UK Businesses Join Forces to Achieve Net-Zero Emissions Targets

The UK government kicked off the Green GB & NI week on October 15. Claire Perry, the Minister for Energy and Clean Growth, aims to get advice from the committee of climate change to achieve net-zero greenhouse gas emissions across the UK economy. About 30 of the country's biggest business names, including EDF Energy, Coca Cola, London Eye, Deloitte, KPMG, John Lewis, HSBC UK, Tesco, and Amazon, have already pledged commitments to tackle climate change as part the Green GB & NI week. 

The initiative follows a UN Intergovernmental Panel on Climate Change report which outlined that countries need to take unprecedented action to slash carbon emissions to zero by 2050 and limit global warming to 1.5°C above pre-industrial levels. The report also warns against devastating risks of climate change to global prosperity.

Amazon is expected to install 20 MW of large scale rooftop solar panels on its depots to generate electricity equivalent to powering 4,500 homes. Managed by the renewable energy investor Greencoat Capital, HSBC UK will invest £250 million ($322 million) in UK solar parks and wind farms, which will generate enough electricity to power Oxford. EDF Energy has pledged to electrify its fleet of vehicles by 2030.

One of the most significant steps that the UK introduced at Green GB & NI week was a package of measures to help transform to a clean energy infrastructure. Some of the key initiatives include:

• Ensure 100% new construction of smart buildings by 2030 by introducing new laws for smart energy appliances, like washing machines and electric heating.

• Introduce an £18 million ($22.9 million) Heat Recovery Support scheme to help save £500 million ($636 million) in energy bills across businesses and manufacturing companies.

• Introduce a £320 million ($407 million) government fund in low carbon heating for cities professionally managed by Triple Point Heat Networks. 

• Launch a competition to design the house of the future, it should be efficient, affordable, and easily adaptable to help healthy aging.

• Commit £500 million for investing in emerging renewable technologies and £160 million ($203 million) to encourage greener construction practices in developing countries.

The UK currently has a target to cut emissions by at least 80% by 2050 (relative to 1990 levels) to meet international climate targets set out in the Paris Agreement. As part of the Green GB & NI Week the government should encourage consolidated efforts to reduce emissions across the industry, homes, transport, and agriculture. Guidehouse Insights expects that ensuring participation across different stakeholders in the UK economy will not only drive the implementation of a climate action plan to achieve targets, but also facilitate investment in new technologies and supply chain initiatives. The Green GB & NI week aims to bring UK businesses together to achieve net-zero emission targets. Most importantly, the government needs to define clear incentives and investment options for businesses to start rolling out company-specific initiatives.