INDUSTRY LEADERS RESPOND TO THE seventh carbon budget

  Posted by: electime      28th February 2025

This week, the Climate Change Committee released its seventh carbon budget—a new pathway to decarbonise the UK and a plan to achieve this by 2050.

Tamsin Lishman, Kensa CEO, said:

“The big message from today’s advice from the CCC is decarbonisation and UK economic growth are inexorably linked. As a clean energy company looking to expand its workforce, manufacturing capacity and investment in the UK, Kensa is a practical demonstration of this.

“The Committee’s advice establishes beyond doubt that electrification is the route to decarbonisation of heat in the UK. Clean energy companies like ours are ready to invest in the UK; they just need the right signal from the government – following the committee’s advice would provide just that.

“Five years on from the Sixth Carbon Budget, the CCC has rightly ruled out any role for hydrogen, further supporting the now near-universal consensus that heat pumps are the best option for UK homes and buildings. It’s critical the government acts swiftly on this, confirming electrification as the default heating solution, and providing certainty for companies to invest in UK manufacturing capacity, supply chains, and new heat infrastructure.

“Crucially, the Committee is spot on in highlighting the need to end the installation of gas boilers in new homes from next year. This is the single most important step the government can take right now to establish a major subsidy free market for heat pumps, allowing us to invest, scale up, and bring down costs for everyone.“

CCC 50 per cent Heat Pump Target wishful thinking, says Federation

The Plumbing and Heating Federation has criticised the Climate Change Committee’s (CCC) latest 2040 heat pump targets as “completely detached from reality,” warning that without a trained workforce to install them, these targets amount to little more than empty ambitions.

Fiona Hodgson, Chief Executive of the Plumbing and Heating Federation, said: “Heat pump adoption cannot be driven by wishful thinking. The CCC and successive Westminster and devolved governments keep setting ambitious targets while ignoring the fundamental issue: there simply are not enough trained professionals to install them.

“Without serious investment in skills training and workforce expansion, the UK will fail to meet its heat pump targets. All governments need to stop offloading responsibility onto businesses and take action to ensure we have the people to deliver this transition.”

The CCC’s recommendations follow newly obtained Freedom of Information data from Home Energy Scotland (HES), highlighting the scale of the challenge. Since 2019, fewer than 9,000 heat pumps have been installed under the HES Grant and Loan Scheme and the Private Rented Sector Landlord Loan Scheme in Scotland, nowhere near the number needed to meet the CCC’s targets.

To stand any chance of success, heat pump installations would need to increase by 200-fold, a target that is impossible to achieve under current workforce constraints. Policymakers continue to overlook the severe shortage of qualified installers, placing the burden on businesses instead of providing meaningful support.

Address the perverse reality of the Spark Gap
The Plumbing and Heating Federation also emphasises the urgent need to address the Spark Gap – the imbalance between electricity and gas prices – which remains one of the most significant barriers to heat pump uptake. If electricity stays significantly more expensive than gas, homeowners simply will not make the switch, regardless of policy encouragement.

Fiona Hodgson continued: “We are in a perverse situation where government policy tells people to transition to electric heating, yet energy pricing actively discourages them from doing so. The public will not be persuaded to switch to a more expensive heating system in the middle of a cost-of-living crisis. Without serious reform to energy pricing, the transition to low-carbon heating will remain a pipe dream.”

Elliot Renton, CFO at Evero Energy, comments:

“While we welcome the CCC’s recommendation to finalise business models for engineered removals, including the need for clear guidance on near-term funding pathways and the division of responsibilities between the public and private sectors, we were surprised to see that the CCC has recommended reducing greenhouse gas removal (GGRs) from 58 Mtpa in Carbon Budget 6 to 36 Mtpa by 2050 in Carbon Budget 7.

Forecasts indicate that the international market for carbon removals could be worth $1.2 trillion by 2050 and with the UK’s abundant geological storage and well-developed plans for clean power by 2030, the country is well positioned to become a global hub for the carbon removals sector. Rather than pulling back, we urge the government to set ambitious GGR targets that unlock this potential and drive export-led economic growth and investment in real infrastructure.

There is already an advancing market for GGRs, with committed commercial buyers lined up, here in the UK. By supporting the GGR sector during the Comprehensive Spending Review, we can start tapping into the country’s full potential”

John Bamford, Head of Sustainability, UK & Ireland, EcoAct, says:

“The UK’s latest Carbon Budget highlights the critical need for decisive action to maintain our decarbonisation momentum. The Committee on Climate Change’s adjustment of GGR deployment targets from 58 Mtpa to 36 Mtpa by 2050 reflects the evolving landscape of climate solutions, while inviting consideration of how these recalibrated goals will shape our long-term climate strategy and global leadership position.

With the government’s COP29 commitment to 81% emissions reduction, now is the time for policy to match ambition. Businesses need certainty—clear signals, consistent reporting frameworks, and regulatory stability—to confidently invest in the transition. Voluntary carbon markets remain essential, channelling private capital into both engineered and nature-based solutions. We encourage the government to strengthen its support for these markets as they bridge the emissions gap, enhance corporate climate action, and secure the UK’s competitive edge in the global green economy.”