Since the Labour government came into power in 2024, the United Kingdom has doubled down on efforts to decarbonise its economy and put itself on track for achieving its net-zero carbon emissions aims for the mid-century. However, in recent months, there has been some division in parliament about the high price tag associated with achieving the country’s climate goals.
The U.K. introduced its 2050 net-zero target in 2021, in a bid to limit global warming in line with international Paris Agreement aims. The government has since adopted several national policies to meet this aim.
The U.K. net-zero policy has been in and out of court, as several judges deemed early proposals unlawful due to the lack of clear planning to achieve the aims set out. The latest revision of the strategy is the 2025 Carbon Budget and Growth Delivery Plan. The Labour government also announced the aim of delivering Clean Power by 2030, in December 2024, supported by legislation such as the Great British Energy Act, which created a publicly-owned clean power company to accelerate investment in renewable energy.
The U.K. also introduced aims for the end of the sale of new fully petrol and diesel cars by 2030, the subsidy of electric heat pumps to replace gas boilers, and investment in technology to capture and store CO2.
The U.K. has significantly increased its renewable energy capacity in recent years, driven by its strong climate policy. Renewable energy sources generated 51 percent of the U.K.’s electricity in 2024, with wind energy contributing 30 percent. The U.K. has cut its greenhouse gas emissions significantly in recent years, which were roughly 54 percent lower in 2024 than in 1990.
The U.K. became the first G7 country to phase out coal power, in 2024, with the closure of the last coal-fired power station. While significant progress has been made, in June 2025, the government’s independent adviser, the Climate Change Committee (CCC), warned that further action was needed.
Despite having established clear national policies to achieve net-zero aims and significantly increase the U.K.’s renewable energy capacity in recent years, there has been a lack of political consensus over net-zero policies in recent months, with opponents suggesting that the planned shift is too complex and expensive. Some politicians have accused the government of putting environmental targets above economic goals.
Both the Labour and Liberal Democrat parties remain committed to the mid-century net-zero goal and agree that the U.K. should take a lead in the global fight against climate change, arguing that reducing the country’s reliance on fossil fuels will support economic goals due to the volatile price of these fuels and geopolitical instability.
However, the Conservatives and Reform U.K. want to scrap the country’s net-zero target, suggesting that the existing strategy to achieve this goal is too expensive and difficult to achieve. They also argue that the UU.K.’sefforts to decarbonise have little impact on global climate change, as the country’s emissions are lower than those of other powers, such as the U.S. and China. By contrast, the Green Party wants to accelerate progress towards net-zero.
There is no clear idea of just how much the green transition will cost the U.K. to achieve; however, the CCC estimates a net cost equivalent of roughly 0.2 percent of the U.K.’s GDP per year between 2025 and 2050, based on its recommended pathway. This would mean tens of billions in investment a year in upfront investment between now and the end of the decade.
However, a recent report by the Institute of Economic Affairs think tank suggested that achieving the net-zero target could cost more than official estimates suggest. Energy analyst David Turner said the cash costs leading up to 2050 could reach as much as £7.6 trillion, compared to the cumulative £108 billion cost estimated by the CCC.
Nevertheless, the CCC expects most of the investment to come from the private sector. It also estimates that savings from transitioning away from fossil fuels to cleaner, more efficient alternatives will outweigh costs by the early 2040s. It would also reduce spending on tackling climate hazards.
Meanwhile, a National Energy System Operator for Great Britain stated, “NESO has made clear that driving for clean energy saves money by fundamentally reducing our exposure to fossil fuel markets – its report shows we could save £36 billion annually if we hit our 2050 goals compared with a scenario in which we slow down.”
The U.K. has established strong green energy policies that are supporting the country’s acceleration away from a reliance on fossil fuels to renewable alternatives, helping to drive down emissions. However, the high cost associated with this shift has led parliament to become more fragmented, as parties disagree on just how important it is to decarbonise the economy, which could ultimately put the U.K.’s climate targets in jeopardy.
By Felicity Bradstock for Oilprice.com
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