United Kingdom

The United Kingdom improves its ranking substantially, up to 6th in the current CCPI rankings, with an overall high performance. It ranks high in the GHG Emissions and Energy Use categories, medium in Climate Policy, and low in Renewable Energy.

An end to coal, but what about other fossil sources?

The country’s change in government in July 2024 marked the start of more ambitious climate policies. The government under Prime Minister Keir Starmer committed to ending coal production in 2024 and granting no more licenses for new fossil fuel projects. In 2024, the last coal fired power station in the UK closed. At the same time, there is ambiguity about ongoing fossil extraction operations and no policy framework for completely phasing out oil and gas extraction.

The UK, as part of its Nationally Determined Contribution (NDC), has committed to reducing greenhouse gas emissions 2030 by 68% compared with 1990 levels. This is the country’s first target set in line with net zero. However, the 2024 progress report of the UK Climate Change Committee found that now, only six years away, the country is not on track to reach this target despite a significant reduction in 2023. While the coal exit was set for 2024, oil and gas use also need to be phased out. The CCPI country experts assess that credible plans now only cover one-third of the emissions reductions required to achieve the 2030 target.

The power sector is set to be decarbonised by 2030, building on a strong policy framework. The government recently proposed the Energy Independence Act, which would establish a new, publicly owned energy company aimed at producing ‘clean’ energy. The government also increased the budget for low-carbon power auctions and lifted the ban on onshore wind projects. It committed to double onshore and quadruple offshore wind by 2030. The UK uses carbon taxes and followed the EU policy of taxing imports’ carbon footprints. It also followed other European countries in withdrawing from the Energy Charter Treaty, an investment treaty that benefitted fossil fuel investments. The government has declared it would expand deployment of renewable energy and storage. Now implementation must follow.

An opportunity to strengthen fossil extraction policies and get rid of subsidies

The Department for Energy Security and Net Zero and the North Sea Transition Authority (NSTA, previously the Oil and Gas Authority) regulate offshore oil and gas production in the UK. The policy framework involves issuing licenses for areas of the North Sea and a consent process for approving individual oil and gas fields, including Environmental Impact Assessments. Following a Supreme Court ruling in 2024 that fossil fuel projects’ combustion emissions should be assessed as part of the assessment process when deciding whether to grant permission for a development, the UK policy framework is now being reviewed.

In 2022, the former government developed the North Sea Transition Deal together with the oil and gas industries. The policy plan aims to maximise the ‘advantages for the UK’s oil and gas sector from the global shift to clean growth. The UK’s Climate Change Committee (CCC) criticised this, pointing to the plan’s targets as being ‘significantly lower’ than what is required to meet the UK’s carbon budget. The targets only cover upstream emissions from extraction. The CCPI experts see potential for the new government to strengthen the country’s policy on fossil fuel extraction and abolish subsidies for it.

Moreover, as policymakers face opposition within the government and from unions concerned about job losses, the experts cite the need to ensure a just transition for dependent workers and communities in these industries.

Sweeping changes in transportation and energy

Sales of new petrol and diesel cars are to be made remnants of the past as the UK implements a ban and Zero Emission Vehicle mandate on manufacturers. At the same time, the new government plans to strengthen public transport, especially the aging railway system, and extend bicycle paths. Targeting frequent flyers, the government might implement higher taxes on regular fliers and plans to reopen old railway lines with proposals for rail re-nationalisation. Investing in insulation of the aging building stock is another critical aspect in decreasing energy use. Government policies’ details and effectiveness remain to be seen.

The Labour-led government introduced a new Global Clean Power Alliance to facilitate climate policy on energy generation. Through its ambitious targets, the UK can demonstrate substantial leadership in the fight against climate change, if implementation follows suit while ensuring that climate initiatives are comprehensive and effective.

Key Outcomes

CCPI Experts

• Nicholas Davies (Green Alliance)
• CF Energy Research & Consulting UG
• Green Cross United Kingdom