Government backs new emissions target as net zero sector surpasses one million jobs

The Government has set out a new long-term emissions reduction target, arguing that the transition to clean energy will strengthen energy security, support economic growth and create jobs across the UK.

Under proposals for the seventh Carbon Budget, the Government has committed to an emissions reduction target of around 87% between 2038 and 2042, building on the framework established by the Climate Change Act 2008.

The announcement comes alongside new analysis from the Energy and Climate Intelligence Unit, supported by CBI Economics, which found that the UK’s net zero economy supports more than one million jobs and contributed £105bn in gross value added to the economy in 2025.

According to the Government, the new target is designed to reduce the UK’s exposure to fossil fuel price shocks while encouraging investment in clean energy technologies including electric vehicles, solar power and battery storage.

The Government said more than £90bn of private investment has been announced in UK clean energy projects since July 2024, including carbon capture developments in Teesside and nuclear investment at Sizewell C.

The Department for Energy Security and Net Zero said its wider plans could support more than 400,000 additional jobs by 2030.

Analysis from CBI Economics found jobs supported by net zero businesses generated an average economic value of £119,300 per full-time role and average annual wages of £43,142.

The Government also highlighted potential savings for households through energy efficiency improvements and low-carbon technologies.