The UK government has announced its new climate and energy strategy that promises to boost investment, create hundreds of thousands of jobs, and deliver cleaner air and lower energy bills for households
The carbon budget and growth delivery plan, released by the Department for Energy Security and Net Zero, outlines how the UK will continue to reduce emissions while driving economic growth.
The carbon budget and growth delivery plan builds on the framework of the 2008 Climate Change Act, which has underpinned billions of pounds of private investment and inspired more than 60 countries to adopt similar climate laws.
Driving clean growth and energy security
The government’s strategy places clean energy at the heart of Britain’s economic future. It aims to strengthen energy security and protect families from volatile fossil fuel prices by ramping up investment in renewables and nuclear power.
Wholesale gas prices remain significantly higher than before Russia invaded Ukraine, highlighting the risks of relying on global fossil fuel markets. The plan outlines steps to shift towards homegrown clean energy, reducing vulnerability to price shocks and paving the way for permanently lower bills.
According to government figures, the UK’s net zero economy is already growing three times faster than the overall economy, with emissions down by more than 50% since 1990, while GDP has risen by 80%. Over £50 billion of private investment in clean energy has been announced since 2024, with the sector expected to double its workforce to over 800,000 by 2030.
Creating jobs and warmer homes
A national recruitment drive aims to deliver 400,000 new jobs in clean energy by the end of the decade. These will be spread across the country, from wind turbine manufacturing in Hull and carbon capture projects in the North, to new nuclear facilities such as Sizewell C in East Anglia.
The government is also launching a Warm Homes Plan to upgrade 5 million homes. The scheme will help families switch to low-carbon heating, improve insulation, and install solar panels on their rooftops. Rather than banning gas boilers, the plan focuses on incentives that make cleaner technologies the natural choice for consumers.
Alongside this, the Warm Home Discount will continue to support 6 million low-income households this winter, helping to keep energy costs affordable during the transition.
Cleaner air and healthier communities
The carbon budget and growth delivery plan highlights how cleaner energy and greener transport can improve health and quality of life.
Expanding tree planting and nature restoration projects will create more attractive and resilient places to live, while cutting air pollution.
Electric vehicles, which are now cheaper to run than petrol or diesel cars, are expected to play a significant role. The government says drivers could save up to £1,500 a year on running costs while helping to reduce carbon emissions.
Unlocking investment and building confidence
The new carbon budget and growth delivery plan is accompanied by the UK’s first Investor Prospectus, designed to show policy-backed opportunities for private sector investment in clean energy, infrastructure, and innovation.
It also includes a Methane Action Plan setting out how the UK will reduce emissions from agriculture, waste, and energy production.
Officials say the package provides the clarity and certainty needed to attract more capital into green industries, supporting both near-term growth and long-term sustainability.
