The government has announced its strategy to meet its promise to cut emissions to net zero by 2050.
In the 368-page document, Boris Johnson said the aim is to “meet the global climate emergency but not with panicked, short-term or self-destructive measures”.
The prime minister added the plan will be driven forward by the “unique power of capitalism” to bring down the costs of going green “so we can make net zero a net win for people, for industry, for the UK and for the planet”.
These are the key pledges and policies – and Treasury concerns over how it will be paid for:
Power
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The government confirmed a target for all electricity to come from low carbon sources by 2035 – subject to security of supply – which brings the plan forward by 15 years.
That includes:
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• 40 gigawatts from offshore wind, including 1GW of floating offshore wind by 2030
• Deploying a carbon capture, utilisation and storage power plant
• By the end of this parliament (May 2024), the government wants to secure a final investment decision on a large-scale nuclear plant and make decisions after that for more nuclear projects
• Providing £380m for the offshore wind sector
• Fixed minimum annual installation targets of smart meters for energy suppliers from 1 January 2022 so everyone has one by 2026
• Ensuring energy prices are fair and affordable and consumers can use services that will support net zero
Fuel supply and hydrogen
The government wants to deliver 5GW of hydrogen production capacity by 2030 while halving oil and gas emissions.
It plans to do that by:
• Providing up to £140m to establish a scheme that will fund new hydrogen and industrial carbon capture business models
• Implementing a £240m Net Zero Hydrogen Fund in 2022
• Working with the transport sector to develop a low carbon fuel strategy in 2022
• Working with companies to get rid of anything preventing the electrification of oil and gas production by October 2022
• Establishing a climate compatibility check for future licensing on the UK Continental Shelf – the water around the UK to which the country has mineral rights, including large resources of oil and gas
Industry
The ambition is for 6 metric tonnes of carbon dioxide (MtCO2) to be delivered per year of industrial carbon capture, utilisation and storage (CCUS) by 2030, and 9 MtCO2 per year by 2035.
The government wants to set up four CCUS “clusters” by 2030.
To achieve this, it wants to:
• Set up a £1bn carbon capture and storage infrastructure fund
• Give £315m to the Industrial Energy Transformation Fund to support the installation of energy efficiency and on-site decarbonisation measures – £289m for England, Wales and Northern Ireland, £26m for Scotland
How will this all be paid for?
A Treasury report has said funding the proposals will be difficult, especially as fossil fuel taxes will not be contributing, and warned “new sources of revenue” would be needed.
It added that passing the costs onto future taxpayers through borrowing would “deviate from the polluter pays principle” and would not be fair so the government “may need to consider changes to existing taxes and new sources of revenue”.
But, it said additional revenue could be raised from those doing the most polluting via “expanded carbon pricing”, therefore reducing the need to raise other taxes.
• Support switching from fuel to low carbon alternatives, with the aim of replacing around 50 TeraWatt Hours (TWh) of fossil fuels per year by 2035
• Consider the business and financial implications of setting targets for ore-based steelmaking to reach near-zero emissions by 2035
• Incentivise a cost-effective way of ending the reliance on carbon-emitting fuels in industry
Heat and buildings
The government wants to wean UK homes and all buildings off a reliance on fossil fuels by 2035 by making it affordable and achievable for everyone.
It has published the Heat and Buildings Strategy, which aims to:
• Support 175,000 green-skilled jobs by 2030 and 240,000 by 2035
• Phase out the installation of new gas boilers by 2035
• Introduce a £450m Boiler Upgrade Scheme so grants of £5,000 will be available from April 2022 for people to replace gas boilers with low carbon heat pumps (currently around £10,000) at the same cost – with the aim of making heat pumps as cheap to buy and run as gas boilers by 2030
• Invest £60m in heat pump innovation to make them more aesthetically pleasing, smaller and easier to install
• Insulate and upgrade poor homes and social housing so they are more efficient by 2030 with a £1.75bn investment
• Set standards for privately rented homes so they are more energy-efficient by 2028 (and will consider doing this for social housing)
• Invest £1.425bn to reduce direct emissions from public sector buildings by 75% by 2037
• Set a minimum energy efficiency standard of EPC Band B (the second most efficient) by 2030 for privately rented commercial buildings in England and Wales
• Trial hydrogen heating on a large-scale to make a decision by 2026 on its future role
Transport
The government has pledged to end the sale of new petrol and diesel cars and vans from 2030 and from 2035 all new cars and vans must be zero-emission.
To achieve that it wants to:
• Set targets for a percentage of new vehicle sales to be zero-emission each year from 2024
• End the sale of all new, non-zero emission road vehicles by 2040 – including motorcycles, buses and HGVs
• Ensure the UK’s vehicle charging network is reliable
• Commit an additional £620m on top of the £1.9bn already pledged for zero-emission vehicle grants and electric vehicle infrastructure
• Have 25% of the government’s car fleet ultra-low emission by December 2022 and all zero-emission by 2027
• Invest £12bn in local transport systems by May 2024
• Invest £2bn in cycle lanes and low-traffic neighbourhoods so half of all town and city journeys can be walked or cycled by 2030
• Invest £3bn in buses, including 4,000 new zero-emission buses, more bus lanes and more frequent services
• Electrify all railway lines by 2050 and remove all diesel-only trains by 2040
• Phase out the sale of new non-zero emission domestic shipping vessels
• Use £180m of funding so 10% of commercial flights use sustainable aviation fuels by 2030
Natural resources, waste and fluorinated gases (man-made gases such as HFCs and PFCs used in industry that contribute to the greenhouse effect)
The government wants 75% of farmers in England to be using low carbon practices by 2030 and 85% by 2035.
It aims to do this by:
• Increasing research and development funding into how to deliver net zero in agriculture and horticulture
• Trebling tree growing to meet the target of 30,000 hectares of planting per year by May 2024 and maintain that from 2025 onwards
Bill Gates boosts UK green investment
Boris Johnson and Microsoft co-founder Bill Gates announced a £400m partnerships to boost green investment.
Mr Gates and the government are going 50/50 on the investment.
The tech billionaire said the money will go towards funding clean technologies and reducing their costs “so they can compete with and replace the high-emitting products we use today”.
• Adding £124m to the existing £640m Nature for Climate Fund to restore at least 35,000 hectares of peatland in England, and create and manage woodlands by 2025 – helping farmers to change land use
• Restoring about 280,000 hectares of peat in England by 2050
• Supporting private investment in tree planting and peat restoration
• Increasing the use of timber in construction in England
• Putting £295m into English local authorities to implement free separate food waste collections for all households from 2025 to eliminate biodegradable municipal waste going to landfill from 2028
• Completing a review of F-gas regulations and seeing if they can go further
Sir Keir Starmer will launch his plan to deliver millions more appointments across the NHS and to reduce waiting times to 18 weeks over the next five years.
The prime minister will lay out how greater access to community diagnostic centres (CDCs) will help deliver up to half a million more appointments, alongside 14 new surgical hubs and three expanded existing hubs.
Up to a million appointments could be freed up by giving patients the choice to forego follow-up appointments currently booked by default, the government says.
Overall, the plan will involve a drive to deliver two million extra appointments by the end of next year.
The aim of the reforms is that by the end of March 2026, an extra 450,000 patients will be treated within 18 weeks.
Figures published by NHS England last month showed an estimated 7.54 million treatments were waiting to be carried out at the end of October – the lowest figure since March 2024.
According to the Institute for Fiscal Studies (IFS), the last time the NHS met the target of 92% of patients receiving treatment within 18 weeks was in 2015.
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The reforms for England will also see an overhaul of the NHS app to give patients greater choice over where they choose to have their appointment and will also provide greater detail to the patient including their results and waiting times.
The first step in the digital overhaul will be completed by March 2025, when patients at over 85% of acute trusts will be able to view their appointment details via the NHS app, the government said.
They’ll also be able to contact their provider and receive updates, including how long they are likely to wait for treatment.
In the effort to free-up one million appointments, patients will be given more choice over non-essential follow up appointments, while GPs will also be given funding to receive specialist advice from doctors before they make any referrals.
Sir Keir is expected to say: “This government promised change and that is what I am fighting every day to deliver.
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1:37
Streeting: ‘We’re going as far and as fast as we can’
“NHS backlogs have ballooned in recent years, leaving millions of patients languishing on waiting lists, often in pain or fear. Lives on hold. Potential unfulfilled.
“This elective reform plan will deliver on our promise to end the backlogs. Millions more appointments. Greater choice and convenience for patients. Staff once again able to give the standard of care they desperately want to.”
The CDCs will be open 12 hours a day and seven days a week wherever possible. Patients will be able to access a broader range of appointments in locations that are more convenient for them and which may speed up the pace of treatment.
There have been some concerns that giving patients choice of the location of their treatment may see some hospitals in greater demand than others – but Health Secretary Wes Streeting said this was a “matter of principle”.
“When I was diagnosed with kidney cancer, I was inundated with colleagues in parliament who were asking who my surgeon was, whether I was going to the best place for treatment, whether I was exercising my right to choose in the NHS,” he said.
“Now, it turned out I had one of the best kidney cancer surgeons in the country assigned to me by the NHS, so I was lucky.
“But frankly, someone like my mum as a cleaner should have as much choice and power in the NHS as her son, the health secretary.”
NHS chief executive Amanda Pritchard said the government’s plan was an “ambitious blueprint”.
“The radical reforms in this plan will not only allow us to deliver millions more tests, appointments and operations, but do things differently too – boosting convenience and putting more power in the hands of patients, especially through the NHS app.”
For British politicians, the question of the moment is how do you handle Elon Musk?
The billionaire owner of X and Tesla, soon to take up a role as efficiency tsar in the Trump administration, has been throwing grenades almost every hour about British politics on his social media platform and dominating the headlines.
Much of it is inflammatory claims about Keir Starmer and his government – despite their efforts to build good relations with Donald Trump.
And until today, enthusiastic backing for Nigel Farage, who only in mid-December met Musk in the glitzy surroundings of Mar-a-Lago to talk money, amid reports he was considering a $100m donation to Reform.
Then bam! – after Farage repeatedly hailed Musk as a “hero” who made Reform “look cool” and was looking forward to a chat at Trump’s inauguration – the tables have turned rather dramatically.
His change of heart comes after Musk has spent days intensively tweeting about grooming gangs in the UK, and his support for jailed far right activist Tommy Robinson, who has seized on this issue.
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Farage, who has tried to distance himself from Robinson for most of his career, thinks this is the reason for the fall out, responding that he was surprised but added: “My view remains that Tommy Robinson is not right for Reform and I never sell out my principles.”
Last week, Musk posted a series of tweets calling for Robinson – real name Stephen Yaxley-Lennon – to be released from prison, where he is serving an 18-month sentence for contempt of court for repeating false allegations against a Syrian refugee.
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2:09
Grooming victim’s father, Marlon West, speaks to Sky News.
What does this spat mean for Reform?
In the short-term, Reform would hardly have wanted an unexpected falling out just as they are trumpeting rising membership figures and Farage is poised to meet him in Washington.
But Farage sees Robinson as toxic for his brand, and a distraction from his mission of building a campaign machine to fight the next UK general election – even if he loses powerful friends.
The prospect of a donation from Musk – who has donated huge sums to Donald Trump’s campaign, would have been an enticing one, but there were already significant legal questions around it, under UK election rules.
Farage’s friendship with Trump, going back to his first term as president, also does not seem to have been affected, so a hotline to the White House is still possible.
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3:17
Reform UK leader Nigel Farage has told Sky News that Tommy Robinson is not welcome in his party.
What does it mean for Starmer and Labour?
It’s unclear what Trump thinks about Musk’s recent obsession with British politics altogether – as he rails against Keir Starmer and other US allies hour by hour, and whether this online trolling will be tolerated after he takes up his job in the White House.
This is a question that Labour officials are eagerly awaiting the answer to, although there may be some relief that the criticism is now being turned on Farage.
Musk has – in the last day or two alone – made a series of incendiary and unfounded accusations against Starmer, claiming he was “complicit in the rape of Britain”, that he is “guilty of terrible crimes” and questioning whether he, as director of public prosecutions, “allowed rape gangs to exploit young girls without facing justice?”
Wes Streeting, the health secretary, doing interviews today, said Musk’s criticism was “completely ill-judged and ill-founded” and that Starmer had done a huge amount to support victims and achieve prosecutions in grooming cases. But largely, the government are trying to ignore the noise.
Kemi Badenoch was accused of dancing to Musk’s tune by calling for a national inquiry into grooming gangs – the Conservatives having rejected one when in government just two years ago.
An unelected US-based billionaire is now setting a cat among the pigeons for all parties in Britain – and throwing issues into the limelight which none will find easy to ignore.