The Labour government wants to cut UK greenhouse gas emissions to 87% below 1990 levels by 2040, which it says will deliver £865bn in economic benefits.
The target has been set out in draft legislation for the seventh “carbon budget”, a legally binding limit on emissions during the five-year period from 2038-2042.
The government says this would protect billpayers from “ fossil-fuel shocks ”, boost energy security, improve quality of life and help tackle climate change, by getting the country on track for net-zero by 2050.
The UK would need to invest around £880bn over 25 years to meet the budget, but doing so would yield benefits worth £1,620bn, according to a government impact assessment .
Pointedly, the government presents these benefits and costs relative to a policy of “no net-zero”, as the opposition Conservatives and hard-right Reform UK have both pledged to abandon the 2050 goal.
The 137-page impact assessment mentions energy security more than 30 times and says the seventh carbon budget would help save £445bn up to 2050 from ever decreasing fossil-fuel imports.
Moreover, the assessment is based on fossil-fuel price projections published in 2024 , before the cost of oil and gas surged earlier this year after the effective closure of the strait of Hormuz .
The document says that the UK’s climate goals would be even more beneficial – worth £1,035bn, relative to “no net-zero” – if the country is exposed to “persistently high fossil-fuel prices”.
The seventh carbon budget must be approved by parliament before the end of June and the government must then publish a plan to meet it “as soon as reasonably practicable”.
What is the UK’s seventh ‘carbon budget’?
What target is the government aiming for?
How could the UK meet the seventh carbon budget?
What are the benefits and costs of reaching this target?
What happens next?
What is the UK’s seventh ‘carbon budget’?
The UK’s efforts to tackle and respond to global warming are governed by the Climate Change Act , which was passed with near-unanimous cross-party support in 2008, by 463 votes to five .
In 2019, the then-Conservative government amended the Act to set a long-term goal for cutting emissions to 100% below 1990 levels by 2050, known as the net-zero target .
(The Intergovernmental Panel on Climate Change (IPCC) has affirmed that reaching net-zero is the only way to stop global warming from getting worse – and that emissions would need to reach net-zero by 2050 globally to have a chance of limiting the rise in temperatures to 1.5C.)
To stay on track for the 2050 target, the act requires the government to set a series of “carbon budgets”. These are binding limits on the UK’s emissions covering successive five-year periods.
The UK met its first three carbon budgets, covering 2008-2022. It is currently just over half way through the fourth “carbon budget”, covering 2023-2027.
Under the act, the government is required to set the level of the seventh carbon budget, covering 2038-2042, by the end of June this year.
Before setting the budget, the government must take advice from the Climate Change Committee (CCC). In turn, this advice must take into account a range of factors, including the latest scientific evidence, technological trends, the state of the economy and public finances.
No government has ever gone against the advice of the CCC when setting carbon budgets. However, the government could have chosen not to do so, if it had explained why .
What target is the government aiming for?
The CCC recommended last year that the UK should aim to cut its emissions to 87% below 1990 levels under the seventh carbon budget for 2038-2042 – equivalent to a three-quarters reduction on current levels.
The government has followed this advice, setting a draft seventh carbon budget of 535m tonnes of carbon dioxide equivalent (MtCO2e), some 107MtCO2e per year.
The proposed 2040 target is shown in the figure below, alongside previously legislated budgets and the UK’s international climate pledges for 2030 and 2035 under the Paris Agreement .
UK greenhouse gas emissions including international aviation and shipping (IAS), MtCO2e. Lines show historical emissions (black) and the pathway to reaching net-zero. Legislated carbon budgets levels are shown as grey steps. The first five budgets did not include IAS, but left “headroom” to allow for these emissions (darker wedges). Source: CCC progress reports, Carbon Brief analysis.
In a written statement to parliament, energy secretary Ed Miliband said the target would reduce the UK’s exposure to “volatile international fossil-fuel markets and protect bill-payers”, as well as delivering benefits for jobs, growth, health and the natural environment. Miliband wrote:
“Against the backdrop of heightened geopolitical instability, including the ongoing crisis in the Middle East and its implications for global energy markets, the case for setting a clear and credible long-term pathway for the UK on clean energ…
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