Mission Zero - The Skidmore Net Zero Review

  • By Zak Bond

Overview

The Skidmore Net Zero Review, titled ‘Mission Zero’, is an extensive independent review into the UK’s current net zero policies. It is broken into two main sections: first, it outlines the opportunity of net zero and how action to tackle climate change can contribute to growth; second, it covers six thematic pillars covering how central government needs to work to secure net zero, the decarbonisation of energy, the role of local government, business, and the individual in net zero, research and development, and carbon markets. It includes 129 recommendations.

The review is a very welcome contribution to the development of strong net zero policy in the UK. It echoes many of London Councils’ and the wider local government family’s messages, particularly the need to secure effective local government funding and embedding our role as a key delivery partner.

Background

Prime Minister Liz Truss commissioned Chris Skidmore MP to undertake a review of the government's net zero policies shortly after her election. London Councils, alongside a number of boroughs, submitted evidence to the review. Mayor Glanville, chair of the Transport and Environment Committee met with Chris Skidmore at a number of consultation meetings.

The Climate Change Minister, Graham Stuart MP, has said that government will be providing a full response to the report this calendar year. Mr Skidmore suggested at the review’s launch event that he would expect to see this response by March, when the government’s revised Net Zero Strategy is also expected.

Analysis

The opportunity of net zero

The review states that “net zero is the economic opportunity of the 21st century” and argues that the UK is well placed to take advantage of this opportunity to build industries and jobs. It notes that we are in a global race to net zero, and that any delay to action will mean that the UK misses key opportunities.

This strongly reflects the evidence that London Councils submitted, which spoke about how action towards net zero is a key pillar of supporting and enabling economic growth. We know that in London, boroughs are beginning to deliver placemaking projects and convening local investment to support a smooth, just transition to a net zero economy while also delivering thriving local neighbourhoods where people can live, play, study, train, work and invest.

Ten priority missions

The review proposes that government should take forward ten priority missions to harness public and private action through to 2035, and that these missions should be underpinned by ‘continuity, certainty, consistency and clarity’. These ten missions are:

1. Grid and infrastructure: a strategic framework and delivery plan for the critical networks of the future to turbocharge development

2. Solar: Full-scale deployment of solar including a rooftop revolution to harness one of the cheapest forms of energy, increase our energy independence and deliver up to 70GW of British solar generation by 2035.

3. Onshore wind: Pave the way for onshore deployment, working closely with communities to delivery local benefits

4. Nuclear: a programmatic approach for a next generation fleet of nuclear, supporting a high-tech British industry covering the whole supply chain

5. Energy Intensives and Industry:  Setting a clear plan for industry decarbonisation built around long term investment in CCUS and hydrogen networks and technologies

6. Circular Economy and Waste: Stimulate the efficient and circular use of resources across the economy, galvanising action on recycling and the reuse of critical materials

7.  Net Zero Local Big Bang: Unlocking the planning system and reforming the relationship between central and local government to give local authorities and communities the power they need to act on net zero

8.  Energy Efficiency for Households: Working towards gas free homes by 2035 ang giving consumers greater understanding of their household through a new net zero performance certificate

9. Net Zero Nature:  embed nature and habitat restoration throughout transition plans, maximising co-benefits for climate and nature wherever possible

10. R&D and innovation: Catalyse decision and action with and R&D and technology roadmap to 2050, pushing for more agile regulation, and supporting up to three 10-year demonstrators.

London Councils welcomes the inclusion of a local government mission, and its priority recommendations: simplifying the net zero funding landscape; backing local trailblazers; and reforming the planning system to align with net zero.

The importance of local action

The review argues that “there must be more place-based, locally led action on net zero” and that government must “empower people and places to deliver”. The review also identifies that every community is the UK is different and therefore local approaches to net zero are key; and highlights the UKRI’s evidence that “a place-specific approach delivers more benefit for less cost”.

This strongly aligns with London Councils’ view that local government is a key delivery partner for net zero. However, the review does not sufficiently lay out the delivery role of local government across all policy areas.

Addressing the funding of local action on net zero

The review outlines that “local authorities are a key partner in delivering net zero, but current central government funding arrangements are standing in the way of effective local action.” It outlines evidence on the cost and inefficiencies of competitive funding pots, how this restricts local authorities from strategically planning action on climate change.

Review recommendation: Central government should simplify the net zero funding landscape for all local authorities by the next Spending Review. This should include consolidating different funding pots, reducing competitive bidding processes, giving longer lead-in times where bidding remains and providing funding over the medium- rather than the short-term.

London Councils has consistently argued that central government should reduce the complexity of net zero funding to local government and ensure that long-term commitments are made to future programmes. Therefore, we strongly support this recommendation.

We know that providing long term, secure funding for net zero carbon projects is good for the economy, as it provides certainty for suppliers, skills providers and employers, thereby growing the number of good green jobs and the scale of investment in key green economy areas like retrofit.

Unlocking private finance

The review heard that for many local authorities “aggregating projects into an investible

size and scale is a challenge”, and argues that “government must provide additional support to make sure regions can attract green investment and build regional green clusters”.

Outside of the section on local net zero, the review recommends that: the Government 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.

The 3Ci programme, of which London Councils are a founding member, is developing an innovative model to secure blended finance that can deliver national and local net zero aspirations. We welcome the review’s findings, but will argue for government to go further in supporting the delivery of private finance into local net zero delivery.

Certainty about government investment – which the review identifies as critically important – would not only unlock local government match funding, but also allow us to fully develop blended finance models like that developed by 3Ci.

Improving the relationship between all levels of government, and a shared local net zero framework

The review notes that the importance of the central-local government relationship to the net zero pathway “cannot be overstated”. London Councils has welcomed the opportunity through the Local Net Zero Forum to engage with BEIS and other departments, and to build the relationship between central and local government. We believe that all government departments engaged in the different aspects of this work need to understand and invest in local government as a delivery partner.

The review recommends that relevant ministers from across government should attend the Forum on a regular basis. Whilst we would welcome this improved political engagement within the Forum, occasional attendance will likely not be enough to drive effective collaboration. Regular high level political meetings should be established to help drive delivery. We know that working truly collaboratively will only further support the delivery of net zero ambitions into our cities and communities.

The review also outlines a “lack of clarity around roles and responsiblities which is creating blocks in the system for those local authorities that want to be proactive in delivering net zero.” It recommends that a high-level framework and an agreement to close future partnership working between central and local government would help provide clarity, certainty, and accountability for local areas. Such a partnership would allow for quicker and easier identification.

We welcome this recommendation. We have argued a lack of clear framework leads to avoidable confusion as to what actions local authorities should be taking to tackle carbon emissions in their area and creates avoidable duplication in work. We know that without clear roles and responsibilities the role of local government cannot be maximised and as a society we will fail to decarbonise as rapidly as possible, jeopardising the achievement of the UK’s net zero target.

Local net zero missions

The review argues that the UK’s legally binding net zero target has “provided a clear mission and sense of purpose within Government, leading to reforms in how Government delivers”, and  recommends that central government should identify a small number of key policies where a mission could be applicable to all local areas – for example, buildings retrofit or recycling. It suggests that local areas could sign up to these missions to align around common goals whilst delivering in a placed-based manner.

London Council believes that this could be one route to driving more rapid action in a locally-appropriate manner, and that retrofit should be considered as a first focus. Our award-winning Retrofit London programme has important lessons for how local missions can be developed and driven forward.

Deeper devolution and trailblazer net zero deals

The review argues that government should establish core principles for future net zero devolution and ensure that all devolution deals agreed between now and 2030 have a strong net zero element. When discussing devolution the report focuses on new devolution deals – however it is crucial that London local government also receives the new powers required to effectively deliver net zero.

The review recommends that central government should 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. This could be an opportunity for London to unlock more resource to deliver on decarbonisation, if taken forward by central government.

Reporting

The review argues that central government should provide guidance, reporting mechanisms and additional capacity and capability support to enable local authorities to better monitor and report their net zero progress. London Councils has called for government to support our work on this, through which we are developing pan-London best practice through our Emissions Accounting Working Group, in line with work that is going on nationally.

While London boroughs have already created or have access to guidance and reporting mechanisms, there is a lack of capacity within boroughs to undertake the necessary work as the gathering and verification of data to calculate council operations emissions is a resource-intensive and time-consuming task. Government support in this area would therefore be welcome.

Planning

The review argues that the planning system presents a major barrier to net zero action.

Key recommendation: Central government should reform the local planning system and the NPPF 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. Government should undertake a rapid review of the bottlenecks for net zero and energy efficiency projects in the planning system, and ensure that local planning authorities are properly resourced to deliver faster turnaround times.

London Councils has argued that local planning and building regulations are key to enabling local government to channel local investment and shape thriving places and economies that deliver net zero.  We think that this framework should include robust minimum standards for environmental placemaking, but with local discretion and powers for local authorities to innovate locally and set additional frameworks above these minimums.

We would like to see planning regulations and levers that empower local authorities to protect and expand green infrastructure including low-carbon affordable housing, and stronger policy requirements for energy efficiency, low-carbon development, retrofit, and renewable local energy networks.

We are concerned that the Levelling Up and Regeneration Bill as currently drafted and the proposed changes to the National Planning Policy Framework could go much further in meeting these ambitions and that the proposed increase in Planning fees, together with additional targeted funding, should be expedited to help resource this crucial work. 

Delivering greener homes

The review argues that government should include an Energy Efficiency Taskforce workstream on green finance products to report by end of 2023. This should help to support those in low EPC rated properties to carry out green home upgrades and should identify opportunities to crowd-in private finance, alongside public funding.

Commentary

The review contains a lucid overview of the issues that local authorities face in net zero delivery, and strongly aligns with London Councils’ views across issues such as the mechanisms of funding local net zero action.

London Councils will raise the important issues and recommendations that the review outlines in ongoing conversations with government and our local government partners, including through the Local Net Zero Forum.

 

 

 

 

Zak Bond, Principal Policy Officer - Climate Change