Government publishes response to Seventh Carbon Budget + receives approval from Parliament

Tue 02 June 2026 View all news

The Government has published it response to the Climate Change Committee's advice on the Seventh Carbon Budget which sets a science-led target of ~87% emissions reduction in the period 2038 to 2042. The Government has accepted the headline proposals which have been endorsed by the Environmental Audit Committee and the Climate Change Committee. Since the publication of the Government's response, Parliament has voted to pass the Seventh Carbon Budget into law.

At the opening of its response, the Government highlighted that Britain has been facing its second fossil fuel price shock in five years due to the war in Iran and that Government is pursuing policies "centred on getting Britain off the rollercoaster of fossil fuel markets and onto clean homegrown power". 

In its response, the Government highlighted a new report from the Energy and Climate Intelligence Unit, supported by analysis from the Confederation of British Industries Economics, which shows that the net zero economy now supports over one million jobs in the UK and added £105 billion in gross value added (GVA)  to the UK economy in 2025 alone. The CBI Economics report highlights that the net zero economy is one of the UK’s fastest-growing economic sectors.

The Government says that the level for the Seventh Carbon Budget has been chosen because:

  • moving at pace to clean energy and net zero emissions is the best choice to reduce the exposure of UK families and businesses to more fossil fuel shocks, as the UK has seen following Russia’s invasion of Ukraine and the Iran War

  • it maximises the benefits of the clean energy and net zero transition, including to the economy, health and nature

  • it is consistent with the Paris Agreement aim to keep global warming to 1.5 degrees, to avoid climate disaster for future generations

Energy Secretary Ed Miliband said: "As Britain faces the second fossil fuel shock of the decade, the only way to protect family and business finances is to drive for clean homegrown power that we control.  

"Some people want to stick their heads in the sand and let our children face the consequences of climate breakdown - but this government believes in the timeless British value of protecting our country for generations to come."

The Government says that legislating the carbon budget level for 2038 to 2042 now sends an economy-wide signal to investors and businesses, providing long-term certainty which will encourage investment and growth.

The Government agrees on the importance of clear and consistent communication on net zero and outlines that ongoing campaigns need to improve public awareness and uptake of technologies like heat pumps and EVs.

In its response to the Government's announcement, the Environmental Audit Committee welcomes the Government's acceptance of the Climate Change Committee's recommendations and, particularly, to its agreement to allowing more time for greater Parliamentary scrutiny.

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