In March, the UK Government released preliminary data on domestic greenhouse gas emissions for 2024. The figures show emissions at 371 MtCO₂e, representing a 54% reduction compared to 1990 levels.
While this is significant progress, it raises an important question: Are we on track to meet our 2030 target of a 68% reduction?
The trajectory: are we falling behind?
If we followed a straight line path from 1990 to the 2030 target, we would need to have achieved a 58% reduction by 2024. By that measure, we are not quite on track.
However, from a carbon budget perspective, the UK has successfully met its last three carbon budgets.
The 2025 Climate Change Committee (CCC) report confirms that while the UK has halved its emissions since 1990, progress has slowed in recent years, and the pace of emissions reduction must accelerate to meet future targets.
The UK has made substantial strides, largely due to the decarbonisation of the electricity grid — notably the shift from coal to gas-fired power, and a growing share of renewable energy. More recently, the uptake of electric vehicles (EVs) has also contributed.
But are we now reaching the limits of the “low-hanging fruit”?
What comes next?
According to the CCC, the UK’s current credible plans will only deliver around one-third of the emissions reductions needed to achieve the sixth carbon budget (2033-2037). The Committee highlights industrial electrification and the transition to low-carbon electricity as essential strategies.
One of the biggest challenges ahead is decarbonising heat. Homes and industries remain heavily reliant on natural gas. While heat pumps offer a viable alternative, they come with barriers—cost being a major one.
The UK Government currently offers grants of £7,500 for both air-source and ground-source heat pump installations under the Boiler Upgrade Scheme to businesses, landlords and homeowners. However, the average cost of a full domestic heat pump installation—including retrofitting radiators or underfloor heating—can range from £10,000 to £15,000.
The CCC also notes that agriculture now accounts for 12% of UK emissions, and this share is projected to rise as other sectors decarbonise faster.
The committee recommends a 39% reduction in agricultural emissions by 2040, through measures such as low-carbon fertilisers, machinery upgrades and peatland restoration.
The role of business: from compliance to climate leadership
Businesses are not just stakeholders in the UK’s net-zero journey—they are its key drivers. The 2025 CCC report emphasises that private sector investment and innovation will be essential to closing the emissions gap left by current government policy.
Here’s how businesses can step up their climate leadership:
- Operational Decarbonisation: Transitioning to low-carbon technologies like EVs, heat pumps, and energy-efficient systems can significantly reduce emissions. The CCC calls for sector-specific roadmaps, especially in hard-to-abate industries like cement, steel and chemicals.
- Supply Chain Influence: Scope 3 emissions often make up the majority of a company’s carbon footprint. Businesses can drive change by setting supplier standards, incentivising green procurement, and collaborating on low-carbon logistics.
- Innovation and Investment: From green hydrogen to carbon capture, businesses can accelerate clean tech deployment through R&D and capital investment. The CCC stresses the need for a clearer investment environment to unlock this potential.
- Workforce and Skills: Decarbonisation requires people. Businesses must invest in green skills training, particularly in construction, engineering, and energy services.
- Transparency and Target-Setting: More companies are adopting science-based targets and disclosing emissions through frameworks like TCFD and CDP, aligning strategy with national and global goals.
- Policy Advocacy: Businesses can use their voice, should they choose to, to advocate for stronger climate policy—from carbon pricing to planning reform. Policy certainty is key to unlocking long-term investment.
In short: The UK climate goals cannot be met without bold business action. But this is also a moment of opportunity: Companies that lead on climate will be better positioned to attract investment, talent and customers in a rapidly changing world.
How can Inspired help?
Whether you’re just starting to measure your emissions or already have a reduction target in place, our experts can help. We offer:
- Scope 1, 2 and 3 GHG emissions quantification, reporting and verification,
- Science-based target setting.
- Net-Zero Strategy and decarbonisation plan development.
- Energy efficiency and emissions savings technology implementation support.
- ESG strategy development and disclosure, such as climate-related financial disclosures and GRI-aligned ESG reports.
If you would like to discuss how our experts could best support you, please email us at [email protected].
