• Updates from the King’s Speech: During the King’s speech, King Charles declared that “an increasingly dangerous and volatile world threatens the United Kingdom, with the conflict in the Middle East only the most recent example. Every element of the nation’s energy, defence and economic security will be tested.” 37 Government bills were announced including the Energy Independence Bill; Steel Industry (Nationalisation) Bill; Clean Water Bill; Railways and Passenger Benefits Bill; European Partnership Bill; Regulating for Growth Bill; and Competition Reform Bill. One notable absence was the mention of North Sea Oil amid commitments to “tackle change and end poverty.”
• National energy security concerns bring the pace of the UK’s clean energy transition into focus: Geopolitical instability and persistent energy market volatility have increased attention on the UK’s 2030 Clean Power mission. The National Energy Systems Operator (NESO) published its annual Summer Outlook in April, in which it claims, “despite the geopolitical backdrop, we remain confident in the security and resilience of electricity supply this summer”, while still cautioning that the US-Iran conflict is expected to raise energy prices due to the UK’s ongoing dependence on gas. Growing debates around the trade-offs between ‘cheap’ and ‘clean’ power highlight how, “when gas prices rise dramatically as in recent weeks, electricity bills tend to rise with them – even if much of the power itself is renewables that are cheap to produce.”
  • The Commons Energy Security and Net Zero Committee convened in February to examine how expanding domestic renewable energy could reduce exposure to supply shocks, protect critical infrastructure, and limit vulnerability amid ongoing trade and energy conflicts. There have been positive signals of domestic capacity gains, with January’s seventh Contracts for Difference (CfD) allocation round (AR7) delivering record levels of clean energy capacity in “Europe’s biggest ever offshore wind auction”, showcasing the scale and momentum of the UK’s deployment pipeline despite challenging market conditions. The Department for Energy Security and Net Zero (DESNZ) has committed to publishing an Energy Resilience Strategy in 2026 and to establish an Energy Security and Resilience Taskforce to combat “higher borrowing rates and tighter supply chains”.
  • The evolving relationship between energy security, national resilience and decarbonisation policy may affect businesses’ long-term investment decisions, procurement strategies, and exposure to energy price volatility in the short to medium term, and boards should prioritise mapping these risks. There is important momentum to build on, with April analysis from Ember finding that globally, renewable energy overtook coal as the world’s largest source of electricity in 2025.
• UK SRS set out framework for sustainability disclosure: The UK Sustainability Reporting Standards (UK SRS) were published on 25 February, setting out the UK’s new framework for sustainability disclosures. The standards, which align with the IFRS Sustainability Disclosure Standards, comprise of two components: UK SRS S1, which includes the general framework for applying UK SRS, and UK SRS S2, which sets out requirements on climate-related risks and opportunities. Currently available for voluntary use, mandatory reporting is anticipated from January 2027 for in-scope listed companies under new UK Listing Rules. The FCA consulted on replacing its current TCFD-aligned listing rules up until March 2026 and is expected to publish final rules in Autumn 2026. Early board engagement with UK SRS governance, data systems and internal processes could be key to meeting forthcoming disclosure requirements and maintaining investor confidence in regulatory alignment.
• Green economy identified as UK’s fastest growing sector following continued investment: An update on the UK’s Modern Industrial Strategy was published in January, highlighting how around £79 billion in investments into eight high-growth sectors, including clean energy industries and advanced manufacturing, was made in the final quarter of 2025. Building on this momentum, the Government published the Industrial Strategy Prospectus in March, providing an overview of the 10-year plan to “significantly increase business investment” in these high-growth sectors by fostering “enduring partnership”. Alongside this, the UK Steel Strategy was launched in March setting out a vision for a revitalised steel sector consisting of “productive and profitable green steel producers”, building on the “UK’s natural advantages” including its abundance of scrap and grid decarbonisation progress. On 11 May Prime Minister Sir Keir Starmer stated legislation would be brought forward to take “full ownership of British Steel” and was confirmed by the King’s announcement of the Steel Industry (Nationalisation) Bill during his national address. Taken together, these industrial policy developments signal a continued investment in business leadership and capital allocation, and boards may take advantage of clearer sectoral roadmaps and blended finance mechanisms by creating investable opportunities whilst preparing for heightened expectations around corporate alignment with industrial transition pathways.
• Biodiversity warnings push for urgent industry-government action on nature: In January, the UK government published a Nature Security Assessment, which calls for accelerated domestic action after identifying how the decline of six ecosystems of strategic importance could drive cascading global impacts. The urgency is underscored by data from the February Environmental Protections and Biodiversity Trends research briefing, finding that most UK-wide biodiversity indicators have deteriorated or stayed the same since the last update in December 2025. A March report from the UK Centre for Ecology & Hydrology (UKCEH) warns that there is a closing 20-year window in which decisions on climate and land use will determine the fate of dozens of plant and animals species in the UK, with 2050 representing a point of no return. Also in March, the UK government published its response to a 2025 call for evidence on expanding the role of the private sector in nature recovery, in which it asserts that business investment remains key to environmental improvement, considering that “despite the good progress which has been made, we still need to go further in enabling economic sectors which impact or depend upon nature and the services nature provides to invest in reducing the environmental harms of their operations and growing our shared natural capital.” The elevation of biodiversity loss to a matter of national security sharpens the case for businesses’ integration of nature-related risks into strategic planning and disclosure frameworks.
• New land-use framework outlines direction for "more efficient land use" amidst competing national development priorities: England’s first-ever Land Use Framework (LUF) was published by on 18 March, setting out a plan for managing the country’s finite land to ensure long-term resilience, with a commitment to delivering new homes, nature restoration and clean energy objectives, provided that land is used more efficiently and for multiple benefits. The Framework’s ambition sits against a challenging backdrop, as currently just 7% of England’s land is protected for nature, with just four years to go until the 30by30 deadline. The LUF provides a clearer spatial and policy context for business decisions involving land-intensive assets, supply chains and nature-related dependencies, particularly as the Government plans to establish a dedicated Land Use Unit within the year to oversee implementation of these objectives.
• UK Compute Roadmap: The Department for Science, Innovation and Technology (DSIT) published a revision to the UK Compute Roadmap’s on 23 April, providing updated forecasts of the environmental impacts of AI. New modelling estimates that between 2025 and 2035, the greenhouse gas emissions from AI compute could range from 34 to 123MtCO₂ – which could represent between 9-3.4% of the UK’s total projected emissions over the period. Response to the revised figures finds that carbon emissions from data centres “could be 100 times greater than previously thought […] significantly higher than a forecast published in July 2025”, prompting heightened concern from green groups and MPs on how the UK government’s plans to “build a world-class compute ecosystem” impacts its legally-binding commitment to reach net zero by 2050. This comes as the Government announced the first wave of its £500 million Sovereign AI programme funding to help drive growth.

• UK CBAM consultation: Following a consultation on draft UK carbon border adjustment mechanism (UK CBAM) regulations, which ran until 24 March, the UK government launched a further consultation on additional implementing legislation on 9 April 2026 which closes on 21 May 2026. A policy summary for CBAM is available here.
• PRA deadline: The Prudential Regulation Authority (PRA) has set a 3 June 2026 deadline for UK banks, building societies, PRA-designated investment firms, and insurance and reinsurance firms to review and set out how they intend to meet new climate risk policies outlined in its December 2025 supervisory statement.
• UNFCCC Bonn Climate Change Conference: The United Nations Framework Convention on Climate Change (UNFCCC) will host its annual June Climate Meetings (SB64) from 8-18 June 2026 in Bonn, Germany.
• London Climate Action Week (LCAW) will take place between 20-28 June 2026.
• Seventh Carbon Budget: The UK government is required to set the Seventh Carbon Budget (CB7), the UK’s legally-binding greenhouse gas emissions limit for the period 2038-2042, in law by 30 June 2026.
• Allocation Round 8 of CfD: The UK government has confirmed that the next auction for new clean energy projects, Contracts for Difference (CfD) Allocation Round 8 (AR8), will open in July 2026.
• The UK Climate Change Committee will publish its progress report on UK Adaptation by the end of May 2026. This progress report will consider the latest scientific research on climate change against the measures the UK has taken to ensure infrastructure and system are resilient and adaptable to changing climate conditions. It will provide a thorough assessment and offer recommendations on the progress pathway. Further details will be available on the Climate Change Committee's website: Climate Change Committee.
• ISO Standards release: The International Standards Organization (ISO) is set to release two key standards: The ISO Sustainable Finance - Net Zero Transition Planning for Financial Institutions Standard (ISO 32212) will be launched on 4 June - this Standard will establish a globally aligned framework for how FS firms develop transition plans, with key implications across the sector and into the real economy as FS firms determine their lending and portfolio strategies. Further details of the development of the Standard can be found here. Importantly, ISO is also developing its Net Zero Standard (ISO 14060) which will be open for public consultation later this year. According to materials from the British Standards Institution (BSI): "The ISO net zero standard will provide a universal baseline for what "good looks like" when it comes to taking net zero action as an organization. It tackles the fragmented net zero governance landscape by converging global best practice in one place." Further details can be found here.
• SBTi Corporate Net Zero Standard V2: The Science-Based Targets initiative (SBTi) is currently working on a major update to its Corporate Net Zero Standard. The second public consultation has now closed, and the V2 Standard is expected to release later this year, possibly in the Summer. For boards, particularly those whose firms have adopted SBTi targets or intend to do so, it will be key to ensure reporting teams are engaging with this update and a strategic review is conducted to ensure continued alignment. Further details can be found here.

• UK trade: The International Agreement Committee is accepting evidence on trade agreements and the future of rules-based trade in a turbulent world until 22 May 2026.
• Warm Homes Fund: DESNZ has launched a call for evidence on the draft aims and scope of the Warm Homes Fund, and the strategic opportunities and challenges for using government finance to drive investments in home upgrades. The deadline for submissions is 1 June 2026, with further detail on the Warm Homes Fund expected later in 2026.
• Reformed National Pricing: DESNZ is consulting on reforms to siting and investment levers under the new Reformed National Pricing (RNP) programme, as outlined in the RNP Delivery Plan. The consultation closes on 2 June.
• ESG ratings: The Financial Conduct Authority (FCA) consulted on rules to improve transparency and trust in the ESG ratings market (CP25/34). The consultation, which closed on 31 March, follows HM Treasury legislation to bring ESG ratings within the FCA’s regulatory scope. From June 2028, any firm wishing to provide certain types of ESG ratings in the UK will need FCA authorisation. In preparation for this new regime, the FCA plans to publish a Policy Statement with final rules in Q4 2026.

• 2025 emissions decrease: March analysis from Carbon Brief finds that UK greenhouse gas emissions fell 2.4% in 2025, to their lowest level in more than 150 years. Key to this was the drop in the use of coal and gas, which fell to their lowest levels since 1600 and 1992 respectively. Despite progress, the analysis finds that emissions would need to, on average, fall by 15MtCO2e each year until 2050 in order to meet net zero targets (compared to the 9MtCO2e reduction in 2025).
• EAC and CCC reports on Seventh Carbon Budget: On 4 March, the Environmental Audit Committee (EAC) – a select committee of the House of Commons that scrutinises the Government’s environmental policies and commitments – published a House of Commons committee report on the Seventh Carbon Budget (CB7), setting out its recommendations to the UK government on how to carry forward delivery of CB7. CB7 will set legally binding limits on UK greenhouse gas emissions for the period 2038-2042, representing a “critical checkpoint on the UK’s statutory pathways to net zero by 2050.” The EAC’s report puts forward broad support for the Climate Change Committee (CCC)’s statutory advice on setting CB7’s emissions reductions level, which was published in February 2025. In the week following the EAC report’s release, the CCC published, Supplementary analysis of the Seventh Carbon Budget, providing further modelling and cost-benefit analysis of the CCC’s advice on the Seventh Carbon Budget (CB7) – which the Government must put into law by 30 June 2026. Key messages from the report include:
  • The benefits of net zero outweigh spending by 2.2 to 4.1 times.
  • The estimated savings of avoiding climate damages is between £40-130 billion by 2050.
  • Climate change damages could cost 2-4% of UK GDP if global temperature increases reach 2°.

  The report affirms that reaching net zero by 2050 will cost less than the economic hit of a fossil fuel price rise similar to the 2022 energy shock, while also insulating the UK from further costs in the future.

• EIP progress report: The Office for Environmental Protection (OEP)’s fourth statutory report on the UK government’s progress in delivering its Environmental Improvement Plan (EIP) was published in January, finding that the Government “remains off track to meet its environmental commitments”, and that actions now will determine whether key biodiversity and nature protection targets will be met by 2030. The OEP’s assessment of 59 recent trends shows that 24 are improving, 11 remain static and 16 are deteriorating (8 were not assessed due to data availability). Note: the Government published a revised EIP in December 2025, leaving too little time for the OEP to consider it as part of this reporting cycle, but an initial assessment of the revised EIP25 was provided alongside this progress report.
• UK Compute Roadmap: The Department for Science, Innovation and Technology (DSIT) published a revision to the UK Compute Roadmap’s Compute Evidence Annex on 23 April. The roadmap aims to ensure the UK has sufficient, resilient compute capacity to remain competitive in global AI development; can support both cutting‑edge AI training and widespread AI adoption across the economy; and builds sovereign, secure and sustainable compute infrastructure, with a focus on energy independence. Updates include:
  • New modelling estimates that between 2025 and 2035, the greenhouse gas emissions from AI compute could range from 34 to 123MtCO₂ – which could represent between 9-3.4% of the UK’s total projected emissions over the period. Response to the revised figures finds that carbon emissions from data centres “could be 100 times greater than previously thought […] significantly higher than a forecast published in July 2025”, prompting heightened concern from green groups and MPs on how the UK government’s plans to “build a world-class compute ecosystem” impacts its legally-binding commitment to reach net zero by 2050. This comes as the Government announced the first wave of its £500 million Sovereign AI programme funding to help drive growth. Up to 40% of a data centre’s total energy consumption can be for cooling. This has spurred investment into new cooling solutions, such as using liquid immersion cooling where servers are submerged in coolant and can reduce energy use by 30% compared to traditional air cooling. However, data from a recent study found that training GPT-3 in Microsoft US data centres (which are more efficient) consumed around 700,000 litres of water. Projected annual water consumption from AI compute in the UK in 2035 could range between 0.1–0.5 trillion cubic metres, depending on demand and decarbonisation assumptions. Boards may take vested interest in how AI adoption is set to impact existing sustainability targets, approaching the challenges holistically rather than on a siloed basis.
• Ofgem letter: In February, Ofgem published a letter warning that 210 of the 340 green energy projects (“Protected Projects”) scheduled to connect to the grid in 2026-2027 as part of the Clean Power 2030 pathway are set to miss the target due to “widespread delays”. As a result, Ofgem is conducting an investigation into the affected Protected Projects and the role of the National Energy System Operator (NESO) and relevant transmission owners (TOs) in the delayed connection dates. It is in the interest of UK businesses to monitor these developments, considering the potential commercial implications of continued delays to grid connection.
• DESNZ-Ofgem framework: Also in February, the Department for Energy Security and Net Zero (DESNZ) published a framework document between DESNZ and Ofgem, setting out the internal governance and accountability framework between the two bodies, replacing an older version from December 2019. Enhancing the working relationship between DESNZ and Ofgem is central to delivering on broader energy regulation reforms.
  • This was followed by the release of the Energy digitalisation framework in March, a joint effort by DESNZ and Ofgem as committed to in the 2025 Clean flexibility roadmap. The framework sets out two key features: a digitalisation coordination function to provide and maintain common standards and sectoral alignment, as well as a data domain model to simplify who is responsible for what in the UK’s energy data system. Businesses should be aware of the potential compliance changes and look to capitalise on the benefits more coordinated digitalisation can offer. DESNZ and Ofgem are set to formalise the Digitalisation Delivery Group, ahead of establishing the formal Digitalisation Board “in the coming months”. TechUK notes that DESNZ also expects to run a number of related consultations before the end of 2026, including on energy smart data.
• Local authority net zero uncertainty: Research from technology specialist Schneider Electric has revealed that two-thirds of local authorities in England are not confident that they will meet net zero targets by 2050. Budget constraints are identified as the most significant barrier, with 79% of surveyed authorities citing this as a leading obstacle to decarbonisation and energy efficiency efforts. Technology was identified as an issue for over a third (37%) of surveyed local authorities, with skills shortages and knowledge gaps being a challenge for one in three (33%). UK businesses should be considering the risks of delayed local decarbonisation programmes and the commercial opportunities for those able to help fill the gap.

• Energy security: In March, the UK government set out plans to go "further and faster" in becoming energy secure amidst geopolitical instability, through an accelerated package of energy interventions including making of ‘plug-in solar’ available for purchase in the UK, speeding up the building of nuclear power stations and bringing forward the next annual CfD renewables auction to July 2026. To support these measures, DESNZ published a factsheet on Iran, the Middle East and UK energy, outlining answers to a number of key questions on the impact of the recent US-Iran conflict. This comes as industry polling shows strong public support for a “homegrown” approach to UK energy security, with 76% of respondents in a March 2026 Offshore Energies UK (OEUK) survey backing continued domestic oil and gas production to reduce reliance on imports. Carbon Brief analysis from March highlights that “the continued expansion of renewables and low-carbon technologies offers far greater protection against volatile gas imports than new domestic drilling”; the roughly 15GW of wind and solar power secured in the latest UK renewable energy auction (see CfD point below) will avoid the need to import 78 tankers of liquified natural gas (LNG) each year by 2030, potentially saving close to £4 billion at current price levels.
  • March analysis from the Transition Security Project highlights data on the economic impacts of transatlantic energy dependence on the EU and UK, finding that “the 2022 energy shock became a cost-of-living crisis that directly cost the EU and UK $1.8 trillion (€1.7 trillion) from 2022 to 2025, while US companies made $241 billion in windfall profits in 2022 alone.” The data reinforces growing appreciation for energy sovereignty as a critical component to the UK’s climate transition and economic prosperity.
  • The UK government confirmed in March that it has invested £100 million to reopen the Ensus bioethanol plant to provide “resilience for CO₂ supply essential for healthcare, food supply, and civil nuclear […] to ensure the UK maintains access to its critical industrial inputs during global supply shocks, such as the US-Iran conflict.” The plant has been restarted on a temporary three-month measure, with commitments to working with the sector to develop a long-term resilience plan.
  • There was also confirmation at the end of March that the UK government will “for the first time” introduce clear guidance on how departments can protect the UK’s economic security and build resilience in four critical sectors: steel, shipbuilding, AI and energy infrastructure. This effort will look to prioritise contracts for British business, with a commitment from government departments to publish and annually report on a specific social value goal for all contracts over £5 million – covering over 90% of central government contracts.
  • Additional new measures were announced on 21 April to “break [the] link between gas and electricity prices”. New commitments include long-term fixed-price contracts for renewable energy generators and an immediate tax on excess profits through the Electricity Generator Levy (EGL) by raising the rate from 45% to 55%, amongst other measures summarised here.
• Energy price cap: At the end of February, Ofgem confirmed the energy price cap rates from 1 April to 30 June 2026, establishing that energy prices will go down by £117 (7%) for a typical household who use electricity and gas. The energy price cap – which is the maximum amount energy suppliers can charge people on default tariffs – is determined based on different costs including the wholesale cost of gas and electricity, costs to supply energy on the network and VAT. Despite this decrease, a February research briefing on gas and electricity prices during the ‘energy crisis’ and beyond warns that increased wholesale prices due to the US-Iran conflict will impact the cap for July to September 2026, which will be announced by 27 May 2026.
• Calls for business energy cuts: A joint report from Energy UK and the Confederation of British Industry (CBI) warns that high business energy costs are threatening the UK’s global competitiveness and investment levels, calling on the Government to deliver a national strategy to reduce business energy costs. Louise Hellem, Chief Economist at the CBI, explains, “The Government has recognised the scale and importance of the issue. But we know we must go further and faster to deliver meaningful solutions. The modern industrial strategy and the British Industrial Competitiveness scheme represent a welcome start, but in a world where energy costs increasingly determine global competitiveness, the UK simply cannot afford to lose focus or momentum.”
• Warm Homes Plan: The Warm Homes Plan was published on 20 January, launching a £15 billion home upgrade plan to help families cut energy bills and tackle fuel poverty. The Plan will deliver upgrades to up to 5 million homes, with direct support for low-income families, a government-backed zero and low interest loans programme for rooftop solar, and a £7,500 universal grant for heat pumps. In April, the Secretary of State also confirmed a budget increase for the Boiler Upgrade Scheme to £400 million for 2026-2027.
• Renewables record: In April, DESNZ published the latest Energy Trends report, finding that renewables generated a record 52.5% of the UK’s electricity in 2025. This represents the second consecutive year in which renewables have exceeded 50%, which is attributed to record levels of wind and solar generation – 30% and 6.9% of the UK’s electricity last year respectively. There were similar reports of record-breaking wind power generation in January due to a number of severe storms in the UK cut gas costs by more than £160 million in a single month, delivering “the highest monthly output in history”. Despite households and businesses using more energy during throughout this colder period, gas generation dropped to 17% lower than in January 2025. Overall renewables generation reached 3 TWh in Q1 2026, up from 33.7 TWh in Q1 2025 – representing the first time renewables have exceeded half of total output in a first quarter.
• CfD offshore wind projects record: In January, the UK government confirmed a record amount of awarded contracts to build offshore wind through the seventh Contracts for Difference (CfD) auction (AR7), with the new capacity totalling 8.4GW. Five fixed-foundation projects and two floating offshore wind projects secured awards, representing the “biggest offshore wind auction in Europe” according to industry group WindEurope. Collectively, these projects are set to generate enough to power more than 12 million homes, with Carbon Brief analysis finding that by the time projects with CfDs are all completed, they will generate nearly half of current power demand (135TWh). As a result of AR7, £204 million of public investment in domestic jobs and supply chains has leveraged £3.4 billion of private investment into UK manufacturing and industry, supporting up to 7,000 jobs.
• Clean Energy Security Pact: Following the CfD auction results, Energy Secretary, Ed Miliband, signed the Hamburg Declaration with European leaders at the North Sea Summit, driving forward an “unprecedented fleet” of joint offshore wind projects between the UK and countries including Germany, Norway, France and Denmark – agreeing to deliver 100GW of joint offshore wind power.
• Clean energy auction records: Following on this momentum, DESNZ confirmed in February that AR7 delivered a record 201 projects, generating 14.7GW of new clean energy – enough to supply 16 million homes. In total, 157 solar energy projects were confirmed, as were 28 onshore wind and 4 tidal energy projects. Carbon Brief analysis finds that, in total, AR7 will cut gas demand by around 95TWh per year, which is enough to cut liquified natural gas (LNG) imports by three-quarters.
• Approvals for UK’s largest power-generating solar farm: On 8 April, the Government confirmed approval of the largest solar project in the UK in terms of power generation. The Springwell Solar Farm is the 25^th nationally significant clean energy project approved since July 2024, with the potential to power over 180,000 homes a year. In response to the announcement, Energy Minister Michael Shanks stated, “It is crucial we learn the lessons of the US-Iran conflict– solar is one of the cheapest forms of power available and is how we get off the rollercoaster of international fossil fuel markets and secure our own energy independence.”
• UK-California climate and energy agreement: In February, Energy Secretary Ed Miliband and California Governor Gavin Newsom signed a new Memorandum of Understanding (MoU) to strengthen transatlantic investment in clean energy and strengthen relationships between research institutions in the UK and California. The UK has signed similar MoUs with 11 other US states.
• 2030 Clean Power modelling: January analysis from Cornwall Insight finds that the UK risks missing its 2030 Clean Power target by over a decade due to persistent grid connection delays, higher interest rates, market saturation and continued policy uncertainty. From now until 2030, electricity demand is expected to grow by 12%, and renewables will need to expand and accelerate to reach the Government’s 95% renewable power target. Cornwall Insight estimates that, on top of the already forecasted increase, it would require either 24GW of additional solar PV, 9.6GW of additional onshore wind, or 5.6GW of additional offshore wind to meet government Clean Power targets. Tom Edwards, Principal Modeller at Cornwall Insight explains, “This is not about dialling back ambition, it’s about being realistic on delivery and focusing on the fundamentals – planning reform, grid expansion, affordability and investment – that ultimately determine whether targets can be met.”
  • February analysis from Wood Mackenzie presents related findings, including that the UK needs to close a 12-percentage-point gap by 2030, with an additional £75 billion needed between 2026-2030 to reach clean power targets.
• Advanced Nuclear Framework: In February, DESNZ published the Advanced Nuclear Framework, a first-of-its-kind framework to stimulate private investment in nuclear innovation across the UK. To speed up deployment of these technologies, the Government is launching a “pipeline” of credible projects and a “concierge-style” service to help developers understand planning requirements and crowd-in private investment. The framework identifies the National Wealth Fund as a potential catalytic investor for projects and has committed to publishing a Statement on Civil Nuclear Fuel Use, setting out the requirements for uranium-based fuels used in civil nuclear reactors. This was followed by the launch of the UK fusion strategy 2026 in March, which outlines the Government’s plans to make the UK a leader in commercial fusion energy.
• UK’s first geothermal plant: After nearly 20 years of development, the UK’s first geothermal power plant, the United Downs site in Cornwall, became operational in February. The plant is expected to generate electricity for 10,000 homes and will provide the UK’s first domestic supply of lithium.
• NESO connections reform timeline: The UK’s energy systems operator, NESO, published its Connections Reform Timeline in February, confirming alongside transmission owners, distribution network operators and wider delivery partners, the delivery timeline for the Connections Reform programme approved by Ofgem last year. These reforms aim to remove unviable projects from the queue and prioritise those critical to delivering clean power and industrial decarbonisation, considering that the current connections queue stands at over 738GW, far exceeding the 200-225GW of clean generation capacity required by 2030.

• UK SRS: The UK government issued the UK Sustainability Reporting Standards (UK SRS) on 25 February 2026, with the aim of consolidating sustainability reporting requirements into a single framework, improving comparability and reducing duplication across UK companies. Two standards make up the new framework:
  • UK SRS S1: general requirements for disclosure of sustainability-related financial information
  • UK SRS S2: climate-related disclosures

These are based on and closely align with the ISSB standards (IFRS S1 and S2) introduced in 2023, with some UK-specific modifications. They are currently voluntary for UK entities, but are expected to become mandatory in the future, with the Financial Conduct Authority (FCA) having consulted on implementing SRS-based disclosures for listed companies. The consultation (CP26/5) closed on 20 March, and the FCA is now reviewing feedback, with the aim of publishing a Policy Statement “in Autumn 2026”. The rules are expected to come into force from 1 January 2027. This guide on UK SRS provides further information on compliance requirements and timeline, with interactive compliance checks for businesses.

• EU Omnibus: The EU Omnibus I Directive (Directive EU/2026/470) entered into force on 18 March 2026. Part of the Omnibus Simplification package, the Directive has simplified the sustainability reporting and due diligence requirements for companies required under the EU Corporate Sustainability Reporting Directive (CSRD) and EU Corporate Sustainability Due Diligence Directive (CSDDD). A summary of the key changes to CSRD and CSDDD can be found here. EU member states are required to implement the provisions of the Directive into national law by 19 March 2027 (except for the provisions related to the CSDDD which shall be transposed by 26 July 2028). UK boards should ensure their organisations are up-to-date on these latest developments, to ensure alignment going forward.
• ISSB decision on nature-related disclosures: On 22 April, the International Sustainability Standards Board (ISSB) decided that it will not develop a standalone nature standard or amend the existing IFRS S1 or S2 to include nature-related provisions. Having previously committed to developing nature disclosure requirements in November 2025, instead, ISSB will propose requirements for nature-related disclosures in an IFRS practice statement, which report preparers can choose to apply if nature-related information is judged to be material. The decision has faced criticism from green groups, with many seeing it as “regrettably out of sync with the science, which shows that coordinated action to protect natural capital is material and urgent, also in relation to climate targets”, however others have commented that it shows that nature and climate should be considered in a fully integrated manner. ISSB aims to publish an exposure draft of the proposed requirements in October 2026.
• SBTi Trend Tracker: In April, the Science Based Targets initiative (SBTi) published its 2025 Trend Tracker, finding that corporate climate target-setting grew by 40% over the past year. This comes as the SBTi reached 10,000 companies with validated targets in January 2026. Chief executive of the SBTI, David Kennedy, states, “The data in this report shows that despite political headwinds, increasing numbers of companies in every region are setting science-based targets. In doing so they are part of a market transformation that is good for business while contributing to achieving global climate objectives.”
• SBTi Corporate Net Zero Standard V2: The Science-Based Targets initiative (SBTi) is currently working on a major update to its Corporate Net Zero Standard. The second public consultation has now closed, and the V2 Standard is expected to release later this year, possibly in the Summer. For boards, particularly those whose firms have adopted SBTi targets or intend to do so, it will be key to ensure reporting teams are engaging with this update and a strategic review is conducted to ensure continued alignment. Further details can be found here.
• ISO Standards release: The International Standards Organization (ISO) is set to release two key standards: The ISO Sustainable Finance - Net Zero Transition Planning for Financial Institutions Standard (ISO 32212) will be launched on 4 June - this Standard will establish a globally aligned framework for how FS firms develop transition plans, with key implications across the sector and into the real economy as FS firms determine their lending and portfolio strategies. Further details of the development of the Standard can be found here. Importantly, ISO is also developing its Net Zero Standard (ISO 14060) which will be open for public consultation later this year. According to materials from the British Standards Institution (BSI): "The ISO net zero standard will provide a universal baseline for what "good looks like" when it comes to taking net zero action as an organization. It tackles the fragmented net zero governance landscape by converging global best practice in one place." Further details can be found here.
• ICSWG Climate Competency Guide: The UK Investment Consultants Sustainability Working Group (ICSWG) shared an update to its Climate Competency Guide for asset owners in March. Last updated in 2021, the guide draws on feedback from a range of industry stakeholders including Pensions UK, the Pensions Regulator and the Trustee Sustainability Working Group. Helen Prior, chair of the ICSWG workstream, explains, “This Guide provides examples of how investment consultants can demonstrate that their firm and staff have the expertise, tools and thought leadership to support asset owners when assessing climate related risks and opportunities.”

• UK CBAM: The UK government issued draft regulations for the UK Carbon Border Adjustment Mechanism (UK CBAM) on 10 February as part of a technical consultation on the draft secondary legislation – which ran until 24 March. CBAM will place a carbon price on specified goods imported to the UK from sectors that are at risk of carbon leakage. A Policy Summary was published alongside this, which “may be updated”. A further consultation on additional implementing legislation is expected “later in Spring 2026”. Boards should stay informed about developments in legislation to ensure preparedness ahead of when UK CBAM takes effect on 1 January 2027.

• Green Book update: HM Treasury launched an updated version of its central appraisal guidance, The Green Book, in February, outlining new guidance to “support fairer and more balanced public investment decisions.” Changes include the formal integration of the Environmental Principles Policy Statement, making clear that its principles should be considered as part of appraisal, as well as the introduction of new requirements for ministers to better consider climate and biodiversity goals and future climate resilience outcomes in policymaking. Green campaigners have welcomed the changes, with the Chartered Institute of Ecology and Environmental Management (CIEEM) stating, “By aligning advocacy with Treasury language – natural capital, risk management, resilience, long-term value for money – and by demonstrating how nature-positive investment supports national security and economic stability, we can help shift nature recovery from the margins of government policy to the heart of economic decision-making.”
• Reformed National Pricing Delivery Plan: On 21 April, the UK government published the Reformed National Pricing (RNP) Delivery Plan, outlining various commitments to electricity market reforms as agreed at the end of the 2025 Review of Electricity Market Arrangements (REMA). The proposed RNP reforms are aimed at “changing how and where new investment happens across our power system, and improving the efficiency of how our system operates. They focus on making best use of the siting and investment levers at our disposal to bring the SSEP [Strategic Spatial Energy Plan] into reality”. NESO – which has recently called for industry input on the proposed reforms package – highlights that RNP will maintain a single national wholesale price as efficiency, constraint management and locational investment signal reforms are introduced. DESNZ finds that smarter planning and faster delivery of electricity infrastructure “could unlock up to £20 billion in benefits between 2030 and 2050.” An overview of key technical takeaways from the Plan are available here.
• International climate finance cuts: On 19 March, the UK government announced that it would provide around £6 billion of international climate finance over the next three years, which is lower than the previous goal to provide £11.6 billion across 2021-2026. Carbon Brief analysis suggests that this cut is around 30% less per year once inflation is taken into account, bringing into question the UK’s commitment to the international target of tripling climate finance to $300 billion a year by 2035, as agreed at COP29 in 2024. Since these cuts were announced, the UK’s development finance institution, British International Investment (BII), published its updated strategy for 2026-2031, in which it commits to increasing climate finance to 40% of new BII investments.
• Industrial Strategy Prospectus: The Department for Business and Trade published the Industrial Strategy Prospectus on 13 March, summarising the UK’s 2025 Modern Industrial Strategy and Sector Plans, and setting out the UK government’s 10-year commitment to driving business investment and growth across eight priority sectors, including clean energy industries and advanced manufacturing. The Prospectus reaffirms ambition to at least double investment in frontier clean energy industries to £30 billion per year by 2035 and launch the Clean Energy Jobs plans. This follows the release of the Industrial Strategy quarterly update: October to December 2025 in January, which found that around £79 billion in investment commitments was made into Industrial Strategy high-growth sectors.
• Climate Change Agreements guidance: DESNZ published new statutory guidance on the Climate Change Agreements (CCA) scheme in February. The CCA scheme is a voluntary scheme, under which eligible energy-intensive industrial facilities may qualify for a reduction in the Climate Change Levy (CCL), in return for meeting energy efficiency or carbon savings targets. Under the new guidance, the Environment Agency is required to administer the new scheme through to 31 March 2033 and all current operators were required to confirm their existing eligibility as of 1 January 2026. Boards should note that updated CCA guidance may materially affect eligibility, reporting requirements and the value of CCL discounts, and should therefore seek assurance on whether current sites still comply.
• English Devolution and Community Empowerment Bill: The English Devolution and Community Empowerment Bill reached its final parliamentary stages in April and is expected to achieve Royal Assent later in 2026. The Bill focuses on provisions for combined authorities, local councils, local audit and rent terms in business tenancies – including the following:
  • A ban on Upwards-Only Rent Review (UORR) clauses in new commercial leases in England and Wales, which currently ensure that at rent review points (normally every five years), rent can only increase or stay the same – even if market rents have fallen. Under the new ban, rent could go up or down depending on the market. For businesses vulnerable to economic fluctuations, this may be advantageous, as rent levels will more closely track real-time market conditions, while investors and pension funds “may need to adjust their valuation strategies and risk models to accommodate more variable income streams.” Oversight of property portfolios or long-term investment strategies can assess potential exposure now, ahead of the rules coming into law.
  • Doubling the Community Right to Buy listing period from five to ten years. This extends the window during which communities can bid to purchase assets listed as assets of community value, potentially affecting businesses looking to sell or redevelop premises that are subject to community listing.
  • £150 million in investment to “turn the tide on the decline” of UK high streets. Organisations with a community or place-based remit may want to explore whether they can benefit from related funding streams.

• Climate adaptation strategy for transport: The Department for Transport (DfT) has released its ‘Climate adaptation strategy for transport’, setting out actions for the long-term strategic adaptation of the transport sector to climate change impacts. Key actions include: implementing climate resilience standards by 2030; exploring options for developing transport appraisal guidance following the recent addition of adaptation concepts into transport analysis guidance (TAG); delivering a climate risk data improvement plan; and exploring the feasibility of developing climate analysis scenarios into transport analysis. A full list of actions can be found here. DfT also published Better Connected: a strategy for integrated transport in April, outlining further policy priorities to boost decarbonisation efforts, including through expanding shared mobility schemes and better integration of active travel and public transport.
• Green aviation funding: In January, DfT confirmed £43 million in funding for UK research and development projects that will help deliver net zero aviation by 2050. Businesses, researchers and universities are invited to bid for funding. This is backed by the additional £63 million committed to accelerating new sustainable aviation fuel (SAF) production plants announced last year.
• Rapid EV charging: A report from Knight Frank released in April finds that growing demand for EVs could require 62,000 new rapid chargers, which would potentially require 1,900 acres of land cumulatively. Assuming the UK’s zero emission vehicle (ZEV) targets are met, almost 2.1 million EVs could be registered in 2030, leading to a total fleet of around 7.6 million – 20% of all cars in the UK.

• Ofcom investigation: Ofcom, the UK’s broadcasting regulator, announced in March that it will investigate complaints of climate change denial on TV and radio for the first time since 2017. This comes after calls for the regulator to reassess its previous decision not to investigate complaints brought against programmes on TalkTV and TalkRadio. Ofcom also faced scrutiny around the impact of its “due impartiality” on climate reporting at a hearing of the energy security and net zero select committee in January.
• Gatwick expansion: A legal challenge has been raised against plans to expand Gatwick Airport, the UK’s second largest, which began in January. Campaign group Communities Against Gatwick Noise Emissions (CAGNE) argue that the approval of the expansion failed to properly assess its impact on the UK’s climate change goals. Chair of CAGNE, Sally Pavey, states, “The long-term effects of increased emissions on future generations and the planet cannot be addressed with aviation profits.”
• British Airways greenwashing claim: In March, it was confirmed that campaigners Possible have achieved a ruling that a number of statements British Airways (BA) has made on its carbon emissions, fuel efficiency and net zero pathways “should be investigated for accuracy.” The Government-backed UK National Contact Point (UK NCP) for the OECD has agreed that its initial assessment of BA’s climate statements are potentially in breach of OECD Guidelines for Multinational Enterprises, signalling that the government unit is “increasingly focusing on greenwashing.”

• National security assessment on biodiversity loss: Defra published the National security assessment on global ecosystems in January showing how environmental degradation and biodiversity loss could affect UK national security across food, water, health and supply chains. The assessment identifies six ecosystems of strategic importance for the UK and explores how their “decline could drive cascading global impacts.”
• UK biodiversity warning: A March report from the UK Centre for Ecology & Hydrology (UKCEH) has warned that there is a closing 20-year window in which decisions on climate and land use will determine the fate of the UK’s biodiversity. Scenario analysis finds that over 200 species are at risk of extinction in the UK, and 9-in-10 plant habitats face lasting change if nature recovery action is not accelerated.
  • In January, The Bureau of Investigative Journalism published the results of an investigation which find that the UK has issued more fossil fuel production licences on sites that overlap with nature reserves and/or protected areas than any other country. The findings come as the UK government continues to debate drilling at North Sea fields including Rosebank. Wera Hobhouse MP explains, “The revelations of this investigation must weigh heavily on the government as it considers the Rosebank decision […] Rosebank may not sit directly within a protected area, but the pipeline built to serve it cuts through a highly sensitive marine protected area, posing clear risks to our marine environment.”
• New BSI nature market standards: The British Standards Institution (BSI) launched a set of new nature market standards in March – the Nature Investment Standards (BSI Flex 700 series). Funded by Defra, the voluntary standards specify requirements for high-integrity UK nature markets and are intended for adoption by those involved in the supply, storage, and trade of nature credits (e.g. credit suppliers, crediting programmes, market intermediaries, investors). Further guidance on the standards can be found on the Nature Investment Standards Hub.
• Biodiversity Beyond National Jurisdiction Act: Following calls from UK environmental charities to ratify the UK’s signing on the international high seas treaty (formally, the Agreement on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction), the Biodiversity Beyond National Jurisdiction Act 2026 became law on 12 February. The Act established duties for UK craft engaged in collecting marine genetic resources on the high seas, creates reporting and deposition requirements for UK-based utilisation of those resources, and equips UK authorities to give domestic effect to UN Conference of the Parties decisions including on protected areas and emergency measures – which are highlighted in a summary of key elements.
• PFAS Plan: In February, the UK government published the first-ever PFAS Plan, setting out a clear framework of coordinated action to better protect the environment from ‘forever chemicals’. The plan sets out the Government’s overall approach to this, focusing on three main action areas: understanding PFAS sources, tackling PFAS pathways and reducing ongoing exposure to PFAS. A consultation will be launched later this year on introducing a statutory limit for PFAS in England’s public supply regulations, and enhanced enforcements powers for regulators where permitted levels are exceeded. There is strong call for cross-industry collaboration on the issue, with Environment Minister Emma Hardy explaining, “We will work in partnership with regulators, industry and local communities to deliver co-ordinated action to ensure ‘forever chemicals’ are not a forever problem.”
• Tree planting: January analysis from the Energy & Climate Intelligence Unit suggests that on its current trajectory, the UK could miss its tree planting targets, a shortfall which would result in a third less carbon being sequestered in 2050 than required under the CCC’s Seventh Carbon Budget. This is significant considering that over 70% of carbon removal from planted trees up to 2050 will come from trees planted within the next five years.
• Coastal Adaptation Pilots: The Environment Agency and Defra announced £18 million in funding for a series of new Coastal Adaptation Pilots to help England’s most at-risk coastal areas prepare for climate change. The funding will be shared between coastal projects, in line with the Environment Agency’s National Coastal Erosion Risk Map (NCERM), which shows that around 20,000 properties could be at risk from coastal change by 2105.
• Challenges to Nuclear Regulatory Review: In January, the Wildlife Trusts published research revealing that the UK government’s Nuclear Regulatory Review (Fingleton Review)’s proposals to weaken the Habitats Regulations in order to enable nuclear power delivery “would have devastating consequences for what remains of the natural world.” Together, fifteen environmental groups have expressed concerns that the regulatory changes represent a regression of nature protection laws and should be reconsidered. Despite this warning, in March, HM Treasury published a letter from Chancellor, Rachel Reeves, to nuclear regulators and industry confirming that the Government will implement the measures outlined in the Review by December 2027.
• UK supermarkets’ response to Amazon Soy Moratorium: Major UK supermarkets published a letter to Brazilian soy industry association Abiove (which represents the largest soybean traders in Brazil) in January, warning that the decision of international soy traders to withdraw from the Amazon Soy Moratorium (ASM) could lead them to “cut ties with the businesses.” The ASM is a landmark voluntary agreement under which participants commit not to purchase soy grown on land deforested after July 2008. The letter states, “Stepping back risks weakening existing deterrents to deforestation, undermines future efforts to develop collaborative protection agreements, and threatens efforts to secure the sustainability of your investments in Brazilian soy production in the face of accelerated climate change.” Analysis finds that the Amazon rainforest ecosystem is dangerously close to a tipping point – collapse is likely at 20-25% deforestation, and current levels already measure 17%.

• Land Use Framework: The UK government’s Land Use Framework (LUF) was published on 18 March. It is England’s first national blueprint for how land should be used across housing, energy, farming, infrastructure and nature. The framework is built around core principles including multifunctional land use and data-driven planning, with the Government committed to investing in digital land-use data and mapping tools. Boards should assess how businesses may position themselves to take advantage of LUF-aligned planning and funding decisions.
• Onshore wind permissions: DESNZ announced in March new proposals to allow businesses and public sector organisations to install wind turbines without submitting planning proposals. To date, these permitted development rights have existed only for small domestic turbines; the new proposals will extend these rights to non-domestic premises.
• New record for renewable energy planning approvals: Planning approvals for battery, wind and solar projects almost doubled in 2025, according to analysis from Cornwall Insight, with approved capacity measuring 96% higher than in 2024. While approvals have accelerated, the pace of delivery continues to lag behind, with construction timelines and grid connection delays remaining major obstacles.
• UK Net Zero Carbon Buildings Standard: The UK Net Zero Carbon Buildings Standard was published in March. This voluntary standard, developed by a wide range of stakeholders across the UK’s built environment industry, establishes a unified definition for ‘Net Zero Carbon Aligned Buildings’ and sets out requirements for the design, construction and use of them. Verification is expected to be available in Q2 2026, meaning users will be able to appoint a verifier who will be able to confirm that their building is aligned with the standard. A suite of additional resources is available here.
• New build design guidance: Updated new build design guidance was published by the UK government in January, setting an expectation that new builds “address and adapt to climate change, creating adequate shade and minimising potential flood risk.” This guidance is part of the wider new rules-based planning system, where developers meeting clear standards are able to carry out building at quicker rates. As part of this push, the Government plans to launch model design codes later this year.
• Flood risk: In February, new research was released finding that over 866,000 homes in the UK could face a severe risk of flooding by 2080 – three and a half times higher than the 253,000 homes facing the same level of risk in 2020.
• NPPF consultation: A consultation on the proposed reforms to the National Planning Policy Framework (NPPF) closed on 10 March. Secretary of State, Steve Reed, summarised the key reform proposals in a public letter shared in December 2025. The UK government is now analysing the feedback, which is expected to inform the updated NPPF expected in ‘Summer 2026’, likely before the parliamentary summer recess (16 July -1 September).