DOI: https://doi.org/10.58248/HS132

A strategic challenge in energy policy is keeping energy affordable for all and maintaining security of supply while transitioning to a net zero system. Net zero describes the legal target to reduce carbon emissions by 100% to 1990 levels by 2050.[1] This involves elected leaders at national and local levels engaging different publics, sectors and organisations to deliver the measures required. Contributors stated this will require incentivising the transition to renewable energy,[2][3][4] but through measures that are fair and inclusive.

Due to the overlap with other articles in this category, POST has not drafted an article for this topic. Instead, the main opportunities and challenges identified by contributors are briefly summarised below:

  • Researchers have identified seven attributes for a successful net-zero transition framework: front-loaded emission reductions; a comprehensive approach to emission reductions, cautious use of carbon dioxide removal and storage (PN726); effective regulation of carbon offsets (PN713); an equitable transition to net zero (PN706); alignment with broader social and ecological objectives; and the pursuit of new economic opportunities.[5]
  • The impact of climate change on economic systems.[6] Even without accounting for climate damages or climate policy co-benefits, transitioning to a net-zero energy system by 2050 is likely to be economically beneficial rather than reducing UK economic competitiveness and productivity.[7][8] However, contributors stated the challenge of the global low economic growth rate,[9] and the need for responsible innovation in the context of economic growth that reduces inequality.[10]
  • The transition requires large-scale, rapid redirection of capital into low carbon infrastructure and activities. This will require transparency and information risks and opportunities of different investment options, such as climate related financial disclosures (PN667).[11][12][13] However, contributors suggested such mandatory disclosures may need to be applied to a wider range of organisations such as local authorities, health trusts, universities and professional associations to incentivise public service innovations and collaboration for achieving net zero.[14][15][16]
  • The policies, incentives and taxes required to increase the rate of adoption of climate mitigation actions by businesses beyond emissions trading,[17] including:
    • a carbon border adjustment mechanism (CBP 9935)[18]
    • a ‘systems’ understanding[19] of why investing in business as usual is preferable to innovative net zero approaches[20]
    • understanding the constraints to small and medium enterprises to reducing emissions or adopting low carbon innovations[21]
    • more guidance, tools and assessments for organisations on efficient ways to reduce emissions and energy use[22]
    • some sectors, such as water, may require more capital investment to reduce emissions, adapt to climate impacts and increase productivity[23][24][25]
    • others, such as agriculture, may require advice on measures that are cost effective to adopt[26][27]
  • While global changes, such as increases in global mean temperature, tend to dominate discussions of mitigation actions, a detailed understanding of the regional impacts is critical for adapting communities,[28] as well as supply chain vulnerabilities to climate impacts in regions the UK imports from.[29] The need to consider and address climate inequalities, the disproportionate impacts of climate change on vulnerable populations and regions, was also raised.[30]
  • Contributors called for a national retrofit strategy to reduce emissions from buildings.[31] The need to reduce GHG emissions associated with the materials and construction processes throughout the whole lifecycle of a building or infrastructure was also stated along with unifying guidance around this.[32][33] This included standardising how to measure the energy efficiency of buildings.[34][35][36]
  • They also suggested interventions into people’s lives such as retrofit need a nuanced and thought through service delivery design underpinning them. The education and satisfaction of the public as a key outcome for interventions such as low carbon domestic heating will ensure a ‘virtuous circle’ for the reputation and enthusiasm surrounding net zero.[37] The need to establish the public’s adaptation priorities was also suggested.
  • Contributors stated the need for community-based climate change actions and decision making, moving away from national approaches to place-based, co-produced strategies for change that achieve environmental outcomes and are culturally sensitive.[38] This involves aligning national-level policy to facilitate place-based initiatives and to increase understanding of the interactions between community-based initiatives and private investment in net zero.[39]

[1] Climate Change Committee. (2020). CCC Insights Briefing 3 The UK’s Net Zero target

[2] House of Commons Library. (2024). The UK’s plans and progress to reach net zero by 2050

[3] DESNZ. (2024). Clean Power 2030 Action Plan

[4] NESO. (2024). Clean Power 2030. Advice on achieving clean power for Great Britain by 2030

[5] Fankhauser, S. et al. (2022). The meaning of net zero and how to get it right. Nature Climate Change, volume 12, pages 15–21

[6] Stern, N. (2008). The Economics of Climate Change. American Economic Review, vol. 98, no. 2, pages 1–37.

[7] Way, R. et al. (2022). Empirically grounded technology forecasts and the energy transition. Joule,

vol 6, Issue 9, pages 2057-2082

[8] Barbrook-Johnson, P. et al. (2023). New economic models of energy innovation and transition. EEIST

[9] World Bank Group. (2025). Global Economic Prospects, January 2025.

[10] Hankins, J. (2021). Responsibility beyond growth. A case for responsible stagnation. Journal of Responsible Innovation, Volume 8, Issue 1

[11] DESNZ (2022). Climate-related financial disclosures for companies and limited liability partnerships (LLPs). GOV UK

[12] IFRS. (2023). IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information.

[13] IFRS. (2023). IFRS S2 Climate-related Disclosures.

[14] OPSI. Strengthening government capacity to innovate. OECD

[15] Walpole, G. et al. (2021). New development: Enhancing regional innovation capabilities through formal public service communities of practice. Public Money & Management, Volume 42, Issue 8, pages 668-671

[16] Liu, Z. et al. (2022). A communities of practice approach to promoting regional circular economy innovation: evidence from East Wales. European Planning Studies, Volume 31, 2023, Issue 5: Open innovation and ‘catch-up’: globalist or localist? pages 988-1006

[17] OECD. (2021). A credible carbon tax trajectory for Ireland

[18] Cornago, E. et al. (2024). Learning from CBAM’s transitional phase: Early impacts on trade and climate efforts. Centre for European Reform

[19] National Engineering Policy Centre and Royal Academy of Engineering. (2020). Net Zero: A systems perspective on the climate challenge

[20] Innovate UK. Financing Net Zero.

[21] Khosravi, F., et al. (2023). SMEs’ Drivers and Barriers to Decarbonisation in the East of England. European Journal of Sustainable Development, 12(4), 247.

[22] Carbon Trust. Carbon reduction and Net Zero for SMEs.

[23] National Infrastructure Commission. (2025). Water and Floods.

[24] Water UK. The water industry is playing its part in tackling climate change

[25] Ofwat (2022). Net zero principles position paper

[26] Eory, V. et al. (2021). Marginal abatement cost curve for Scottish agriculture

[27] Teagasc. (2023). Marginal Abatement Cost Curve 2023

[28] Collins, M. et al. (2024). Emerging signals of climate change from the equator to the poles: new insights into a warming world. Front. Sci., Volume 2

[29] Feyen, L. et al. (2020). Climate change impacts and adaptation in Europe. JRC

[30] Chancel, L., et al. (2023). Climate Inequality Report 2023. World Inequality Lab Study 2023/1

[31] Construction Leadership Council. (2021). Greening Our Existing Homes. National retrofit strategy.

[32] World Green Buildings Forum & Ramboll, Bringing embodied carbon upfront (PDF), September 2019

[33] Khaddour, L. (2024). Ecological and Carbon Footprints of Cities. Encyclopaedia of Sustainable Technologies (Second Edition), Volume 2, pages 92-98

[34] DESNZ (2024). Demonstration of Energy Efficiency Potential (DEEP). GOV.UK

[35] Adams, D. et al. (2023). Building Performance Evaluation Where to start. Future Homes Hub

[36] Hardy, A. (2021). The uncertainty around uncertainty. Leeds Beckett University

[37] Betteridge, K. et al. (2024). Warmer Homes: How can Grant Subsidy Schemes Improve Engagement with Participants? A British Academy Policy Insight Case Study Grant

[38] The British Academy. (2023). Understanding the role of place in environmental sustainability.

[39] Falcone, G., et al. (2025). Green Recovery Dialogues: From COVID19 to COP26 Glasgow: Centre of Sustainable Solutions (University of Glasgow).

Image credit: Andreas Gücklhorn via Unsplash