Power
The policies and proposals for power in the Net Zero Strategy will:
- Support for up to 59,000 jobs in 2024 and up to 120,000 jobs in 2030
- Start to mobilise additional public and private investment of £150-270 billion, in line with our 2037 delivery pathway
Key policies:
- By 2035 the UK will be powered entirely by clean electricity, subject to security of supply.
- Secure a final investment decision on a large-scale nuclear plant by the end of this Parliament, and launch a new £120 million Future Nuclear Enabling Fund, retaining options for future nuclear technologies, including Small Modular Reactors, with a number of potential sites including Wylfa in North Wales.
- 40GW of offshore wind by 2030, with more onshore, solar, and other renewables – with a new approach to onshore and offshore electricity networks to incorporate new low carbon generation and demand in the most efficient manner that takes account of the needs of local communities like those in East Anglia.
- Moving towards 1GW of floating offshore wind by 2030 to put us at the forefront of this new technology that can utilise our North and Celtic Seas – backed by £380 million overall funding for our world-leading offshore wind sector.
- Deployment of new flexibility measures including storage to help smooth out future price spikes.
Fuel Supply and Hydrogen
The policies and proposals for fuel supply and hydrogen in the Net Zero Strategy will:
- Support up to 10,000 jobs in 2030 in fuel supply
- Start to mobilise additional public and private investment of £20-30 billion, in line with our 2037 delivery pathway
- Deliver 5 GW of hydrogen production capacity by 2030, whilst halving emissions from oil and gas
Key policies:
- We have set up the Industrial Decarbonisation and Hydrogen Revenue Support (IDHRS) scheme to fund our new hydrogen and industrial carbon capture business models. We will be providing up to £140 million to establish the scheme, including up to £100 million to award contracts of up to 250MW of electrolytic hydrogen production capacity in 2023 with further allocation in 2024.
- Introducing a new climate compatibility checkpoint for future licensing on the UK Continental Shelf and regulating the oil and gas sector in a way that minimises greenhouse gases through the revised Oil and Gas Authority strategy.
Industry
The policies and proposals for industry in the Net Zero Strategy will:
- Support up to 54,000 jobs in 2030 in industry
- Start to mobilise additional public and private investment of at least £14 billion in industry, in line with our 2037 delivery pathway
- Deliver four carbon capture usage and storage (CCUS) clusters, capturing 20-30 MtCO2 across the economy, including 6 MtCO2 of industrial emissions, per year by 2030
Key policies:
- Following the Phase 1 of the Cluster Sequencing process, the Hynet and East Coast Clusters, will act as economic hubs for green jobs in line with our ambition to capture 20-30 MtCO2 per year by 2030. This puts Teesside and the Humber, Merseyside and North Wales, along with the North East of Scotland as a reserve cluster.
- Future-proofing industrial sectors, and the communities they employ through the £315 million Industrial Energy Transformation Fund, (£289 million for England, Wales and Northern Ireland, £26 million for Scotland).
- Incentivise cost-effective abatement in industry at the pace and scale required to deliver net zero, through the UK ETS by consulting on a net zero consistent UK ETS cap (in partnership with the Devolved Administrations).
Heat and Buildings
Today, we are also publishing the Heat and Buildings Strategy. Buildings are responsible for around 30 per cent of our national emissions but more importantly decarbonising our homes provides with an unparalleled opportunity for job creation and innovation.
That is why our Heat and Buildings Strategy, will signal a step change in improving the energy efficiency of our buildings and how we heat them, supporting 240,000 green skilled jobs by 2035 and delivering £6 billion additional GVA by 2030.
We will be guided by the above principles protecting the most vulnerable and protecting family finances.
The policies and proposals for heat and buildings in the Net Zero Strategy will:
- Support up to 100,000 jobs in the middle of the 2020s and up to 175,000 in 2030
- Start to mobilise additional public and private investment of approximately £200 billion, in line with our 2037 delivery pathway
- Set a path to all new heating appliances in homes and workplaces from 2035
Key policies:
- An ambition that by 2035, no new gas boilers will be sold. All new heating systems installed in UK homes will either use low-carbon technologies, such as electric heat pumps, or will support new technologies like hydrogen-ready boilers, in line with the natural replacement cycle, and once costs of low carbon alternatives have come down.
- Over £4 billion of new funding for decarbonising heat and buildings from 2022 to 2025:
- A new £450 million three-year Boiler Upgrade Scheme will see households offered grants of up to £5,000 for low-carbon heating systems so they cost the same as a gas boiler now.
- A new £60 million Heat Pump Ready programme that will provide funding for pioneering heat pump technologies and will support the government’s target of 600,000 installations a year by 2028.
- Delivering cheaper electricity by rebalancing of policy costs from electricity bills to gas bills this decade.
- £1.75 billion for the Social Housing Decarbonisation Scheme and Home Upgrade Grants.
- £1.425 billion for Public Sector Decarbonisation, with the aim of reducing emissions from public sector buildings by 75% by 2037.
- Launching a Hydrogen Village trial to inform a decision on the role of hydrogen in the heating system by 2026.
Transport
The policies and proposals for transport in the Net Zero Strategy will:
- Support for up to 22,000 jobs in 2024 and up to 74,000 jobs in 2030
- Start to mobilise additional public and private investment of around £220 billion, in line with our 2037 delivery pathway
- Remove all road emissions at the tailpipe and kickstart zero emissions international travel
Key policies:
- A zero emission vehicle mandate to improve consumer choice and ensure we maximise the economic benefit from this transition by giving a clear signal to investors. This will deliver on our 2030 commitment to end the sale of new petrol and diesel cars, and 2035 commitment that all cars must be fully zero emissions capable.
- Further funding of £620 million for zero emission vehicle grants and EV Infrastructure, including further funding for local EV Infrastructure, with a focus on local on street residential charging.
- Allocating a further £350 million of our up to £1 billion Automotive Transformation Fund (ATF) to support the electrification of UK vehicles and their supply chains.
- Building on the success of our £20 million zero emission road freight trials, we will expand these to trial three zero emission HGV technologies at scale on UK roads to determine their operational benefits, as well as their infrastructure needs.
- £2 billion for cycling or walking so that half of journeys in towns and cities will be cycled or walked by 2030.
- £3 billion to create integrated bus networks, more frequent services and bus lanes to speed journeys.
- Transformation of local transport systems, with 4,000 new zero emission buses and the infrastructure to support them, and a net zero rail network by 2050, with the ambition to remove all diesel-only trains by 2040.
- Aim to become a world-leader in zero emission flight and kick-starting the commercialisation of the UK sustainable aviation fuel so people can fly, and connect without guilt. Our ambition is to enable delivery of 10% SAF by 2030 and will be supporting UK industry with £180 million funding for the development of SAF plants.
Natural Resources, waste and fluorinated gases
The policies and proposals for natural resources, waste, and fluorinated gases in the Net Zero Strategy will:
- Bring new employment opportunities across the UK. Afforestation in England could support up to 1,900 jobs in 2024 and 2,000 jobs in 2030
- Start to mobilise additional public and private investment of approximately £30 billion, in line with our 2037 delivery pathway
- Treble woodland creation rates in England, contributing to the UK’s overall target of increasing planting rates to 30,000 hectares per year by the end of the Parliament
Key policies:
- Supporting low-carbon farming and agricultural innovation through the Farming Investment Fund and the Farming Innovation Programme to invest in equipment, technology, and infrastructure to improve profitability, benefit the environment and support emissions reductions.
- We will boost the existing £640 million Nature for Climate Fund with a further £124 million of new money, ensuring total spend of more than £750 million by 2025 on peat restoration, woodland creation and management – above and beyond what was promised in the manifesto. This will enable more opportunities for farmers and landowners to support Net Zero through land use change.
- Restoring approximately 280,000 hectares of peat in England by 2050 and trebling woodland creation rates in England, contributing to the UK’s overall target of increasing planting rates to 30,000 hectares per year by the end of the Parliament.
- £75 million on net zero related R&D across Natural Resources, Waste & F-gases, to inform our pathway to 2037
- To support our commitment to explore options for the near elimination of biodegradable municipal waste to landfill from 2028, we are bringing forward £295 million of capital funding which will allow local authorities in England to prepare to implement free separate food waste collections for all households from 2025.
Greenhouse Gas Removals
The policies and proposals for GGRs in the Net Zero Strategy will provide…
- New, highly skilled, jobs in our industrial heartlands
- Start to mobilise additional public and private investment of around £20 billion, in line with our 2037 delivery pathway
- An ambition to deploy at least 5 MtCO2/year of engineered GGRs by 2030
Key policies:
- Delivering £100 million of investment in GGR innovation could enable further deployment of GGRs, which in turn will leverage private investment and demand for transferrable engineering expertise from the UK’s oil and gas sector.
- Explore options for regulatory oversight to provide robust monitoring, reporting and verification (MRV) of GGRs, following the recommendations of the BEIS-led MRV Task & Finish Group involving experts from industry and academia.