Although the COP28 climate conference concluded on the 13th December, it is not yet possible to put an accurate figure on the cost of attendance by the UK delegation, as final costs will need to be gathered and reviewed. A total cost will be available for audit in January 2024 at the earliest.

The UK Delegation included 11 Ministers from multiple departments.

The Climate Change Committee is an independent advisory authority. In 2020, it advised that the UK’s 2030 Nationally Determined Contribution should commit to reduce emissions by at least 68% from 1990 to 2030, excluding emissions from international aviation and shipping (IAS), in line with UN convention.

IAS emissions are included in the UK’s domestic sixth carbon budget. The Government has set out ambitious strategies to reduce emissions from aviation and shipping through the Jet Zero Strategy and Clean Maritime Plan.

Through the Aerospace Technology Institute Programme, industry and Government are co-investing in the development of cutting-edge aircraft technology to grow UK’s share of the global aerospace market.

The 2021 Spending Review increased government’s commitment to aerospace R&D by 50% to £685 million across the Spending Review Period, extending the programme to 2031. By 2025, government and industry will invest almost £4 billion in developing new ultra-efficient and zero emission aircraft technologies.

We have supported industry investment in supply chain competitiveness through our ‘Sharing in Growth’, SC21 Competitiveness & Growth, and NATEP programmes, which have benefited from over £140m public funding, leveraging additional private investment.

A breakdown of ATI Programme R&D grants awarded, by individual project, are set out in the table below. Co-funded R&D project supported through the ATI Programme typically involve a range of collaborators including industry partners, universities and research organisations (the ATI Programme has an average of 4 partners per project). Further project information and descriptions can be found on UKRI’s Gateway to Research (gtr.ukri.org) and the ATI website (ati.org.uk)

The Government co-invests in mid-stage R&D, with industry, to develop new ultra-efficient and zero-carbon aircraft technologies through the Aerospace Technology Institute (ATI) Programme. Since 2013, the ATI Programme has committed R&D grants to 29 industry-led collaborative projects on new forms of propulsion or fuels totalling £194m. Industry will co-invest £178m alongside these grants. The R&D projects cover a range of technologies but are primarily focused on aircraft propulsion systems involving hydrogen fuel cells, batteries, and electric motors and machines. Each project involves a range of collaborators including industry partners, universities and research organisations. Grants through the ATI Programme have also been provided to develop aircraft gas turbine engines, which have included work packages to test synthetic fuels or biofuels. We have not been able to isolate the cost of this element of research within large projects, so have not included it in the figures set out above.

In order to explore the potential for zero-carbon emission flight, the Government also provided a £15m grant to the ATI-led FlyZero project. This in-depth research study, which was completed in March 2022, found green liquid hydrogen offers the greatest potential to power future zero-carbon emission aircraft.

To kickstart a domestic sustainable aviation fuel (SAF) industry, the Government has made £227m available, since 2014, to support the development of advanced fuel plants. This includes investing in 8 SAF plants through the Green Fuels, Green Skies competition and more recently launching the £165m Advanced Fuels Fund. The Government has separately committed £12m to establish a UK SAF Clearing House to support the testing and certification of new SAF and £1m to run the first-ever passenger aircraft flight powered by 100% SAF, between the UK and the US, through the Net Zero Transatlantic Flight Fund. These investments are coupled with the £400m UK Government partnership with Breakthrough Energy Catalyst into emerging climate technologies, including SAF.

The Department did engage with both internal and external stakeholders on the decision not to participate. It would not be appropriate for the Department to comment on any value for money assessment given the ongoing commercial sensitivity around EU Space Programmes.

The Department is unable to provide information relating to loan amounts for individual companies as this information is commercially sensitive for both investors and investee businesses.

All investee companies were required to certify that they met the UK nationality criteria as part of the process of signing the Convertible Loan Agreement. Businesses provided details of their country of incorporation, UK Company registration number as well as the citizenship of company officers and an ownership structure chart or supporting documentation showing ultimate beneficial owners of the company. These details were checked as part of the eligibility checks carried out. As this particular business was pre-revenue and pre-operational at the time of application, these checks also satisfied the requirement that over half of employees should be UK-based or half of revenues should be from UK sales.

Licensing is a matter for the Civil Aviation Authority. A UK Air Operator Certificate has not been granted to this company to date.

The Government has laid legislation for the UK’s sixth carbon budget and this marks a decisive step towards net zero by 2050. It builds on the series of ambitious plans we have announced since committing to net zero emissions in law, including through my Rt. Hon. Friend the Prime Minister’s Ten Point Plan and our new UN climate target to reduce emissions in 2030 by at least 68% compared to 1990 levels – the highest reduction target made by a major economy to date. We have committed to include international aviation and shipping emissions in the Sixth Carbon Budget and will bring forward legislative proposals in due course.

The Government has laid legislation for the UK’s sixth carbon budget and this marks a decisive step towards net zero by 2050. It builds on the series of ambitious plans we have announced since committing to net zero emissions in law, including through my Rt. Hon. Friend the Prime Minister’s Ten Point Plan and our new UN climate target to reduce emissions in 2030 by at least 68% compared to 1990 levels – the highest reduction target made by a major economy to date. We have committed to include international aviation and shipping emissions in the Sixth Carbon Budget and will bring forward legislative proposals in due course.

We have laid legislation for the UK’s sixth carbon budget, proposing a world-leading target, which would reduce greenhouse gas emissions by 78% by 2035 compared to 1990 levels. This is in line with the latest science as the level recommended by our expert advisers at the Climate Change Committee (CCC).

We have set the sixth carbon budget to include international aviation and shipping emissions, as recommended by our independent climate advisors, the Climate Change Committee.

We remain fully committed to global action to tackle IAS emissions through international processes at the International Civil Aviation Organisation (ICAO) and International Maritime Organisation (IMO).

The UK plays a leading role in the development of measures driving emissions reduction in the international aviation and shipping sectors at the International Maritime Organization (IMO) and International Civil Aviation Organization (ICAO) while UK aviation and shipping emissions are covered by our domestic legislation. We are considering all of the CCC’s recommendations, including on International Aviation and Shipping, carefully ahead of setting the sixth carbon budget.

The UK Emissions Trading Scheme (UK ETS) currently captures CO₂ emissions on domestic UK flights, flights from the UK to the EEA and flights between the UK and Gibraltar. We recognise that there is a case for expanding carbon pricing, especially given that the UK ETS will be the world’s first Net Zero carbon cap and trade market, a crucial step towards achieving the UK’s target for net zero carbon emissions by 2050.

The Government continues to support work on aviation’s non-CO₂ emissions, and possible mitigation measures, taking into account their trade-offs with CO₂ and the importance of ensuring that the sector’s total climate impact would be reduced. The Government keeps non-CO₂ emissions under review and reassesses the UK’s policy position as more evidence becomes available.

In 2019, the UK became the first major economy in the world to legislate to end its contribution to global warming by 2050. International aviation and shipping emissions are included within the scope of the 2050 net zero target, which was set on a whole economy basis. We fully intend to meet our net zero target through cutting our domestic carbon emissions.

International credits can play an important role in cost-effective global emissions reduction, while creating development co-benefits. We retain our ability to use international credits if necessary, to achieve our commitments as we have said previously when setting Carbon Budgets and legislating for net zero. However, our intention is to meet our Nationally Determined Contribution and net zero commitment through domestic action.

Ahead of COP26, we will set out ambitious plans across key sectors of the economy to meet our carbon budgets and net zero. We have already published the Energy White Paper and the first phase of our Transport Decarbonisation Plan, and will publish the Heat and Building Strategy in due course. We will also publish a comprehensive Net Zero Strategy, setting out the Government’s vision for transitioning to a net zero economy.

The FlyZero project will investigate the commercial and technical feasibility for a zero-carbon emitting aircraft. A much wider sustainability agenda is at the core of the planned aircraft studies. Beyond tail-pipe carbon emissions, FlyZero will consider full lifecycle sustainability, including other sources of environmental impact, such as non-CO₂ effects.

The FlyZero team have considered the work of Prof. Lee et al, in addition to many other publications and work, such as modelling and data, from UK and international experts on the topic of non-CO₂ impacts. This includes the European Commission report: “Updated analysis of the non-CO₂ climate impacts of aviation and potential policy measures pursuant to EU Emissions Trading System Directive Article 30(4)” released in December 2020.

We are supporting the aerospace industry through the Aerospace Growth Partnership (AGP) with £1.95 billion of funding for research and development (R&D), matched by industry, over 13 years up to 2026. UK Research & Innovation (UKRI) is also providing £125 million to the Future Flight Challenge for research on greener ways of flying through advances in electric and autonomous flight technology, which is expected to generate an additional £175 million of match-funding from industry. We are also co-investing in aerospace productivity improvement and innovation programmes to support small and medium-sized businesses backed with over £135 million of public funding.

In addition, aerospace companies are currently drawing upon the unprecedented £330 billion package of additional COVID-19 business support measures that the Government has put in place. We are in discussion with the sector, through the AGP, about how to best support the industry to recover.

Aviation is also an important sector for the UK’s economy, and businesses across the industry will also be able to draw on our package of economic measures. This includes a Bank of England scheme for firms to raise capital, two business interruption loan guarantee schemes for businesses of all sizes, Time to Pay flexibilities with tax bills, financial support for employees, and VAT deferrals.

If businesses across these sectors face severe and urgent financial difficulties due to COVID-19 following the Government’s cross-economy wage and financial interventions, we remain open to discussions about bespoke financial support as a last resort. Any intervention would need to protect the interests of taxpayers. Requests may be made formally, in writing, to the Business Secretary.

Furthermore, the Government has a long-standing programme of support to maintain the competitiveness of the UK automotive sector. Through our landmark Automotive Sector Deal, we have secured joint investment and long-term commitments to develop world-leading battery technologies, positioning the UK as the location of choice for the development and deployment of connected and autonomous vehicle technologies.

The Government, alongside industry, has jointly committed almost £1.5 billion through the Advanced Propulsion Centre and Faraday Battery Challenge to research, develop, and commercialise low-carbon automotive innovations. In October last year, we announced up to £1 billion of new money to support R&D to support electric vehicle manufacture.

The EU (Withdrawal) Act and other exit related primary and secondary legislation will ensure a functioning statute book for all scenarios on exit day. The Government remains confident of achieving this as we leave the EU.

Further, extensive work to prepare for a no deal scenario has been under way for over two years. As part of this work we have released 106 technical notices including on the issues of transport, climate change policy and customs and exports. These notices set out the unilateral steps that the Government will take to ensure that the UK is prepared in the event of a no deal scenario.

Draft EU guidelines for the negotiation of the future framework have been circulated to the EU27 for comment. We expect final guidelines to be formally adopted at the March European Council, and we hope they will provide the flexibility to allow the EU to think creatively about our future economic partnership

As the Prime Minister said in her speech in Mansion House on 2 March 2018, we will want to explore with the EU the terms on which we could remain part of EU agencies such as those that are critical for the chemicals, medicines and aerospace industries: the European Medicines Agency (EMA), the European Chemicals Agency (ECHA), and the European Aviation Safety Agency (EASA). As the Prime Minister said in Munich in respect of data protection, we envisage an ongoing role for the UK’s Information Commissioner’s Office.

There are other agencies, such as those related to our future security partnership, that the UK may seek to remain a part of. Where there is a demonstrable national interest in pursuing a continued relationship with an agency or other EU body the Government will carefully examine whether we should pursue this. Our future relationship with the EU's agencies will ultimately be a matter for the negotiations.