Independent report

Net zero review: terms of reference

Updated 13 January 2023

Background

1. The government is committed to reaching net zero greenhouse gas emissions by 2050.

2. Last year the government published a Net Zero Strategy, setting out a pathway to meeting these targets. Since then, the Russian invasion of Ukraine and other global factors have fundamentally changed the economic landscape in the UK, placing huge pressure on households and business through high energy prices and broader inflationary pressures.

3. The government has set out decisive action to support people and businesses with their energy bills, and to tackle the root causes of the issues in the UK energy market through increased supply – ensuring the country is not left in the same position again.

4. Given this changed economic context, the government will review its approach to net zero to ensure it is pursuing the most economically efficient path to meeting its climate change commitments.

Purpose

5. The BEIS Secretary of State has commissioned an independent review of the government’s approach to delivering its net zero target, to ensure we are delivering net zero in a way that is pro-business and pro-growth.

6. The review will consider how our approach to net zero can:

a. deliver maximum economic growth and investment, driving opportunities for private investment, jobs, innovation, exports, and growth right across the UK;
b. support UK energy security and affordability for consumers and business and the need to rapidly increase and strengthen UK energy production and supply;
c. minimise costs borne by businesses and consumers, particularly in the short-term

7. The review will assess the economic co-benefits associated with different policies and how we can drive down the cost curve for net zero technologies. It will consider innovative approaches and ways of delivering our target that ensure the government maximises the economic opportunities presented by net zero.

Leadership

8. The BEIS Secretary of State has appointed Chris Skidmore MP as review Chair with overall responsibility for the review and its outputs.

Approach and process

9. The Chair will consider a range of evidence, including but not limited to document analysis (including requesting information from government) and interviews with relevant individuals. In conducting the review, the Chair is expected to consult widely with a diverse range of stakeholders, including investors, industry, and experts in different fields.

Governance

10. This is an independent review sponsored by the BEIS Director General for Net Zero and International. The Chair is responsible for the delivery of the review and will be accountable to the BEIS Secretary of State. The Chair will be supported by a review secretariat, based in BEIS.

Outputs

11. The review will produce a report including a set of recommendations which will be submitted to the BEIS Secretary of State by the end of December 2022. The government will publish the review’s findings here.