UK Carbon Net Zero policy and procurement are at a critical juncture, as the United Kingdom works to balance ambitious climate commitments with the realities of economic, social, and political change.
This piece gives an overview of the UK’s Carbon Net Zero position, reflecting current government policy, key pieces of legislation, perspectives from political Parties, and the evolving landscape of procurement in both public and private sectors.
What is Carbon Net Zero?
Carbon Net Zero, or “Net Zero,” refers to achieving a balance between the carbon emitted into the atmosphere and the carbon removed, through either natural or technological means. The UK was the first major economy to legislate for a Net Zero target, committing to reduce greenhouse gas emissions by 100% relative to 1990 levels by 2050. This commitment reflects obligations under the Paris Agreement, aligning with global efforts to limit warming to 1.5°C above pre-industrial levels.
UK Government Policy on Net Zero
The Net Zero Target in June 2019, the UK enshrined into law the legally binding target to achieve Net Zero greenhouse gas emissions by 2050, amending the Climate Change Act 2008. This ambitious objective is the backbone of current government policy and has influenced a series of strategies across energy, industry, transport, and more.
The Net Zero Strategy: Build Back Greener (2021)
The UK Government published its “Net Zero Strategy: Build Back Greener” in October 2021. This comprehensive plan outlines sector-by-sector approaches to decarbonisation, including:
- Power: Decarbonising the electricity grid by 2035, with a strong focus on offshore wind, nuclear power, and emerging technologies like carbon capture and storage (CCS).
- Transport: Phasing out the sale of new petrol and diesel cars by 2035, scaling up electric vehicle infrastructure, and investing in active travel and public transport.
- Homes and Buildings: Promoting energy efficiency, retrofitting existing homes, introducing heat pumps, and tightening standards for new buildings.
- Industry: Supporting industrial decarbonisation clusters, incentivising innovation, and developing low-carbon hydrogen.
- Agriculture and Land Use: Encouraging sustainable farming, peatland restoration, and afforestation.
- Finance: Mobilising private investment, mandating climate risk disclosures, and integrating climate considerations in financial regulation.
Recent Policy Adjustments (2023–2025)
The UK’s Net Zero approach is evolving, balancing environmental goals with concerns about cost-of-living, energy security, and industrial competitiveness. Recent years have seen mixed signals:
- Some deadlines have been delayed, such as the extension of the ban on new petrol and diesel cars from 2030 to 2035.
- Greater emphasis is being placed on energy security and the need for gradual transitions, especially following global shocks like the COVID-19 pandemic and the war in Ukraine.
- Public sector leadership continues, with local authorities and devolved administrations (Scotland, Wales, Northern Ireland) often adopting even more ambitious targets.
Key Legislation Supporting Net Zero
The Climate Change Act 2008 (as amended) this foundational act set the original 80% reduction target, amended in 2019 to Net Zero by 2050. The Act established a system of carbon budgets, requiring the UK to set legally binding caps on emissions over five-year periods.
Environmental Act 2021, a wide-ranging law that addresses not only climate change but also biodiversity, water, air quality, and waste. It strengthens the regulatory framework for emissions and establishes the Office for Environmental Protection.
Energy Act 2023 (and others) Legislation continues to evolve, with the Energy Act and other bills focusing on infrastructure, renewable energy incentives, carbon capture, and energy security.
Procurement Regulations
The Public Contracts Regulations 2015 (as amended) and the Social Value Act shape procurement, increasingly requiring consideration of environmental impact in how government and public bodies buy goods and services and the Procurement Act 2023 giving Small to Medium Sized Enterprises (SMEs) and Voluntary, Community and Social Enterprises (VSCEs) a fair chance at public contracts giving high quality jobs and championing innovation.
Main UK Political Parties Net Zero Ambitions
The Liberal Democrats have an accelerated Net Zero target of 2045, 5 years ahead of the current Government target with a 75% cut in emissions by 2030 compared to the Government’s 68% target by 2030. With a range of supporting policies including an emergency home energy upgrade programme, a renewable energy revolution targeting 90% of the UK’s electricity to be generated by renewables by 2030. Ending fossil fuel reliance, transport decarbonisation, reversing the Conservative roll back to 2035 back to 2030. A green industrial strategy, plus an emphasis on nature-based solutions. On governance and accountability, they want to create a joint Climate Council of the Nations to coordinate action across the UK and establish a Net Zero Delivery Authority to coordinate climate action across government.
In summary, the Liberal Democrats position themselves as the party offering the most ambitious and comprehensive plan for tackling climate change, aiming for an earlier Net Zero target, and proposing significant investments and policy changes across energy, transport, housing, and environmental protection.
The UK Green Party has the most ambitious and far-reaching Net Zero policy among the major UK political parties, consistently advocating for urgent and transformative action on climate change. Their core approach is encapsulated in a “Green New Deal,” designed to rapidly decarbonise the economy while also addressing social and economic inequalities.
Key aspects include an accelerated Net Zero target of 2030, proposing a rapid transition 100% renewable energy with wind providing around 70% of the UK’s electricity by 2030. Significant investment in energy storage an efficient distribution. Phase out of nuclear energy and bringing key energy infrastructure including the water industry and the five largest retail energy companies back into public ownership. An emphasis on community owned energy sources, ending fossil fuels, by cancelling all new fossil fuel licenses, removing oil and gas subsidies, and introducing a carbon tax on all fossil fuel imports and domestic extraction based on the greenhouse gases produced when burned. Transforming homes and buildings with the launch of a massive insulation and retrofit programme. Investment in Sustainable Transport, the Green Economy, and Social Justice along with Nature Based Solutions and Environmental Protections.
In summary, the Green Party’s Net Zero policy is characterised by its urgency, ambition, and comprehensive scope, advocating for systemic change across all sectors of the economy and society, with a strong emphasis on public and community ownership, social justice, and immediate action.
Reform Party Policy on Net Zero
Reform has taken a critical stance towards the UK’s Net Zero agenda. Their central positions include:
- Questioning the pace and cost of Net Zero, arguing that rapid decarbonisation could hurt the economy and increase living costs.
- Proposing delays or rollbacks of key policies, such as the ban on new petrol and diesel vehicles and the closure of fossil fuel power plants.
- Prioritising energy security and affordability over rapid decarbonisation, advocating for continued use of North Sea oil and gas, and investment in newer nuclear technologies.
- Emphasising national sovereignty, with a focus on UK-based industrial jobs and less reliance on imported technologies or fuels.
- The Reform Party is not opposed to emissions reduction or clean energy per se, but consistently calls for a “common sense” approach that protects jobs and the economy.
This position can be seen is in sharp contrast to the cross-party consensus that underpinned the Climate Change Act 2008 and subsequent commitments, potentially foreshadowing significant policy divergence should the party gain greater influence.
Implications for Public Sector Procurement
Policy Drivers
The UK Government has increasingly made climate considerations central to public sector procurement. Key drivers include:
- Government Buying Standards – requiring departments to consider sustainability in purchasing.
- Social Value Act – mandating that public contracts include criteria for social and environmental value, now including explicit references to climate change mitigation.
- Net Zero Guidance – central government departments and agencies are issued guidance on decarbonising supply chains, infrastructure, and capital projects. (PPN 06/21)
- Procurement legislation – ongoing reforms aim to simplify and strengthen how climate and environmental criteria are embedded into procurement practice.
Challenges and Opportunities
- Complexity: Procurers face challenges in measuring and verifying carbon footprints, balancing cost pressures with environmental goals.
- Innovation: Growing preference for low-carbon materials, construction methods, and digital solutions (such as smart buildings and data-driven infrastructure management).
- Market influence: As one of the largest buyers in the UK economy, the public sector can shift entire markets towards greener products and services.
- SME engagement: Ensuring that small and medium enterprises can compete effectively and deliver on Net Zero goals.
Implications for Private Sector Procurement
The UK’s Net Zero commitments have wide-ranging implications for business procurement strategies:
- Supply Chain Decarbonisation: Large companies increasingly require suppliers to report emissions, adopt science-based targets, and provide low-carbon products and services.
- ESG (Environmental, Social, Governance): Climate-related disclosures are now mainstream, especially for listed companies.
- Innovation and Investment: There is a significant push for clean technologies, alternative fuels, energy efficiency, and circular economy practices.
- Risks and Opportunities: Firms face reputational and regulatory risks if they lag behind; those who lead may gain market advantage and investment.
Outlook: Balancing Ambition with Pragmatism
The UK’s path to Net Zero is characterised by ambition, but tempered by ongoing debates over cost, timing, and economic impact. The government continues to lead with strong policy and legal frameworks, but implementation will depend on maintaining public support, business engagement, and political consensus.
The potential for policy change is real, particularly as parties such as Reform advocate for a slower, more economically cautious approach. Procurement, as a lever of change, will remain a critical tool—whether in public infrastructure or private supply chains—driving innovation, reducing carbon, and signalling the direction of travel for the UK economy as a whole.
Conclusion
The UK remains a global leader in Net Zero, with a robust policy and legislative foundation, though its future trajectory is subject to political and economic pressures. The balance between rapid decarbonisation and economic pragmatism, the role of procurement as a force for sustainability, and the potential for shifts in political approach, all make the Net Zero debate in the UK both dynamic and consequential. Continued vigilance, adaptability, and cross-sector collaboration will be necessary to meet the challenge of climate change while sustaining prosperity and social cohesion.
If you need help understanding where you are on the pathway to Net Zero the Chamber’s Sustainability Team is always here to help. Take your first step and contact us on info@chamberlowcarbon.co.uk and one of the Team will contact you usually within 24 hours.
