A Further Push in Working Towards Net Zero

Back in September 2022, the Truss Government commissioned the Net Zero Report. Although the Truss Government fell in October, work on the report, carried out by Chris Skidmore MP (the former Energy Minister who piloted the UK Government's commitments to achieving net zero by 2050 through Parliament), continued

Martin Fleetwood is a Consultant at Addleshaw Goddard’s Transport practice. The Rail Team has over 30 lawyers who advise clients in both the private and public sectors across a wide range of legal areas. As well as contractual issues, the team advises on operational matters, franchises, concessions, finance, regulatory, property, employment, environmental and procurement issues.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given.

In January 2023 the output of the Net Zero Report, called Mission Zero (the Report) was published. The Report looks at the delivery of net zero climate commitments against the backdrop of the war in Ukraine, historically high global energy prices and high inflation. However, its clear purpose has been to focus on ensuring that the path to net zero is both pro-business and pro-enterprise, thereby maximising economic growth, while increasing energy security and affordability for consumers and businesses.

While the rail sector may consider itself to lead transport's delivery of net zero, there are a number of outputs in the Report that the rail sector should take time to consider, particularly if they are likely to become policy for this Government or become policy drivers for the next government, whatever its colour.

The Report is a substantial document, containing two parts and an Executive Summary. The first part sets the scene by analysing the challenges and opportunities of net zero. The second part looks at how the UK can deliver a robust net zero "delivery ecosystem" and is the focus of this article.

Going further and faster

The recommendations in the Report are far ranging, cross-sector and relate to multiple different stakeholders, including public bodies, businesses, communities and individuals. However, they are similar to the stakeholders touched by the railway industry, and much of the Report is relevant. The Report concludes that while net zero is good, the UK must go further and faster. Part 2 of the Report identifies six key pillars for achieving net zero (see box), each of which contains its own key recommendations and ‘missions’ creating 25 key actions for 2025 and ten ‘priority missions’ for 2035.

Taken as a whole, the Report underlines that the UK's path to net zero needs to be supported by measures across the board, meeting the tests of certainty, continuity, clarity and consistency. Despite delays in implementing the Plan for Rail, clear guidelines that projects should follow, which do not change regardless of rail reform, will be important in the move for rail to reach its own net zero targets.

Set out below are some of the key findings from the Report which are particularly important for the rail sector from a planning and infrastructure delivery perspective.

Planning

A recurring issue in the Report was the need for planning reform, with the planning process identified as a general ‘blocker’ and source of delay for new projects. A notable recommendation to streamline and speed up the planning process is a rapid review to identify bottlenecks in the planning system relating to energy efficiency and renewable energy projects.

The Six Key Pillars To Achieving Net Zero

A compliant subsidy should show the following:

• Securing Net Zero – a transformational change in how we live our lives.

• Powering Net Zero – replacing fossil fuels with greener and cleaner alternatives, creating new industries, services, jobs and export opportunities.

• Net Zero and the Economy –encouraging investment and innovation from the private sector to bring low carbon technology to the mass market.

• Net Zero and the Community –UK Government provides central leadership while also empowering people and places to deliver net zero solutions.

• Net Zero and the Individual –encouraging individuals to take positive actions to reduce emissions and gain financial, health and wellbeing improvement as a result.

• Net Zero and the Future – decisions taken today will be critical for the UK's ability to reach net zero by 2050 in a pro-growth and low-cost way.