• Government signals continued commitment to “green growth”: In a speech in January, UK Chancellor, Rachel Reeves, set out a series of major announcements on infrastructure projects as part of the Government’s Plan for Change, asserting “net zero is the industrial opportunity of the 21st century.” These projects include the creation of regional innovation hubs, the expansion of Heathrow airport, changes to Government guidance on approvals for significant building projects, and major investments in two green energy projects through the National Wealth Fund. Momentum for growth was also on the agenda at the World Economic Forum annual meeting at Davos, where a published survey found that more than half of UK CEOs were optimistic about economic growth over the next 12 months, up from 39% in 2023. Recent analysis from the Energy & Climate Intelligence Unit (ECIU) and the Confederation of British Industry (CBI) finds that the UK’s net zero economy has grown 10% in the past year, now generating over £83 billion in Gross Value Added (GVA) to the UK economy. The Government has focused on home building as one of the key potential drivers of growth with the Planning and Infrastructure Bill introduced to Parliament in March by Deputy Prime Minister, Angela Rayner, who states that the Bill “will unleash seismic reforms to help builders get shovels in the ground quicker to build more homes, and the vital infrastructure we need to improve transport links and make Britain a clean energy superpower to protect billpayers.”
• UK energy cleaner than ever, but barriers to further grid enhancements remain: In January, it was reported that the UK’s electricity was the cleanest ever in 2024, with renewables reaching a record high of 45% of the generation mix. Despite significant progress in the mainstreaming of renewable energy, research from Cornwall Insight forecasts that the UK Government is off-track for its 2030 clean power targets for offshore, onshore, and solar PV energy by a combined 32GW. The modelling suggests that although growth in renewables is set to continue substantially over the next five years, there remain a number of operational investment barriers, as “grid connection delays, supply chain constraints, and uncertainty surrounding electricity market reforms are all creating a challenging environment for developers.”
• UK Government demonstrates leadership with NDC commitments, but industry has called for more detail on pathways: The Government released its updated 2035 Nationally Determined Contribution (NDC) at the end of January, confirming the UK’s target to reduce all greenhouse gas emissions by at least 81% by 2035 compared to 1990 levels, as announced at COP29 in November 2024. As part of this update, the Government has also announced a commitment to publish a refreshed Carbon Budget Delivery Plan “later in 2025” to set out its plans to deliver the Sixth Carbon Budget, which forms the basis of the 2035 NDC targets. The Government’s Net Zero Council has also been relaunched, and a new Delivery Group established, in order to help steer strategic delivery of climate policy developments.
• Seventh Carbon Budget offers ‘Balanced Pathway’ recommendations for emissions reductions: In February, the Committee on Climate Change (CCC) published its advice to the UK Government on its Seventh Carbon Budget (CB7), which sets the legal limit for UK net emissions of greenhouse gases for the period 2038 to 2042. CB7 builds upon previous carbon budgets to raise the UK’s emissions reductions ambition in order to achieve net zero by 2050. Based on the CCC’s ‘Balanced Pathway’ modelling, the priority actions put forth in CB7 are underpinned by seven core themes, which include lowering the cost of electricity to incentivise the switch to low-carbon technologies, removing planning and regulatory funding barriers to enable technology deployment at pace and at scale, and providing businesses with greater clarity on the balance between Government support and market mechanisms to enable decarbonisation and take advantage of the growing demand for low-carbon goods and services. To explore this in further depth, see our ‘Deep Dive: Seventh Carbon Budget and UK’s NDC’.

• Spring Budget: The Chancellor has confirmed that an Economic and Fiscal Forecast will take place on 26 March 2025. The forecast is expected to confirm the total levels of departmental funding planned for Phase 2 of the current Spending Review period, which ends on 31 March.
• Modern Industrial Strategy: Following the release of the Invest 2035: the UK's modern industrial strategy green paper in November 2024, the UK Government’s Modern Industrial Strategy was planned to be released this quarter, but has now been delayed to June 2025. The strategy is set to determine the Government’s 10-year plan for delivering its growth mission.
• Employers’ National Insurance increases: As of 1 April 2025, increases in Employers’ National Insurance and National Living Wage take effect, as announced in the October 2024 Budget.
• Willow Review: In May 2025, the government will publish the final report of the Willow Review, an independent, government-backed review designed to underline the financial opportunities of sustainability for the UK’s 5.5 million small businesses. The review includes market research and analysis to “demonstrate how sustainable practices can lead to cost savings, improved market competitiveness, and new revenue streams for small businesses.” With 2024 research from Small Business Britain and BT revealing that only 25% of small businesses recognise the financial advantages of sustainability, the review aims to build up organisations’ confidence in pursuing sustainable business practices.

• UK Internal Market Act 2020 consultation: The Department for Business and Trade is seeking views on certain aspects of the UK Internal Market Act 2020, to determine how to make processes work better, including those to do with the trade of goods, exclusions for goods and services, and the recognition of professional qualifications. The consultation is open until 3 April 2025.
• UK ETS carbon leakage consultation: The UK ETS Authority has conducted a consultation on improving its approach to UK ETS free allocation eligibility, specifically in terms of calculating the Carbon Leakage Indicator and adjusting Free Allocations for CBAM sectors. With an emphasis on insights from the business community, the consultation was accepting responses until 10 March 2025.
• SBTi Net Zero Standard consultation: The Science Based Targets Initiative (SBTi) has opened consultation on the first draft of its Corporate Net Zero Standard v2. The public consultation will now run from Tuesday 18 March to Sunday 1 June. Stakeholders can respond to the consultation survey via SBTi’s website.
• Energy smart data scheme consultation: DESNZ has released a consultation of the potential introduction of a smart data scheme in the energy sector and the framework that would provide the rules, standards and agreements that govern data sharing between customers, third parties and data holders. The consultation ran until 10 March 2025.
• Land Use Framework consultation: The Government’s consultation on its vision for land use in England to inform the development of the Land Use Framework is open until 25 April 2025

• The UK’s updated Nationally Determined Contribution (NDC) was published on 30 January 2025, confirming the UK’s target to reduce all greenhouse gas emissions by at least 81% by 2035 compared to 1990 levels, as announced at COP29 in November 2024. This target is in alignment with recommendations from the Climate Change Committee (CCC) published in October 2024. The updated 5-year plan, which was required to be submitted to the United Nations Framework Convention on Climate Change (UNFCCC) by 10 February 2025, also commits the UK to the global goal to triple renewable energy capacity by 2030.
• Reactions from across the green sector have acknowledged the significance of the NDC’s increased ambition, but challenge the plan’s level of detail in terms of actual delivery of its ambitions. For some commentators, there remains concern around a ambition-action gap and the continued need for “the Government to back its ambitions with concrete local action.” While the 2035 NDC target includes detail on the actions being taken in different sectors, sector-specific targets are not firmly established, leaving a significant gap in terms of where accountability lies for meeting emissions reduction targets and aligning with the UK’s Sixth Carbon Budget.
• Executive Director of the Aldersgate Group explains, “To meet this ambitious target in practice, further detail on the specific delivery plans set to be put in place is critical […] The private sector is ready to play its part but needs this certainty to provide the confidence that drives investment.”
• All other signatory countries of the Paris Agreement were required to submit their updated NDCs by 10 February 2025 as well, although it has been reported that around 95% of countries have missed the submission deadline. UN climate chief, Simon Stiell, has said that the vast majority of updated NDCs are expected by September of 2025, and that “taking a bit more time to ensure these plans are first-rate makes sense.”

• Building out the period covered by the updated NDC (2030-2035), in February, the Climate Change Committee (CCC) published its advice to the Government on the emissions reduction target levels of its Seventh Carbon Budget (CB7), which sets the legal limit for UK net emissions of greenhouse gases for the period 2038 to 2042.
• In its advice, the CCC is clear that rapid action to mainstream low-carbon technologies is a necessary component to delivering emissions reductions, in order to reduce “the UK’s dependence on volatile fossil fuel markets.” Continued emphasis on reducing high-carbon activities and assurance that “nearly all the key technologies we need for Net Zero already exist” sends important signals of the direction of travel for the UK’s investment landscape as the UK moves closer to its 2050 net zero target.

More in-depth analysis of the UK’s updated NDC and the Seventh Carbon Budget can be found in our policy deep dive.

• Great British Energy Bill: In February, Members of the House of Lords began their further examination of the Great British Energy Bill, which looks to establish Great British Energy (GBE) as a publicly owned and operationally independent energy company. Following this report stage, the bill will be reprinted to include all agreed amendments before progressing to its third reading – the final chance for the Lords to amend the bill. The sitting for the consideration of amendments is currently scheduled for 26 March 2025.
• UK renewables record: In January, Carbon Brief reported that the UK’S electricity was the cleanest ever in 2024, with renewables reaching a record high of 45% of the generation mix. As a result of the phase-out of coal, the UK generated just 91TWh of electricity from fossil fuels, which is down from 203TWh in 2014 – representing an emissions per unit decrease of two-thirds over the past decade.
• Offshore wind growth: The Department for Environment, Food & Rural Affairs (DEFRA) and the Department for Energy Security and Net Zero (DESNZ) have announced measures to accelerate the construction of 13 major offshore wind projects, with Energy Minister, Michael Shanks, stating, “offshore wind will be the backbone of delivering clean power by 2030 as we enter a new era of clean electricity.”
• Clean Industry Bonus: In a move to support renewable energy firms, DESNZ has formally opened the application window for the Clean Industry Bonus, which provides financial support for offshore wind developers on the condition that they prioritise their investment in industrial communities. Run through the Government’s Contracts for Difference (CfD) scheme, the bonus will provide an initial £27 million per gigawatt of offshore wind projects, meaning that up to £200 million in funding could be made available if developers commit to 7-8GW of offshore wind development. The application window will close on 14 April 2025.
• The Government has also mobilised £28 million equity investment in Cornish Metals through the National Wealth Fund (NWF) for use in PV, wind turbines, and EVs. With the objective of creating a critical minerals cluster in Cornwall, the financing will be utilised “to further de-risk” the South Crofty tin mine.
• Energy Skills Passport: Supported by the UK Government, Offshore Energies UK (OEUK) and RenewableUK have launched the Energy Skills Passport. Part of a range of measures developed by industry and Government to support the offshore energy workforce to “understand and plan for expanded homegrown energy”, the resource focuses on skills mapping, certification validation, and tailored career development and upskilling advice for workers across the energy industry. The beta version of the resource was released in January, with the full version of the resource expected to become available later in 2025.
• Review of Electricity Market Arrangements: DESNZ has announced that the Review of Electricity Market Arrangements (REMA) programme, which is “the most radical overhaul of the electricity markets in a decade”, will conclude “around mid-2025.” The reform considers how the UK’s electricity markets can be updated to manage the challenges associated with the increasing volume of variable renewables and delivering decarbonised energy. Originally launched in 2022, the REMA programme has sparked industry frustration over the time taken to undertake the review and the uncertainty surrounding its findings. The review’s potential shift away from national wholesale pricing and associated regulatory overhauls for clean energy development have been a source of hesitation for investors.
• New funding arrangement for Drax: The Government has announced a new funding agreement with the wood-burning biomass power producer, Drax. Generator of about 5% of the UK’s electricity, Drax has received billions of pounds in subsidies due to the classification of wood pellets as a renewable energy source. Under the new agreement, which runs from 2027 to 2031, subsidies are expected to fall by more than half, with the power station being used only “as a back-up to cheaper renewable sources of power” – meaning that when there is sufficient wind and solar power availability, these will be prioritised. Minister of Energy, Michael Shanks, has said that the previous subsidy arrangement has allowed Drax to make “unacceptable large profits” and that the new deal would be a “step change in value for money sustainability.” Many green campaigners continue to call for an end to all subsidies for burning biomass in power stations.
• Carbon Capture and Storage: In December, the North Sea Transition Authority (NSTA) awarded the UK’s first ever carbon storage permit. The permit was granted to the North Endurance Partnership site in northeast England. With the first injection expected in 2027, it is estimated that the site could store up to 100 million tonnes of CO₂. This announcement coincided with DESNZ’s issuing of an economic carbon dioxide transport and storage licence to Net Zero North Sea Storage, which is expected to unlock £4 billion worth of contracts, in line with the Government’s continued ambition for increased deployment of these technologies.
• Energy Prices: In January, Chief Executive of the Climate Change Committee, Emma Pinchbeck, spoke at the Scottish Affairs Committee’s first evidence session of its inquiry into GB Energy and the net zero transition, stating, “For domestic consumers, if the Government chose to not levy the policy costs of electricity bills, the price difference between gas and electricity would be far less and electricity would be cheaper.” Pinchbeck upheld the “overall efficiencies of renewables” and evidence that the “economy overall benefits” from the rollout of renewable energy, reinforcing that reform to electricity and gas pricing is well overdue.
• EIUG open letter: In an open letter to Business and Trade Minister, Sarah Jones, the Energy Intensive Users’ Group (EIUG) – which represents leaders from across the steel, chemicals, and glass and refining sectors – urged the Government to increase energy costs support to prevent further deindustrialisation. The letter sets out a number of supportive initiatives, including increasing the rate of compensation for network charges from 60% to 90% to bring the UK closer to key EU countries.

• EU Sustainability Reporting: The European Commission adopted a package of its first ‘Omnibus’ proposals to simplify EU rules in areas including sustainable finance reporting, sustainability due diligence, EU Taxonomy, carbon border adjustment mechanism, and European investment programmes on 26 February 2025. In effort to “eliminate overlaps and contradictions in sustainability reporting requirements”, this simplification affects the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the Taxonomy Regulation (EU Taxonomy), impacting UK companies currently in scope of these reporting regimes. The proposed changes are now subject to a legislative process that could take from 6 months to upwards of a year to be decided on. According to analysis by Anthesis, some headline changes include:
  • CSRD: An 80% reduction in the scope of the CSRD, limiting mandatory compliance to companies with more than 1,000 employees and either €50 million in turnover or €25 million+ balance sheet; removal of plans for sector-specific standards; a 2-year postponement for companies who have not yet reported.
  • CSDDD: Removal of the previously included requirement to implement climate transition plans (CTPs); reducing the frequency of periodic assessments and monitoring required from annual to every 5 years; a 1-year postponement for the first phase of application for the largest companies within its scope; limits to the amount of data companies can request from smaller actors within their value chains.
  • EU Taxonomy: Making Taxonomy reporting voluntary for companies with more than 1,000 employees and a turnover below €450 million; introducing the option of reporting on partial Taxonomy alignment.
  • Over 150 organisations have penned a letter to the EU Commission declaring their opposition to the omnibus package, stating that it risks “creating regulatory uncertainty, jeopardising investments already made and necessary future investments.”

• FCA amendments: In December 2024, the Financial Conduct Authority (FCA) published Quarterly Consultation Paper (CP24/26), setting out a number of minor amendments to certain sustainable finance rules, which it consulted on until 13 January 2025. The amendments aim to clarify the ESG sourcebook and policy proposals relating to the anti-greenwashing rule and the Sustainable Disclosure Requirements. An overview of the latest updates is available on the FCA website.
• ISSB adoption: The UK Government pathway to the adoption of the International Sustainability Standards Board (ISSB)-aligned standards in the form of the proposed UK SRS (Sustainability Reporting Standards) is ongoing. In December 2024, the Sustainability Disclosure Technical Advisory Committee, which was established by the Government to review the inclusion of ISSB standards under UK law, formally recommended adoption of the ISSB Standards with only minor amendments. Consultations on the adoption have been taking place throughout Q1 2025. Depending on the results of the consultations and timeline, then the UK SRS could be effective for accounting periods on or after 1 January 2026. If the standards are endorsed, then the FCA will use UK SRS to introduce sustainability-related reporting requirements for UK-listed, subject to a consultation process.
• IFRS S1 guide: In January, the IFRS Foundation published a new guide, Applying IFRS S1 when reporting only climate-related disclosures in accordance with IFRS S2, aiming to help companies understand how to report only climate-related information when applicable in accordance with International Sustainability Standards Board (ISSB) standards.
• IFRS S2 amendment: In February, ISSB voted to amend its climate change reporting standard, International Financial Reporting Standard S2 (IFRS S2), with a focus on three issues: 1) disclosure of Scope 3, Category 15 emissions, 2) reporting GHG global warming potential values, and 3) challenges using the Global Industry Classification Standard. ISSB has set plans to publish a draft of the proposed amendments in Q2 of 2025.
• FRC sustainability assurance recommendations: In February, the Financial Reporting Council (FRC) published the final report from its 2024 market study in the assurance of sustainability reporting, which looked to determine how well the UK sustainability assurance market is functioning and impacts felt across UK companies. The report sets out three key recommendations to support the market, including: 1) establishing a clear UK policy framework for sustainability assurance, 2) creating a consolidated regulatory regime for standard setting, oversight, enforcement and monitoring, and 3) enhancing the available information on the quality of sustainability assurance. The report finds that stakeholders are generally in favour of a regulatory regime that prioritises interoperability and ‘phasing-in’ requirements, which echoes the FRC’s recent campaign to support SMEs in securing audit services and reducing reporting burdens.
• SBTi Corporate Net-Zero Standard v2: On 18 March 2025, the Science Based Targets Initiative (SBTi) published an initial draft of its revised Corporate Net-Zero Standard for public consultation. The draft outlines 4 key aims:
  • Tackling barriers to scope 3, or value chain, action – the most commonly cited challenge by businesses
  • Maintaining focus on emissions reduction while exploring incentives to support scaling of climate finance and carbon removals
  • Making it easier for companies in emerging economies to set targets
  • Incentivizing ambition and action through new model to validate and recognize progress against targets.

For more details on the draft, see SBTi’s website. The public consultation will now run from Tuesday 18 March to Sunday 1 June. Stakeholders can respond to the consultation survey via their website.

• ISO Net Zero Standard: Work on the development of an ISO Net Zero Standard, building on the ISO Net Zero Guidelines, is ongoing with public consultations expected to launch later in 2025. ISO announced last year that they expect to launch the standard at COP30 in November 2025.

• Net Zero economy growth: In February, analysis from the Energy & Climate Intelligence Unit, in partnership with CBI Economics, reported that the UK’s net zero economy grew by 10% in 2024, outpacing many economic sectors to generate £83.1 billion in gross value added (GVA). The report finds that net zero jobs, as well as being highly distributed around the UK, are also notably productive, with each full-time role generating £105,500 in economic value, 38% above the UK average. Chief Economist at the CBI explains “At a time when the cost of doing business has squeezed appetite for capital investments and high energy prices are being cited as a drag factor across the economy, investments in clean technologies can significantly bolster competitiveness and productivity.”
• National Wealth Fund Strategic Partnerships: The Chancellor announced that the National Wealth Fund (NWF) will trial ‘Strategic Partnerships’ starting in Manchester, West Yorkshire, West Midlands, and Glasgow. These initiatives are expected to drive investment in technology, manufacturing, and green energy – offering tailored commercial advice to help regions secure long-term investment.
• Green Book review: The Chancellor has confirmed a review of the Green Book, guidance issued by HM Treasury and used by the Government to calculate the cost-benefit ratios of major infrastructure schemes. Reforms look to address concerns around historic underinvestment in certain regions of the UK, as “the Green Book has long been a challenge in terms of the way particular projects have high levels of impact according to its appraisals.” The proposed changes, which look to “ensure that investment in all regions is given a ‘fair hearing’ by the Treasury,” are expected to be confirmed at the end of the current spending review period.
• Pensions reform: As set out in the 2024 Autumn Budget, the Government has announced a programme of pensions reform to create new rules over how occupational defined benefit pension schemes are managed. These rules aim to “allow trapped surplus funds to be invested in the wider economy, fuelling economic growth”, with projections of close to £100 billion of value potentially being unlocked over the next decade. With awareness growing around pension funds as “critical – yet underutilized – sources of finance for the climate transition,” there is potential for these unlocked funds to be directed towards net zero investment.
• Net Zero Council relaunch: In February, the Government officially relaunched the Net Zero Council, an initiative co-chaired by the Energy Secretary, Ed Miliband, and the chief executive of the Co-operative Group, Shirine Khoury-Haq. Made up of key representatives from major corporations, the council has three primary functions: 1) providing expert advice on Government net zero strategies, 2) engaging with the business community to promote climate leadership, and 3) driving decarbonisation across high-emitting sectors. The council’s first meeting for 2025–2026 focused on setting priorities, which include creating sector-specific roadmaps to help businesses navigate their net zero transitions. A new Delivery Group has also been formed to oversee the council’s activities and ensure effective collaboration with industry. There are also clear synergies with the work of the Transition Finance Council, which was launched in late 2024 to support transition finance capacity building through initiatives including the Transition Finance Market Review (TFMR) and promote the UK’s competitive position as a transition finance hub. Key insights emerging from the TFMR are provided in Chapter Zero’s briefing, ‘Transition Finance: A Strategic Imperative for Boards’.

• UK–China talks: In January, the UK and China restarted economic and financial talks after a six-year hiatus. During her visit to Beijing, Chancellor Rachel Reeves, committed to continuing bilateral collaboration on climate change, which is seen as a “positive step”. The Government’s reengagement is projected to deliver up to £1 billion of value to the UK economy, with these January talks reaching agreements worth £600 million over the next five years. Some of the climate-relevant outcomes from the talks include:
  • Mutual welcoming of the convening of the China–UK Energy Dialogue in 2025 and commitment to UK–China dialogues on the UK Carbon Border Adjustment Mechanism (CBAM).
  • Reiteration of the “recognition of each other as primary partners in green finance” and the importance of green finance capacity building, with agreement that the UK–China Green Finance Taskforce will promote collaboration in areas including sustainability disclosures and establishing new workstreams on transition finance, and biodiversity finance.
  • Continuation of the UK–China Capital Markets Working Group, through which China plans to issue an inaugural overseas sovereign green bond during 2025.
  • Joint endorsement of the work of the Taskforce on Nature-related Financial Disclosures (TNFD) and a call for leading international sustainability standard setters to incorporate the TNFD’s risk management and disclosure framework.
  • A Memorandum of Understanding between the Chinese Ministry of Ecology and Environment and the UK’s Department for Environment, Food and Rural Affairs (DEFRA) to cooperate on the commitments of the UN 2030 Agenda for Sustainable Development.

• Following the talks, Chatham House released a report, ‘An agenda for UK-China Climate cooperation’, calling for the countries to draw on their “complementary climate capacities” to deepen and institutionalise climate cooperation.

• Amendments to UK ETS: The UK ETS Authority has published its response to the 2024 targeted consultation on technical and operational amendments to the UK Emissions Trading Scheme (UK ETS). The response focuses on three proposals for amendments: 1) the publication of UK ETS Registry transaction data, 2) the disclosure of UK ETS information by a national authority, and 3) applications to obtain Ultra-Small Emitter (USE) status for the 2026–2030 allocation period. More guidance on the technical aspects of UK ETS is available on the UK Government website.
• Linking UK–EU Emissions Trading Systems (ETS): In January, it was reported that the UK Government has requested that linkage of the UK ETS and EU ETS and carbon border taxes be on the agenda for talks with the EU taking place at a EU–UK summit on 19 May 2025. According to Frontier Economics, linking the EU and UK emission trading schemes to create a combined carbon market “can support efficient trade and cost-effective achievement of climate goals.” On the day that talks of linkage were reported, benchmark prices in Britain’s Emissions Trading System closed around 13.5% higher, highlighting the potential economic arguments for linkage, which may include less market volatility and increased liquidity.
• UK CBAM: Ahead of the introduction of the UK’s Carbon Border Adjustment Mechanism (CBAM) in 2027, the Government has committed to publish draft primary and secondary legislation in 2025. Energy sector stakeholders have cautioned that “a 12-month gap before it takes effect in 2027 could see high-carbon imports flood the UK”, urging the Government to accelerate its efforts to clarify export protections and expected legislative approaches.

• Heathrow Airport expansion: On 29 January, Chancellor Rachel Reeves confirmed the Government’s support of the third runway expansion at Heathrow Airport, which could be built and in use by 2035. In her confirmation, Reeves assured that the expansion will be “delivered in line with [the UK’s] legal, environmental, and climate objectives.” In a session of the Environmental Audit Committee, Energy Secretary, Ed Miliband, asserted, “Any aviation expansion must be justified within the framework of carbon budgets.” The expansion, while projected to create upwards of 100,000 jobs, has the potential to raise aviation emissions, with an expected increase in the number of flights from 480,000 to 720,000 per year. Considering this, green campaigners maintain that it “should not proceed until the Government shows exactly how it will be compatible with the UK’s carbon budgets and net zero target.” It is important to note that the UK’s Sixth Carbon Budget was the first carbon budget to include emissions targets for the international aviation sector, which are legally binding.
• Growing the EV public charging network: The National Wealth Fund (NWF) has committed £55 million in ordinary equity investment to Connected Kerb to support its continued expansion of the UK’s on-street electric vehicle charging network. Connected Kerb, which manufactures its chargers in the UK, is on course to become the largest network of public chargers in the UK in 2025. Future of Roads Minister, Lilian Greenwood, has heralded this as a “a great vote of confidence in the EV transition.” Market analysis from the start of 2025 finds that “EV demand is growing – but not fast enough to deliver to current ambitions. Affordability remains a major barrier to uptake, hence the need for compelling measures to boost demand, and not just from manufacturers.”
• In February, the UK’s fourth-largest motor retailer, Vertu Motors, reported that “net zero rules are set to trigger another year of steep price cuts” to electric vehicle prices. Under the Government’s zero emission vehicle (ZEV) mandate, companies are required to sell a certain proportion of electric vehicles in order to avoid significant fines. This mandated proportion of sales has risen from 22% in 2024 to 28% for 2025, and will continue to rise gradually up to 100% by 2035.

• Climate and Nature Bill: In January, the Government won a motion to end the debate on the Climate and Nature Bill, meaning that it will not return to the House of Commons until July. The proposed bill would require the Environment Secretary to create and implement a plan to reduce CO₂ emissions and reverse nature degradation. As a result of the negotiations, the Government has agreed to accelerate manifesto commitments including the Land Use Framework and ratification of the Global Ocean Treaty. There is also commitment to publish an annual statement of progress on net zero targets from the Secretary of State.
• National Biodiversity Strategy & Action Plan: On 26 February, the Government published its National Biodiversity Strategy & Action Plan for 2030 (NBSAP), committing the UK to full implementation of the 23 targets of the Kunming-Montreal Global Biodiversity Framework (GBF), which aims to halt and reverse biodiversity loss by 2030. The GBF establishes a clear role for businesses in supercharging the transition to a nature-positive economy, setting the target of encouraging and enabling businesses to monitor, assess, and disclose biodiversity-related risks to reduce negative impacts on biodiversity. In its implementation of the GBF, the UK pledges to commitments such as eliminating, phasing out, or reforming incentives (including subsidies) harmful to biodiversity by 2030.
• Farmland rewilding targets: UK Government analysis finds that 1.6 million hectares of farming land needs to be repurposed to meet its legal environmental and climate targets by 2050, with close to 9% of England’s farming land needing to be converted into forest and wild habitats by 2050. This threshold was announced as part of a DEFRA consultation launched by the Environment Secretary, Steve Reed, which is explored further in the Planning & Built Environment section.
• TNFD upskilling: The Taskforce on Nature-related Financial Disclosures (TNFD) has introduced new online platforms to support organisations’ capacity-building on nature-related business risks and opportunities and TNFD guidance. The resources include an open-access Learning Lab for individuals to upskill themselves on nature, as well as a Trainer Portal for third-party organisations, such as education service providers. Both are available on the TNFD website.
• Nature transition plans consultation: A consultation by TNFD on nature transition plans closed at the beginning of February 2025. The key outcomes of the consultation are expected to inform the development of TNFD guidance on the content and disclosure of nature transition plans, which TNFD is looking to pilot with organisations.
• National Fire Chiefs Council (NFCC) climate warning: In February, the National Fire Chiefs Council (NFCC) issued a public warning that without adequate investment and Government action, the organisation’s “capacity to keep communities safe and protect infrastructure is at risk.” The NFCC sets out a number of recommendations for the UK Government to consider including:
  • Ensuring that there are accurate data analysis mechanisms that enable longer-term forecasting
  • Reviewing the Civil Contingencies Act 2004 and/or UK Government Resilience Framework
  • Updating building safety legislation and guidance and strengthening the product testing regime
  • Maintaining fire and rescue services’ capital investment in climate change mitigation.

• Nature Restoration Fund: The Planning and Infrastructure Bill has confirmed the Nature Restoration Fund, which was originally announced in January as part of the Government’s Plan for Change strategy and objective to deliver 150 major infrastructure planning decisions. The fund aims to enable “infrastructure builders to meet their environmental obligations faster and at greater scale by pooling contributions from developers to fund larger strategic interventions for nature.” Under these changes, Natural England has been given the powers to design and deliver Environmental Delivery Plans (EDPs), which are intended to establish a package of conservation measures to address one or more of the environmental impacts of development projects. With the establishment of an EDP, developers will not be required to mitigate environmental harm in order for projects to be approved. Instead, they will be asked to contribute to the Fund, which will pool money to fund larger strategic habitats and wildlife protection interventions, rather than on a site-by-site basis. The Wildlife Trusts initial review of the Bill both highlighted its positives: “the content of proposed legislative changes is a significant improvement on the previous attempt. The Bill incorporates several safeguards – most notably an “overall improvement test” – that seeks to ensure that nature is better off” and raised areas where they would like to see further changes: “Our briefing to parliamentarians highlights several ways in which we need to see the safeguards strengthened to ensure the approach is based on scientific evidence and leads to a genuine improvement for wildlife.”
• Land Use Framework Consultation: The Department for Environment Food & Rural Affairs (DEFRA) has launched a consultation on a new strategic approach to managing land use in England, in acknowledgement that “land managers are central to the delivery of the government’s policies for climate, nature, food security, housing and energy.” The focus aims to be on the type and scale of land use changes that are needed – which will be captured in the final Land Use Framework and reforms through a Farming Roadmap and Food Strategy. The consultation runs until 25 April 2025.
• UK Net Zero Carbon Buildings Standard pilot programme: The UK Net Zero Carbon Buildings Standard (UKNZCBS) has issued a call for more projects to be a part of its pilot testing phase which was launched in September 2024. Although the deadline for applications was 31 January 2025, the programme is still welcoming projects from buildings in the healthcare sector, as well as in retail, commercial, residential, hotels, sport and leisure, data centres and storage and distribution. Those interested in more information can find details on the UKNZCBS website.
• NHS Green Plan guidance: In February, NHS England published updated guidance on the production of green plans for NHS organisations. Green plans establish key actions organisations will take to deliver emissions reductions and improve climate resilience over three-year periods. In line with statutory guidance set out in the Health and Care Act 2022, NHS organisations are required to update these plans and have them approved by the organisation’s board or governing body by 31 July 2025.

• Rosebank and Jackdaw legal challenges: On 30 January, the Scottish High Court overturned the UK Government’s approvals of the Rosebank and Jackdaw North Sea oil and gas drilling projects, following legal challenges from Greenpeace and Uplift. The ruling finds that the Government’s decisions to approve the projects were unlawful and must be reconsidered. In response, the Government has put forward intentions to consult on new environmental guidance on how emissions must be accounted for, but has said that the companies working on the projects, Shell, Equinor and Ithaca Energy, will be able to re-apply for consent to begin operations under these new rules. The decisions to grant consent will fall to the Department for Energy Security and Net Zero (DESNZ) and Energy Secretary, Ed Miliband, and will be subject to regulatory assessment for the North Sea Transition Authority. In early February, it was reported that Prime Minister, Sir Keir Starmer, signalled he would not intervene to block Rosebank going ahead, stating that “oil and gas is part of the future mix for decades to come.”
• Just Stop Oil protestors’ appeal: In January, sixteen climate activists called on the Court of Appeal to reduce their prison sentences. The mass repeal case reviewed the jail sentences related to four separate cases given to Just Stop Oil activists from July to September 2024. In March, the court ruled to reduce the climate protestors’ sentences. A study by Bristol University finds that in 2024, environmental protestors in the UK were arrested at three times the global average rate (i.e. 17% versus global average of 6.3%).