A new Office for Net Zero Delivery

105.  Net zero requires strong leadership and a joined-up approach. Many stakeholders commented on the need for coordinated action across Government to deliver net zero:

"Net zero requires an all-of-government effort to drive increased and well-targeted investments across innovation, infrastructure and skills. Central coordination and oversight of the transition can ensure that every government department is doing its fair share towards net zero while preventing any policies that would unintentionally undermine the transition from being put forward" - LSE118

"A lack of joined-up policy making has often undermined cross-government ambitions. In 2020 we identified policy incoherence as a key barrier to progress on climate change: progress on electric vehicles, for instance, has often been undermined by unsupportive tax policies and stop-start subsidies, progress on decarbonising homes by weak building standards and lack of investment in energy efficiency" - Institute for Government119

106.  Some of the largest decarbonisation challenges are shared across different parts of Government. These include decarbonising housing (DLUHC and BEIS), developing the green economy (BEIS, DIT, HMT, DfE and others), and ensuring land is used in a way that enables decarbonisation (BEIS, Defra, and others). In all cases, the role of HM Treasury is crucial for determining the tax and spend levers used to deliver on these objectives - and in many cases some or all of the policy responsibility is devolved.

107.  The interactions between different policies related to net zero are often highly complicated. These include trade-offs on land use, for example between tree-planting and biomass production, reforming the planning system, developing the electricity grid, and supporting the public through the net zero transition. The Review has considered elsewhere in this report options for improving cross-Government decision-making on planning and land-use.

108.  A 'systems' approach has been widely recommended to the Review as a tool for managing these interactions. In 2020, the Prime Minister's Council for Science and Technology wrote to the Government stating:

"We believe that a rigorous systems approach will reveal the effects that policy decisions in all areas of government will have on delivery of net zero, enabling recommended that the Government strengthens the central oversight of net zero - which currently rests with BEIS decision-makers to understand how different policies interact and influence the transition of the whole economy towards net zero. It will also enable government to understand the interaction between mitigation, adaptation and resilience, including the need to protect biodiversity and wider sustainability initiatives." - Council for Science and Technology120

109.  The complexity of a whole economy transition, underpinned by common energy infrastructure and influenced by cross-cutting enablers like our planning system, requires joined-up thinking across different levels of decision-making. The application of systems thinking, which recognises these interactions and their complexity, must be baked into policy decisions and the design of net zero programmes and funding schemes. This should include forums set up to bring different perspectives together at the early stage of development of new initiatives.

110.  Net zero requires ongoing work to ensure the right investment landscape, as described throughout this report. As well as the other points raised elsewhere, we have heard from stakeholders of challenges accessing the right people and departments in government to discuss investment and business needs. Schemes are cross-cutting and firms often have cross-cutting interests that do not sit within any single department. It is therefore important that there is a clear point of contact for net zero-related businesses looking to invest in the UK and a clear strategic view across the investment landscape.

111.  We recommend the Government establish a new 'Office for Net Zero Delivery' to ensure that the cross-departmental priorities for net zero are properly managed. The Office for Net Zero Delivery should:

•  Have joint ministerial oversight from BEIS and Cabinet Office;

•  Take overall ownership of the delivery of net zero - including holding individual departments to account for their delivery;

•  Work with all government actors to bring further net zero-enabled investment by improving the business environment and addressing barriers to investment for interested foreign and domestic investors, and companies wishing to export internationally;

•  Manage cross-cutting risks to delivery and share best-practice and common insights across different government delivery activity;

•  Manage the strategic relationship between the UK Government and Devolved Administrations (including ensuring regular net zero ministerial meetings);

•  Own the delivery of priorities that sit outside any individual government department's remit - working in partnership with individual departments but ultimately being responsible;

•  Advise government internally on best delivery practice for net zero programmes - working in partnership with the Infrastructure and Projects Authority, Climate Change Committee, and National Audit Office; and

•  Identify lessons learned from attempts to deliver net zero activity - with a focus on open engagement with industry and devolved and local delivery partners.

112.  Good organisation is not a replacement for strong political leadership on net zero - but the evidence presented to the Review suggests that the specific remit outlined above would materially plug an important gap in the UK's existing armoury and unblock the economic opportunity described elsewhere.