Energy security, jobs and investment boost through climate action
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Families and businesses will continue to reap the benefits of the
clean energy transition in the coming decades, as Britain steps up
action to get off the fossil fuel
rollercoaster Government sets next achievable and
pragmatic target for long-term emissions reduction, building
on the framework that has secured billions of
private investment and economic growth since 2008,
a “great British success story”...Request free trial
Families and businesses across the UK will continue to reap the benefits of the clean energy transition, as the government sets a new emissions target to further protect family finances, grow the economy and tackle the climate crisis. As Britain faces its second fossil fuel price shock in 5 years due to the war in Iran, the government is pursuing policies which deliver tangible improvements to the lives of working people - centred on getting Britain off the rollercoaster of fossil fuel markets and onto clean homegrown power. Today (Tuesday 2 June) the government has set out its proposed level for the seventh Carbon Budget, which sets a science-led target of ~87% emissions reduction in the period 2038 to 2042 – endorsed by the Environmental Audit Committee and the Climate Change Committee. It comes as an independent report from the Energy and Climate Intelligence Unit, supported by analysis from the Confederation of British Industries Economics, today shows that the net zero economy supports over one million jobs in the UK, adding £105 billion in gross value added (GVA) to the UK economy in 2025 alone, as it continues to thrive as one of the UK's fastest- growing economic sectors. The new target is based on evidence-based assumptions about how the country will take a consumer choice-led approach to the adoption of technologies such as solar, batteries and EVs that will cut bills for families. The level for the Seventh Carbon Budget has been chosen because:
This builds on the UK's pioneering Climate Change Act 2008 - backed by British businesses, scientists, trade unions and civil society - which has provided a framework for combining economic growth and climate action, attracting billions of private sector investment and seen the UK become a global leader in clean energy industries. Since July 2024, the UK has seen over £90 billion of private investment announced in clean energy, including carbon capture projects in Teesside and nuclear at Sizewell C off the Suffolk coast. The government's clean energy and climate plans include:
Without action, climate change continues to endanger the UK's food and water security, exacerbate global population displacement and pose national security risks, including to critical infrastructure, in a context of increased global instability and households already suffering from the price volatility of fossil fuels. The Office for Budget Responsibility (OBR) is also clear that the costs of climate damage are getting higher, while the cost of the net zero transition is getting lower. This is about protecting the UK's way of life and the natural world from significant dangers. Energy Secretary Ed Miliband said: As Britain faces the second fossil fuel shock of the decade, the only way to protect family and business finances is to drive for clean homegrown power that we control. What has been achieved so far by businesses and communities across the country is a great British success story - cutting costs by upgrading homes, backing British businesses, supporting one million good jobs according to new analysis from CBI Economics, and protecting our beautiful countryside. Some people want to stick their heads in the sand and let our children face the consequences of climate breakdown - but this government believes in the timeless British value of protecting our country for generations to come. Climate Minister Katie White said: The record-breaking May heatwave is another reminder that climate change is no longer a distant prospect. Increased heatwaves, flooding and nature loss are becoming the new norm for our country. That's why we're continuing to set a clear investment framework which will electrify Britain, maximising the benefits of clean power with cleaner air, warmer homes, energy security, investment into Britain and thousands of jobs in the industries of the future. A delivery plan setting out how Carbon Budget 7 will be met will be published as soon as is reasonably practical after Parliament has approved the budget. Legislating the carbon budget level for 2038 to 2042 now sends an economy-wide signal to investors and businesses, providing long-term certainty which will encourage investment and growth. Notes to editors Carbon budgets are 5-year caps on greenhouse gas emissions levels set under the Climate Change Act 2008. Carbon Budget 7 is a limit on emissions for the 2038 to 2042 period of 535 MtCO2e, equivalent to an ~87% reduction on 1990 levels. The Climate Change Act 2008 framework has been supported by Britain's leading businesses, trade unions, and civil society organisations because it creates a stable environment for investment in clean energy. Since the UK introduced the Act, it has been emulated around the world with 60 other countries now adopting their own climate legislation. In October 2025, the government published the Carbon Budget and Growth Delivery Plan, which brings together the actions being taken across government to meet carbon budgets 4-6, from 2023 to 2037. For figures on record high solar deployment in March, see: ‘Solar photovoltaics deployment'. For figures on electric vehicle savings for consumers, see ‘New EVs are now cheaper than petrol cars on average – is now the time to buy? - Autotrader' . For figures on heatwaves, see ‘Heat mortality monitoring report, England: 2025'. On push to support 400,000 extra jobs, see 'Clean energy jobs boom to bring thousands of new jobs - GOV.UK'. |