Corporate report

Net Zero, Energy and Climate Change Interministerial Group: terms of reference

Updated 11 November 2025

Purpose

The Net Zero, Energy and Climate Change (NZECC) Interministerial Group (IMG) exists to promote the decarbonisation of the UK economy and support the successful delivery of the UK’s domestic and international Net Zero targets, and clean energy ambitions.

The NZECC IMG coordinates engagement and promotes greater collaboration in areas of shared interest between the portfolio ministers leading on these issues within the UK and devolved governments. It oversees all intergovernmental working between the four governments operating in the NZECC policy areas and is the formal escalation point where ministerial agreement is required.

The NZECC IMG operates in line with the fundamental principle that collaborative working is founded on maintaining positive and constructive relations, based on mutual respect for the responsibilities of the governments and their shared role in the governance of the UK. Members adhere to the principles of the Coalition for High Ambition Multilevel Partnership for Climate Action (CHAMP) pledge on pan-governmental climate action.

Scope

The NZECC IMG operates in line with the devolution settlements and the principles contained in the Review of Intergovernmental Relations (2022). The NZECC IMG can consider both reserved and devolved matters where these have the potential to impact upon another governments, achievement of legislated net zero targets. Such matters can be tabled for discussion by any member. 

In line with the CHAMP principles, the UK government will use the NZECC IMG when appropriate and applicable to consult devolved governments in the planning, financing and implementation of national climate mitigation strategies, including but not limited to National Determined Contributions (NDCs) submitted to the UNFCCC. The IMG can be used to discuss or update on wider international climate change mitigation and energy issues, whilst recognising these are powers reserved to UK government ministers.

The NZECC IMG shall be the primary discussion forum to support ministerial national authority decision-making for the UK Emissions Trading Scheme (UK ETS). Otherwise, the role of the NZECC IMG is primarily consultative. Where all administrations agree that it is appropriate and desirable for it to do so, the NZECC IMG may act as a forum to reach agreement and provide strategic oversight to joint activities. In such cases, decisions will be taken by consensus.

The lead for decarbonising specific sectors other than power is not within scope of the NZECC IMG and rests with the relevant IMGs. However, the NZECC IMG retains interest in and oversight of the overall path to net zero, so it may periodically focus on those sectors.

Responsibilities

The NZECC IMG will:

• Provide effective engagement on energy and climate change mitigation through information exchange, cooperation and collaboration in areas of shared interest.
• Consider the policy action needed to meet the UK target of net zero emissions by 2050, UK carbon budgets, the UK’s Nationally Determined Contributions, and devolved emissions targets and carbon budgets, recognising the balance of reserved and devolved responsibilities for climate policy and decarbonisation.  
• Facilitate engagement on matters relating to the Climate Change Act 2008, including sponsorship of the Climate Change Committee, and devolved legislation. 
• Consider the needs and requirements of the energy system, including in the context of decarbonising power by 2030. 
• Set, direct and oversee delivery of activities agreed in any joint programme, as well those which arise in the course of the year. This includes, when deemed necessary, establishing ministerial level Task and Finish groups to take forward specific collaboration.
• Provide strategic level oversight of the development, implementation, operation, review and adjustment of any agreed common frameworks.
• Ensure that effective governance is in place to support engagement including through knowledge exchange, cooperation and collaboration in areas agreed as being of shared interest.
• Work together to share data and/or information relating to matters within the scope of the IMG, in line with the four governments’ commitments under the UK Concordat on Statistics and respecting legal and data protection restrictions.
• Where appropriate, share information with existing wider intergovernmental forums (outside of the NZECC portfolio), and with external stakeholders if it is agreed to do so.
• Provide the dispute resolution mechanism for common frameworks and wider NZECC policy, prior to escalation of any disputes to the Inter-Ministerial Standing Committee (IMSC) and Prime Minister and Heads of Devolved Governments Council.

ETS responsibilities

With regard to the UK ETS, the NZECC IMG will:

• Discuss and take decisions on the operation and policy development of the UK ETS according to the governance arrangements set out in the UK ETS Common Framework; and resolve disagreements where agreement cannot be reached at official level.
• Where substantive issues arise in relation to the UK ETS, dedicated IMG meetings may be convened on an ‘as needed’ basis. Recognition will be given to Northern Ireland’s dual carbon pricing with regards to UK ETS and EU ETS.

Constitution

Membership of the NZECC IMG will include as a minimum one minister from each of the four governments that holds a portfolio relevant to its scope. All members are equal partners in the NZECC IMG. Junior ministers with relevant portfolios may also attend should they wish to do so.

There may be occasions when the four governments agree to invite ministers (and/or officials) from other portfolios where it is relevant to the agenda. Any changes to the formal membership or any request to issue standing invitations on a regular basis will also require the agreement of the four governments. Where other departments or agencies join discussions, including those intended to resolve a dispute, their role will be consultative and advisory. The four governments may jointly agree to invite non-governmental stakeholders such as representatives of industry, experts or NGOs to support the functioning and decision making of the NZECC IMG.

The NZECC IMG is part of the wider inter-governmental machinery, outlined in the Review of Intergovernmental Relations published in 2022. It sits below the Interministerial Standing Committee (IMSC) and the Prime Minister and Heads of Devolved Governments Council.

The NZECC IMG is a multilateral level forum, it complements but does not replace bilateral discussions or other policy-specific engagement.

The NZECC IMG secretariat will monitor and engage with the secretariats of other interministerial groups, which may discuss topics relating to NZECC matters, through informal channels to ensure that discussions are not duplicative or contradictory.

Membership

The core membership is the relevant portfolio ministers from:

• Department for Energy Security and Net Zero
• Scottish Government
• Welsh Government
• Northern Ireland Department of Agriculture, Environment and Rural Affairs; and
• Northern Ireland Department for the Economy

Attendance

Each government will be represented by a minister or, in exceptional circumstances, a senior official in the absence of a minister. No senior official is to chair meetings of the NZECC IMG. Deputising officials will limit contribution to providing factual situation updates.

Meetings will require attendance from all four administrations to be quorate.

Where a decision is required at an IMG it must be in keeping with legislative provisions / guidance in place or a pre-agreed ministerial position.

Hosting and frequency

The location and dates of meetings are agreed on an annual basis in advance, with the host government rotating. The host government’s minister takes the chair. Meetings may take place virtually, in-person or in hybrid format. Any costs associated with hosting are borne by the host government.

Meetings will generally be held every two months, with the option to convene additional meetings as necessary.

Net Zero and Energy Nations Board

The Net Zero and Energy Nations Board is comprised of senior officials from each administration. It supports the NZECC IMG by overseeing the work of the secretariat and acting as the decision making and dispute resolution forum on NZECC issues ahead of potential escalation to the NZECC IMG.

Secretariat

The secretariat, comprised of officials from the four governments through a Working Group, is responsible for developing the agenda, agreeing dates, locations and logistics (in conjunction with relevant Private Offices), and producing an action log, minutes and draft communiqués for agreement. The secretariat function also rotates and is performed by the host government.

In advance of each meeting of the group, the agenda will be considered by the Net Zero and Energy Nations Board with input from relevant DESNZ-devolved government forums. Administrations will be responsible for sharing the proposed agenda with their respective ministers according to their own internal processes. The chairing administration of each meeting will have ultimate responsibility for deciding the agenda. Ordinarily the agenda will encompass a wide breadth of the NZECC portfolio. The agenda and papers are to be issued at least one week in advance of the meeting unless agreed otherwise.

Minutes and the corresponding action log will be circulated by the secretariat as soon as possible after the meeting, to be agreed by all parties, for internal use only and not for publication.

The administration responsible for chairing NZECC IMG meetings will rotate to align, as far as possible, with chairing duties at the Net Zero and Energy Nations Board.

Communications and information handling

The NZECC IMG Terms of Reference will be published on GOV.UK.

NZECC IMG discussions will be confidential and minuted. A jointly agreed communiqué will be drafted by the four member governments and agreed by the NZECC IMG at the end of each meeting, to be published on GOV.UK and, where appropriate, devolved equivalents within two weeks from the date of the NZECC IMG meeting to which it relates. Where there is a requirement for ministers to report to their respective legislatures or committees on intergovernmental relations, governments will act within the spirit of the confidential nature of discussions. In all other cases, no other information relating to discussions will be shared with third parties unless agreed jointly.

All meetings within this structure will be held routinely at ‘OFFICIAL-SENSITIVE’ level. Notes of meetings and actions will be circulated using business email accounts only and should be handled in accordance with government security classifications.

Information requests relating to the business or administration of the NZECC IMG will be considered individually and on their own merit under the relevant legislation that applies to the request (FOI / EIR). Any member who receives a request should make the secretariat of the group aware of the request as soon as practicable.

Review

The Terms of Reference represent an agreement between member governments and remain in place unless and until all members of the NZECC IMG agree any changes. They will be kept under review and assessed for effectiveness on an annual basis or as close as possible. They will also be reviewed as appropriate in light of any changes to overarching intergovernmental machinery, and will, if necessary, be amended to align with it.