• 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”
• Moving at pace to electrify Britain and deliver clean, homegrown energy will unlock greater energy security, lower bills for good, cleaner air, thousands of good jobs and action on the climate crisis following record British heatwaves

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. 

This week 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:

• moving at pace to clean energy and net zero emissions is the best choice to reduce the exposure of UK families and businesses to more fossil fuel shocks, as the UK has seen following Russia’s invasion of Ukraine and the Iran War
• it maximises the benefits of the clean energy and net zero transition, including to the economy, health and nature
• it is consistent with the Paris Agreement aim to keep global warming to 1.5 degrees, to avoid climate disaster for future generations

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:

• Cutting bills and costs: March saw the highest monthly solar deployment in over a decade and a record month for EV sales. Families installing solar could save up to £500 a year, electric cars can save drivers up to £1,400 annually to run and external estimates show new electric cars are now on average, cheaper to buy than petrol equivalents. Alongside this, the £15 billion Warm Homes Plan will deliver the biggest home upgrade programme in British history, cutting bills and lifting millions out of fuel poverty
• Delivering energy security: Half of the UK’s recessions since 1970 have been caused by fossil fuel shocks. The government is investing in renewable and nuclear energy to get the UK off the rollercoaster of fossil fuel prices, delivering a record-breaking renewables auction that secured enough clean energy to power the equivalent of 23 million homes. By 2050, the UK could cut its reliance on fossil fuels from around three quarters of our energy today to around 15%, while avoiding around £445 billion in fossil fuel spending over the next 25 years
• Jobs and investment: The government is driving a major clean energy jobs push, supporting over 400,000 additional jobs by 2030 across the UK. According to the CBI Economics report, in 2025, jobs supported by net zero businesses were 48%, or 1.5 times more productive than the UK average, generating £119,300 in economic value per full-time job. This led to higher-than-average wages, with these jobs generating an average of £43,142 to a full-time worker
• Cleaner air and nature recovery: Clean energy will help make the air cleaner across the country, leading to better health and a higher quality of life for people now and in the future. Cleaner air from the transition is estimated to deliver around 8,000 fewer hospital admissions each year by 2050, easing pressure on the NHS. Restoring peatlands and planting new woodland will deliver around £50 billion in nature benefits over the period to 2050, improving biodiversity, water quality, flood protection and access to nature

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."

Commenting on the Government's announcement of the Seventh Carbon Budget today, which coincides with a new report by the Confederation of British Industry and the Energy and Climate Intelligence Unit showing the UK’s net zero economy added £105 billion in value in 2025 and now supports more than one million jobs, RenewableUK's Chief Executive Tara Singh said:

"Setting clear goals helps us to attract billions in private investment in the UK's world-class clean tech industries, creating well-paid jobs throughout the country in wind, solar, energy storage and green hydrogen - our new powerhouses of economic growth.

“The clean power we generate cuts bills by pushing the most expensive gas generators off the system. Low-cost electricity from renewables protects billpayers from price shocks on volatile global fossil fuel markets which we can't control, strengthening the UK's energy security as we move closer towards energy independence".

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