Industry welcomes the passing of the UK’s seventh Carbon Budget

MPs have approved the UK’s seventh Carbon Budget, which is designed to reduce emissions by 87% from 1990 levels by 2040

The seventh Carbon Budget is designed to cover the period 2038-2042, setting a limit on the UK’s emissions at 535 million tonnes of carbon dioxide equivalent.

It is part of a pathway to net zero by 2050, so the amount of carbon emitted is balanced by removing the same amount from the atmosphere.

The seventh Carbon Budget aims to improve home heating and insulation

The seventh Carbon Budget calls for the annual rate of heat pump installations (within existing residential properties) to rise to 450,000 per year by 2030. This number will then have to rise to 1.5m by 2035.

If achieved, these numbers could contribute to a fully decarbonised housing stock by 2050.

Furthermore, the budget calls for an increase in home insulation, including insulating hot water tanks, draught-proofing, additional loft insulation, and cavity wall insulation. Loft insulation will be installed in 9% of homes with lofts, and cavity wall insulation will be installed in 16% of homes with cavity walls, meaning that all homes with lofts and 87% of homes with cavity walls will have insulation by the mid-2030s.

“The budget will strengthen UK competitiveness in a low-carbon world”

Nigel Topping CMG, Chair of the Climate Change Committee, commented: “I warmly welcome Parliament’s decision to pass the Seventh Carbon Budget into law. It’s a decisive moment that provides the long-term certainty that businesses, investors, and communities need to accelerate the transition away from fossil fuels.

“By setting an ambitious but achievable target for emissions reduction, this legislation will help unlock innovation, drive clean investment, and strengthen the UK’s competitiveness in a low-carbon world.

“As we set out today in our latest progress report on reducing emissions, accelerating electrification across the economy is critical. The government must turn this commitment into action at pace so we can realise the economic, environmental, and societal benefits available to us all.”

“The seventh Carbon Budget must be treated as a national infrastructure plan”

Steve Gummer, head of net zero at Sharpe Pritchard, stated: “The Seventh Carbon Budget is important because investors, developers and public authorities need statutory certainty. But a target is not a delivery plan.

“The next phase has to be treated as a national infrastructure programme: faster consenting, bankable revenue models, clearer grid access, more storage and flexibility, and anticipatory investment in transmission and distribution.”

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Industry welcomes the passing of the UK’s seventh Carbon Budget
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