Industry responds to Prime Ministers Net Zero policy announcement

1 What did the Prime Minister say ?
2 Key changes in brief
3 Responses from the construction industry
4 Related articles on Designing Buildings

[edit] What did the Prime Minister say ?

In a speech on the 20th of September Prime Minister Rishi Sunak announced changes to the government’s Net Zero strategy.

“I will set out a series of long term decisions to deliver that change and that starts today with the new approach to one of the biggest challenges we face - climate change. No one can watch the floods in Libya or the extreme heat in Europe this summer and doubt that it is real and happening we must reduce our emissions."

"And when I look at our economic future I see huge opportunities in green industry the change in our economy is as profound as the industrial revolution and I'm confident that we can lead the world now as we did then so we'll have no truck with anyone saying we lack ambition. But there's nothing ambitious about simply asserting a goal for a short term headline, without being honest with the public about the tough choices and sacrifices involved. And without any meaningful democratic debate about how we get there. The climate change committee have rightly said you don't reach net zero simply by wishing it."

"Yet that's precisely what previous governments have done both labour and conservative, no one in Westminster politics has yet had the courage to look people in the eye and explain what's really involved. That's wrong and it changes now. The plans made on your behalf assume this country will take an extraordinary series of steps that will fundamentally change our lives: A ban on buying new boilers even if your home will never ever be suitable for a heat pump. A ban that takes effect in just three years for those off the gas grid and mandatory home upgrades for property owners in just two years time. There have even been proposals for taxes on eating meat. New taxes on flying, compulsory car sharing if you drive to work and a government dictat to sort your rubbish into seven different bins."

"Now I believe deeply that when you ask most people about climate change they want to do the right thing they're even prepared to make sacrifices but it cannot be right for Westminster to impose such significant costs on working people especially those who are already struggling to make ends meet and to interfere so much in people's way of life without a properly informed national debate. That's especially true because we're so far ahead of every other country in the world . We've had the fastest reduction in greenhouse gas emissions in the G7, down almost 50% since 1990 France 22% The US no change at all China up by 300%. And when our share of global emissions is less than 1%, how can it be right that British citizens are now being told to sacrifice even more than others, because the risk here for those of us who care about reaching net zero as I do is simple."

"If we continue down this path we risk losing the consent of the British people and the resulting backlash would not just be against specific policies but against the wider mission itself meaning we might never achieve our goal that's why we have to do things differently we need sensible green leadership it won't be easy and it will require a wholly new kind of politics a politics that is transparent and the space for a better more honest debate about how we secure the country's long term interests so how do we do that what is our new approach to achieving net zero."

"We'll first we need to change the debate. We're stuck between two extremes. Those who want to abandon net zero altogether because the costs are too high the burdens too great or in some cases they don't accept the overwhelming evidence for climate change at all. And then there are others who argue with an ideological zeal we must move even faster and go even further, no matter the cost or disruption to people's lives and regardless of how much quicker we're already moving than any other country both extremes are wrong.”

[edit] Key changes in brief

Cars: New cars with combustion engines were due to be banned from sale by 2030. This has been pushed back to 2035, with the government claiming it will save consumers money.
Boilers: Reduced plan for the phase out installation of gas boilers by 2035, aiming for an 80% phase-out. 2026 ban on off-grid oil boilers to be delayed to 2035, with only an 80% phase-out target at that date. Boiler upgrade scheme would be increased by 50%, going up to £7,500.
Insulation: Announcement to no longer require homeowners and landlords to meet energy efficiency targets, promise not to force homeowners into “expensive insulation upgrades”. Plans to fine landlords who failed to upgrade their properties to a certain level of energy efficiency, have now been dropped.
Behaviour change: Confirmed they will not take forward policies that would encourage more sustainable behaviour, such as taxing airlines and informing the public of the carbon footprint of meat. The announcement also included scrapping items, proposals or discussions relating to the promotion of car sharing, and recycling waste bins, these were though not previous policies.

To check which items in the statement were previous policy visit https://fullfact.org/environment/sunak-environment-proposals/

[edit] Responses from the construction industry

[edit] ECA cautions against net zero targets becoming political football

Electrical contracting firms are central to installing low carbon technologies in every aspect of the UK’s built environment. Leading electrotechnical trade body, ECA, says confidence in investing in net zero business and training would be boosted if UK’s net zero targets were depoliticised.

ECA’s Member firms and others in the sector have invested heavily in anticipation of the 2030 and 2035 net zero targets on EV infrastructure, battery storage, solar PV and low energy heating. Until now, business has welcomed the political and industry consensus on net zero and the clear roadmap to achieve this.

As business confidence and investment rely on a consistent approach by governments, ECA believes net zero targets should be depoliticised. This will allow the UK’s national Parliaments to work together with industry to develop the policies, technologies and skills needed to reach net zero.

Paul Reeve, ECA’s Director of CSR, commenting on the Prime Minister’s announcement said:

“Rishi Sunak’s overall direction of travel towards achieving net zero has not changed. But a delay in the timescale will undoubtedly shake the confidence and plans of many large and small businesses alike, not to mention consumers. The new timetable gives more time to decarbonise and develop the UK grid. Instead of focusing on one or two low carbon fixes, it’s an opportunity to move to a ‘technology agnostic’ approach, by installing the most energy efficient solutions. It’s also a chance for the government’s overdue review of electricity pricing - to make it fairer for households adopting low carbon electrical technology - to get back on track. Alongside this, the UK’s EV charging infrastructure must be significantly ramped up to satisfy customer demand and meet crucial safety standards”.

Existing technologies can already deliver the carbon savings needed to reach 2050 net zero targets. A much greater obstacle to achieving the targets, not mentioned in the PM’s statement, is the shortage of competent professionals to install these technologies.

While ECA welcomes the Prime Minister’s boost for research and development, it will do little to reduce the UK’s carbon emissions in the short term. Investment in training and skills cannot wait if the UK wants to stay ahead of the net zero curve. Industry needs certainty to invest in the training needed for a safe transition to a low carbon economy.

Andrew Eldred, ECA’s Director of Workforce and Public Affairs and said:

“The extra time available must be used to good effect, low carbon technologies are evolving fast, but they all require a level of core competence to be installed safely. To train just to install EV charge points will not equip you to be an installer of future technology or to retrofit a building. Neither will it equip you to understand how that piece of tech integrates with other low carbon technologies. It might in fact lead to greater carbon emissions, through a malfunctioning building. But most worryingly, without the right level of competence, it could prove dangerous to consumers and lead to grid capacity issues. The safe and reliable electricity we all enjoy today in the UK relies on a century of work to maintain high standards”.

ECA are currently running a series of ten net zero roadshows for their members. These are designed to help installers consider the practical and business implications of pivoting their firms to net zero work.

This article was issued via an ECA Press Release as "ECA cautions against net zero targets becoming political football " dated September 20, 2023.

[edit] CIOB responds to net zero scaling back

Eddie Tuttle, Director of Policy, Research and Public Affairs at CIOB, said: “Decarbonising homes and the wider built environment is vital to reach net zero so it’s disappointing to hear the Prime Minister scaling back energy efficiency targets and the commitments made in the Government’s own net zero growth plan published only six months ago, which refers to minimising reliance on fossil fuels.

"The Office for Budget Responsibility has previously concluded that a late and abrupt transition to net zero would cost more. It has also noted that 'continued dependence on gas could be as expensive fiscally as completing the transition to net zero.'

“Energy consumption in buildings accounts for almost half of the UK’s carbon emissions so to de-prioritise this issue is baffling when the government should instead be finding ways to support homeowners to retrofit their properties and improve their energy efficiency for the lowest possible cost.

“The Boiler Upgrade Scheme has had very low take up and in our view, increasing the grant available to homeowners will make little difference, as the remaining cost will still be unaffordable for many households amidst a cost of living crisis.

“If government remains committed to reaching net zero by 2050, as they say they are, then they must set out how they planto achieve this without reducing the reliance on carbon-based fuels to heat homes on the scale and at the pace required.”

CIOB has long campaigned for a national retrofit strategy alongside others in the built environment sector.

This article appears on the CIOB news and blog site as "CIOB responds to net zero scaling back" dated September 20, 2023.

[edit] Actuate UK (and BSRIA) warns on changes to net zero policies

The Prime Minister’s announcement yesterday (20/9/23) signals unpredictability and creates uncertainty for the many businesses in the engineering services sector investing, or looking to invest, in net zero transition. When it comes to plotting the route to a net zero 2050, industry needs certainties and targets that will incentivise such change, enable development of new skills, create new job opportunities and grow the green economy.

We welcome the Prime Minister’s acknowledgement that much of the progress to come will be technology driven. However, technology needs design, installation, maintenance and optimisation, and all these need skills, an essential part and challenge to the Net Zero strategy. Engineering services businesses also support the need for consensus on Net Zero targets, allowing the UK’s national Parliaments and Assemblies to work together, and with industry and other stakeholders, to develop the policies, technologies and skills we need to reach net zero.We wholeheartedly welcome the very specific increase in the Boiler Upgrade Scheme, to £7500, which should help to drive the further introduction and development of heat pumps in the short term.

Julia Evans, BSRIA CEO and leading member of the Actuate UK Net Zero Group said: “The Prime Minister’s latest policy announcement will undoubtedly shake the confidence and plans of many businesses and consumers alike .Changes in the timescale and any dilution of Government’s Net Zero policy risk damaging the strategic direction and investment already made by both large companies and by the hundreds of SMEs in our sector that have already created their business plans based on the 2030 target. We need a coherent approach across political divides, if we are to achieve economic growth and global competitiveness in this area.”“There is still opportunity if we use our time to good effect”, commented Paul Reeve, ECA’s Director of CSR and deputy chair of the Actuate UK Net Zero group. He added: “Government should concentrate its efforts, immediately and throughout the run up to 2035, to decarbonise and develop the grid and build a UK EV charging infrastructure that is fit for purpose.”

This article appears on the BSRIA news and blog site as 'Actuate UK warns on changes to Net Zero policies" dated September 21, 2023.

[edit] Changes to net zero policies risks harm to green projects, APM warns

In response to the Government’s announcement about delays to net zero targets, including the delay on a ban on new petrol and diesel cars from 2030 to 2035, and a push back on the transition from gas boilers to heat pumps to 2035, Andrew Baldwin, Head of Policy and Public Affairs at Association for Project Management (APM), said: “Major projects related to achieving net zero targets need long-term stability and consistency from government to succeed. Today’s announcements on net zero policy changes and delays could lead to spiralling costs, reduced benefits and, ultimately, to failure – and we simply cannot afford to fail at delivering something as important as net zero.

“The Government’s net zero strategy requires the delivery of a huge range of projects at pace over the next decade if targets are to be achieved. Good project outcomes require the right conditions for success, and as the chartered body for the project profession, we urge the Government to not lose the momentum on the fight against climate change.”