Government Prepares to Release Net-Zero Strategy | International Power System Operators Consortium Established | Green Recovery Could Decrease Global Emissions by 7%
UK's Net Zero Strategy Gains Momentum in 2025
In a significant development for the UK's commitment to a net-zero carbon economy, 2025 is shaping up to be a pivotal year. The UK government is set to publish key strategies and initiatives that will shape the country's transition to a greener future.
The UK National Industrial Strategy, launched on 23 June 2025, serves as a broad 10-year framework that supports net zero ambitions by boosting investment, innovation, and reducing costs for clean energy sectors as part of wider industrial transformation.
The government is expected to publish significant environmental strategies including a Transport Decarbonisation Plan, a Heat and Buildings Strategy, and reforms related to energy performance standards and hydrogen infrastructure in 2025. Some documents and consultations are still in process or forthcoming in late 2025.
By 2029, the UK Emissions Trading Scheme (UK ETS) aims to integrate verified carbon removals to support cost-effective decarbonisation measures, reinforcing the market and net zero commitments.
The UK government has announced it will publish a comprehensive Net Zero Strategy before the COP26 UN Climate Conference, which is now due to take place in November 2021. This strategy will set out the government's vision for transitioning to a net-zero economy.
Meanwhile, the energy sector in Great Britain has shown signs of recovery. Generation in Q3 of 2020 rose to 64.59TWh and demand totalled 60.6TWh, almost matching July to September 2019 levels. Electricity generation, demand, and prices in Great Britain returned to near pre-Covid-19 levels after lockdown restrictions relaxed. Prices in Q3 of 2020 reached an average of £35.56/MWh.
On a global scale, a green recovery scenario from the Covid-19 pandemic could see annual global emissions being 7% lower in 2030 than in 2019, creating millions of new jobs. If all major nations developed strong plans for a green recovery, this scenario would become a reality.
The green recovery scenario envisages policy supports being rolled out at scale for energy efficiency, wind and solar power, upgrading electricity grids, tree planting, and electric vehicles. A consortium of global power system operators has been launched to reduce emissions and accelerate the transition to low emission power systems, aiming to reduce global emissions from energy systems by more than 50% over the next 10 years.
In this scenario, India would lead the way in job creation and retention. The report models a 'return to business-as-usual' scenario against the green recovery scenario, with the latter presenting more favourable outcomes in terms of cost to governments, greenhouse gas emissions, economic returns, and jobs created.
In addition, Ofgem is introducing new licence rules to support vulnerable customers, requiring suppliers to offer emergency credit and realistic repayment plans for those unable to pay energy bills during the winter months.
As we move towards 2025 and beyond, the UK's commitment to a net-zero carbon economy becomes increasingly clear, with a range of strategies and initiatives aimed at achieving this goal. The coming years will be crucial in shaping the UK's energy landscape and setting an example for other nations to follow.
- The UK National Industrial Strategy, launched in 2025, prioritizes investment in environmental-science and clean energy sectors, striving to lower costs and bolster the transition towards a net-zero carbon economy.
- The government's anticipated 2025 strategies include a Transport Decarbonisation Plan and a Heat and Buildings Strategy, all aiming to address climate-change issues through innovative solutions.
- By 2029, the UK Emissions Trading Scheme (UK ETS) plans to integrate carbon removals, supporting finance-based initiatives for cost-effective energy solutions, furthering the commitment to a net-zero carbon economy.
