This strategy sets out proposals to decarbonise the entire UK economy and to meet the UK’s net zero by 2050 target.

Key policy commitments across the various elements of the strategy are as follows:

Energy

• UK to be entirely powered by ‘clean’ electricity by 2035, subject to security of supply;
• £120 million ‘Future Nuclear Enabling Fund’
• To secure a final investment decision on a large scale nuclear plant by the end of this Parliament;
• Deploy 40GW of offshore wind by 2030, with 1GW of floating offshore wind by 2030;
• Reviewing the frequency of Contracts for Difference auctions to accelerate delivery of low-cost renewables; and
• Deploy flexibility measures, including storage, to address future power price spikes.

Fuel Supply & Hydrogen

• An Industrial Decarbonisation and Hydrogen Revenue Support Scheme, funding hydrogen and carbon capture business models;
• Award up to £100 million for up to 250MW of electrolytic hydrogen production capacity in 2023, with a further allocation in 2024;
• Climate compatibility will be a requirement for all future oil and gas licensing on the UK Continental Shelf; and
• Regulate the oil and gas sector in a way to minimise greenhouse gases.

Industry

• The East Coast and Hynet (North West) Clusters will act as economic hubs for green jobs;
• Future proofing industrial sectors through the Industrial Energy Transformation Fund; and
• Incentivising cost-effective abatement for industry through emissions caps under the UK ETS.

Heat and Buildings

• No new gas boilers will be sold from 2035;
• A three-year boiler upgrade scheme, providing household grants up to £5,000 for low carbon heating systems;
• £60 million for a ‘Heat Pump Ready’ scheme to support uptake of this technology;
• Rebalance emissions reduction policy costs from electricity bills to gas bills by the end of 2030;
• £1.75 billion for the Social Housing Decarbonisation Scheme and Home Upgrade Grants;
• £1.425 billion for Public Sector Decarbonisation, with a 75% target on emissions reduction from public sector buildings by 2037; and
• A ‘Hydrogen Village’ trial, informing a decision on hydrogen in the heating system by 2026.

Transport

• Ending the sale of new petrol and diesel cars by 2030;
• Requiring that all cars must be zero emissions capable by 2035;
• £620 million of funding for zero emission vehicle grants and electric vehicle infrastructure;
• £350 million for the Automotive Transformation Fund, supporting electrification of UK vehicles and supply chains;
• Expanding zero emission HGV trials;
• £2 billion on walking and cycling investments and £3 billion on bus services;
• 4,000 new zero emissions buses and a net zero rail network by 2050, with investment in rail electrification;
• An objective to remove all diesel-only trains by 2040;
• Extended trials of clean maritime vessels and infrastructure; and
• Target that 10% of aviation fuel will be Sustainable Aviation Fuel (SAF) by 2030.

Natural Resources, Waste and Fluorinated Gases

• Fundings for low-carbon farming;
• An additional £124 million for the Nature for Climate Fund by 2025;
• Restore 280,000 hectares of peat in England by 2050;
• Treble woodland creation rates in England;
• £75 million on net zero research and development on natural resources, waste and fluorinated gases; and
• Funding to implement free separate food waste collections for all English households from 2025.

Greenhouse Gas Removals

• £100 million of funding on Greenhouse Gas Removal innovation; and
• Explore options for regulatory oversight of Greenhouse Gas removals.

Cross-cutting Actions on Transition

• £1.5 billion of funding for net zero innovation projects;
• UK Infrastructure Bank to gather more than £40 billion of investment on low carbon technologies;
• New Sustainability Disclosures Regime, including mandatory climate-related financial disclosures and a UK green taxonomy (reliably identifying assets that address climate change);
• Incentivise and equip training providers, employers and learners to transition to net zero; and
• Publish annual progress updates against key indicators for achieving climate goals.