Climate plan captures clean energy benefits and boosts investment
Source: gov.uk (2025-10-29)

Working families and businesses will benefit from clean energy and climate action, as the government seizes the opportunities of the clean energy economy.

- Working people and businesses to feel the benefit of clean energy and climate action with lower bills, good jobs, warmer homes and cleaner air
- government sets out plans in line with Climate Change Act, the landmark framework that has helped to secure billions of private investment into the UK since 2008
- net zero economy is growing 3 times faster than the rest of the economy, with 400,000 additional clean energy jobs across the country to come by 2030
Working families and businesses across the country will benefit from clean energy and climate action, as the government confirms plans to seize the opportunities of the booming clean energy economy.

The Carbon Budget and Growth Delivery Plan, published today (Wednesday 29 October) sets out how the UK will continue to reduce emissions in a way that lowers bills and secures good jobs, in line with the landmark 2008 Climate Change Act. This 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.

The framework created by the Act has helped to secure billions in investment, and this plan sets out how the British public and businesses stand to benefit in the years ahead with economic growth, cleaner air and protecting the nation’s natural environment for current and future generations.

The UK is a global leader in decarbonisation and securing investment in clean energy industries, with the UK’s net zero sectors growing three times faster than the economy overall according to the Confederation of British Industry. The UK has reduced emissions by over 50% while growing the economy by over 80% since 1990.

This is alongside over £50 billion of private investment announced into clean energy industries since last July, with the clean energy workforce set to double to more than 800,000 people by the end of the decade.

The government is pursuing policies which deliver tangible improvements to the everyday lives of working people, harnessing clean energy technologies to cut bills and deliver warmer homes. The core of the government’s plans are:
- Investing in clean energy to deliver energy security and lower bills: Wholesale gas costs for households remain 75% higher than they were during the year before Russia invaded Ukraine in 2022, and are the main reason energy bills remain high. In an unstable world this leaves the UK vulnerable. The government is investing in renewable and nuclear energy to get the UK off the rollercoaster of fossil fuel prices and onto clean, homegrown power it controls, protecting the British people and building a system that can bring down bills for good.
- 400,000 extra jobs by 2030: The government recently announced a national plan to recruit the workers needed for the clean energy mission (https://www.gov.uk/government/news/clean-energy-jobs-boom-to-bring-thousands-of-new-jobs) , with over 400,000 extra jobs by 2030. From Sizewell C in East Anglia, to wind turbine manufacturing in Hull, carbon capture in the North West and North East, and ports in Wales and Scotland.
- Warmer homes: The government is upgrading homes for 5 million families through our Warm Homes Plan. This will provide support for families to switch to low carbon heating to cut their bills and have warmer homes, including with higher standards of insulation and rooftop solar. The Carbon Budget and Growth Delivery Plan does not include a boiler ban and nor will the Warm Homes Plan. Government is focused on making sure heat pumps and other low-carbon technologies are the natural consumer choice, in line with our wider approach to pursue the clean energy transition through incentives not penalties. This builds on the warm home discount which will cut bills for 6 million families this winter.
- Cleaner air: The plan 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, including through tree planting which helps to create more attractive, healthier and resilient places to live. From cleaner air to more affordable travel, climate action will make the British people better off. Zero Emissions Vehicles are now cheaper to run, saving drivers up to £1,500 a year in running costs compared to a petrol or diesel car.
Secretary of State, 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.

Minister for Climate, Katie White, said:

Our world leading Carbon Budget and Growth Delivery Plan supports good jobs now and in the future, while continuing to attract billions of pounds of investment into Britain.

Today’s plan reaffirms that clean energy is the economic opportunity of the 21st century.

As we meet our climate targets we will deliver lower bills, warmer homes, cleaner air and good jobs in the clean energy industries of the future for British people.

Rain Newton Smith, CEO 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 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.

At Co-op we’ll continue to take action to make our operations and the products and services we sell more sustainable. It is one of our member-owners’ highest priorities and it is the right thing to do.

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.

Friends of the Earth’s Chief Executive, Asad Rehman, 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.

Andy Prendergast, GMB National Secretary, said:

Delivering good jobs must be the number one mission of all governments. If this plan delivers good, secure jobs and tackles climate change, it can only be a good thing.

Further consultation on bringing down electric costs for industry is vital. Too many key manufacturing firms are struggling: a huge problem for growth and international competitiveness.

We look forward to seeing more action on this in the upcoming Budget.

Rachel Solomon Williams, Executive Director of the Aldersgate Group, said:

Economic growth must be based on decarbonisation, especially given the material risk that climate change poses to businesses and the opportunities offered by the global transition. The Climate Change Act, and the delivery plans that it requires, helps the UK to maintain its leadership position. It also offers certainty and attracts global investment to futureproof the UK economy.

We welcome the clarity provided by the new Carbon Budget and Growth Delivery Plan: it sets out a comprehensive approach to tackling emissions across all sectors, aligned with the government’s growth mission. Investor confidence will be further strengthened as more details on delivery emerge, including the upcoming Warm Homes Plan and industrial decarbonisation plan. However, the persistently high price of electricity continues to hold back growth and decarbonisation across multiple sectors, as well as putting pressure on households. We urge the government to prioritise action on power prices in the forthcoming Budget.

Sarah Boon, Managing Director, Corporate Affairs & 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. We look forward to helping shape the next steps to give businesses the certainty they need for sustainable growth.

Rachael Orr, CEO 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.

To deliver the ambitions in this plan, we have to ensure we engage people and communities on decisions that will affect them and work together to strengthen our communities, improve our daily lives, and secure a better future for everyone.

Miles Celic OBE, CEO of TheCityUK, said:

The publication of the Carbon Budget Delivery and Growth Plan (CBDGP), and the inclusion of the Investor Prospectus particularly, marks a positive step forward in providing industry with clarity on the UK’s net zero policy landscape and the government support available.

We look forward to seeing the more detailed materials that the government plans to release in the coming months to further support investor decision-making. The net zero transition represents a major growth opportunity for the UK, and the UK-based financial and related professional services industry stands ready to play a vital enabling role in this journey.

Minnie Moll, CEO 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.

Ian Simm, CEO of Impax Asset Management said:

As an investor focused on the transition to a more sustainable economy, Impax Asset Management welcomes the ambition and clarity of the UK’s Carbon Budget and Growth Delivery Plan.

By prioritising practical benefits – lower bills, good jobs, warmer homes and cleaner air – it makes a compelling case for accelerated climate action underpinning much-needed economic growth. I applaud the Secretary of State for outlining a clear path forward and look forward to continuing our work through the Net Zero Council to help unlock the investment needed to deliver it.

Beverley Cornaby, Director, UK Corporate Leaders Group, said:

Today’s Carbon Budget and Growth Delivery Plan rightly recognises that tackling climate change and supporting economic growth have gone, and continue to go, hand in hand. Investing in clean energy, improving home efficiency, and accelerating the transition away from fossil fuels are essential to reducing costs for households and businesses alike.

Business leaders across the UK know that delivering on our climate goals is also an opportunity to drive innovation, unlock investment, and build resilience in the face of volatile global energy prices. It simply makes good business sense.

As we welcome this plan for Carbon Budget 6, it is vital that government builds swiftly on this foundation and develops a credible, ambitious delivery plan for Carbon Budget 7. Long-term clarity and consistency are key to maintaining business confidence, attracting private capital, and ensuring the UK remains a leader in the global clean economy.

Chris Cummings, Chief Executive of the Investment Association, said:

The publication, for the first time, of an investor prospectus alongside the government’s Carbon Budget and Growth Delivery Plan indicates that the UK is thinking seriously about making decarbonisation a growth opportunity.

This is an important step in establishing dialogue between potential investors and government to build confidence on policy direction, involve investors at an early stage in project development, and build capacity in government to engage constructively with investors at every stage of the capital cycle from start-up to major infrastructure project.

Matthew Evans, COO and Director of Markets at techUK, said:

The new plan shows climate action is good for growth and great for businesses. With digital solutions integral to delivering progress, jobs, and with the potential to cut global emissions by 20%, techUK is looking forward to working with government to achieve this ambitious plan.

Notes to editors

1. The Carbon Budget and Growth Delivery Plan (https://www.gov.uk/government/publications/carbon-budget-and-growth-delivery-plan-2025) brings together the actions being taken across government to meet carbon budgets 4-6, from 2023-2037

2. Carbon budgets are 5-year caps on greenhouse gas emissions levels set under the Climate Change Act 2008.

3. 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.

4. We are now presenting a new plan which builds on our action to accelerate clean, homegrown energy for the British people.

5. This includes making planning decisions equivalent to powering 7.5 million homes, attracting over £50 billion in private sector investment announcements, setting up publicly owned Great British Energy, sparking a new golden age of nuclear power, and bringing in new plans to upgrade millions of homes to cut bills for homeowners and renters.

6. The government has also refined our analytical approach to better reflect how emissions savings will arise across the economy and within the policy package.

7. These changes ensure that the plan clearly sets out why the Secretary of State has confidence that it will enable Carbon Budgets to be met.

8. The overall emissions reduction targets set under the previous government have not changed.

The package includes:
- the government’s plan for how we are unlocking the benefits of the clean energy economy (https://www.gov.uk/government/publications/carbon-budget-and-growth-delivery-plan-2025)
- Carbon Budget and Growth Delivery Plan (https://www.gov.uk/government/publications/carbon-budget-and-growth-delivery-plan-2025) fulfilling obligations under the 2008 Climate Change Act, also known as the ‘Section 14 Report’
- the government’s response to the Climate Change Committee’s (CCC) 2025 progress report in reducing emissions (https://www.gov.uk/government/publications/committee-on-climate-change-2025-progress-report-government-response)
- an Investor Prospectus (https://www.gov.uk/government/publications/uk-net-zero-transition-investment-opportunities), outlining where and how investors can support the UK’s net zero transition by highlighting policy-backed, high-impact investment opportunities
- the UK’s Methane Action Plan (https://www.gov.uk/government/publications/uk-methane-action-plan), outlining the actions the UK Government is taking to reduce methane emissions in the UK and globally