UK’s Net Zero Plans: Progress, Challenges and New Policy Pivot

Welcome to Net Zero News, your daily briefing on the UK’s transition to a low‑carbon future.

In recent weeks, the UK government has unveiled a new “carbon budget delivery plan,” reaffirming its commitment to decarbonise the electricity sector by 2030 and achieve steep greenhouse gas reductions by 2037. Renters will soon be empowered to request EV charging installations from landlords, and industry will benefit from new cost‐reduction measures. Low‑carbon heating especially heat pumps has been prioritised, though hydrogen remains on the table, despite cost concerns raised by experts. The government emphasises this plan will not inflate energy bills and maintains its manifesto pledge to cut bills by £300. These measures span multiple sectors including energy, transport, homes, industry and agriculture, in line with long‑term climate commitments.

This delivery plan stems from a legal obligation following a High Court ruling and mirrors many previously announced policies, albeit with stronger emphasis on legal accountability. The government’s strategy is lauded by environmental groups as both a moral and economic opportunity promising fairer living standards, affordable energy and green jobs.

Separately, the Climate Change Committee delivered a cautiously optimistic annual progress report. It suggests that the UK can reach its 2030 and 2050 net‑zero targets if decisive policies are enacted rapidly. The report identifies one glaring obstacle: energy taxation. Currently, electricity bears much higher levies than gas £249 per tonne of CO₂ compared to £52 making electricity less competitive despite its importance in the UK’s clean energy transition. Tackling these distortions through energy tax reform will be vital for accelerating the switch from gas to electric systems in homes, transport and industry.

Meanwhile, the newly enacted Great British Energy Act 2025 has brought Great British Energy into existence, a publicly owned energy company overseen by the Secretary of State for Energy Security and Net Zero. Its mission: accelerate the development of clean, domestically produced energy to support the UK’s net‑zero ambitions.

What This Means:

These developments reflect a renewed and legally reinforced government push to deliver on net‑zero despite political headwinds. The carbon budget delivery plan marks a hard‑won return to structured climate governance, crystallising cross‑sector action plans. At the same time, the CCC’s progress report underscores the urgent need to reform energy pricing to support electrification. This reform is critical to making decarbonisation both economically feasible and equitable. Finally, the formation of Great British Energy signals a strategic shift toward state‑led energy investment aiming to catalyse domestic clean energy supply, secure energy independence and ensure that the UK remains on course for its greenhouse gas reduction targets.

Upcoming Events:
Net Zero Scotland Projects Conference -16 June 2026, Edinburgh

Net Zero Nations Projects Conference – 6 October 2026, Westminster

Do you have technologies, innovations or solutions that can help public-sector net-zero projects?
Email: lee@net-zero.scot