Net Zero

The Local Industrial Decarbonisation Plans competition provided £6 million in government grant funding, in partnership with Innovate UK, to help dispersed industrial manufacturers outside the UK’s existing industrial clusters develop long-term decarbonisation pathways. Thirteen projects received funding after the competition opened in June 2023, began work in January 2024 and submitted final reports by March 2025. The Department for Energy Security and Net Zero evaluated the programme during 2025 and 2026 using interviews, a focus group and an online survey.

The UK government has published the International Atomic Energy Agency’s follow-up Operational Safety Review Team mission report on Heysham 2 nuclear power station. Conducted in January 2026, the mission assessed progress on recommendations and suggestions from the original October 2023 review. The findings are intended to support further operational safety improvements by the relevant UK authorities and EDF Energy, and the government has also published a response.

The UK government plans to establish a bill discount scheme giving eligible households within 500 metres of qualifying new or significantly upgraded onshore transmission infrastructure discounts of up to £250 annually for up to 10 years. Subject to parliamentary approval of secondary legislation, payments are expected to begin in the first half of 2027. Most households will receive two £125 payments annually through their electricity suppliers, while households without standard domestic electricity contracts can opt in for an annual bank payment or cash voucher. Ofgem will administer the scheme, map eligibility zones, maintain recipient data, oversee compliance and coordinate reconciliation among electricity suppliers. The update details infrastructure and property eligibility, exclusions, landlord pass-through duties, payment arrangements, supplier funding, enforcement, reviews and procedures for discontinued projects.

The Department for Energy Security and Net Zero’s Trust Statement records income collected as agent for HM Treasury’s Consolidated Fund from EU and UK emissions-trading schemes, Climate Change Agreement buy-out payments, and civil penalties under environmental regulations. Net revenue for the Consolidated Fund was £2.904 billion in 2025–26, including £2.787 billion from UK ETS auctions, while net assets at 31 March 2026 were £35.8 million. The statement explains DESNZ’s accounting and governance responsibilities, identifies limited foreign-exchange, credit and market risks, and reports a £0.2 million credit loss from unrecoverable penalties. Comptroller and Auditor General Gareth Davies gave an unqualified opinion, confirming that the accounts present a true and fair view and that transactions complied with applicable authorities, with no matters reported by exception.

The UK government confirmed a 20‑year lifetime extension for the Sizewell B nuclear power station, allowing operation until 2055 and supporting around 900 skilled jobs. The agreement with EDF and investment support from Centrica is expected to lower system costs, reinforce energy security, and provide clean electricity for 2.5 million homes. Ministers highlighted the role of nuclear energy in reducing exposure to volatile fossil fuel markets, while industry leaders emphasized the value of long-term, low‑carbon generation. The extension forms part of a wider national nuclear programme, including small modular reactors in Anglesey and construction of Sizewell C.

Approval of the One Earth Solar Farm adds the UK’s second largest solar project to a growing list of nationally significant clean energy developments, contributing to energy security and lower costs amid global fossil fuel instability. The decision marks the 30th major clean energy approval since July 2024, supported by planning reforms aimed at speeding infrastructure delivery. Government data shows record solar deployment in 2025, and the Energy Secretary positions the expansion as key to a pro-growth and clean power strategy.

The Heat Training Grant provides eligible heating engineers in England with discounts of up to £500 on heat pump training. Eligibility covers employees of businesses with up to 250 employees, sole traders and unemployed people who meet competent-person certification and subsidy-limit requirements. Training providers determine course prices and how the grant is applied. Manufacturers including Baxi, Daikin, NIBE and Worcester Bosch offer additional discounts, training, product incentives and first-installation support. After training, installers can pursue competent-person scheme membership and MCS certification, enabling them to self-certify installations and offer the Boiler Upgrade Scheme, which provides eligible homeowners with £7,500 toward air- or ground-source heat pumps.