Lower emissions, lower bills: the UK’s path to net zero

The net zero transition can bring a host of benefits for people, from new jobs to cheaper bills and cleaner air.

The UK government is keen for the public to understand this – and take advantage of it.

Last week, it published its plan to reduce emissions and drive economic growth.

The Carbon Budget and Growth Delivery Plan (CBGDP) brings together the government’s approach to meeting carbon budgets 4-6, which set the maximum amount of greenhouse gases the UK can emit from 2023-2037.

It’s part of a group of documents also setting out:

• The government’s plan to unlock the wider benefits of the clean energy transition;
• Its response to the Climate Change Committee’s (CCC) 2025 progress report on reducing emissions; and
• An Investor Prospectus, outlining where and how investors can support the UK’s journey to net zero.

In June, the CCC highlighted encouraging signs of sustained emissions reductions – notably in transport due to the uptake of electric vehicles.

But it also warned of policy gaps needing urgent government action in areas such as heat pumps, electricity pricing and skills.

The latest documents confirm the government is acting on all the CCC’s priority recommendations – but some important details are missing.

Here are the key infrastructure points:

1. Public engagement at the fore

The CBGDP confirms the government will publish a Net Zero Public Participation Plan this year.

It will set out how the government will raise public awareness of net zero, ensure policies respond to people’s needs and help them to act and access the benefits of the transition.

A new online service, the Home Energy Advice Tool (HEAT), will provide advice for consumers on retrofit and energy efficiency measures.

A single, trustworthy source of information was a key ICE and All-Party Parliamentary Group on Infrastructure recommendation on enabling the public behavioural change needed to reach net zero.

The government will also launch three marketing campaigns to help citizens take practical actions covering heat pumps, energy efficiency and electric vehicles.

As the CCC has highlighted, public engagement is vital.

The ICE has also called for more meaningful public engagement from the government and the National Infrastructure and Service Transformation (NISTA) to build support for the infrastructure investment required for the transition.

2 . Outstanding questions on household energy

The CCC’s top priority was making the cost of electricity cheaper to ensure heat pumps reduce household bills.

The government says it is working “relentlessly” to translate the much cheaper wholesale costs of clean power into lower consumer bills.

But the CBGDP falls short of detailing how and when it will achieve this.

The upcoming Warm Homes Plan may provide further clarity. The plan was backed with £13.2 billion at the Spending Review – including support for heat pump roll out.

And there are positive signs for heat pump uptake, with costs falling and 9,000 installers trained in 2024.

However, the government has stopped short of ruling out hydrogen in home heating as the CCC recommends – although it says any role would likely be limited.

And the Future Homes Standard will favour low carbon techs so government “do not expect” new homes to be built with gas connections – but doesn’t rule it out.

For post-2035 heating installations, the government wants to make low carbon the “natural choice” for consumers rather than introducing regulations that restrict their options.

Rapid expansion of low-carbon electricity

Looking at the wider energy system, the CCC said the success of future Contracts for Difference rounds is critical following recent auction failures.

The government has reformed the scheme, but the results of Auction Round 7 won’t be known until next year.

It also highlighted efforts to streamline planning for the rapid delivery of low-carbon infrastructure and network connections.

3. More guidance for investors

The net zero transition will require a huge increase in investment – much of which must come from the private sector.

The government’s new Investor Prospectus gives a high-level view of its approach to paying for the net zero transition.

It should give investors clarity on the opportunities and potential returns from net zero investments.

It also helps address some of the uncertainty about the role of the UK’s public financial institutions – and how and when investors can use bodies like the National Wealth Fund and Great British Energy.

The government says more details will be published over the coming months.

A key question will be the level of investor engagement it will do to ensure the guidance is well understood.