Regular changes in environmental policies and a skills shortage are holding the UK back from achieving its net-zero aims, a review has found.
The Net Zero Review, an independent assessment carried out by former energy minister Chris Skidmore for the UK government, warned that continual changes of policy on limiting carbon emissions were “undermining business confidence”.
He also called for the development of a new public procurement plan focused on low-carbon construction and low-carbon materials.
The UK is committed to achieving net-zero carbon emissions by 2050, as well as a 68 per cent reduction in emissions compared with 1990 levels by 2030.
Abrupt changes of policy in recent years, and a “lack of clear roadmaps”, have led to projects having to compete for the same pool of labour and materials, leading to bottlenecks, the MP said; this is compounding the skill and material problems already seen throughout the built-environment sector.
The UK faces a “huge challenge” to meet the skill requirements needed to make the transfer to net zero possible, Skidmore’s review states. According to the industry experts consulted, supply chains and skill pools will need to “grow significantly to meet demand over the coming years”.
Responding to the report, Federation of Master Builders (FMB) chief executive Brian Berry said “at least a third” of his trade body’s members were struggling to hire bricklayers and carpenters.
“We need to see a clear roadmap for skills and a market for retrofit so that local builders can make the transition to training up in new, green skills,” he added.
The report said “cross-sectoral collaboration rather than competition” could also help to minimise the effects of the skills shortage.
The review furthermore backs the development of nuclear energy in the UK, pointing out that up to five nuclear plants currently in operation are set to shut down in the next decade, while just one new nuclear site, Hinkley Point C, is being built in their place.
“Significant efforts are therefore needed to not only maintain the current role of nuclear energy, but also for nuclear to help meet rising energy demand,” it said.
Meanwhile, it called for faster decisions on central investment into storage capacity for hydrogen power.
As well as speeding up investment decisions, Skidmore’s review called for the development of a new public procurement plan focused on low-carbon construction and low-carbon materials by the end of this year.
“[That] would send strong signals to the sector and enable firms to test innovations and start to scale them up,” it said.
The FMB’s Berry said construction was “raring to act on energy-efficiency improvements”, but argued that there had been a lack of government action for “too long”.
“What is abundantly clear from the Skidmore Review are the benefits of retrofitting – it’s a win-win solution,” Berry said. “Retrofitting of existing homes lowers bills, warms homes, creates jobs and provides local builders with skills for the future.
“The review points out what needs to be done by the government to make net zero a reality, and the industry stands ready to deliver on it.”
Consultancy WSP’s executive director, Rachel Skinner, said there was a “clear mandate” for action.
“Speeding up investment and effort will reduce cost and climate risk, while helping the UK hold onto its leadership position on the world stage,” she said.
“The Skidmore Review helps to cut through net-zero complexity, recognising that success will rely as much on local change through delegation, clear information, meaningful incentives and trust, as it does on clear, stable government commitment to delivery.”
In response to the review, business secretary Grant Shapps said: “With a wealth of talent and expertise, and a track record to be proud of, the UK is well placed to ensure that tackling climate change also brings new jobs and investment for businesses and communities.”
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Joshua Stein