofwat, Ofgem, Environment Agency, Competition and Markets Authority, FCA, and the North Sea Transition Authority.

8

Long term funding certainty

At the next Spending Review, review options for providing longer-term certainty to a small number of major priorities for net zero - where we know that long-term policy commitment will be essential for success and provide long-term opportunities to save money.

9

Stable environment for business to plan and invest

Publish an overarching financing strategy covering how existing and future government spending, policies, and regulation will scale up private finance to deliver the UK's net zero enabled growth and energy security ambitions. This should include setting out the role of UKIB, BBB, BII, and IPA and UKEF in the transition.

10

CCUS

In 2023, government must act quickly to re-envisage and implement a clear CCUS roadmap, showing the plan beyond 2030. As part of the roadmap, government should take a pragmatic approach to cluster selection. This means allowing the most advanced clusters to progress more quickly.

11

Accelerating renewables

Set up taskforce and deployment roadmaps in 2023 for solar to reach up to 70GW by 2035 and onshore wind to reach required deployment levels for 2035 net zero grid.

12

Hydrogen

By the end of 2023, develop and implement an ambitious and pragmatic '10 year' delivery roadmap for the scaling up of hydrogen production. Government should deliver hydrogen business models as soon as legislation allows and confirm the long-term funding envelope available for hydrogen revenue support, to incentivise timely investment.

13

Nuclear

Implement reforms set out in the British Energy Security Strategy to double down on achieving UK's nuclear baseload requirement:

a.  Expedite the set-up of Great British Nuclear in early 2023, ensuring required funding and skills are in place;

b.  Government and GBN to set out clear roadmap in 2023 for reaching final investment decision in the next Parliament. Government to ensure funding is in place. As part of the roadmap, government should assess the possibility to increase the current ambitions supporting the development of supply chain to service a fleet of projects;

c.  Roadmap to set out clear pathways for different nuclear technologies (including small modular reactors) and the selection process. This should consider how to use programmatic approach to deliver further cost reductions in a competitive environment;

d.  Government to deliver on siting strategy by 2024.

14

Empowering consumers

Ofgem should maintain focus on a timely implementation of its market-wide half-hourly settlement.

15

Transport

Swift delivery of ZEV mandate to apply from 2024 while maintaining regulations and funding to support EV/ZEV uptake and continuing to drive emission reductions from internal combustion engines.

16

Food, agriculture and nature

Publish a Land Use framework as soon as possible, and by mid-2023.

17

Circular Economy

Launch a task force to work jointly with industry to identify barriers and enablers and develop sector-specific circular economy business models for priority sectors. This should have representation from BEIS, Defra, DLUHC, HMT and DIT, and include the role of Extended Producer Responsibility in promoting reuse, repair, remanufacturing, and rental alongside recycling, in line with the powers under the Environment Act 2021.

18

Oil and Gas

Publish an offshore industries integrated strategy by the end of 2024 which should include roles and responsibilities for electrification of oil and gas infrastructure, how the planning and consenting regime will operate, a plan for how the system will be regulated, timetables and sequencing for the growth and construction of infrastructure, and a skills and supply chain plan for growth of the integrated industries.

19

Oil and Gas

Accelerate the end to routine flaring from 2030 to 2025.

20

Local and regional

Fully back at least one Trailblazer Net Zero City, Local Authority and Community, with the aim for these places to reach net zero by 2030.

21

Local and regional

Reform the local planning system and the National Planning Policy Framework now. Have a clearer vision on net zero with the intention to introduce a net zero test, give clarity on when local areas can exceed national standards, give guidance on LAEP, encourage greater use of spatial planning and the creation of Net Zero Neighbourhood plans, and set out a framework for community benefits.

22

Individuals

Publish a public engagement plan for England by 2023, to ramp up public engagement on net zero.

23

International

Conduct a strategic review of the UK's international climate leadership and ensure the 2030 Strategic Framework on Climate and Nature provides practical direction for the UK's international climate and nature leadership.

24

Carbon Markets

By 2024, work within the UK ETS Authority to develop a pathway for the UK ETS until 2040. This pathway should address:

a.  Set out a vision on the future design and operation of the ETS;

b.  Set out a timeline for expanding the coverage to the rest of the UK economy, as well as sectors consulted on including maritime and waste;

c.  Address inclusion of GGRs to incentivise early investment in new technologies and potentially nature-based solutions;

d.  Provide reassurance to businesses around how the Government will mitigate the risk of carbon leakage as a result of expanding the ETS.

25

R&D

By Autumn 2023, create a roadmap which details decision points for developing and deploying R&D and technologies that are critical for enabling the net zero pathway to 2050.