Driving economic growth: How the UK’s climate targets unlock business action and investment

The UK has reduced emissions by 50.4% since 1990 while growing its economy by nearly 80%, with the net zero economy contributing £83.1 billion to GDP in 2024. However, the report identifies a 'policy implementation gap,' noting that as of June 2025, credible plans existed for only 38% of the reductions needed for the 2030 NDC. The document calls for a holistic approach to electrification, the creation of lead markets for green technologies, a national retrofit strategy for housing, and a comprehensive plan to close a green skills gap of up to 400,000 workers. It also emphasizes the need to align climate goals with nature recovery and to overcome political polarization by communicating the economic benefits of the transition to the public.

• The UK has successfully decoupled economic growth from greenhouse gas emissions, reducing emissions by 50.4% since 1990 while the economy grew by nearly 80%. In 2024, the net zero economy contributed £83.1 billion to the UK GDP and grew three times faster than the wider economy.
• There is a significant 'policy implementation gap' in the UK; as of June 2025, credible plans were in place for only 38% of the emissions reductions required to meet the 2030 NDC target.
• The UK's 2035 NDC targets an 81% reduction in greenhouse gas emissions from 1990 levels (excluding international aviation and shipping). To achieve its 2050 net zero commitments, the UK will require approximately £108 billion in private investment.
• High electricity prices relative to gas are a primary barrier to electrification. In the second half of 2024, UK gas prices were 34% below the EU average, while electricity prices were 19% above the EU average.
• The UK faces a green skills gap of up to 400,000 workers. The government's Clean Energy Jobs Plan aims to create over 400,000 new clean energy jobs by 2030, increasing the sector's workforce to 860,000.
• Small and medium-sized enterprises (SMEs) are critical to the transition, making up 99.9% of all UK businesses and accounting for approximately one-third of the country's greenhouse gas emissions.
• The UK is struggling to meet heat pump installation targets; while over 120,000 units are projected for 2025, the target of 600,000 annual installations by 2028 is considered increasingly difficult to achieve.
• The UK's environmental targets are legally binding, but the Office for Environmental Protection (OEP) has warned that the country is 'largely off track' to meet them.
• Public support for climate action remains high, but the term 'net zero' has become politically divisive. Support for climate policy increases when the specific benefits, such as new jobs and cleaner energy, are explained without using the phrase 'net zero'.

APA

Cornaby, B., Sheikh, A., Markkanen, S., Briner, G., Whittington, E., Prag, A., Meyerweissflog, V., & Cross, I. (2025). Driving economic growth: How the UK’s climate targets unlock business action and investment. We Mean Business Coalition. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/UK_NDC_101125.pdf

Chicago

Cornaby, Bev, Anum Sheikh, Sanna Markkanen, Gregory Briner, Eliot Whittington, Andrew Prag, Viola Meyerweissflog, and Isabelle Cross. Driving economic growth: How the UK’s climate targets unlock business action and investment. We Mean Business Coalition, 2025. https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/UK_NDC_101125.pdf.

Wikipedia

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BibTeX

@techreport{cornaby2025driving, author = {Cornaby, Bev and Sheikh, Anum and Markkanen, Sanna and Briner, Gregory and Whittington, Eliot and Prag, Andrew and Meyerweissflog, Viola and Cross, Isabelle}, title = {{Driving economic growth: How the UK’s climate targets unlock business action and investment}}, institution = {We Mean Business Coalition}, year = {2025}, month = nov, url = {https://www.wemeanbusinesscoalition.org/wp-content/uploads/2025/11/UK_NDC_101125.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }