As a knowledge partner for Chapter Zero, the Centre for Climate Engagement prepared a briefing to highlight the key developments in UK climate policy from January to March 2025, with relevance for non-executive directors (NEDs). This briefing, and the corresponding Deep Dive resource exploring some of these policy areas in more detail, are part of CCE’s ongoing series of policy content with Chapter Zero.
Briefing highlights:
- Government’s signals of continued support of green growth: In announcing a series of major infrastructure projects as part of the Plan for Change, UK Chancellor Rachel Reeves called net zero “the industrial opportunity of the 21st century.” The UK’s net zero economy grew 10% over the last year, contributing £83 billion in GVA. CEO confidence in the UK’s economic growth has also risen significantly.
- Accelerating Energy Targets: Renewables reached a record 45% of the UK’s electricity mix in early 2024, making it the cleanest on record. However, to prevent a shortfall in power availability in the lead up to 2030 clean power targets, the Government must continue to focus on tackling issues including grid delays, supply chain inefficiencies and market uncertainty.
- Updated UK NDC: The UK confirmed its goal to cut emissions by 81% by 2035 in its updated Nationally Determined Contribution (NDC), which sets out the emissions reductions needed to align with the Paris Agreement’s 1.5°C limit. As part of this commitment, the Government will publish a refreshed Carbon Budget Delivery Plan in 2025. A relaunched Net Zero Council and new Delivery Group will oversee climate policy implementation.
- Carbon Budget Planning: The Climate Change Committee (CCC) has advised the Government on its new emissions limits for the Seventh Carbon Budget (2037–2042), offering greater clarity on the delivery pathways for the UK’s net zero trajectory. Infrastructure remains a central consideration for emissions reductions, with recent legal challenges requiring the Government to revise environmental guidance on emissions in infrastructure projects across sectors.
About Chapter Zero:
The full briefing was published by Chapter Zero, a network for non-executive directors and chairs who are integrating climate action into business strategy. Chapter Zero is the UK chapter of the Climate Governance Initiative, developed with the World Economic Forum.
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