The UK must speed up the electrification of transport, homes, and industry to reap the benefits of reducing emissions.
2026 to 2027 will be a “crucial” year for keeping the UK’s climate targets within reach, according to the Climate Change Committee (CCC).
The advisory body’s latest annual emissions progress report arrives as global warming hits record highs and the UK experiences greater impacts from climate change.
The war in Iran has also caused the second global fossil fuel price shock in four years.
Yet, the consensus on climate action is fracturing.
The CCC’s report is a reminder that the clean energy transition is a chance to reduce greenhouse gas emissions and protect households and businesses from volatile fossil fuel prices.
But it warns the UK government isn’t moving fast enough to meet its targets and deliver those benefits.
Here are four key takeaways from the report.
On the positive side, the UK remains among a leading group of countries delivering sustained emissions reductions.
Overall emissions fell by 1.8% in 2025 compared to 2024.
That’s half of 1990 levels and means the UK is well on track to achieve the Fourth Carbon Budget (which caps emissions allowed between 2023 and 2027).
The government also proposed a “feasible, ambitious” cap for the Seventh Carbon Budget (covering 2038 to 2042) in line with the CCC’s advice.
Several key strategies in the last 12 months have clarified the government’s plans for upgrading homes to lower energy bills, using land more sustainably, creating jobs in clean energy, and enabling the public to participate in the net zero transition.
And new regulations to implement the Future Homes Standard and Future Buildings Standard from 2027 will mean all new buildings must have low-carbon heating.
The government also produced its Carbon Budget and Delivery Growth Plan last autumn.
But the slow rollout of some technologies and a lack of policy ambition mean there’s a “significant gap” between the government’s targets and its plan to meet them.
For example, under the Paris Agreement, the government has committed to reduce emissions by at least 68% by 2030 from 1990 levels.
But only 58% of those reductions have plans that are credible or low-risk. And 17% aren’t covered by any policies or plans at all.
Similarly, meeting the Sixth Carbon Budget (2033-2037) currently depends on a rapid ramp-up in engineered removals – technologies that extract carbon directly from the air. But there’s little detail on how this will be paid for, which technologies will play a role, or what the contingency plans are if they fail.
Rapid progress over the next year is essential to keep the 2030 and future targets in reach.
The government still needs a more ambitious plan to electrify the UK and build on recent successes towards decarbonising electricity supply, including:
But these developments aren’t translating fast enough into lower emissions in key sectors like surface transport and buildings.
Slow uptake of some electric technologies, including heat pumps, remains concerning.
The UK has one of the lowest market shares and least ambitious growth plans for heat pumps in Europe – fewer than 2% of UK homes have one.
The closure of the Energy Company Obligation (ECO) scheme has left a funding gap that’s yet to be addressed.
The Warm Homes Plan committed £1 billion per year to increase uptake in low-income households. But it’s a significant decrease in investment and it’s not yet clear how the money will be spent.
One technology that is achieving growth is electric vehicles (EVs).
Last year, nearly a quarter of new car sales were EVs. Prices continued to fall and the number of public charge points rose by 19% to 88,000.
But surface transport emissions still increased by 2.7%, according to initial estimates, with an increase in total travel distance likely offsetting EV progress.
Still, the Zero Emission Vehicle mandate is working – increasing the choice and affordability of electric cars.
The CCC says it’s “essential” that this year’s review of the mandate doesn’t lead to further concessions.
And the new Electric Vehicle Excise Duty (eVED) tax must be straightforward rather than creating more hassle for consumers.
But beyond EVs, the government could consider more steps to encourage people to use alternative modes of transportation to help reduce emissions.
The slow pace of change is costing consumers. Bills have increased almost four times more for a household with a gas boiler and a petrol car, compared to one with a heat pump and an EV.
A typical urban household could save around £1,200 a year by installing solar panels and switching to a time-of-use tariff, a heat pump, and an EV.
But barriers need removing for more households to benefit. Access to affordable charging for EVs needs to improve and policy gaps – like funding for home energy efficiency upgrades – need closing.
And lowering the cost of electricity is still a priority, despite some progress. Removing remaining policy costs from electricity bills could help bring prices down.
The UK has made real progress in reducing emissions, particularly in electricity – proving that sustained cuts are achievable.
But the next phase of the transition will be more challenging.
The political consensus is fraying. Parliament is about to vote on the Seventh Carbon Budget – the first that’s likely to meet substantial political opposition.
It’s essential that households and businesses start to feel the benefits.
That means speeding up electrification across transport, homes, and industry, reducing bills, and making low-carbon choices easy and cost-effective.
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