It is understandable that there are other priorities out there in the market – not least the threat posed to the population by COVID-19 and the impact on the markets – but sustainability continues to be a can that is kicked down the road. The sense is that the sector will continue to blindly stagger on towards net zero targets in years with round numbers but very little sense of direction of travel and the legislation that will bind it together.
That is not to say that it was without merit – within the budget, there were a number of policy announcements that will influence wider environmental strategies, and the impact on the built environment.
Net zero targets have been amended for 2030 and 2050, but how will this be achieved through government legislation. The UK will continue to apply an ambitious carbon price from 1 January 2021 to support progress towards reaching net zero. The government will legislate at Finance Bill 2020 to prepare for a UK Emissions Trading System (ETS), which could be linked to the EU ETS. The government will also legislate for a carbon emissions tax as an alternative carbon pricing policy and consult on the design of a tax in spring 2020.
The economic costs of achieving this could be high, but there will be sustained demand to commit to a net zero framework. HM Treasury will also publish two reviews this year – one into the economic costs and opportunities of reaching net zero, the other led by Professor Sir Partha Dasgupta into the economics of biodiversity – with an increasing focus on ‘natural capital’, and how large organisations can achieve ‘net zero’
Biodiversity was given greater focus with the announcement of the Nature for Climate Fund which will invest £640 million in tree planting and peatland restoration in England, increasing the rate of tree planting by over 600% and covering an area greater than Birmingham over the next five years.
Planning permission will become progressively more targeted on biodiversity and the wider impact on the environment – this will have the biggest impact on infrastructure and housing projects as commitments to slowing climate change become increasingly scrutinised.