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”.
Image: Boris Johnson and Bill Gates (L) announced a green investment partnership
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
Image: The government wants 40GW to come from offshore wind farms by 2030
• 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
Image: The PM wants hydrogen to become one of the main fuels used in the UK
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
Image: The government will support the switch from a 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
Image: Electric vehicle charging points will be boosted under the plan
• 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
Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.
A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.
The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.
The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.
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2:21
Govt makes last-minute concession on welfare bill
The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.
The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.
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While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.
It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.
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Govt makes last-minute concession on welfare bill
An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.
The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.
And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.
The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.
Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.
“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”
Image: Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.
Her spokesperson says it was a personal matter that they will not be getting into.
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Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.
Anyone wondering if Kemi Badenoch can kick a dog when it’s down has their answer today.
The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.
Image: Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA
It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.
But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.
But Rachel Reeves has surely seen an omen of the impossible decisions ahead.
How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?
If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.