Rural’s mission to net-zero

The UK government has pledged to hit net zero by 2050, but a newly published independent progress report casts doubt on whether this ambitious target will be achieved and whether the opportunities of the transition are being fully grasped.
Written By:
Mark Topliff, Knight Frank
4 minutes to read

Mission Zero is a comprehensive 340-page tome led by MP Chris Skidmore. He stresses an overwhelming need for clarity, certainty, consistency and continuity from the government. But this review was not just about making policy statements. It also details actions that should happen and their implementation.

Farmers and landowners will welcome the report linking the importance of the transition to net zero with land and nature-based solutions from carbon sequestration and the support and investment that land managers need. The review confirms the interlocking nature of environmental priorities, biodiversity loss, water and air quality.

Land use emissions falling, but…

Progress has been made with total agricultural emissions, which are reducing slowly. However, other sectors of the economy are making more significant improvements. So agriculture and the land use sector could see their share of national emissions increase – from 12% to 30% by 2030. The review explains that this is a risk as long as no clear or inadequate plans for decarbonising the sector persist.

Rural businesses could be under pressure from down the value chain if they don’t proactively plan to reduce their environmental footprint. One of the recommendations in the report is for the government to ensure that by 2025 50% of UK-based food businesses must report their scope 3 emissions against an agreed standard – which farms supplying them could come under.

The review also endorses the introduction and standardisation of eco-labelling on food, believing it could stop the UK share of emissions from land use businesses growing. Though, it does stop short of recommending a ban or tax on foods like red meat.

But reporting emissions or labelling cannot be credible without robust emissions measurement systems that can also help drive management practices. According to the report, this is a matter of urgency for the agricultural sector and DEFRA. But, “the government should endorse international VCM (voluntary carbon market) standards as soon as possible and consult on formally adopting regulated standards for VCMs and setting up a regulator for carbon credits and offsets by 2024.”

A crucial framework is required

For the UK to achieve net zero, how the nation uses our land is a fundamental question for the transition. The report cites that analysis of the energy sector shows over 2000 systems that could deliver the net zero target.

No similar analysis is available on how the UK’s land area would need to change to achieve the various land-based goals - biodiversity and agricultural productivity, water quality and flood protection.

Chris Skidmore’s review proposes an essential national Land Use Framework by mid-2023. This should include an analysis showing different options for how these multiple goals can be met within the land area of the UK. But at the moment, there is a lack of evidence at a detailed micro level.

Clarity of policy

There are still uncertainties, low payment rates and a lack of detail on the Environmental Land Management Schemes that hold more land managers back from engaging with them. The government should review its processes as soon as possible to ensure that no unnecessary barriers impede nature-based solutions projects.

Both public and private finance could be harnessed and reward land managers for delivering landscape outcomes that align with wider net zero, nature and growth goals. But this first requires a clear plan to engage farmers and land owners in the decarbonisation process.

The rewards

The review concludes that “action must be taken quickly, given the long lead time between habitat creation and restoration efforts and seeing the benefits in terms of carbon storage, if nature-based solutions are to play a significant role in delivering net zero by 2050”.

In Knight Frank’s Agri-business consultancy team, Tom Heathcote believes, “It is easy to ignore such long-term targets, but the Mission Zero report makes clear the huge opportunities for the rural economy from the transition to net zero, including the adoption of agroecological farming systems. Policymakers need to ensure those opportunities aren’t squandered.”

If recommendations are acted on quickly, then according to this report, there are significant financial returns from decarbonising land. Emission reduction measures typically go hand in hand with boosts to productivity.

Apparently, there is the potential to save farm businesses £170 million per year by 2035, rising to more than £1.5 billion per year by 2050. However, policy clarity, and sufficient capital for investment alongside a land use framework to manage competing demands, will be critical for the rural sector to contribute to the greater UK net zero goal.