The Climate Change Committee has set out a carbon budget for the period 2038 to 2043. It says there has to be a rollout of electric vehicles , heat pumps and renewables that is “similar to those previously achieved for mass-market roll-outs of mobile phones, refrigerators, and internet connections”. The industry responds:

Caroline Bragg, CEO, ADE:
“The CCC has laid out an ambitious vision for decarbonisation through electrification and other technologies, but the real transformation begins with government action. Government must now set clear, modern rules that ensure we don’t waste the renewable energy we’re building or the heat our industries produce. This is how we lower bills, protect jobs, and fuel economic growth.”

Kevin Murray, Senior Business Manager, Nuclear, Frazer-Nash Consultancy:
“We welcome the Seventh Carbon Budget and its call for new nuclear energy facilities. However, we disagree that rolling out nuclear energy by the 2040s is unrealistic.
“The UK possesses a rich nuclear heritage, and a skilled supply chain that is ready to accelerate the deployment of new nuclear capacity.
“We urgently need a final investment decision on new large-scale nuclear at Sizewell C which is set to provide low-carbon energy to 6 million homes over its 60-year life. Additionally, new technologies such as Small and Advanced Modular Reactors (SMRs and AMRs) will become a key part of the low-carbon economy, providing power to the grid and also decarbonising our key industries.
“Sustained government support, coupled with private sector investment, to remove barriers and ensure an at-pace roll-out of these transformational technologies, is vital to realise their potential. If we’re to meet net zero, the government needs to act now before it’s too late.”

Vincent Thornley, managing director, Fundamentals engineering company:
“To keep the journey to net zero on the right side of the road, calls for smarter grid technology to power tomorrow’s EVs. This shift to all electric car sales by 2030 is complex and will require astute navigation from grid operators.
“The UK’s electricity infrastructure needs to adapt to accommodate the significant surge in demand from home chargers. This is quite a shift, when you consider how that impacts the distribution of energy supply and demand. And it requires smart automatic voltage controllers to enable substations to respond immediately to sudden changes in supply and demand, from EV chargers
“The good news is we are seeing lots of innovation in the grid and also in EV charging and storage. Renault’s new domestic EV wall-box, for example, has its own smart tariff supply contract. This is a game changer, as it is effectively a flexible energy storage system on wheels. It has enormous potential to save consumers a lot of money, help grid operators manage peaks, while cutting carbon emissions significantly.”

Nigel Pocklington, chief executive, Good Energy:
“As bills remain stubbornly high, it is a matter of urgency that we do what is in our power to reduce household energy costs. And by happy concurrence what cuts bills also cuts carbon.
“Moving policy costs off electricity and into general tax is an immediate measure the government should take. These costs pay for crucial support schemes and infrastructure development, but the way they are paid for – through electricity bills, which hit lower income households disproportionately – is unfair.
“If they were levied through the more progressive tax system, not only would charging an EV or switching to a heat pump become more cost effective, everyone would get lower bills.”

Yselka Farmer, Chief Executive, BEAMA:
“These recommendations clearly demonstrate the financial benefits of implementing low carbon technologies to deliver the UK’s net zero goals. However, we can only ensure household savings if we adequately support the investment needed in the electrical products supply chain, which will be essential for the Seventh Carbon Budget. BEAMA’s Market Pulse report shows capacity utilised in the UK supply chain is currently 91%.
“The unprecedented surge in electricity demand, predicted to grow 70% by 2035, represents a tenfold increase in demand for some sectors. We will not be able to meet these requirements without a clear Industrial Strategy which prioritises infrastructure components needed to accelerate electrification.
“Government must act now so that manufacturers and supply chain operators can forecast their product pipelines accordingly. Only then will we unlock the levels of confident investment needed to build our capacity and be ready for the energy transition’s unprecedented economic opportunity.”

Christopher Hammond, Chief Executive, UK100:
“The CCC’s latest report offers a positive vision where bills can be cheaper, our energy is secure and jobs are created nationwide. But this future won’t happen by accident — it needs local leadership working hand-in-hand with national government.”
“With 60% of emissions cuts needing to come from electrification – including vehicles and home heating – local councils are crucial to making this happen. They’re the ones who know their communities best and can deliver practical, co-produced solutions on the ground.”
“However, despite their importance, the system is broken. We’re seeing record numbers of councils needing emergency financial support.. The transformative potential of the government’s devolution agenda will only be realised if it’s delivered alongside urgent local authority funding reform, away from short-term competitive pots towards multi-year settlements that give councils and the new wave of mayors the certainty they need to plan and deliver.”

Elliot Renton, CFO, Evero Energy:
“While we welcome the CCC’s recommendation to finalise business models for engineered removals, including the need for clear guidance on near-term funding pathways and the division of responsibilities between the public and private sectors, we were surprised to see that the CCC has recommended reducing greenhouse gas removal (GGRs) from 58 Mtpa in Carbon Budget 6 to 36 Mtpa by 2050 in Carbon Budget 7.
“Forecasts indicate that the international market for carbon removals could be worth $1.2 trillion by 2050 and with the UK’s abundant geological storage and well-developed plans for clean power by 2030, the country is well positioned to become a global hub for the carbon removals sector. Rather than pulling back, we urge the government to set ambitious GGR targets that unlock this potential and drive export-led economic growth and investment in real infrastructure.
“There is already an advancing market for GGRs, with committed commercial buyers lined up, here in the UK. By supporting the GGR sector during the Comprehensive Spending Review, we can start tapping into the country’s full potential”

Sam Hollister, Head of Energy Economics, LCP:
“There is understandably lots of policy focus on 2030, but today’s 7th carbon budget advice is a reminder that there isn’t a 2030 time stamp and that investment in low carbon technologies is needed beyond this time horizon.
“As other parts of the system electrify, such as heat and transport, this increases demand on the power sector. Our analysis highlights that by 2050, demand could double from today’s levels with the most significant rise in demand expected between 2030 and 2035 where EV and heat pump adoption ramp up significantly.”

Bill Esterson MP, Chair ESNZ Committee:

“The Climate Change Committee’s 7th Carbon Budget makes clear the huge prize to be won from a keen focus on the clean energy transition. The question is not only about the increased likelihood of cheaper energy bills, hundreds and hundreds of pounds cheaper, as we progress towards the goal – it’s about avoiding massive hikes to bills from the next price shock inherent in being reliant on fossil fuels. No one can look at recent geo-political developments and imagine that further gas price shocks are not coming. The UK spent £40 billion of taxpayers’ money cushioning the rise of just one winter’s energy bills in 2022. With public finances and services stretched to breaking, we simply cannot afford to lose any more time.

“To win the gains of cheaper energy from low carbon technologies, we need to capture the public’s imagination – to incentivise and win them over to the clear advantages in the clean energy sector, that will bring costs down significantly. And to make the most of the advantages available needs investment: significant, sustained and steady. The CBI has said that the UK’s green sector is now growing at 3 times the rate of the wider economy. The CCC has set out a pathway to spread that growth, productivity increase and skilled job creation through our economy. This is the future and we must invest in it, make the unambiguous case and bring the public with us.”

Samantha Smith, Head of Heat and Biomass UK, Renewable Energy Association:
“The Committee on Climate Change has again recognised the critical role for Bioenergy Carbon Capture and Storage (BECCS) for reaching our climate goals, which is expected to deliver the largest share of engineered removals in 2040. Despite scaling back the contribution of BECCS, it is still expected to deliver 25 MtCO2e of removals by 2050.

We welcome the increased focus on domestic feedstocks, like Perennial Energy Crops and Short Rotation Forestry, further explanation is needed around land use change in the UK, and the ability to deliver this, given policy failures to date. The publication of the Common Sustainability Framework should provide further confidence of the sector’s compliance with sustainability, whether imported or domestic.

The continued role for sustainable biomass in hard-to-abate sectors, and importance of BECCS in delivering carbon removals is reflected in the Government’s decision to provide transitional support arrangements, as a bridge to BECCS for large-scale biomass generation. This decision is critical in helping the UK achieve its climate ambitions, delivering domestic energy security, and protecting key infrastructure and the jobs and skills it represents. However, it’s disappointing that the focus is on large-scale biomass generation only, failing to recognise the future role for the 60+ small-medium generators, collectively providing over 1100MW of generating capacity.”

Sam Hollister, Head of Energy Economics, LCP:
“There is understandably lots of policy focus on 2030, but today’s 7th carbon budget advice is a reminder that there isn’t a 2030 time stamp and that investment in low carbon technologies is needed beyond this time horizon.
“As other parts of the system electrify, such as heat and transport, this increases demand on the power sector. Our analysis highlights that by 2050, demand could double from today’s levels with the most significant rise in demand expected between 2030 and 2035 where EV and heat pump adoption ramp up significantly.”

Sue Ferns, Senior Deputy General Secretary, Prospect:
“The 7th Carbon Budget provides further evidence that a secure, decarbonised energy system is in the national interest. Nuclear will be the bedrock of that system and the report rightly highlights the need for more nuclear new build, in addition to Sizewell C.
“The CCC is also right to highlight that the transition will not happen without skilled workers and that sectors central to the transition must provide good jobs with good pay, terms and conditions if we are to attract the right amount of skilled workers to the right jobs. Trade unions are fundamental to those efforts, and to supporting workers transition away from carbon-intensive industries, and we stand ready to engage with government about a serious Net Zero workforce plan.
“This Carbon Budget also highlights the economic opportunities that Net Zero presents. To realise these opportunities the government should leverage the policy support it is providing for the transition, making it conditional on good jobs and domestic supply chains.
“The government must start making decisions now to deliver this Budget, starting with a prompt Final Investment Decision on Sizewell C.”

Olivia Powis, CEO, Carbon Capture and Storage Association:
“The CCSA welcomes the ambitious emission targets set by the Climate Change Committee (CCC) today. Achieving this carbon budget—while ensuring an affordable and secure energy system—requires swift and decisive government action to deploy critical technologies like Carbon Capture Utilisation and Storage (CCUS) now.”
“We are pleased that the CCC reaffirms CCUS as a vital enabler across multiple sectors, underpinning pathways for clean power generation, low-carbon fuel production, industrial decarbonisation, and carbon removals. As the CCC states, there is no route to net zero without CCUS.”
“However, we believe today’s CCUS targets, including those for low-carbon dispatchable power and carbon removals, are conservative. The government must set bold, upfront targets to accelerate industrial decarbonisation and clean power. To maintain momentum, it must urgently commit to deploying already-selected CCUS projects across the UK’s industrial heartlands, along with the wider project pipeline. Failure to act now risks leaving us open to further extreme weather events and the costs of dealing with climate change, as well as losing ground and opportunity in the global race to net zero.”

Michael Tholen, director of policy and sustainability, OEUK:
“This report recognises the major role of our sector in delivering net zero, with a special focus on carbon capture and hydrogen technology. The offshore energies industry is key to delivering a diverse energy mix, scaling up renewables and electrification at the same time as meeting the demand for oil and gas from UK homes and our industrial base.
“The CCC forecasts an 11% reduction in industrial emissions which is the largest target for any single sector and says carbon capture and hydrogen technologies will both play important roles for industries that require intense heat and cannot easily convert to electricity. It’s vital that we invest in these new technologies to futureproof British industry and jobs and communities.”
“The UK’s homegrown oil and gas sector was one of the first to sign up to net zero, reducing emissions by 29 per cent since 2018, and remains on track to meet its goals. By the time we reach our carbon reduction targets in 2050 we will still be getting 20% of our energy from oil and gas so it makes sense to produce as much of it as we can here in the UK rather than relying on more carbon intensive imports.”

Toby Perkins MP, Chair, Environmental Audit Committee:
“Ice sheets melting, severe weather events, worsening pollution – we need to wake up to the harsh realities of manmade climate change. Our transition to a cleaner future isn’t a quick or easy fix. Some technological advances in development now will aid in the transition, but we cannot rely on mythical ‘silver bullets’ which allow us to put off the hard choices we need to make to mitigate and adapt to the changing climate. I welcome the Climate Change Committee’s forensic analysis of the current position, and its advice on the steps to take to ensure that goals for reducing the UK’s emissions are met.

“The Climate Change Committee’s recommendations go to the heart of the Government’s growth agenda: there is enormous potential in the areas it has identified for improvement of the environment. Ministers must not be afraid to take the giant leaps suggested.”
…
“The Climate Change Committee’s ambition to have heat pumps in half of existing UK homes by 2040 represents a significant increase on advice for previous carbon budgets. It also represents a huge opportunity: we have heard just this week about the thriving net zero economy in the UK, and the expansion in green jobs associated with low carbon heating installations will contribute to this. This opportunity can be further realised by ensuring the 1.5 million homes that the Government has pledged to be built in the next five years are, wherever possible, heated and cooled with heat pump technology.”

Elliot Renton, CFO, Evero Energy:
“While we welcome the CCC’s recommendation to finalise business models for engineered removals, including the need for clear guidance on near-term funding pathways and the division of responsibilities between the public and private sectors, we were surprised to see that the CCC has recommended reducing greenhouse gas removal (GGRs) from 58 Mtpa in Carbon Budget 6 to 36 Mtpa by 2050 in Carbon Budget 7.
“Forecasts indicate that the international market for carbon removals could be worth $1.2 trillion by 2050 and with the UK’s abundant geological storage and well-developed plans for clean power by 2030, the country is well positioned to become a global hub for the carbon removals sector. Rather than pulling back, we urge the government to set ambitious GGR targets that unlock this potential and drive export-led economic growth and investment in real infrastructure.
“There is already an advancing market for GGRs, with committed commercial buyers lined up, here in the UK. By supporting the GGR sector during the Comprehensive Spending Review, we can start tapping into the country’s full potential”