Government sets out Carbon Budget and Growth Delivery Plan

Miliband confirms commitment to zero-emission vehicles

The UK government’s Carbon Budget and Growth Delivery Plan outlines how the UK will meet statutory carbon budgets while driving clean economic growth. 

The government’s plans include investment in clean domestically-produced power, a plan to deliver 400,000 extra green sector jobs, warmer homes and cleaner air, including the promotion of zero-emission vehicles.

The Carbon Budget and Growth Delivery Plan (CBGDP) sets out how the UK will continue to reduce emissions in line with the 2008 Climate Change Act. 

The CBGDP brings together the actions being taken across government to meet carbon budgets 4-6, from 2023-2037. Carbon budgets are 5-year caps on greenhouse gas emissions levels set under the Climate Change Act 2008. 

Following a successful legal challenge under the previous government, the High Court ordered the government to publish a new report setting out its plans to meet future carbon budgets.  

Secretary of State for Energy Security and Net Zero Ed Miliband said: “Over the last 16 months we have put clean energy and climate action at the heart of our government’s agenda, because we know it is the route to making the British people better off. 

“This is about delivering better lives for people today – from warmer homes and cleaner air to cheaper transport and increased access to nature – as we tackle the climate and nature crises to protect our home for future generations. 

“It would be negligent to leave our children and grandchildren to face energy insecurity and climate breakdown. By providing clarity and certainty on how Britain will seize these opportunities, this plan will help unlock the investment we need in clean energy, jobs and growth at home. And it will strengthen our position as a climate leader so we can push others internationally to take the action needed to avoid disaster.”

Transport remains the largest emitting sector, responsible for around a quarter of total UK greenhouse gas emissions. Road transport contributes around 90% of that total, placing it at the forefront of the transition challenge. 

The CBGDP confirms key policy commitments, including that all new cars and vans sold must be zero emission by 2035, supported by the Zero Emission Vehicle (ZEV) sales mandate. 

For vans, the mandate requires 70% of new sales to be-zero emission by 2030, rising to 100% by 2035. The government also reconfirms the phase-out of non-zero emission HGVs by 2040.

To support uptake of EVs, the plan highlights further investment in charging infrastructure, with more than 86,000 public charging devices now in place and continued funding through the £381m Local EV Infrastructure (LEVI) Fund. The plan states a further 100,000 chargepoints are expected to be installed as a result of the Local EV Infrastructure (LECVI) Fund and £6 billion of private investment committed to 2030 – alongside the £25m scheme for local authorities to expand access to cheaper at-home charging.

The plan also calls for wider measures to reduce emissions, including improved vehicle efficiency, greater car occupancy, and a shift towards public and active transport. The report highlights the Electric Car Grant, adding that it will consult on empowering renters and leaseholders to install home chargepoints. This includes the announcement ton cutting red tape on cross-pavement charging solutions.

The CBGDP added that Ofgem will ensure that Distribution Network Operators offer quality connection and smooth and rapid connections to all customers, including chargepoint operators. These measures will help drive the transition to zero-emission vehicles and ensure everyone can share the benefits.

The Net Zero Council, chaired by Ed Miliband and Shirine Khoury-Haq, chief executive of the Co-operative Group, has launched a programme of work to develop Sector Transition Plans (STPs) to help businesses, investors and policymakers coordinate the UK’s transition to a clean, secure energy system while driving economic growth and improving lives across the country. 

There is also a commitment to decarbonising aviation, with the Sustainable Aviation Mandate (SAF) Mandate requiring 22% of UK jet fuel to be sustainable aviation fuel by 2040. We are also taking steps to power ships with sustainable fuels and electricity. 

Responses 

Nigel Topping CMG, chair of the Climate Change Committee, said: “It’s good to see the first comprehensive plan from the current government for achieving the next carbon budgets. We will assess it fully in our annual progress report in June next year.  There have been some encouraging signs of progress in the delivery indicators in our recent progress report. However, a significant increase in roll-out rates is needed in many areas in the next few years. It’s essential that progress against these is monitored with plans adjusted accordingly if things go off track.

“Our number one recommendation remains to make electricity cheaper. This means taking policy costs off electricity bills. This is vital for ensuring the required scale-up of heat pump installations in the plan and we hope to see this addressed in the upcoming Warm Homes Plan.” 

Rain Newton Smith, chief executive of the Confederation of British Industry, said: “Clear, consistent climate laws have helped make the UK a global leader in clean energy investment and innovation. This transition is not only essential for tackling climate change - it’s a strategic economic opportunity. Businesses remain committed because they understand this transition is the backbone of a competitive, resilient economy in an uncertain world. The science hasn’t changed but the risks of inaction have. Now is the moment to turn that ambition into tangible benefits for every household and business - from lower energy bills, and cleaner air, to the creation of high-quality jobs. 

“But we cannot afford to slow down. Electricity prices are too high and holding back the pace of decarbonisation and investment in the UK. Tackling this requires both targeted industry support and changing how fixed energy system charges are paid for, including a serious review of policy costs on bills. Bold action will ensure that the benefits of the clean energy transition are accelerated now and felt in communities across the UK for generations to come.”

Shirine Khoury-Haq, The Co-operative Group’s chief executive and co-chair of the Net Zero Council said: “Building on the significant progress that the UK continues to make in reducing its emissions, today’s announcement is another important step. It’s vital we continue to act to tackle climate change, to deliver a fairer future for generations to come.

“Clear targets, policy stability and certainty are all key for businesses looking to plan and invest with confidence, and ultimately it’s businesses which drive growth and can unlock the creation of good, green jobs. Through the Net Zero Council, we’ll continue to bring together civic society, the unions, businesses and investors to work closely with the UK government on this vital agenda, including through the development of Sector Transition Plans.”

Asad Rehman, Friends of the Earth’s chief executive, said: “With extreme weather events increasingly battering the planet – just as we’re seeing in Jamaica and Cuba right now – and hitting those who’ve done least to cause the crisis hardest here and overseas, strong climate action has never been more urgent. There are some encouraging signs that, at long last, we have a government ready to step up and get the UK’s climate targets back on track. But we won’t know for sure until we have studied the full detail of the plan.

“Crucially, the government has signalled that it recognises that meaningful climate action isn’t just a legal duty – it’s a massive social and economic opportunity too. Done right, it can deliver cheaper bills, warmer homes and thousands of good green jobs. This would help to tackle the deep inequality felt across the country?and build a fairer, more prosperous future.”

Rachael Orr, chief executive of Climate Outreach, said: “This plan is right to highlight the benefits the clean energy transition can bring to people across the country. Almost three quarters of us are worried about climate change and there is a quiet sense of pride across the country that we are building the clean industries of the future. Many people feel genuine excitement about climate policy when it’s seen as an investment in something tangible which benefits their homes, communities and our natural world.”

Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU), said: “The problem isn’t those who fly to go on their annual holidays, but there’s certainly a fairness point here given 30% of flights are taken by just 3%. The government is pinning its hopes for cutting aviation emissions on Sustainable Aviation Fuels and technological innovations that are still very much in their infancy, and failing to encourage ultra-frequent flyers from making more sustainable choices.” 

Paul Nowak, general secretary of the TUC, said: “This climate plan includes vital commitments to invest into manufacturing supply chains and good jobs. That’s welcome news for workers in every corner of the country. The government must now deliver the necessary funding at the Budget – that means a targeted electricity discount to bring down industrial electricity prices, as well as investment to futureproof North Sea supply chains and ports.”

Sarah Boon, managing director, corporate affairs and strategic policy at UK Finance, said: “The UK’s transition to a low carbon economy is a huge opportunity to drive investment, create jobs, and secure long-term growth. Our industry is ready to play its part through lending and financing. The government’s first investor prospectus, alongside the Carbon Budget and Growth Delivery Plan, shows real commitment to working with us.”

Minnie Moll, chief executive of the Design Council, said: “Net zero is not just a goal, it is an opportunity to redesign the world we want to live in, driving innovation, delivering growth, and creating a healthier future for all. We fully support the government’s stance that green growth and economic growth go hand in hand and are delighted that design has been recognised as a key clean energy job, a vital acknowledgment of the sector’s role in driving innovation for the green economy. This recognition aligns with our mission to upskill one million designers in green design skills by 2030, ensuring the UK design industry leads the way in the green transition.”