Municipal carbon offsetting instrument (Extrema – Minas Gerais)

United Kingdom

country's climate policy

It rests on a particularly structured legal framework, established by the Climate Change Act of 2008, which imposes binding emission reduction targets, five-year carbon budgets, and regular monitoring of progress. Amended in 2019, this law sets the objective of carbon neutrality by 2050. Within the framework of the Paris Agreement, the Nationally Determined Contribution (NDC) now calls for a reduction of at least 81% in greenhouse gas emissions by 2035 compared to 1990, following a target of 68% by 2030. Adaptation is also integrated into this framework through a five-year risk assessment cycle and the third National Adaptation Programme (NAP3), which covers the period 2023-2028 (Department for Energy Security and Net Zero [DESNZ], 2025).

Governance relies on a division of responsibilities between the central government, the devolved administrations of Scotland, Wales, and Northern Ireland, and local authorities. The Climate Change Committee (CCC), an independent statutory body established by the Climate Change Act, plays a central role in advising governments on carbon targets and budgets and in assessing progress. This structure is, however, asymmetrical: competences are highly decentralized in some areas, notably planning, buildings, and waste, while energy remains largely centrally managed. This differentiated distribution makes coordination between levels of government a critical element of implementation (Tatham & Lemaire, 2025).

Carbon budgets are the main mechanism for translating long-term objectives into legally binding emission caps. The seventh carbon budget, adopted in 2026 for the period 2038-2042, limits emissions to 535 MtCO₂e, representing a reduction of approximately 87% compared to 1990 levels. The Carbon Budget and Growth Delivery Plan further specifies the policies needed to meet previous budgets, particularly in the electricity, transport, buildings, and industry sectors. The main challenge, therefore, lies less in the existence of targets and institutions than in the ability to ensure consistent implementation across sectors and territories, while maintaining the continuity of investments and policies necessary for the path to net zero (DESNZ, 2026).

National climate policy timeline

2008

Climate Change Act 2008.

The UK's fundamental climate law. It establishes legally binding targets for reducing greenhouse gas emissions, five-year carbon budgets, an annual report to Parliament overseen by the Climate Change Committee, and a parallel adaptation framework based on climate risk assessment and adaptation planning.

2016

Brexit referendum.

The beginning of a political and regulatory reorientation. In the areas of climate and agriculture, Brexit subsequently allowed the United Kingdom to deviate from European Union rules, particularly concerning agricultural payments, carbon pricing and the regulation of sustainable finance.

The United Kingdom ratified the Paris Agreement, adopted in December 2015.

Confirmation of the UK's commitment to decarbonization within the international climate framework following the Brexit referendum. The Paris Agreement establishes the global goal of limiting warming and requires countries to submit and strengthen their Nationally Determined Contributions (NDCs).

2017

Clean Growth Strategy.

This important strategy predates the carbon neutrality objective. It presents the low-carbon transition not only as an environmental constraint, but also as an opportunity for economic modernization, industrial strategy, green growth, and innovation. It forms a bridge between the initial period of carbon budgets and the subsequent carbon neutrality framework.

2019

Adoption of the carbon neutrality objective through amendment of the Climate Change Act.

A major legal and political turning point. The UK's 2050 target has shifted from an emissions reduction of at least 80% tonet zero, making climate policy a program for transforming the whole economy, covering energy, transport, buildings, industry, agriculture, land use and finance.

First Green Finance Strategy.

It establishes green finance as a national policy priority. It considers private finance, information disclosure, financial risks, and investment mobilization as central elements for achieving climate and environmental objectives.

2020

The United Kingdom is leaving the European Union.

Formal exit from the EU. The transition period continues until December 2020, but the direction is set: British policies on climate, agriculture and finance are beginning to move away from European frameworks, including the Common Agricultural Policy, the EU emissions trading system and European rules on sustainable finance.

Agriculture Act 2020.

A central post-Brexit agricultural reform. It allows a shift from area-based payments, characteristic of the CAP, to financial aid intended for "public goods", including environmental protection, climate-related land management and sustainable agriculture.

2021

Entry into force of the UK Emissions Trading Scheme.

A post-Brexit carbon pricing scheme replacing the UK's participation in the European Union's emissions trading system. It covers electricity generation, heavy industry, and aviation, and establishes a market price for emission allowances.

Net Zero Strategy, Greening Finance Roadmap and COP26 in Glasgow.

The culmination of UK climate policy ambition, the Net Zero Strategy: Build Back Greener, is the main economy-wide strategy for delivering on the 2019 target of net-zero carbon emissions, with sector pathways and policy packages covering electricity, transport, buildings, industry, land use, agriculture, and greenhouse gas removal. The Greening Finance Roadmap outlines the government's plan to make sustainability information available for financial decision-making, including through climate information, transition plans, and the development of a UK Green Taxonomy. COP26 in Glasgow positions the UK as an international leader in climate policy, reinforcing the 1.5°C target, strengthening NDCs, and highlighting the role of finance in the global transition.

2023

Environment Act 2021 and Environmental Improvement Plan 2023.

TheEnvironment Act establishes legally binding environmental targets, similar to carbon budgeting: quantified results are enshrined in law, and the government must organize policy implementation around these targets. TheEnvironmental Improvement Plan translates these targets into an implementation program covering nature, water, air, resources, land, climate change mitigation, and adaptation.

Green Finance Strategy update.

It refocuses green finance on mobilizing private investment to support carbon neutrality, nature conservation, and environmental objectives. It also outlines the government's next steps regarding sustainable finance instruments, including the UK Green Taxonomy.

The Sunak government announces a "new approach" to carbon neutrality.

This marks a significant moment of politicization. The goal of carbon neutrality by 2050 remains, but the pace, costs, and social acceptability of climate policies are becoming more openly contested. Carbon neutrality is being reframed around public consent, household costs, and a "pragmatic, proportionate, and realistic" trajectory, with some measures being delayed or relaxed.

2024

The Labour government publishes the Clean Power 2030 Action Plan.

A change in government approach after the 2024 elections. Compared to the previous Conservative approach, which placed more emphasis on costs, consent and gradualism, the Labour government is refocusing climate policy on the rapid rollout of clean electricity, energy security, industrial strategy, infrastructure planning and government-led coordination, while linking the transition to lower bills, job creation and benefits for workers and households.

2025

The UK publishes its NDC for 2035, after submitting its first independent NDC for 2030 in December 2020.

The 2030 NDC committed the UK to reducing its emissions by at least 68% by 2030 compared to 1990 levels. The 2035 NDC raises this target to a reduction of at least 81% of emissions by 2035, thus extending the UK's commitments under the Paris Agreement until the mid-2030s.

The instruments studied in the United Kingdom

The UK Researchers Directory

  • Anatole Georjon

    Anatole Georjon

    Fieldwork in the United Kingdom (WP2 & WP3) | Research Intern, APIICC | Master's Student, Sciences Po Lyon / Emlyon Business School

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  • Ninaka Berdzenishvili

    Ninaka Berdzenishvili

    Fieldwork in Georgia and the United Kingdom (WP2 & WP3) | PhD Candidate, Paul-Valéry University Montpellier 3 / CIRAD

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