Summary of Net Zero Review

The United Kingdom is leading the world in its pursuit of net zero energy, building on its transition from
a coal-based to a wind-powered power system. Climate change and the economy are inextricably
linked, and net zero is regarded as the economic opportunity of the twenty-first century, with a global
market opportunity valued at £1 trillion for British businesses by 2030. The United Kingdom is well-
positioned to benefit, as it has a comparative advantage in key areas such as offshore wind, carbon
capture and storage, and green finance. To secure its position as a prime destination for international
capital and unlock export opportunities, the UK must act quickly and collaborate with international
partners. The benefits of net zero will outweigh the costs by an estimated 2%.

The challenge of translating bold ambition into action:

• The UK's decarbonisation pathway (Net Zero Strategy) lays out a plan to achieve net zero
emissions by 2037, based on cost-effective modeling for 2050. The strategy should be
implemented because delaying is a significant risk and the benefits of decarbonisation are
greater if done sooner.
• The United Kingdom faces challenges such as a lack of policy clarity, capital waiting for
investment, infrastructure bottlenecks, and planning system delays.
• The Review suggests that action be taken across key industries, homes, community halls, and
local and national government to accelerate the transition to a green economy, as there is no
other future economy than a green economy.

The Review has identified ten priority missions aimed at harnessing both public and private
sector efforts towards achieving net zero by 2035.

• Grid and Infrastructure

• Solar
• Onshore Wind
• Nuclear
• Energy Intensive Industries
• Circular Economy and Waste
• Net Zero Local Big Bang
• Energy Efficiency for Households
• Net Zero Nature
• R&D and Innovation

Cleaner Business and Government

To achieve its goal of net zero emissions by 2050, the UK government must act quickly and decisively.
Infrastructure such as electrified energy systems and CO2 networks are critical to achieving this goal.
In addition, the government could establish long-term governance structures, such as a government
financing strategy, a long-term programmatic approach, and an Office for Net Zero Delivery. The private
sector is critical to the transition, and the government must provide incentives for investment as well as
safeguard industries against environmental undercutting. The economy must become more resource
efficient, and local governments and communities must be empowered to act on net zero. The planning
system must be reformed to support net zero, as well as the local net zero funding landscape.

Key Actions for 2025

The UK's "Net Zero Review" proposes a series of actions to address the most significant challenges to
achieving net zero emissions by 2050. The report advocates for long-term collaboration between
government and industry in order to build a new economy with green British jobs and the ability to export
technologies and expertise. The report makes 25 recommendations for 2025, including ensuring
certainty on the phase-out of gas boilers, mandating the Future Homes Standard by 2025, establishing
minimum energy efficiency ratings for non-domestic buildings, reviewing regulation for net zero
technologies, incentivizing investment in decarbonization, establishing a forum for coordinating all
regulators, providing long-term funding certainty for key priorities, and publishing a financing strategy
to scale utmost efficiency. The report also suggests that CCUS be addressed.

Conclusion

The LSE can assist the UK in reaching net zero by providing a platform for companies to raise capital
for green projects, encouraging ESG disclosure, and promoting green finance growth through access
to capital markets and green bonds. It is critical in assisting with the transition to a net zero economy.