UK Government Announces New UK 2035 Climate Target
On 12 November 2024, the UK government announced a new climate target to reduce the UK’s greenhouse gas emissions by 81% by 2035, compared to 1990 levels. The target forms part of the UK’s Nationally Determined Contribution (NDC), which outlines commitments to reduce greenhouse gas emissions to mitigate climate change. The UK government announced that the revised NDC is aligned with the goal of limiting global temperature rises to 1.5°C, which was outlined in the Paris Agreement.
Background
The announcement follows a report by the UK’s independent Climate Change Committee (CCC), which advised that the UK’s NDC commits to reducing territorial greenhouse gas emissions by 81%. This updated figure is based on the CCC’s advice on the UK’s Seventh Carbon Budget that will be published in February 2025. The CCC’s advice does not include international aviation and shipping emissions, in line with the convention of the UN Framework Convention on Climate Change.
Clean Energy Initiatives
The Prime Minister also highlighted a number of initiatives designed to advance investment in clean energy projects. Central to these efforts is the Global Clean Power Alliance, which the Prime Minister described as “a political alliance of countries committed to accelerating the clean energy transition.” The Prime Minister further emphasised the Clean Industry Bonus Scheme, an initiative designed to support offshore wind developers and invest in manufacturing and port infrastructure. The scheme aims to boost green jobs and strengthen supply chains by supporting key industries.
Additionally, the Prime Minister announced the launch of the CIF Capital Market Mechanism on the London Stock Exchange. This Mechanism would be a joint effort with international partners that was announced as having the potential to mobilise up to US$75 billion in additional climate capital for developing countries over the next decade. The UK is seeking to drive economic growth, create jobs, and enhance energy security by focusing on international collaboration and investment in clean technologies.
For more information on the UK government’s strategy to drive green growth and innovation, refer to this Latham article.
Latham & Watkins will continue to monitor developments in this area.
This post was prepared with the assistance of Toon Dictus in the London office of Latham & Watkins.