IEA Policy Review Spotlights UK Leadership in Climate Action and Emission Cuts

The International Energy Agency (IEA) regularly reviews the energy and climate policies of its member countries, providing recommendations that support policy development and the exchange of best practices. The latest review of the United Kingdom, based on assessments from the previous government, highlights significant progress in emissions reduction, driven by a robust climate framework. As one of the first advanced economies to legally commit to a net-zero target, the UK has demonstrated leadership in clean energy, particularly in offshore wind.

The IEA’s 2024 review of the UK's energy policies underscores the country’s achievements in this area. The UK is noted for its strong climate policies, including carbon pricing and the establishment of an independent Climate Change Committee with statutory authority to track government progress toward climate targets. The country has successfully met all its five-year carbon budgets, which serve as interim goals on the path to the 2050 net-zero target. The UK’s transformation of its electricity system, marked by a significant reduction in coal-fired generation and substantial growth in renewable energy, exemplifies its commitment to energy system overhaul.

However, the report also identifies ongoing challenges. Despite the progress in renewable energy, the UK remains heavily reliant on fossil fuels, which continue to play a significant role in electricity generation and other sectors such as buildings, transport, and industry. To meet its climate targets and maintain progress on carbon budgets, the UK needs to enhance efforts to reduce emissions in these areas.

The UK has set an ambitious goal to decarbonize electricity generation, with rapid growth in wind, solar, and nuclear power. Renewables now account for over 20% of the country’s electricity generation, a significant increase from 2012. The Contracts for Difference auction scheme supporting renewable energy has been notably successful. Moving forward, the UK must continue expanding low-emission generation, addressing the replacement of nuclear capacity, and meeting rising power demands due to electrification. This will require building out electricity infrastructure, reducing administrative barriers, and accelerating grid connections.

In the buildings sector, which is among the oldest in Europe, energy-related emissions contribute more than a quarter of the total. The report stresses the need for enhanced energy efficiency upgrades and a shift from fossil fuel heating systems to electricity-based heat pumps. Transport remains the largest emitting sector, heavily dependent on oil, and requires continued focus on zero-emission vehicles. Additionally, the industrial sector, a major energy consumer and emissions contributor, needs to support energy efficiency and electrification efforts, facilitated by grid expansion and connections to industrial sites. The adoption of new technologies, such as carbon capture and hydrogen fuels, is also crucial for industrial decarbonization.

Overall, the report concludes that while the UK is making strong progress in its energy transition, there is an opportunity to accelerate further and leverage its first-mover advantage and robust legal frameworks to capitalize on the growing global clean energy economy. Continued focus on rapid implementation of action plans will be essential to achieving climate targets.