Manifesto Policy Explainer Net zero and climate policy

Most parties remain supportive of the UK’s 2050 net zero commitment but diverge on how best to decarbonise the economy.

You can read the IoD’s Manifesto for Business here.

Labour:

• Set up Great British Energy, a publicly owned clean power company, to boost energy security and deliver zero-carbon electricity by 2030, paid for by a windfall tax on oil and gas producers.
• Double onshore wind, triple solar power, quadruple offshore wind by 2030, and invest in nuclear power.
• Introduce a carbon border adjustment mechanism.
• Mandate UK-regulated financial institutions and FTSE 100 companies to develop and implement credible transition plans aligned with the Paris Agreement.
• Publish a Green Prosperity Plan where, in partnership with business through a National Wealth Fund, government will invest in industries of the future.

Conservatives:

• Implement a new import carbon pricing mechanism by 2027.
• Invest £1.1 billion into the Green Industries Growth Accelerator to support British manufacturing capabilities.
• Treble offshore wind capacity, build the first two carbon capture and storage clusters, build new gas power stations, and scale up nuclear power.

Liberal Democrats:

• Achieve net zero by 2045.
• Require large businesses to publish transition plans to become nature-positive and introduce nature-related financial disclosure requirements for large businesses.

Reform:

• Scrap net zero and related subsidies and incentivise nuclear energy, tidal power, and ‘clean’ coal mining.

Green Party:

• Achieve net zero by 2040.
• Give £2bn per year in grant funding for local authorities to help businesses decarbonise, set up regional mutual banks to drive investment in decarbonisation, deliver a zero carbon electricity supply through investment in renewables and energy storage capacity, and phase out nuclear energy.