This is very interesting and potentially important - the Climate Change Committee takes issue with the argument of the Treasury in its Net Zero Review that decarbonisation investments should NOT be financed from public borrowing... theccc.org.uk/publication/in…
...As the CCC says, future generations benefit from decarbonisation so reasonable for them (rather than solely current taxpayers) to pay part of the cost through higher borrowing with interest bill spread across coming decades...
....Plus - Sunak's "Green Gilts" = funding decarbonisation through borrowing
...Why could this be important?

If the government's preferred approach of relying heavily on private investment rather than public investment to decarbonise stalls (see heat pumps) there will be pressure for more public spending in the mix...
...the question of whether that should involve tax rises (as per Treasury analysis) or public borrowing (as per CCC analysis) could easily become a live one - and the economics of that question would come to the fore.
...Risk of that public-spending light domestic heating plan stalling explicitly flagged by the Committee:
...note that those concerns seem to be shared by the OBR too:

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More from @BenChu_

21 Oct
BREAKING #gascrisis

@BBCNewsnight has seen a letter from gas shipper CNG - which is exiting the wholesale market - to struggling domestic energy supplier firms saying that have only until 30 November to find a new shipper...
...The letter also confirms these domestic supplier firms will NOT be able to transfer any hedges they have with CNG against soaring wholesale gas prices to a new shipper...
...“I am sorry to advise you that hedges are deemed to be an asset of CNG’s wholesale shipping business and must therefore be ring fenced for the benefit of creditors generally. The cannot be novated nor the value of these hedges transferred.”...
Read 8 tweets
20 Oct
Two of the largest holes in the government's net zero plans in June according to the Climate Change Committee (the government's official decarbonisation watchdog) were on encouraging public diet change and curbing demand for flights....

theccc.org.uk/wp-content/upl…
...Now, in the week of its official Net Zero Strategy document, the Governments states:

"We have no plans whatsoever to dictate consumer behaviour in this way. For that reason, our Net Zero Strategy published yesterday contained no such plans".

bbc.co.uk/news/business-…
Read 4 tweets
20 Oct
"We have no plans whatsoever to dictate consumer behaviour"

So says the gov, on why it deleted a paper from its Net Zero Strategy doc dump yesterday which suggested ways to change public behaviour (flying less, eating less meat) to hit targets...

bbc.co.uk/news/business-…
...note that in June 2021 the Climate Change Committee (CCC), @theCCCuk, explicitly demanded from the Government:

"Quantified, credible pathways for sectoral decarbonisation, technology deployment and *behaviour changes*"...

theccc.org.uk/wp-content/upl…
...Hard to see how that government statement on *not* encouraging behaviour change fits with that CCC requirement.

CCC reprentatives were pretty warm about the Net Zero Strategy docs yesterday - but keep a close eye on how they treat this latest line from the government.
Read 5 tweets
19 Oct
"Of course in BEIS [business department] we want to spending more on our individual policies....but in total we're very satisfied with the amounts we've received today", business minister Lord Callanan tells @maitlis on @BBCNewsnight
Lord Callanan on the decision not to announce ban on new gas boiler sales: "It's our ambition to phase gas boilers out from 2035...but we want to make sure the alternatives are in place first"

#Newsnight
On support for steel sector amid the energy price crisis: "Clearly we want to look after these industries as much as we possibly can...I'll leave [colleagues at BEIS and Treasury] to announce the result of any discussion"

#Newsnight
Read 4 tweets
18 Oct
NEW

🚨

@BBCNewsnight has learned that the Government’s Heat and Buildings Strategy will NOT commit to a legal ban on new gas boiler sales from 2035.

Merely “set an ambition” for no more gas boiler installs after that date.

More on #newsnight on BBC TWO at 22.30
...Some context for this - the Governemnt never explicitly committed to a legal ban.

But this was widely expected by industry, analysts and the media until last week.

See this report from Friday...

dailymail.co.uk/news/article-1…
...Whether a legal ban makes much difference or not is debatable.

But note that the Government has put the 2050 net zero date in law...
Read 6 tweets
13 Oct
BREAKING

@BBCNewsnight has learned that gas shipping firm CNG @CNGenergyUK has written to its domestic supplier company customers saying it will no longer be providing them with gas - and they should seek alternative shippers...
...email reads "It is with regret that I have to inform you that we do not have any further option but to exit CNG's wholesale business. This means CNG will no longer be able to provide gas shipping services..."
..."We advise you to seek alternative shipping arrangements through other known gas shippers in the market"...
Read 13 tweets

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