3 June 2026
Unlocking private sector action and investment across the net zero economy, will be boosted by the policy certainty of the UK's seventh Carbon Budget, which is set to be tabled in parliament this month.
The UK government has set out its proposed level for the seventh Carbon Budget, which sets a science-led target of ~87% emissions reduction on 1990 levels in the period 2038 to 2042 – endorsed by the Environmental Audit Committee and the Climate Change Committee.
It comes as an independent report this week from the Energy and Climate Intelligence Unit, supported by analysis from the Confederation of British Industries Economics, the UK's net zero economy now generates around £105bn in Gross Value Added and supports 1.1m full-time equivalent jobs, spanning energy, manufacturing, construction, engineering and professional services.
The sector is underpinned by more than 23,500 businesses, over 96% of which are small or medium-sized enterprises. For every £1 of economic value created directly by net zero firms, a further £1.85 is generated across the wider UK economy through supply chains and household spending.
ISEP Director of Policy and Public Affairs, Signe Norberg, said: “"The UK government's proposals for the seventh Carbon Budget is highly welcome as it will provide important clarity for businesses.
"With greater certainty on the direction of travel, it will continue to attract investments into these growing areas of the economy, maximise the job creation potential and enable a trajectory to be set which in turn will enable businesses to plan and innovate.
"Climate change impacts will continue to impact the economy and unlocking private sector action through leadership and policy certainty, will help futureproof the UK economy. This is further backed up by the findings this week that the UK's net zero economy now generates around £105bn in Gross Value Added and supports 1.1m full-time equivalent jobs.
"Businesses stand ready to deliver when facilitated by the right policies, regulation and targeted support."
