This provides practical information on embedding carbon methodologies and on the effectiveness of climate change • Over £1 billion of funding was made available over 2020/21 and 2021/22 through the Public Sector Decarbonisation Scheme, which provides grants for public sector bodies to fund heat decarbonisation and energy efficiency measures. A further £1.425 billion is currently being invested through Phase 3 of the scheme • We provided £15 million in 2021-22 and £14 million in 2022-23 through the Low Carbon Skills Fund to enable public sector organisations to acquire expert skills in order to unlock decarbonisation projects, bringing total funding for this work to • We published the Greening Government commitments in October 2021, setting out the actions departments and their agencies will take to reduce their impacts on the environment. Powering Up Britain – The Net Zero Growth Plan • Sponsored by the Department for Energy Security and Net Zero, the Modern Energy Partners programme will publish a suite of public sector decarbonisation guidance on the ESC website in spring 2023. This will help to address the capacity and capability barriers that public sector organisations face when they seek to decarbonise their built • The next application window to the Public Sector Decarbonisation Scheme, Phase 3c, is expected to open to applications in Autumn 2023. • We are developing plans for future phases of the Low Carbon Skills Fund and will make further announcements in due course. • Ministers will be required to have due regard to the environmental principles policy statement when it legally comes into force on 1 November 2023. • We expect the Procurement Bill to receive Royal Assent, which would place the National Procurement Policy Statement (NPPS) on a statutory basis. The NPPS sets out clear principles that contracting authorities should follow - tackling climate change and achieving net zero is one of these. • HMRC will explore options to further strengthen the analytical approach to monitoring, evaluating, and quantifying the environmental impacts of tax measures, including their wider impacts. Powering Up Britain – The Net Zero Growth Plan Local areas play an integral role in supporting the transition to net zero. Local authorities have strong powers, assets, and responsibilities across many of the areas where emissions reductions are needed, and civil society organisations can enable communities to take collective action to accelerate the net zero transition in their neighbourhoods. Local government is also uniquely placed to attract private sector net zero investment that wouldn’t otherwise be obtained; maximising the local opportunities the transition will bring, such as the growth of green jobs and skills. The government has made excellent progress in supporting local areas to deliver net zero. This includes establishing the Local Net Zero Forum, continuing the Local Net Zero Hubs Programme, and establishing Net Zero Go, the UK’s free-to-use digital platform providing advice to help local authorities make progress on net zero. We have also agreed devolution deals which contain shared agreements in relation to net zero/climate adaptation and/or clean energy. We welcome the recognition from the CCC and Independent Review of Net Zero of the promising steps central government are making towards harnessing the ambition of local government, including the recognition of the success of the Local Net Zero Forum which has been widely welcomed by local government. The Independent Review of Net Zero also affirmed that Government should continue to support the Local Net Zero Hubs Programme, given their role supporting local authorities on capacity and We have made excellent progress in this area to date and will continue to work collaboratively with local actors to progress still • We will strengthen our support to local authorities on capacity and capability building and ongoing knowledge sharing through our Local Net Zero Hubs Programme, Net Zero Go, and the annual net zero conference for local government that we sponsor with The Association for Public Sector Excellence (APSE). • We will pilot a devolved approach to buildings' retrofit from 2025 in the devolution deals with Greater Manchester Combined Authority and West Midlands Combined • We will strengthen the partnership with local government through ongoing engagement in the Local Net Zero Forum. Powering Up Britain – The Net Zero Growth Plan • We will look at the opportunities offered by blended finance models, and explore simplification of the net zero funding landscape for local authorities where this will deliver better outcomes for net zero. • We will continue to work with the Community Energy Contact Group on some of the key policy and delivery issues which impact the sector and support community energy projects through UK-wide growth funding schemes and Ofgem's Industry • As announced in the Budget, all new Investment Zones will be required to demonstrate how they will support the UK's net zero target. In the last 18th months, we have delivered against the key commitments we made in the Local Climate Action chapter of the Net Zero Strategy. Investment • We are testing new business models for investment into net zero, and to explore simplification of delivery. One approach is using devolution deals to pilot new approaches. We have recently announced wide-ranging devolution deals with Greater Manchester Combined Authority and West Midlands Combined Authority which include first-of-kind pilots for retrofit funding from 2025 (subject to conditions such as outcomes to be achieved) and which provide scope for a greater role to plan new energy infrastructure investment strategically. Alongside this, we have also agreed 6 other devolution deals since August 2022 (in York & North Yorkshire, the North East, Norfolk, Suffolk, East Midlands and Cornwall), all of which contain shared agreements in relation to net zero, climate adaptation and/or clean energy. Government's experience with these deals will inform future devolution deal • As announced in the Budget, new Investment Zones will drive local economic growth. Green business sectors are one of the five priority sectors for the Investment Zones, and all Investment Zones are also required to demonstrate their contribution to national Net Zero and environmental targets.
• To support local authorities' access to funding and increase investment, we have worked across government to ensure economic growth funding contains a net zero principle; and that

Powering Up Britain – The Net Zero Growth Plan clean growth and green job opportunities are highlighted. This includes for example, the £2.6 billion UK Shared Prosperity Fund which states that investment made under this Fund should demonstrate the extent of contribution to net zero and nature • Government-funded research through 3Ci and Innovate UK is helping to identify opportunities for local areas and local government to work with the private sector to finance the net zero transition. Proposals to develop work on blended finance are set out in the accompanying publication, the 2023 Green Finance • We are supporting Freeports in England, Wales and Scotland to Engagement • We have established a Local Net Zero Forum to strengthen our partnership with local government. Alongside the Forum, we have also established the Net Zero Places Stakeholder group to engage directly with non-governmental organisations who work • We continue to fund our five Local Net Zero Hubs which build capacity and capability in local government, The Hubs support local authorities across England to develop net zero projects and attract commercial investment. • The UK Infrastructure Bank is building its local advisory function to a steady state through 2023, and will also lend up to £4 billion to local authorities at a preferential rate for high value and strategic projects of at least £5 million. • We are funding Net Zero Go, the UK's free-to-use net zero delivery platform for local authorities. It is a one-stop shop which brings together the support and practical tools local authorities need to develop, deliver, and evaluate locally focused net zero Sectoral Support • We are working closely with Local Authorities to deliver practical policy measures across a range of different sectors. For − As outlined in the Transport Decarbonisation Plan, the new Local Transport Plan (LTP) guidance will provide updated

Powering Up Britain – The Net Zero Growth Plan strategic guidance for the development of LTPs and will support places to quantify local transport carbon emissions and assess the carbon impact of planned interventions in their LTP. − The Government's 'Help to Heat' schemes ensure homes will be warmer and cheaper to heat. Working with Local Authorities, the Government will deliver upgrades to over half a million homes in the coming years through our Social Housing Decarbonisation, Home Upgrade Grant Schemes and Energy Innovation • We are supporting place-based energy system innovation through Innovate UK's £60 million Net Zero Living Programme. There have been two rounds of funding announced to date. This − Net Zero Pathfinders for UK registered businesses and local authorities to apply for a share of up to £2 million to plan for a place-based demonstration of ways to accelerate progress − Fast Followers for local authorities to apply for a share of up to £6 million to build skills and capabilities to accelerate local Community Energy • Through our Local Net Zero Hubs we are supporting local authorities and community energy groups to work together, this includes funding a pilot programme which provides local authorities with direct support to develop community-led energy groups and projects. We have also established a Community Energy Contact Group to increase engagement with the sector. • We will continue to invest £5 million/year in the Local Net Zero Hubs Programme and progress our ongoing projects, such as Net Zero Go, to support delivery at the local • We will continue to support the UKIB to build its local advisory function and to work closely with the Local Net Zero Hubs. • We will support work to promote net zero investment in Freeports. Powering Up Britain – The Net Zero Growth Plan • We will pilot a devolved approach to buildings' retrofit from 2025 in the devolution deals with Greater Manchester Combined Authority and West Midlands Combined • Green business sectors are one of the five priority sectors for the Government's Investment Zone programme announced in the Budget and all Investment Zones will be required to demonstrate how they support the Government's net zero and

Powering Up Britain – The Net Zero Growth Plan Empowering the Public and Business to Make Green Choices By choosing green products, services and goods, the public can help grow the green economy and support progress towards reaching net zero. Many of the commitments set out in the Net Zero Strategy will require the public to make green choices, with the installation of heat pumps and purchase of electric vehicles playing a particularly important role. As an example of how we will make these green choices easier, we will continue to deliver energy advice to the public on how to reduce their energy use, and in doing so their bills, and explore the case to expand this further, including our digital We recognise that supporting the public and businesses with green choices must address multiple barriers, e.g., cost, convenience, awareness, and that everyone - government, industry, businesses, and civil society - must work together to achieve net zero to gain the economic benefits and ensure the environment is in a state for future generations. As the CCC acknowledged in their report, we have already included in the Net Zero Strategy a clear set of principles for how we will engage and empower the public Across net zero sectors, we are introducing measures which support these six • Principle 1 - Minimise the ‘ask’ from the public by ‘sending clear regulatory signals.’ • Principle 2 – Make the green choice the easiest. • Principle 3 – Make the green choice affordable. • Principle 4 – Empower people and businesses to make their own choice. • Principle 5 – Motivate & build public acceptability for major changes.
• Principle 6 – Present a clear vision of how we will get to net zero and what the role of people The public will play a key role in the transition and therefore we will set out further detail on how Government will increase public engagement on net zero. This includes detailing how the government will (i) support public awareness of our actions through our digital platforms, (ii) develop a roadmap setting out plans and proposals under net zero and (iii) construct a guiding framework, in conjunction with partners and trusted messengers, to amplify net zero messaging. Powering Up Britain – The Net Zero Growth Plan Government is establishing a new partnership to work with business and finance leaders to support the delivery of our net zero target - a new Net Zero Business and Investment Group. The group will look to develop a shared view of market barriers across different sectors to deliver net zero and the respective roles across Government, industry and the finance sector in addressing these. • In July 2022, the government launched an online advice tool that provides high-level trusted, impartial and tailored advice to consumers on how to improve home energy performance and information on retrofit recommendations. In March 2023, we also launched an accompanying phoneline service that provides a digital assist service for the tool. • In December 2022, the Government also launched the 'It All Adds Up' campaign with £18 million funding. This campaign provides advice on simple, low, or no-cost actions that households can take • A targeted sister campaign to the consumer energy campaign has supported businesses through a period of record high energy prices. With £4.25 million in funding, the campaign is designed to help businesses, in particular small businesses, manage energy bills by improving efficiency and reducing overall consumption. • In 2022, we ran a digital discovery to explore whether there is a user need for new content on net zero on GOV.UK or a new resource to link together different sources of information and support on net zero in a comprehensive platform. We will run an • In the year to COP26, the former Net Zero Business Champion, Andrew Griffith MP, engaged large businesses and led Together for Our Planet, a campaign targeting small and micro businesses across the UK. The UK remains a global leader in the global Race to Zero, with almost 4,000 small and medium-sized enterprises (SMEs) and two thirds of the FTSE100 companies signed up to

Powering Up Britain – The Net Zero Growth Plan • We will set out further detail on how Government will increase public engagement • Government will launch a series of local demonstrator projects, which will test various approaches to delivering in-person advice, with a particular focus on harder- to-treat properties and digitally excluded consumer groups. We will also be reviewing further advice and measures that the ‘It all Adds Up’ campaign can • We will continue to pursue the role of ecolabelling across sectors to help consumers make more informed purchasing decisions. We will create a mandatory methodology for eco-labelling which the food and drink industry must follow when providing voluntary information to consumers regarding their food's emission and • While labels already exist for energy-using products and homes (in the form of Energy Performance Certificates), we are exploring the use of eco-labels for a wider a range of goods and services. • We are exploring the use of product labelling to show the durability, repairability and recyclability of products, as well as their environmental footprint. • We have announced our intention to require recyclability labelling on packaging and will introduce this as part of new regulations on packaging and packaging waste. • The Department for Energy Security and Net Zero and Defra have bolstered its behavioural research capabilities by launching an Energy & Climate Behavioural Science Framework, a call-off contract that allows us to rapidly procure behavioural research. DfT has launched a similar contract for transport. • We have regularly funded public dialogues on a range of net zero issues and will continue to do so, using the findings to inform policy development. For example, in the past year, the Department for Energy Security and Net Zero has commissioned a public dialogue on biomass and bioenergy with carbon capture and storage to feed into the delivery of the Biomass Strategy in

Powering Up Britain – The Net Zero Growth Plan The UK has been – and will remain - at the centre of global efforts to tackle climate change and transition to a global net zero economy. Collectively, we must reach our target in a way that protects energy security, supports green growth and innovation, and maximises benefits for businesses and consumers. Successfully addressing the challenges of climate change requires an unprecedented level of international action, collaboration, and coordination. The UK is driving international collaboration and focusing our actions on areas that will have the biggest impact. We are building strategic alliances to accelerate the global net zero transition, championing ambition and driving forward real-world action to keep 1.5 alive, and mobilising finance at scale – whilst maximising opportunities for the UK. Current global challenges such as Putin’s invasion of Ukraine, food and energy security, the rising cost of living and the recovery from the Covid pandemic underscore the urgent need to accelerate climate action. Further action on climate mitigation, adaptation and nature can bolster national and global resilience to current and future shocks and enhance economic stability. The UK will continue to be a world leader in the drive to net zero. Between 1990 and 2021 we’ve cut emissions by 48% while growing our economy by 65%. In 2020 there were over 400,000 green jobs in low carbon businesses and their supply chains across the country.
However, while countries have increased their emission reduction targets, the science is clear that emissions need to be halved by 2030 to keep 1.5C within reach and reach net zero by 2050. country - including the UK - will face, it also drives down the cost of transition faster by increasing demand for low carbon technologies. As the Independent Review of Net Zero made clear, the UK has comparative advantage and stands to benefit from the huge economic opportunities this brings. The 2030 Strategic Framework for International Climate and Nature Action will define the UK Government’s vision and role in tackling global climate change and biodiversity loss in this critical decade. Taking an integrated approach to climate and nature, the Framework will build on our COP26 Presidency, the outcomes of COP27 and the Convention on Biological Diversity (CBD), COP15. The UK International Climate Finance Strategy underpins this, outlining how the UK is delivering on our commitment to provide £11.6 billion of international climate finance between 2021/22 and 2025/26, supporting developing countries to take climate action, and delivering on our international

Powering Up Britain – The Net Zero Growth Plan We welcome the recommendations of both the Climate Change Committee (CCC) and the Independent Review of Net Zero and full responses can be found in the annexes. As recommended by the CCC and in response to the Glasgow Climate Pact, we revisited our 2030 Nationally Determined Contribution and strengthened it with information on delivery of our target to reduce all greenhouse gas emissions by at least 68% by 2030 on 1990 levels, including plans to expand the territorial scope of the NDC to include the UK’s Crown Dependencies and Overseas territories. • Keeping 1.5 degrees Over 90% of the world's GDP, up from 30% when the UK took on the COP Presidency, is now covered by net zero commitments. More than 170 countries have now put forward new 2030 climate plans, known as nationally determined contributions, amounting to around 6 Gts in emissions reductions. • Increasing funding and launching UN work for dealing with climate To accelerate progress towards achieving the $100 billion goal, the UK secured enhanced public finance commitments from 95% of major donors, showcased in the 'Climate Finance Delivery Plan' launched in Glasgow. In addition at COP26, countries agreed to double 2019 levels of adaptation finance by 2025, the first quantified adaptation finance target, with the UK subsequently pledging to triple its adaptation finance against the same timeline. Record levels of finance to help countries adapt to the effects of climate change were also pledged to the Adaptation Fund and the Least Developed Country Fund under the UK Presidency. An ad hoc work programme towards setting the post-2025 new collective quantified goal on finance was launched, and investor initiatives worth trillions were launched, including the Global Financial Alliance for Net Zero • Accelerating unprecedented low-carbon transitions of industries such as transport and energy, with commitments covering power, coal, methane, fossil fuel financing, forests and land, transport and sectors, including the first ever agreement to coal phase down in a UN climate decision. Powering Up Britain – The Net Zero Growth Plan • Establishing a new Glasgow Dialogue on Loss and Damage to discuss the arrangements for funding activities to avert, minimise • Finalising the Paris Rulebook after 6 years of negotiations, which sets out the instructions and products needed to fully implement the Paris Agreement on climate change. These guidelines build confidence and transparency as countries deliver on their commitments to meet the goals of the Paris Agreement. • During COP27 our focus was building on the Glasgow Climate Pact. We welcome the landmark progress made on loss and damage and the agreement to establish a fund to support those most vulnerable to the effects of climate change. We also saw progress on key work programmes launched in Glasgow. This includes the work programme for urgently scaling up mitigation ambition and implementation in this critical decade (known as the mitigation work programme) and the Glasgow - Sharm El-Sheikh work programme on the Global Goal on Adaptation (GlaSS). Our results to date demonstrate the transformative impact that UK ICF can have. Between 2011 and 2022, our • Supported 95 million people to better adapt to the effects of • Improved access to clean energy for 58 million people • Reduced or avoided 68 million tonnes of greenhouse gases • Installed 3.3 gigawatts of clean energy capacity • Avoided deforestation across 410 thousand hectares • Mobilised £5.7 billion of public and £5.2 billion of private finance • Supported the sustainable management of 910 thousand hectares • We have doubled our International Climate Finance commitment to £11.6 billion between 2021/22 and 2025/26. This will enable a step-change in the UK's impact long-term and supporting developing countries and delivering Glasgow Climate Pact outcomes. This funding increase will be used unlock affordable

Powering Up Britain – The Net Zero Growth Plan Continuing to drive global ambition and implementation of net zero commitments is vital to the future of our planet and more must be done. The UK will continue to champion international climate action, noting the urgency required in this critical decade to 2030. Ahead of COP28 we will need to revitalise efforts to keep 1.5°C in reach, including in pushing for emissions peaking before 2025, active follow-up on the phase down of coal, and phase out of all fossil fuels. We must rapidly decarbonise key sectors of the economy, delivering on sector commitments made at COP26, including through the Breakthrough Agenda. We will support the most vulnerable to adapt and build resilience to the effects of climate change, delivering on the Glasgow Climate Pact, and halt and reverse biodiversity loss as agreed through the Kunming-Montreal Global Biodiversity Framework. We will work with partners on the design of the funding arrangements and fund for loss and damage, and to shape the framework for the Global Goal on Adaptation.
The Global Stocktake must enable us to genuinely shift gears on delivering the Paris Agreement goals. Beyond COP28, the UK will work with international partners to refine the post-2025 • Publish the 2030 Strategic Framework for International Climate and Nature Action which will set out the priorities for UK action through to 2030. • Publish the UK’s International Climate Finance Strategy. It outlines how the UK’s high-profile commitment to spend £11.6 billion on ICF in 2021/22-2025/26 is being spent and is delivering results as part of the promised contributions to the UNFCCC commitment to mobilise US$100billion climate finance a year for developing countries. The strategy also shows how we are delivering on the ICF sub-targets which we have announced publicly, on nature, adaptation, and innovation. and clean energy; help countries, economies and communities become more resilient; halt deforestation and prevent irreversible biodiversity loss; support the development of sustainable cities

Powering Up Britain – The Net Zero Growth Plan 35 July and December 2022 Hydrogen Strategy update to the market 36 North Sea Transition Authority (2022) Emissions Monitoring Report. publications/publications/2022/emissions-monitoring-report-2022/ 37 NSTA (2022) Data set, 38 Please see the Carbon Budget Delivery Plan for details of our policies and proposals for meeting the carbon budgets. The 'Meeting carbon budgets' section of the Carbon Budget Delivery Plan makes clear how we have reached the conclusion that Carbon Budgets will be met. Whilst the indicative pathway set out in the NZS remains our view of the most economically advantageous way to meet the Carbon Budgets, and we therefore continue to use it as a means of developing and testing policy, the pathway plays no role in our conclusion that that Carbon Budgets will be met. Pathway (N-ZIP) model’, For further details see Sector Modelling in Technical Annex. 40 DESNZ analysis (2023), ‘Net Zero Industry Pathway (N-ZIP) model’, content/uploads/2020/12/N-ZIP-Model.xlsb. 41 DESNZ analysis (2023), ‘Net Zero Industry Pathway (N-ZIP) model’, content/uploads/2020/12/N-ZIP-Model.xlsb. For further details see Sector Modelling in Technical Annex. 42 Please see the Carbon Budget Delivery Plan for details of our policies and proposals for meeting the carbon budgets. The 'Meeting carbon budgets' section of the Carbon Budget Delivery Plan makes clear how we have reached the conclusion that Carbon Budgets will be met. Whilst the indicative pathway set out in the NZS remains our view of the most economically advantageous way to meet the Carbon Budgets, and we therefore continue to use it as a means of developing and testing policy, the pathway plays no role in our conclusion that that Carbon Budgets will be met. 43 DLUCH (2022), 'English Housing Survey 2019-20 Report’, 44 BEIS (2021), ‘Opportunity areas for district heating networks in the second National Comprehensive Assessment’, networks-in-the-uk-second-national-comprehensive-assessment 46 Heat Networks Industry Council 47 BEIS (2021), national-statistics-2021. Includes IA&S in total emissions. Consistent with CB6/NZS analysis. 48 Please see the Carbon Budget Delivery Plan for details of our policies and proposals for meeting the carbon budgets. The 'Meeting carbon budgets' section of the Carbon Budget Delivery Plan makes clear how we have reached the conclusion that Carbon Budgets will be met. Whilst the indicative pathway set out in the NZS remains our view of the most economically advantageous way to meet the Carbon Budgets, and we therefore continue to use it as a means of developing and testing policy, the pathway plays no role in our conclusion that that Carbon Budgets will be met. 49 Sustainable Aviation forecasts based on independent analysis conducted by ICF consulting firm. Analysis assumes UK SAF production costs match or are lower than wider global SAF production costs. 50 CCC (2022), Progress-in-reducing-emissions-2022-Report-to-Parliament.pdf (theccc.org.uk), pp.112-113 51 December saw battery electric vehicles (BEVs) claim their largest ever monthly market share, of 32.9%, while for 2022 as a whole they comprised 16.6% of registrations, surpassing diesel for the first time to become the second most popular powertrain after petrol. 52 Please see the Carbon Budget Delivery Plan for details of our policies and proposals for meeting the carbon budgets. The 'Meeting carbon budgets' section of the Carbon Budget Delivery Plan makes clear how we have reached the conclusion that Carbon Budgets will be met. Whilst the indicative pathway set out in the NZS remains our view of the most economically advantageous way to meet the Carbon

Powering Up Britain – The Net Zero Growth Plan Budgets, and we therefore continue to use it as a means of developing and testing policy, the pathway plays no role in our conclusion that that Carbon Budgets will be met. 54 Defra (2023) Environmental Land Management (ELM) how government will pay for land -based environment and climate goods and services, land-management-update-how-government-will-pay-for-land-based-environment-and-climate-goods-and- services/environmental-land-management-elm-update-how-government-will-pay-for-land-based- environment-and-climate-goods-and-services 55 Published within the UK ETS Authority’s consultation on ‘Developing the UK Emission Trading Scheme’: Developing the UK Emissions Trading Scheme (UK ETS) - GOV.UK ( 56 Please see the Carbon Budget Delivery Plan for details of our policies and proposals for meeting the carbon budgets. The 'Meeting carbon budgets' section of the Carbon Budget Delivery Plan makes clear how we have reached the conclusion that Carbon Budgets will be met. Whilst the indicative pathway set out in the NZS remains our view of the most economically advantageous way to meet the Carbon Budgets, and we therefore continue to use it as a means of developing and testing policy, the pathway plays no role in our conclusion that that Carbon Budgets will be met. 57 Nature-based solutions, such as afforestation, are included in the Agriculture and LULUCF subsector. For further detail, see the Natural Resources, Waste & F-Gases chapter. 58 Internal DESNZ analysis based on Energy Innovation Needs Assessment t echnology deployment paths (2019): Note this data is based on 80% emission reduction target by 2050, not the current net zero (100% reduction) target, hence likely to be an underestimate. 59 BEIS (2021) Net Zero Research and Innovation Framework,

Powering Up Britain – The Net Zero Growth Plan

Powering Up Britain – The Net Zero Growth Plan