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What is the UK’s Review of its Net Zero Strategy?
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The UK’s Net Zero Strategy, published in 2021, set out how the government intends to cut emissions across every sector of the economy and reach net zero by 2050. But with shifting economic pressures, global energy shocks, and growing international competition for green investment, questions were raised about whether the strategy was still delivering what’s needed.
In response, the government commissioned an independent review in 2022, led by former energy minister Chris Skidmore. The result was Mission Zero: An Independent Review of Net Zero, a wide-ranging report published in early 2023 that put forward 129 recommendations for accelerating the UK’s transition in a way that supports economic growth, unlocks investment, and empowers local action.
The government has since published a detailed response, setting out how it plans to take forward the review’s recommendations and where further work is still needed.
So what does the UK’s Net Zero Strategy involve? What did the review highlight, and how has the government responded?
What is the UK’s Net Zero Strategy?
“ The UK’s Net Zero Strategy: Build Back Greener was published in October 2021 and sets out the government’s plan to reach net zero greenhouse gas emissions by 2050. It outlines how the UK intends to cut carbon dioxide and other greenhouse gas emissions across key sectors, including energy, transport, buildings, industry, and agriculture, while also supporting jobs, investment, and innovation. ”
The strategy builds on the UK’s legal commitment under the 2008 Climate Change Act to achieve net zero by mid-century and aims to deliver this in a way that’s both economically sustainable and socially fair. It includes a mix of government funding, regulatory changes, and support for low-carbon technologies such as offshore wind, electric vehicles, heat pumps, and carbon capture.
The strategy was designed not just as an emissions roadmap, but as a long-term economic plan, one that positions the UK as a leader in the global green transition.
Understanding the UK carbon budgets
To help track progress toward its legally binding 2050 target, the UK has adopted a series of carbon budgets – legally binding limits on the amount of greenhouse gases the UK can emit over five-year periods. These budgets act as stepping stones on the path to net zero and are a core part of the UK’s climate policy framework.
The UK is currently in its Fourth Carbon Budget period (2023–2027), with the Fifth Carbon Budget covering 2028–2032. Looking ahead, the Sixth Carbon Budget – which runs from 2033 to 2037 – will be the first to align with the UK’s net zero by 2050 target. Meeting the targets set out in these carbon budgets will require sustained emissions reductions across all sectors of the economy.
What are the key policies?
“ The Net Zero Strategy spans more than 400 pages and sets out a wide-ranging package of policies, targets, and funding commitments. It outlines how different sectors are expected to contribute to the 2050 target, from phasing out fossil fuels to scaling up clean tech and restoring natural ecosystems. ”
Here’s a snapshot of some of the headline policies:
| Sector | Key Commitments |
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| Transport |
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| Power |
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| Heating & Buildings |
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| Industry |
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| Hydrogen |
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| Aviation |
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| Nature & Land Use |
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These targets are backed by billions in public funding and are expected to unlock even greater levels of private investment, support the creation of green jobs, and drive innovation across the economy.
Why did the UK Government commission a review of its Net Zero Strategy?
By late 2022, it had become clear that the UK’s path to net zero couldn’t be considered in isolation from wider economic realities. Since the publication of the original strategy in 2021, the world had changed dramatically. Soaring energy prices, supply chain disruptions, and the war in Ukraine had all placed additional pressure on households, businesses, and the UK economy as a whole.
“ Recognising the need to reassess its approach, the government commissioned an independent review; not to roll back its climate commitments, but to explore how the UK could meet its targets in a way that better reflects this new context. ”
The review was tasked with answering a core question: how can the UK deliver its net zero goals in a way that maximises economic opportunity while remaining affordable and practical?
More specifically, the review aimed to assess how the government’s approach could:
- Drive economic growth and private investment - supporting jobs, innovation, exports and new industries across the UK
- Strengthen UK energy security and affordability - by accelerating domestic low-carbon energy production and reducing reliance on imported fossil fuels
- Minimise costs for consumers and businesses — ensuring the transition is fair and achievable for all
How did the UK Government conduct the review?
The UK Government appointed Conservative MP Chris Skidmore in 2022 to lead an independent review of the country's approach to net zero. As a former energy minister - and the politician who signed the UK’s net zero target into law in 2019 - Skidmore brought both experience and credibility to the role.
“ The review, titled Mission Zero, combined evidence-based analysis with wide-ranging consultation. It aimed to build a comprehensive picture of how the UK could deliver on its climate ambitions while boosting economic growth and maintaining fairness. ”
The process included:
- Reviewing the latest data on UK emissions and climate progress
- Conducting cost-benefit analyses of different emissions reduction pathways
- Consulting with a broad range of stakeholders, from businesses and industry groups to NGOs and members of the public
- Studying international best practices and emerging low-carbon technologies
- Hosting expert-led workshops and roundtables
- Launching a public call for evidence
- Commissioning independent research and studies to inform recommendations
The final report was published in January 2023, with 129 recommendations aimed at unlocking investment, scaling innovation, and accelerating the UK’s path to net zero.
What did the Net Zero Review find?
“ The Mission Zero review identified seven key findings. Together, they highlight the scale of the opportunity, the urgency of action, and the steps the UK government must take to deliver a successful and fair transition. ”
1. Net zero is a driver of economic opportunity
The review made a bold claim: “net zero is the growth opportunity of the 21st century.” It is estimated that the UK’s supply of goods and services to support the net zero transition could be worth up to £1 trillion by 2030.
But the UK is not alone in recognising this opportunity. Countries around the world are racing to attract green investment and develop clean technologies in an effort to reduce global emissions and meet international climate goals. If the UK wants to compete on the global stage, it must position itself as a leader in trade, technology, and collaboration — or risk being left behind.
At the same time, the review warned that without long-term policy certainty and greater investment, the UK could miss its chance to lead. A renewed and sustained commitment from the government is critical.
2. The UK must act decisively to seize economic opportunities and manage the transition
The transition to net zero will reshape the economy, creating new sectors and industries, but also causing some to shrink or disappear altogether.
To ensure this shift is fair and economically beneficial, the review called for stronger action on workforce planning, reskilling, and supporting affected industries. Long-term policy clarity and targeted intervention will be key to smoothing the transition and unlocking future growth.
3. The benefits of investing in net zero outweigh the costs
The transition will require significant upfront investment. The Climate Change Committee estimates an additional £13.5 billion per year is needed, rising to £50–60 billion annually by the early 2030s.
Most of this investment will need to come from the private sector, which expects strong policy signals and clear returns. But the government also has a critical role: funding R&D, de-risking major infrastructure projects, and creating the right market conditions for investment.
Despite the costs, the review found that net zero will deliver long-term economic value. Direct decarbonisation costs are projected to be less than 1% of UK GDP over 30 years, potentially lower than the cost of maintaining the status quo.
There are wider economic benefits too: lower household energy bills, cleaner air, reduced exposure to fossil fuel price shocks, and fewer climate-related risks such as floods, droughts, and health emergencies.
The message was clear: acting now is far cheaper than delaying.
4. Locally-led delivery will achieve the best results
The review concluded that a locally-led approach is the most cost-effective and impactful way to deliver net zero. Local authorities understand the needs and opportunities of their areas, from housing stock and transport systems to workforce and natural assets.
Enabling councils and regional bodies to take the lead (with proper funding, powers, and support) would not only cut costs but deliver long-term social and economic benefits in return.
5. Net zero can materially improve people’s lives, but support is needed
From warmer homes and lower bills to new job opportunities and cleaner air, the transition to net zero has the potential to improve quality of life across the UK.
The review highlighted that:
- Clean energy can make home heating more affordable
- New industries can deliver skilled, well-paid jobs in every region
- Air quality improvements could save thousands of lives each year, with 28,000 to 36,000 deaths in the UK currently linked to air pollution
However, not everyone can afford to make the switch on their own. Upfront costs, such as buying an EV or upgrading insulation, remain a barrier for many households. The review stressed the need for targeted government support, fair cost-sharing, and clear communication to maintain public support.
6. The UK’s 2050 net zero target remains the right one
The review confirmed that the 2050 net zero target is still both credible and essential. It remains aligned with climate science, consistent with international targets, and underpinned by mature or near-ready technologies.
Despite recent global upheavals, the review found that the UK’s overall pathway to net zero remains sound, though it cautioned that action is needed to accelerate delivery and close policy gaps.
7. Significant additional government action is required
The UK’s legally binding net zero target, adopted in 2019, was a major moment for global climate leadership. And while the Net Zero Strategy was praised for being “ambitious and comprehensive,” the review made clear that more is needed to stay on track and deliver it in the right way.
To that end, the review set out 129 recommendations for government, falling under six strategic pillars:
- Securing net zero – creating a sustainable industrial strategy focused on green growth and job creation
- Powering to net zero – reforming infrastructure, planning, and investment to deliver clean energy goals
- Net zero and the economy – unlocking investment and making the UK a globally competitive net zero economy
- Net zero and the community – empowering local government and communities to lead the transition
- Net zero and the individual – making it easier and fairer for individuals to make green choices
- The future of net zero – supporting innovation, improving carbon pricing, and maintaining international leadership
Key recommendations in the Net Zero Review
“ The Mission Zero review put forward 129 recommendations, aimed at accelerating progress and ensuring the UK reaches net zero in the most affordable, efficient, and economically beneficial way possible. ”
Here’s a breakdown of some of the most important recommendations:
Infrastructure and planning
Using infrastructure to unlock net zero and strengthen energy security.
- Accelerate the British Energy Security Strategy, including the establishment of the Future System Operator to oversee the UK’s energy system
- Develop a cross-sectoral infrastructure strategy by 2025 for electricity, hydrogen, liquid and gaseous fuels, and CO2 networks
- Reform the planning system to make it easier for communities to develop locally supported solar and onshore wind projects
Sustainable governance and financing
Creating long-term governance and investment structures for delivery.
- Establish an independent Office for Net Zero Delivery to coordinate projects and take ownership of cross-departmental priorities
- Develop a government financing strategy by the end of 2023 to give businesses and investors long-term clarity
- Shift to a long-term programme-based approach for major net zero projects rather than one-off funding rounds
Business support and green growth
Helping businesses decarbonise, innovate, and grow.
- Review how HM Treasury incentivises green investment via tax policy and capital allowances
- Deliver on the Green Jobs Taskforce recommendations, with regular progress updates starting from mid-2023
- Launch a ‘Help to Grow Green’ campaign, including advice, resources, and vouchers for SMEs to plan and invest in the energy transition
Local action and community leadership
Unlocking local potential and enabling place-based action.
- Reform the planning system at both the local and national levels to support green economic development
- Simplify and consolidate local net zero funding to make it more accessible and effective
- Back a set of ‘Trailblazer’ local authorities and communities aiming to reach their own net zero targets by 2030 instead of 2050
Transparency and public engagement
Empowering individuals and improving access to information.
- Expand government reporting on net zero progress to increase transparency
- Publish a dedicated public engagement strategy on net zero
- Develop a carbon calculator tool to help consumers understand the impact of their choices
- Work with industry to introduce a standardised ecolabelling system by 2025, and explore the idea of a ‘Net Zero Charter Mark’ as a gold standard
Greener homes and heating
Improving household energy efficiency and phasing out fossil fuels.
- Launch a 10-year mission to make heat pumps widespread, and regulate to end the installation of new/replacement gas boilers by 2033 at the latest
- Reform EPC (Energy Performance Certificate) ratings to create a more accurate and accessible home energy label
International leadership and trade
Embedding climate into foreign policy and trade.
- Conduct a strategic review of the UK’s international climate leadership by the end of 2023
- Set a baseline for environmental and climate protections in future trade agreements
- Remove trade barriers to environmental goods and services
Innovation and future planning
Preparing for the technologies of tomorrow.
- Work with industry to develop a research and development (R&D) roadmap by autumn 2023
- BEIS and HM Treasury to review how to incentivise greater net zero innovation through public and private R&D
“ Taken together, these recommendations offer a blueprint for turning ambition into action, while boosting the economy, empowering communities, and making the transition fair for everyone. ”
| Theme | Examples of Key Recommendations |
|---|---|
| Infrastructure & planning |
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| Sustainable governance & financing |
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| Business support & green growth |
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| Local action & community leadership |
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| Transparency & public engagement |
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| Greener homes & heating |
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| International leadership & trade |
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| Innovation & future planning |
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Government response to the Net Zero Review
Following the publication of Mission Zero, the UK Government issued a formal response in March 2023, largely welcoming the review’s findings and outlining how it plans to take forward many of the recommendations. While not every suggestion was accepted in full, the response sets out a wide-ranging programme of action across sectors, focused on accelerating delivery, unlocking investment, and embedding net zero into the UK’s economic strategy.
Key learnings from the government response include:
1. Cutting emissions across the economy
| Area | Government Response |
|---|---|
| Power | The government reaffirmed its commitment to a fully decarbonised power system by 2035, subject to security of supply. The response highlights progress on offshore wind, support for new nuclear (via Great British Nuclear), and the creation of the Future System Operator to oversee system planning and decarbonisation. |
| Fuel supply & hydrogen | The government has committed to scaling up hydrogen production with a target of 10GW by 2030, alongside funding for low-carbon hydrogen projects and infrastructure. Progress is also being made on low-carbon fuels for aviation and heavy industry. |
| Industry | Support continues for industrial decarbonisation clusters, with plans to deploy carbon capture and storage (CCS) and hydrogen in key regions. Innovation funding is being channelled toward harder-to-abate sectors. |
| Buildings | The response confirms the continuation of the Boiler Upgrade Scheme, a target of 600,000 heat pump installations per year by 2028, and the development of new building standards. The Clean Heat Market Mechanism is set to be introduced to encourage uptake. |
| Transport | The government will legislate for a zero emission vehicle (ZEV) mandate, phase out the sale of petrol and diesel cars by 2030, and expand EV infrastructure. Progress on sustainable aviation fuels and maritime decarbonisation is also underway. |
| Natural resources & waste | Commitments include restoring 280,000 hectares of peatland, increasing woodland creation, and improving waste and recycling systems. A circular economy approach is being embedded through updated policies. |
| Greenhouse gas removals | The UK is supporting the development of engineered removals, including carbon capture, usage and storage (CCUS) and Direct Air Capture (DAC), through innovation funding and business model development. |
2. Supporting the transition
| Area | Government Response |
|---|---|
| Innovation & R&D | The government continues to invest through the Net Zero Innovation Portfolio, targeting key areas like hydrogen, industrial decarbonisation, and long-duration energy storage. A net zero R&D roadmap is expected, with the aim of aligning innovation with long-term emissions and economic goals. |
| Green investment | The response references the UK Infrastructure Bank, green gilts, and an updated Green Finance Strategy to support the mobilisation of private investment. While a full financing strategy is still in development, steps are being taken to attract capital into clean sectors and technologies. |
| Skills & green jobs | The government has committed to delivering the recommendations of the Green Jobs Taskforce. Skills Bootcamps and training schemes are underway to build a workforce capable of supporting the transition, though stronger alignment between education, industry, and regional needs is still needed. |
| Embedding net zero in government | The government plans to establish the Office for Net Zero Delivery to improve cross-departmental coordination and delivery. Net zero is also being embedded in public procurement and departmental accountability frameworks to improve follow-through. |
| Local delivery | The response backs 'trailblazer' authorities to lead the way on ambitious local net zero plans. It also commits to simplifying local funding streams and improving planning processes to enable councils to play a stronger role in the transition. |
| Public & business engagement | Government plans include launching a carbon calculator, improved eco-labelling, and the 'Help to Grow Green' campaign for SMEs. A full public engagement strategy is still in development, but the goal is to improve awareness, accessibility, and support across society. |
| International leadership | The UK will maintain its role in global climate diplomacy, embed climate considerations into trade agreements, and support innovation through international cooperation. Work is also underway to review the UK’s climate leadership role and identify areas for greater global influence. |
3. What’s missing or still in development
While the response is broadly positive and commits to action across many areas, a few gaps remain:
- A comprehensive long-term finance strategy is still missing — investors continue to call for clearer signals
- The proposed carbon calculator, ecolabelling system, and charter mark are still in development
- There's a lack of a specific timeline or legislation for several key reforms, including local planning and EPC reform
- Some recommendations, like tax reform to incentivise green investment, have been noted but not yet acted on
Looking forward
The Net Zero Strategy Review made one thing clear: the UK has much to be proud of, but there’s still a long way to go. It reaffirmed that reaching net zero by 2050 is not only necessary, but entirely achievable - provided the government turns ambition into action.
To do this, delivery must match intent. Right now, the UK is not on track to meet all of its climate commitments. And while billions have been committed and policy frameworks are in place, gaps remain - from siloed policymaking and underpowered local delivery, to unclear timelines and a lack of long-term financial signals for investors.
Yet the prize is huge. A successful net zero transition will unlock investment, create skilled jobs, and improve lives across the UK, from cheaper energy bills and cleaner air to stronger energy security and more resilient local economies.
The review also underlined the importance of fairness: ensuring no region or household is left behind, and that the benefits of net zero are widely shared. Public engagement and trust will be vital, as will bold leadership to stay competitive in a global race for green industries and innovation.
Whether the UK realises these opportunities now depends on what happens next. Delivering net zero will require not just policy tweaks, but a step-change in delivery, with joined-up thinking, empowered local leaders, and genuine commitment at every level of government.
The roadmap is clear. What matters now is execution.
What about Greenly?
At Greenly, we help businesses play their part in the net zero transition by making carbon management simple, actionable, and effective.
Whether you're just getting started or looking to accelerate your sustainability journey, our platform and team of experts can support you every step of the way:
- Measure your emissions – Get a detailed breakdown of your Scope 1, 2, and 3 emissions using our easy-to-use platform.
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- Engage your suppliers – Tackle supply chain emissions with our tools for supplier engagement and data collection.
- Get certified – Work toward recognised climate certifications, including support for Science-Based Targets (SBTi).
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Sources:
- UK Government, Net Zero Strategy, https://www.gov.uk/government/publications/net-zero-strategy
- UK Government, Mission Zero: Independent Review of Net Zero, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1128689/mission-zero-independent-review.pdf
- Greenly, Understanding the UK Government’s Mandatory Net Zero Targets, https://greenly.earth/en-gb/blog/company-guide/understanding-the-uk-governments-mandatory-net-zero-targets
- Greenly, The UK Climate Change Act: Everything You Need to Know, https://greenly.earth/en-gb/blog/company-guide/the-uk-climate-change-act-everything-you-need-to-know
- Greenly, Electric Cars: Are They Really Ecological?, https://greenly.earth/en-gb/blog/industries/electric-cars-are-they-really-ecological
- Greenly, Wind Farm Principles: Pros and Cons, https://greenly.earth/en-gb/blog/company-guide/wind-farm-principles-pros-and-cons
- Greenly, All You Need to Know About Carbon Capture, https://greenly.earth/en-gb/blog/company-guide/all-you-need-to-know-about-carbon-capture
- UK Government, Government Response to the Independent Review of Net Zero, https://assets.publishing.service.gov.uk/media/6424b50860a35e00120cb150/responding-to-independent-review-of-net-zero.pdf
- Greenly, Greenhouse Gas Emissions: Scopes 1, 2, and 3, https://greenly.earth/en-gb/blog/company-guide/greenhouse-gas-emissions-scopes-1-2-and-3