The UK has unveiled a punchy new climate goal to slash its emissions by 81% by 2035.
The government said it is on a mission to “tackle the climate crisis in a way that makes the British people better off”, by investing in clean, home-grown power and cutting ties with volatile fossil fuel markets.
Announcing the pledge at the COP29 climate talks in Baku, Azerbaijan, the prime minister Keir Starmer said: “The race is on for the clean energy jobs of the future, the economy of tomorrow.
The target forms part of the UK’s new climate plan, and Sir Keir urged other countries at the summit to “come forward with ambitious targets of their own.”
So far the UK has cut emissions by 50% compared with levels in 1990.
The pledge has gone down well at the COP29 climate summit in Baku, Azerbaijan, where rich, polluting countries like the UK are expected to lead by example among the 200 countries gathered for the talks.
Kenya’s foreign secretary called the target “quite ambitious”.
The world needs “concrete examples of one of the key economies making positive strides towards dealing with climate change”, Musalia Mudavadi told Sky News.
But he warned countries would be watching to ensure “that nobody is back-pedalling”.
The UK’s pledge matches what its climate advisers say is needed to tackle climate change at home and meet a promise it made under the landmark Paris Agreement, struck at COP21 in 2015.
But the advisers, the Climate Change Committee (CCC), warned the government is missing plans it needs to get to that target.
“The good news is [the 81% target] is achievable,” said the CCC’s new chief Emma Pinchbeck.
“The less good news for government is they are behind on their [existing] targets.”
That’s not because “we don’t have the technologies available, or that the economics don’t work”, she said.
“The issue is that we haven’t had a delivery plan from the government that can get us there.”
Sir Keir Starmer’s arrival at COP29 with a promise to drastically cut the UK’s carbon emissions will be a small ray of sunshine in an otherwise gloomy start to the climate talks.
The election of Donald Trump, who has vowed to drag the world’s largest economy out of the negotiations, was a colossal setback for a round of talks dedicated to raising ambition – and cash for the transition away from fossil fuels.
If that wasn’t bad enough, Sir Keir was one of the few heads of the G20 to actually show up at the talks. President Biden is absent, so too are the leaders of China, Brazil, Germany and France.
The UK’s commitment to cutting emissions will be seen as a statement that it is possible to be a leading economy and leave fossil fuels behind. This reinforces the message these talks are urgently trying to send: that net zero is an opportunity for growth, not economic suicide.
But it’s a political risk. Getting to the 81% cut in emissions within 10 years will take a colossal and, in the short term, costly effort.
Labour’s plans for zero carbon electricity, already ambitious, won’t get us there alone. Making homes more energy efficient and heating them without gas will be essential. So too will fiddly things like protecting peat bogs, uplands and reforming agriculture.
Within the corridors of this summit, Sir Keir’s gamble will be celebrated. Back home, the response might be less enthusiastic.
The UK has been “arguably the leading country in the world at getting emissions out of the power plant that provides the electricity coming through your plug”.
But the “problem right now is definitely in how we heat our homes and transport, how we get around”, and flying and shipping also need plans to get clean, she said.
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Leaders are ‘pressing on’ with climate action
Oil and gas are a ‘gift’ from god
The announcement puts more pressure on other major emitters, as well as host nation Azerbaijan, to publish their own climate plans, known in UN jargon as NDCs (nationally determined contributions).
Azerbaijan’s autocratic president Ilham Aliyev used his opening speech to defend the country’s fossil fuel industry, calling oil and gas a “gift of the God”, just like the sun and wind.
He lashed out at Western critics of his country’s oil and gas industry, saying it had been the victim of a “well-orchestrated campaign of slander and blackmail” and “fake news”.
President Aliyev called it “not fair” to call Azerbaijan a “petrostate”, because it accounts for less than 1% of the world’s oil and gas.
His government relies on fossil fuels for 60% of its budget.
The United Kingdom’s Financial Conduct Authority (FCA) launched a series of consultations on proposed rules for digital asset markets, marking the next phase in the government’s effort to establish a comprehensive regulatory framework for crypto assets.
The proposals, published across three consultation papers, cover crypto trading platforms, intermediaries, staking, lending and borrowing, market abuse, disclosures and decentralized finance (DeFi). The FCA said consultation responses will be open until Feb. 12, 2026.
The regulator said the proposals aim to support innovation while ensuring that consumers understand the risks associated with crypto investment. It added that regulations should not eliminate risks entirely, but should ensure that participants operate responsibly and transparently.
“Our goal is to have a regime that protects consumers, supports innovation and promotes trust,” said David Geale, the FCA’s executive director for payments and digital finance, adding that industry feedback will help shape the final rules.
From advertisements to market structure
The consultations mark the next step in the UK’s push toward full “market structure” rules for crypto, moving beyond earlier requirements focused on financial promotions and Anti-Money Laundering compliance.
Under the proposals, exchanges would face clearer standards regarding admissions, disclosures and trading integrity. In addition, measures against insider trading and market manipulation would align crypto markets more closely with traditional finance.
The consultation also focuses on crypto staking services. The regulator seeks views on how firms should disclose risks when offering yield-bearing products that lock up customer assets. Crypto lending and borrowing are also included in the consultation, with proposed safeguards intended to protect borrowers and lenders.
Another element is decentralized finance (DeFi). The FCA consults on whether DeFi activities, including trading, lending and borrowing without intermediaries, should be subject to the same regulatory expectations as traditional financial services.
While consultations are ongoing, Geale reminded users that the assets are currently unregulated.
“While we work closely with partners to deliver the UK’s crypto rules, people should remember crypto is largely unregulated – except for financial promotions and financial crime purposes,” Geale warned.
The consultation was launched the day after the UK government announced its plan to introduce a bill to extend the country’s financial sector laws to crypto assets by 2027.
On Monday, the UK Finance Ministry reportedly announced that it will introduce legislation to bring crypto companies under existing financial laws by October 2027. This would put crypto under the oversight of the FCA.
UK Chancellor Rachel Reeves said bringing crypto into the regulatory perimeter is a “crucial step” in securing the UK’s position as a financial center in the digital age.
Gemini, the cryptocurrency exchange founded by billionaire twins Tyler and Cameron Winklevoss, has rolled out prediction markets in the United States after securing key regulatory approval.
Gemini launched its in-house prediction market, Gemini Predictions, across all 50 US states, the exchange announced in an X post on Monday.
Provided via affiliate Gemini Titan, Gemini Predictions enables users to trade on the outcomes of real-world events with “near instant execution” and full transparency.
The launch came shortly after Gemini Titan obtained a designated contract market license from the Commodity Futures Trading Commission (CFTC) on Wednesday, authorizing the company to offer prediction markets in the US.
Rising trend for building “everything apps”
The arrival of Gemini Predictions marks the company’s latest step in building a “one-stop super app,” allowing users to not only trade crypto, but also stake assets, earn rewards, buy tokenized stocks and participate in prediction markets.
The move aligns with a broader industry trend toward all-in-one platforms in crypto, with rival exchanges like Coinbase also rushing to introduce a wide range of services, including trending prediction markets and tokenized stocks.
Gemini Prediction’s market on the price of Bitcoin on Dec. 31. Source: Gemini
The project adds to a growing portfolio of prediction markets backed by YZi Labs, the venture capital firm founded by Binance co-founder Changpeng “CZ” Zhao, including Opinion, which topped volume rankings in November.
Major providers had faced issues in the US
The industry’s push to launch prediction markets follows years of regulatory uncertainty in the United States, with major providers such as Polymarket resuming local operations after previously facing a ban in 2022.
In another sign of a warming US stance toward prediction markets, a group of providers, including Kalshi, Robinhood and Crypto.com, recently received a temporary reprieve after a judge intervened following cease and desist orders issued by the state of Connecticut in early December.
Crypto industry executives have urged the US Securities and Exchange Commission to shift its thinking on blockchain privacy tools, pitching that there are legitimate applications for them outside of criminal use.
The SEC hosted crypto and finance executives for a discussion and panel on financial surveillance and privacy on Monday, the agency’s sixth crypto-focused roundtable this year, as it seeks to overhaul its approach to crypto.
StarkWare general counsel Katherine Kirkpatrick Bos, who participated in a panel discussion, told Cointelegraph after the event that a major takeaway was that there shouldn’t be an assumption that those using and creating privacy tools are “overwhelmed by wrongdoers.”
“Why is the assumption that an individual needs to affirmatively prove that they are compliant or they’re using the tool for good?”
“As opposed to it being the other way around, where the assumption is that this individual is using the tool for good until there is some sort of indication that they’re using it for bad,” she said.
Kirkpatrick Bos added that “of course, wrongdoers were using, or are using those tools, but there needs to be a balance.”
Katherine Kirkpatrick Bos (left) discussing financial privacy at an SEC roundtable on Monday. Source: Paul Brigner
During the roundtable, Wayne Chang, the founder and CEO of the credential management company SpruceID, said some percentage of users of stablecoins, a crypto tool that is slowly becoming mainstream, will want privacy.
“There are a ton of stablecoins that aren’t onchain yet that would come onchain if there is privacy,” he said. “We’re going to see an increase in demand for privacy-preserving blockchains.”
“My hope is that regulators continue to engage industry, and we can have those discussions on how to keep privacy for folks while also having tools that are useful,” Chang said.
Customer checks are becoming outdated
Kirkpatrick Bos said a discussion on Know Your Customer (KYC) and Anti-Money Laundering (AML) measures focused on whether current rules are sufficient in the age of artificial intelligence.
“The question arose and was debated on the panel, well, what is necessary for Anti-Money Laundering?” she said. “Now we have AI. It’s made manual, AML and KYC antiquated. How do we solve for that?”
“There was a sense that the current system of AML and KYC is antiquated, it’s problematic, it’s ineffective,” she added. “But there needs to be some sort of check when it’s a centralized entity facilitating flows of money to ensure that they’re not helping wrongdoers.”
Many financial institutions request a picture of a user’s driver’s license for its KYC checks, which Kirkpatrick Bos said was “absurd, because an individual can go on the internet and develop a fake driver’s license in a matter of seconds.”
“So the question is, can cryptography-based tools improve that and make it harder for bad guys to do that? But can they also do that and make it harder for bad guys while preserving an individual’s privacy and not revealing data like an address, where it is not necessary to vet the legality of the funds?” she added.
Some projects have begun to test crypto-based solutions for proving identity while claiming to preserve privacy, such as Sam Altman’s World, which gives users a cryptographic key they can use to prove they’re human.
SEC’s Atkins warns of potential for crypto mass surveillance
SEC chair Paul Atkins had given opening remarks at the roundtable, warning that if “pushed in the wrong direction, crypto could become the most powerful financial surveillance architecture ever invented.”
“If the instinct of the government is to treat every wallet like a broker, every piece of software as an exchange, every transaction as a reportable event, and every protocol as a convenient surveillance node, then the government will transform this ecosystem into a financial panopticon,” he added.
Atkins said that crypto allows for “privacy-preserving tools that the analog world could not provide,” which some institutions depend on to build positions or test strategies without “instantly telegraphing that activity to competitors.”
He added that some of the technology could balance the government’s interest in deterring security threats and the public’s privacy.
“But to best strike this balance, we must make certain that Americans can use these tools without immediately falling under suspicion.”