London, 4 September 2024 - A new report sets out 10 ways to accelerate the UK’s transition to net zero and get back on track with carbon budgets. The ideas are drawn from consultation with leading specialists and researchers and focus on delivering clean energy, low carbon heating, land reform and the public engagement and buy-in that will enable them.

The report is published today by Nesta, a research and innovation think tank, as part of its UK 2040 Options project. In total, 21 experts from a variety of professional backgrounds and perspectives contributed to the report. The featured ideas for getting to net zero quickly and affordably focus on four themes: citizen engagement in the net zero transition, an increased role for the state in planning, market efficacy reforms, and outcome targets for climate adaptation. Ten ideas are presented.

1. Bring citizens into the key issues via a national campaign. This idea proposes a nationwide campaign to engage the public on the net-zero transition, building confidence and helping people take evidence-backed action. The campaign would combine awareness-building and calls to action with citizen participation to shape the transition. It would enable people to shape climate policy decisions that affect them, celebrate milestones such as clean energy days, and to understand the dividends of the net zero transition. It is estimated that a campaign would cost around £60 million a year, potentially funded in part through industry partnerships.
2. Increase information transparency for consumers using green subsidies. This idea suggests making green subsidy payments conditional upon consumers submitting reviews of purchased products and services. This would address the lack of transparency in the market for green products and services. Reviews would be publicly accessible, allowing consumers to make informed decisions while providing policymakers with rich data to inform other policy measures, such as consumer protections. This approach could be extended to other green products and services, such as green finance offers.
3. Coordinate household decarbonisation street-by-street. This idea proposes a coordinated approach to switching households to electrified heat, complementing the existing individual-led approach. This is crucial because the UK is well off-track in decarbonising home heating. The coordinated approach would make it easier and potentially cheaper for households to switch. This would involve creating a national unit to provide expertise and support to local areas, and local government-led bodies to develop and implement local heat plans.
4. Make the National Energy System Operator (NESO) a system architect. This idea suggests expanding the role of NESO to define the optimal location, technology mix and funding mechanisms for major energy infrastructure assets. This move aims to improve coordination and certainty, enabling faster capital deployment and supply chain development.
5. Tie agricultural budgets to a national land use framework. This idea proposes developing a national rural land use framework, linked to agricultural payments. This would help optimise land use for food production, environmental protection and carbon sequestration. The framework would identify land best-suited for various purposes, and funding would be directed accordingly. This aims to ensure efficient use of agricultural land, promote environmental sustainability, and provide financial certainty to farmers through the transition.
6. Expand the scope of the UK Emissions Trading Scheme (ETS). This idea suggests expanding the UK ETS to include road transport fuels and building heating fuels to leverage carbon pricing as a driver of decarbonisation in these sectors. By incorporating these sectors into the ETS, the price of emissions would be internalised, encouraging a shift towards cleaner alternatives. It is noted that this policy could be regressive, disproportionately impacting lower-income households. Implementation may necessitate measures like a decarbonisation rebate to mitigate any negative effects.
7. Government procurement to require zero-carbon construction materials to reduce embodied emissions. This idea proposes requiring government to source a percentage of cement from near-zero emission sources, starting with signature projects in 2030. Embodied carbon emissions from construction materials, particularly concrete, are a significant source of emissions. The government's purchasing power would be used to drive demand for low-carbon materials, encouraging investment and innovation in their production.
8. Reform the market structure of energy retail to support household decarbonisation. Two potential models are presented: introducing a default supplier to encourage innovation among other suppliers and turning electricity network operators into energy suppliers responsible for decarbonising households. These reforms aim to address limitations of the current market structure, including limited incentives for energy efficiency and customer engagement. Implementing these models would require significant market reform and would need careful consideration of potential impacts on net-zero delivery, innovation, customer protection and market dynamics.
9. Reform stamp duty land tax to become an energy-saving stamp duty. This idea proposes reforming stamp duty to incentivise energy efficiency improvements in homes. Under this scheme, the tax rate would be tied to a property’s energy efficiency, with lower-rated properties subject to higher taxes and vice versa. Homebuyers would also receive a rebate for making energy efficiency improvements within a specified timeframe. This reform aims to motivate homeowners to invest in energy efficiency.
10. Develop and legislate adaptation targets. This idea recommends introducing legally binding adaptation targets to accelerate action in building the UK’s resilience to climate change impacts. While the UK has made progress on mitigation, adaptation efforts have been slow relative to peer countries. The targets would define specific resilience goals and metrics for different sectors and industries, encouraging investment and action to enhance resilience against climate risks.

The publication will be followed by Policy Live (Thursday 12 September), a new event focused on exploring potential policy solutions to some of the biggest challenges faced by the UK. Organised by Nesta and BIT (The Behavioural Insights Team) the one-day programme will convene influential leaders and emerging voices from across governments, the civil service, NGOs and the private sector.

Notes to editors

• For more information on the analysis or to speak to one of the experts involved, please contact Kieran Lowe, Media Lead, on 020 7438 2576 or [email protected].
• The ideas are set out in more detail in the ‘Net zero: the ideas’. The ideas in the report are not necessarily endorsed by Nesta.
• We thank Professor David Halpern for his contribution to this work and Lord Gus O’Donnell for sponsoring the UK 2040 Options project, and the following for their time and insight on these ideas: Will Arnold (Institute of Structural Engineers), Lydia Collas (Green Alliance), Josh Doble (Community Land Scotland), Emily Fakhry-Darian (DLUHC), Madeleine Gabriel (Nesta), Kirsty Girvan (UK Green Building Council), David Joffe (Royal Academy of Engineering), Professor Dame Julia King (CCC), Katy King (Nesta), Toby Park (BIT), Freddy Parker (BIT), Robin Parker (Nesta), Andrew Shein (Centre for Net Zero), Marcus Shepheard (Nesta), Andrew Sissons (Nesta), Colin Vaida (University of Cambridge), Rory Walshe (GO Science), Natasha Watson (Burro Happold), Ed Whincup (BIT), Edwin Wood (DESNZ). Please note that not all contributors will agree with all the ideas in this report.