Seventh Carbon Budget sets 87% emissions reduction target for 2038 to 2042

The government has set a science-backed target of an 87% reduction in carbon emissions in the next decade, which it said is based on evidence-based assumptions about how the country will take a ‘consumer choice-led’ approach to the adoption of technologies such as solar, batteries and EVs.

It highlighted a report by the CBI and the Energy and Climate Intelligence Unit that concluded that the net zero economy supports over 1m jobs in the UK, adding £105 billion in gross value added (GVA)  to the UK economy in 2025 alone, making it one of the UK’s fastest- growing economic sectors.

The government said the level for the Seventh Carbon Budget, endorsed by both the Environmental Audit Committee and the Climate Change Committee, has been chosen because moving at pace to clean energy and net zero emissions is the best choice to reduce the exposure of UK families and businesses to more fossil fuel shocks. It added that it also maximises the benefits of the clean energy and net zero transition, including to the economy, health and nature and it is consistent with the Paris Agreement aim to keep global warming to 1.5°C.

Climate Minister Katie White (pictured) said:

The record-breaking May heatwave is another reminder that climate change is no longer a distant prospect. Increased heatwaves, flooding and nature loss are becoming the new norm for our country. That’s why we’re continuing to set a clear investment framework which will electrify Britain, maximising the benefits of clean power with cleaner air, warmer homes, energy security, investment into Britain and thousands of jobs in the industries of the future.”

She added that a delivery plan setting out how Carbon Budget 7 will be met will be published as soon as is reasonably practical after Parliament has approved the budget.  She said:

Legislating the carbon budget level for 2038 to 2042 now sends an economy-wide signal to investors and businesses, providing long-term certainty which will encourage investment and growth.”

The target builds on the UK’s Climate Change Act 2008 which has provided a framework for combining economic growth and climate action, attracting billions of private sector investment and has seen the UK become a global leader in clean energy industries, it added. Since July 2024, the UK has seen over £90 billion of private investment announced in clean energy, including carbon capture projects in Teesside and nuclear at Sizewell C off the Suffolk coast.

The government added that it is driving a major clean energy jobs push, supporting over 400,000 additional jobs by 2030 across the UK. According to the CBI Economics report, in 2025, jobs supported by net zero businesses were 1.5 times more productive than the UK average, generating £119,300 in economic value per full-time job, with these jobs generating an average of £43,142 to a full-time worker

At the same time, clean energy will help make the air cleaner across the country, leading to better health and a higher quality of life for people now and in the future, it added. Cleaner air from the transition is estimated to deliver around 8,000 fewer hospital admissions each year by 2050, easing pressure on the NHS.

The government concluded:

Some people want to stick their heads in the sand and let our children face the consequences of climate breakdown – but this government believes in the timeless British value of protecting our country for generations to come.”

Chair of the Environmental Audit Committee, Toby Perkins MP, said:

I am pleased that the government has today set out its proposals for the Seventh Carbon Budget (CB7), getting on with the job of reducing the fossil fuel emissions and moving the UK ever closer to a net-zero carbon future. My Committee’s recent report made clear that warmer homes, cleaner air and cheaper running costs all await if ministers get the next steps right. But keeping public consent for these ambitious measures will be critical. I urge ministers to ensure that its plans for delivering this Carbon Budget have fairness at their heart.”

Among a host of stakeholder reactions, Dhara Vyas, Chief Executive at Energy UK said:

The events of recent weeks have once again underlined the importance of pressing ahead with the move to clean energy to reduce our vulnerability to global fossil fuel price shocks and strengthen our energy independence in an uncertain world. The quicker we increase the amount of energy we get from our own clean sources, the less exposed our homes, businesses and economy will be in future. ”

David Hawkes, Head of Policy at the Institution of Civil Engineers (ICE) added:

The ICE has long been clear that the UK doesn’t need to choose between its environmental and economic goals. The road to net zero is paved with opportunities to create jobs, strengthen energy security, and deliver better outcomes for people and nature.  It’s encouraging to see the government maintain focus on these benefits, even in uncertain times, and to have confirmation that decarbonisation is already supporting economic growth. Infrastructure and the professionals who deliver it are central to this transition.  The priority now is pace: the sector needs clear direction and consistent policy signals to keep up momentum. Clear priorities and stable, long-term investment will be essential to deliver at the speed and scale required.