On Wednesday, the 26th February, the Climate Change Committee (CCC) published the UK’s Seventh Carbon Budget (CB7), outlining the nation's roadmap towards achieving its Net Zero target by 2050.

The CCC has recommended setting an ambitious (but achievable) emissions limit of 535 million tonnes of CO2e for the 2038-2042 period, which also includes “international aviation and shipping”.

Achieving the above target marks a crucial step in the UK’s transition to a low-carbon economy and to be achieved the UK will require emissions to decrease “to 87% below their 1990 levels”.

See the table below showing a sector breakdown of emissions reductions by 2040:

The CCC’s “Balanced Pathway” is their proposed plan to achieving Net Zero.

Here are some key takeaways:

⚡ Low-carbon electric technologies

Electrification accounts for 60% of the total emission reductions needed by 2040. This includes adopting electric vehicles, heat pumps and electric industrial equipment across multiple sectors.

Additionally, the CB7 emphasises a significant increase in renewable energy capacity, projecting offshore wind capacity to increase six-fold to 88 GW, onshore to double to 82 GW, and solar to 82 GW by 2040.

To support this shift, an increase in storable forms of energy is also required, including nuclear, hydrogen, carbon capture and storage.

🍃 Green Jobs

On average an investment of around £26 billion per annum will be needed to invest into “low-carbon technologies and infrastructure”.

The transition to a low-carbon economy is expected to create new jobs, upskill and encourage a more diverse, inclusive workforce.

📈 Supporting Businesses

Businesses will require clear guidance on balancing government support and market-based approaches for example “the UK Emissions Trading Scheme and carbon border adjustment mechanisms”, to facilitate their transition to low-carbon business operations.

If given the correct support, UK businesses have the potential to decarbonise early and capitalise on the increasing world-wide “demand for low-carbon goods and services”.

🏡 Households

The government must address barriers to adopting low-carbon heating. They will need to support all households but particularly low-income households with the upfront costs, as well as addressing issues such as lack of awareness and misconceptions in relation to heat pumps.

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𝗧𝗵𝗶𝘀 𝗮𝗿𝘁𝗶𝗰𝗹𝗲 𝘄𝗮𝘀 𝘄𝗿𝗶𝘁𝘁𝗲𝗻 𝗯𝘆 𝗜𝗻𝘁𝗲𝗴𝗿𝘂𝗺 𝗘𝗦𝗚 𝗥𝗲𝘀𝗲𝗮𝗿𝗰𝗵 𝗔𝗻𝗮𝗹𝘆𝘀𝘁 𝗪𝗶𝗹𝗹 𝗖𝗮𝗺𝗽𝗯𝗲𝗹𝗹.

The data on the Integrum Platform easily allows investors to see which companies in the UK are reducing their emissions year on year, and flags those which are not.  

Ultimately, we make it visible to our client’s which companies are and are not prioritising decarbonisation and aligning with the UK's CB7. 

Click here to learn more today!