Rachel Solomon Williams, Executive Director, Aldersgate Group:
“Today’s publication of Carbon Budget 7 is a major step forward in the UK’s plans to meet its net zero commitments. It is good to see the government is setting a target that should drive urgent action to drive down carbon emissions.
“As today’s new report by the CBI and ECIU also shows, net zero is delivering benefits right across the UK economy. The sector encompasses 23,000 firms, of which over 96% are small or medium size; it also supports over 1 million jobs, with wages at 11% higher than average.
“We look forward to the publication of a delivery plan to accompany this new carbon budget, providing the certainty businesses need and placing the UK’s net zero plans at the heart of our economic future. The plan must set out clearly what action will be taken across different sectors, especially on meeting growing demand for electricity across heating, transport and industry, as well as bringing costs down.”
Toby Perkins MP, Chair, Environmental Audit Committee:
“I am pleased that the government has today set out its proposals for the Seventh Carbon Budget (CB7), getting on with the job of reducing the fossil fuel emissions and moving the UK ever closer to a net-zero carbon future.
“My committee’s recent report made clear that warmer homes, cleaner air and cheaper running costs all await if ministers get the next steps right. But keeping public consent for these ambitious measures will be critical. I urge ministers to ensure that its plans for delivering this Carbon Budget have fairness at their heart.
“We welcome the fact that CB7 will be properly scrutinised, both through our Committee’s inquiry and through the debate that will take place in Parliament.
“My Committee will soon publish the government’s response to its report on the Seventh Carbon Budget, and we will scrutinise the Carbon Budget measures in detail to ensure that they meet the demands of a just transition.”
Nimoy Kher, Managing Associate Sharpe Pritchard:
“An 87% emissions cut by 2040 will require a wholesale re-wiring of the economy – more clean power, more grid, more storage, more electrified transport and heat, and new models for industrial decarbonisation.
“The Seventh Carbon Budget is a clear signal to market stakeholders that the UK’s decarbonisation pathway remains legally anchored, notwithstanding the political noise around net zero. But the market will not respond to targets alone. Our clients will need bankable revenue and financing models, greater cost predictability, faster consenting, and clearer grid access in a manner that supports investment.
“The target confirms the scale of the opportunity – the challenge now is creating the conditions for capital to flow into deliverable projects.”
Charlotte Lee, Chief Executive, Heat Pump Association UK:
“Today’s Government decision to adopt the CCC’s recommended targets for the Seventh Carbon Budget proves yet again that electrification remains firmly on the agenda. To meet this ambitious level of emissions reduction, we must decarbonise heat from homes and buildings. Moving at pace to do so will not only benefit the consumers, who will see increased comfort and reduced energy bills, but also stimulate economic growth and local jobs, reduce our reliance on volatile fossil fuels and provide healthier homes.
Our latest analysis evidences this, with the heat pump sector contributing £1 billion to the UK economy in 2025, with the potential to grow to £15 billion by 2035. Heat pump related employment could also grow to over 110,000 jobs by 2035. The transition to electrified heat presents a significant economic and industrial opportunity, and today’s new targets emphasise this further, providing certainty for the sector and potential investors. The Seventh Carbon Budget must now be supported by a clear plan and delivery at pace.”
Tara Singh, Chief Executive, RenewableUK:
“Setting clear goals helps us to attract billions in private investment in the UK’s world-class clean tech industries, creating well-paid jobs throughout the country in wind, solar, energy storage and green hydrogen – our new powerhouses of economic growth.
“The clean power we generate cuts bills by pushing the most expensive gas generators off the system. Low-cost electricity from renewables protects billpayers from price shocks on volatile global fossil fuel markets which we can’t control, strengthening the UK’s energy security as we move closer towards energy independence”.