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
The US housing regulator’s decision to recognize crypto assets in mortgage applications marks a historic shift from exclusion to integration, opening new pathways to homeownership.
“A wave of new cafes, bars, music venues and outdoor dining” could come to the UK – as the government unveils plans to overhaul planning rules and “breathe new life into the high street”.
Under the proposals, ministers also want to reform licensing rules to make it easier for disused shops to be converted into hospitality venues.
In a statement, Chancellor Rachel Reeves said she planned to scrap “clunky, outdated rules… to protect pavement pints, al fresco dining and street parties”.
The reforms also aim to prevent existing pubs, clubs, and music venues from suffering noise complaints when new properties hit the market.
Developers who decide to build near those sites will be required to soundproof their buildings.
Image: Reuters file pic
As part of dedicated “hospitality zones”, permission for al fresco dining, street parties and extended opening hours will be fast-tracked.
The government says the reforms aim to modernise outdated planning and licensing rules as part of its Plan for Change, to help small businesses and improve local communities.
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The rough plans will be subject to a “call for evidence” which could further shape policy.
Business Secretary Jonathan Reynolds said the proposals will “put the buzz back into our town centres”.
“Red tape has stood in the way of people’s business ideas for too long. Today we’re slashing those barriers to giving small business owners the freedom to flourish,” he said.
The hospitality industry has broadly welcomed the changes but argued tax reform was also essential.
Kate Nicholls, chairwoman of UKHospitality, described the proposals as “positive and encouraging”.
However, she added: “They can’t on their own offset the immediate and mounting cost pressures facing hospitality businesses which threaten to tax out of existence the businesses and jobs that today’s announcement seeks to support.”
While supporting the reforms, Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), had a similar message.
“These changes must go hand in hand with meaningful business rates reform, mitigating staggering employment costs, and a cut in beer duty so that pubs can thrive at the heart of the community,” she said.
In July, BBPA estimated that 378 pubs will shut this year across England, Wales and Scotland, compared with 350 closures in 2024, which it said would amount to more than 5,600 direct job losses.
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Pubs closing at a rate of one a day
Bar chain Brewdog announced this week that it would close 10 sites, partly blaming “rising costs, increased regulation, and economic pressures”.
Andrew Griffith MP, shadow business secretary, said: “Though any cutting of red tape for hospitality businesses is welcome, this is pure hypocrisy and inconsistency from Labour.”
He said the government was “crippling the hospitality industry by doubling business rates, imposing a jobs tax and a full-on strangulation of employment red tape”.
A campaign group for a third runway at Heathrow that gets funding from the airport has been distributing “incredibly misleading” information to households in west London, according to opponents of the expansion.
The group, called Back Heathrow, sent leaflets to people living near the airport, claiming expansion could be the route to a “greener” airport and suggesting it would mean only the “cleanest and quietest aircraft” fly there.
It comes as the airport prepares to submit its planning application for a third runway ahead of the 31 July deadline, following the government’s statement of support for the expansion.
Image: A plane lands over houses near Heathrow Airport. Pic: PA
Back Heathrow calls itself a “local campaign group of over 100,000 residents” and does not mention the funding it receives from the airport in the newsletter.
Its website also does not mention the current financial support and says it “initially launched with funding from Heathrow Airport but we have since grown”.
Back Heathrow also told Sky News it had “always been open” about the support it receives from the airport.
At the bottom of every web page, the organisation says: “Back Heathrow is a group of residents, businesses and community groups who have come together to defend the jobs that rely on Heathrow and to campaign for its secure future.”
Heathrow Airport said it had always been clear about funding Back Heathrow, but would not disclose how much it provides.
Image: Parmjit Dhanda in 2009 at the hustings to be Speaker of the House of Commons. Pic: Reuters
Who’s behind Back Heathrow?
The group’s executive director is former Labour minister Parmjit Dhanda, who was MP for Gloucester from 2001 to 2010 and sits on the National Policy Forum – the body responsible for developing Labour policy.
Latest accounts for Back Heathrow show it had five employees, including its two directors, in the financial year ending 30 June 2024. The second director is John Braggins, a former campaign adviser to Tony Blair.
The business had £243,961 in cash, the accounts show.
What are the group saying?
In the newsletter, executive director Mr Dhanda said people ask if Heathrow is sustainable. In answering the question, he appeared to suggest the airport can dictate what types of planes use Heathrow.
“We can build a cleaner, greener and smarter airport – using more sustainable aviation fuel, ensuring only the cleanest and quietest aircraft fly here, reduce stacking in our skies and modernise our airspace to cut emissions in flight,” he wrote.
When asked by Sky News what Back Heathrow meant and what the source for the claim was, the organisation pointed to the airport’s traffic light system of noise and emission measurements for the 50 largest airlines serving Heathrow.
“The scheme helps to see what areas certain airlines are excelling in and where improvements can be made,” a spokesperson said.
But those “cleaner and greener” claims were dismissed as “myths” by one campaigner.
Image: Back Heathrow’s spring 2025 newsletter
Finlay Asher is an aerospace engineer and co-founder of Safe Landing, a group of aviation workers and enthusiasts seeking climate improvements in the industry.
He said the emissions savings from sustainable aviation fuel (SAF) were “highly debatable” – but added that even if they were taken at face value, use of these fuels is “relatively low” and so only provides small emissions reductions.
“Air traffic growth at Heathrow will wipe this out,” he said.
Mr Asher also disputed the claim that only the cleanest and quietest aircraft will fly at Heathrow. “There is no policy in place which prevents older generation aircraft from being operated out of any airport,” he said.
As for reducing “stacking” – where aircraft wait over an airport to land – Mr Asher said if that’s the goal, “adding more aircraft to the sky won’t make this easier”.
Opposition to Back Heathrow’s claims also came from Rob Barnstone, founder of the No Third Runway Coalition, which is funded by five local authorities surrounding Heathrow Airport.
He said that regardless of fuel efficiencies or new quieter engines, having the additional 260,000 flights Heathrow has said will be created with an extra runway – in addition to the airport’s current cap of 480,000 – would create “an awful lot of noise”.
“For all the best will in the world, Heathrow is a very, very, very noisy neighbour… When you’re adding a quarter of a million additional flights, that’s going to create an awful lot of emissions, even if they’re using planes that are ever so slightly less environmentally damaging than previous planes,” Mr Barnstone said.
Green claims
Under the heading of “UK sustainable fuel industry for Heathrow”, Back Heathrow said “advances in electric and hydrogen powered aircraft can ensure we meet our environmental targets”.
Elaborating on this, Back Heathrow told Sky News: “Zero-emission electric and hydrogen aircraft are very much the end goal for civil aviation and countries like Norway have set 2040 as the year that all of their short-haul flights will be by electric planes.”
The statement was called “incredibly misleading” by Dr Alex Chapman, senior economist at the left-leaning think tank New Economics Foundation (NEF).
“There’s just absolutely no confidence that those aircraft are going to have any meaningful impact on emissions and commercial aviation in any reasonable time frame. And, yeah, we can all speculate as to what may not happen in 50 years’ time. But I think the people living around the airport should be given the information about what’s actually realistic.”
Even if the technology were available, the runway may not be ready for it, Dr Chapman said.
“Perhaps more importantly, there’s been no indication so far that the proposed new runway is being built to cater for those types of aircraft, because a runway that caters to electrical, hydrogen powered aircraft would be very different to one that was for conventional fuel, particularly in terms of the fuelling infrastructure around it that would be required: pipes to pipe hydrogen, massive charging power facilities.”
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Heathrow CEO on expansion plans
While work is under way to develop electric aircraft, there are currently no commercial electric flights taking place. The best-case scenario is battery-powered flights that may be suitable for short journeys.
But as a major international airport, more than 40% of Heathrow’s flights are long-haul and medium-haul.
And while airlines such as easyJet have called for government funding to develop hydrogen flying suitable for short-haul flights, there are obstacles to making regular commercial flights a reality.
Providing enough hydrogen for the plane journeys from renewable sources will be challenging, as will transporting the fuel, and reworking airport infrastructure for hydrogen refuelling.
Plans for hydrogen aircraft are at least a decade away, with Airbus saying it wants to get a 100-seat hydrogen plane in the air by 2035 – although Back Heathrow’s estimates for a third runway have flights taking off in 2034.
For now, rising emissions from flying are risking the UK’s climate targets, according to the independent government advisers of the Climate Change Committee, who found flights contribute more greenhouse gas than the entire electricity supply sector.
Image: Back Heathrow’s spring 2025 newsletter
Expanding at ‘full capacity’
On the first page of the newsletter, Back Heathrow says “Heathrow is at full capacity”, but the company told Sky News the airport has been “operating at 98% capacity since 2005”.
Despite its 98% capacity, Heathrow Airport has broken passenger number records every year for the past 14 years – excluding the pandemic years of 2020 to 2023.
Dr Chapman said Heathrow is at capacity regarding the government-imposed flight cap, not at the capacity of the current runway infrastructure.
“So if the government were, for example, to lift that cap on the number of aircraft movements, it’s pretty likely that they could actually fly 10% to 20% more flights out of the existing infrastructure,” he said.
As aeroplanes have expanded to carry more passengers, the airport has welcomed more people, he added.
The airport earlier this month announced plans to increase its capacity by 10 million passengers a year, before a third runway is built, and to raise the charge paid by passengers to fund the investment.
A Heathrow spokesperson said: “Back Heathrow represents tens of thousands of local people who want to make their views known on the importance of Heathrow to their communities and livelihoods today and into the future.
“We have always been clear that, alongside individual residents, local business groups and trade unions, we provide funding for Back Heathrow to provide a voice for local people who historically have not been heard in the debate about expanding Heathrow.”
Speaking for the campaign group, Mr Dhanda said: “At Back Heathrow we are proud of our link to Heathrow Airport (the clue is in the name).
“We have always been open about the fact that we receive support from the airport and that they helped set the organisation up to balance the debate about expansion at a time when the voices of ordinary working people from the diverse communities around Heathrow were not being heard.”
“Back Heathrow also receives support from trade unions, local businesses and residents from amongst the 100,000 registered supporters it now has,” he added.
“We want an end to the dither and delay. Back Heathrow supporters want to see economic growth and the thousands of new jobs and apprenticeships a new runway will create.”