Energy market regulation and onerous bureaucracy in the planning system are standing in the way of the government’s net-zero target, the CBI has said in its response to the Committee for Climate Change UK Net-Zero Annual Report.

The business group’s decarbonisation director, Tom Thackray, said urgent action is needed to bring down household energy bills and that an affordable, resilient and net-zero network would help achieve this.

“As we hit halfway to COP27 and three years on from the UK setting its net-zero target, delivery must now be the Government’s watchword – both in the short and long-term.

“Weathering the cost-of-living crisis requires urgent action on energy efficiency to help bring down household bills. Delivering an affordable, resilient and net-zero energy network would also help put pounds back in people’s pockets and propel the UK’s net-zero journey forward.”

Thackray said there are huge economic opportunities tied up with the UK’s green transition and that businesses are eager to ramp up low-carbon investment.

“To maintain companies’ confidence to invest, business models must be brought forward for critical green technologies, alongside stripping bureaucracy from the planning system and new energy market regulations brought forward urgently.”

The CBI’s five recommendations to government to help business back green growth include:

• Legislating for the fourth ECO scheme before summer recess and commit £1bn annual funding for energy efficiency retrofits and create a new ECO+ scheme.

• Committing to the deployment of at least two more Carbon Capture clusters by 2030.

• Setting out the Contracts for Difference model for Hydrogen, Sustainable Aviation Fuels and other renewables.

• Publishing an accelerated planning and consenting regime for offshore wind projects to cut approval times from four years to one.

• Broadening Ofgem’s duties to enable anticipatory investment in the grid to accelerate deployment of renewables.

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