UK’s Climate Change Committee Releases Report on Seventh Carbon Budget
Last week, the UK’s climate advisors, the Climate Change Committee (CCC), presented a new pathway to a decarbonised UK. The CCC sets out how to achieve this by 2050, and what decisions need to be made in the coming years to ensure success. It's analysis shows that emissions must be reduced by 87% (compared to 1990 levels) by 2040.
The CCC is an independent, statutory body established under the Climate Change Act 2008. It advises the UK and devolved governments on emissions targets and to report to Parliament on progress made in reducing greenhouse gas emissions and preparing for and adapting to the impacts of climate change.
The report released on 26 February provides advice to the UK Government on its Seventh Carbon Budget (2038-2042). It recommends a limit on the country’s greenhouse gas (GHG) emissions of 535 MtCO2e over this time period, including emissions from international aviation and shipping.
Although an ambitious target, the CCC states “it is deliverable, provided action is taken rapidly”, with its “advice based on the latest technological, social, and economic evidence; extensive sector modelling; engagement with stakeholders including businesses, trade unions, and farmers; and a citizens’ panel testing what would make changes accessible and affordable to households”.
Key findings
- Electrification makes up 60% of emissions reductions by 2040. This includes decarbonising the grid and replacing fossil fuelled cars and heating systems with electric alternatives (EVs and heat pumps).
- The roll out of the technologies required is similar to what has happened in comparable countries (Netherlands and Ireland) and previous technology roll outs in the UK (mobiles, fridges and internet connection).
- Investment this decade creates savings over time. These savings are realised on a cross-economy basis during the Seventh Carbon Budget period (2038 – 2042) and grow to 2050 and beyond. The CCC estimates the net costs of delivering this are 0.2% of GDP per year on average.
Key recommendations
1. Make electricity cheaper – rebalance prices to remove policy levies from electricity bills
2. Remove barriers - Key processes and rules, including in planning, consenting, and regulatory funding, need to enable rapid deployment of low-carbon technologies
3. Provide certainty - Government should support markets to do this by setting out clear, timely decisions on support for new technology choices, and dates for phasing out old technology
4. Support households to install low-carbon heating - Addressing barriers such as the price of electricity, lack of awareness, and misconceptions about heat pumps will be crucial
5. Set out how Government will support business - Businesses need clarity on the balance between government support and market mechanisms such as the UK ETS and carbon border adjustment mechanisms, so that they can make the transition to low-carbon operation
6. Enable the growth of skilled workforces and supporting workers in the transition - Government, business, workers, and communities should proactively plan for how to address the need for a growing workforce and ensure that new opportunities are available in affected areas
7. Implement an engagement strategy - Government should provide clear information to households and businesses
According to the CCC’s analysis, delivering this pathway will lead to lower annual household energy bills, greater energy security, and increased private sector investment in infrastructure and new technologies. It is estimated that the private sector will provide, on average, 65–90% of the required financing from 2025 to 2050.
Interim Chair, Professor Piers Forster, said:
“The Committee is delighted to be able to present a good news story about how the country can decarbonise while also creating savings across the economy. For a long time, decarbonisation in this country has really meant work in the power sector, but now we need to see action on transport, buildings, industry, and farming. This will create opportunities in the economy, tackle climate change, and bring down household bills.
“Our analysis shows that there is no need to pitch action on climate change against the economy. We will need Government and business to deliver the investment, but we are confident that this Seventh Carbon Budget offers a secure, prosperous future for the UK.”
Find out more here.
The CCC will unveil its 2025 Net Zero Progress Report at the Climate Innovation Forum on Wednesday 25th June during London Climate Action Week. For more information: About - Climate Innovation Forum
