UK publishes sector guidance to bridge national and corporate climate plans

Government-backed body outlines playbook for business associations and others developing sectoral plans 

The UK’s Net Zero Council has released guidance on how sectors should plan their decarbonisation pathways. 

The document is designed to support industry bodies, companies, financial institutions and policymakers develop credible transition plans for key sectors. 

It was developed in collaboration with the UK’s Transition Finance Council, and non-profit the Broadway Initiative, whose members include the country’s biggest trade association, the Confederation of British Industry.   

Ahead of the COP30 climate summit next month, the UK government has pledged to reduce national greenhouse gas emissions by at least 81% by 2035, compared to 1990 levels. 

This makes its Nationally Determined Contribution one of the most ambitious in the world.  

Sector Transition Plans (STPs) are expected to serve as a bridge between those national commitments and company-level climate transition plans.

Other countries have also been working on STPs, including France, Australia, Japan and the Netherlands. 

Read more about their efforts in this Real Economy Progress article.

Monday’s guidance identifies the core components needed to make STPs credible, including an explanation of the actions needed to achieve the goals – such as regulatory and fiscal incentives – and a breakdown of the total investment needed.  

This week, a poll of more than 2,000 UK businesses found that nearly 80% of large companies consider net zero to be a strategic priority for the year ahead. 

The second Net Zero Business Census, which claims to provide an annual stocktake of progress and sentiment on decarbonisation, was conducted by the British Chamber of Commerce and the government-backed UK Business Climate Hub. 

It also found that more than a third of small and medium enterprises were ramping up their efforts to transition to a low-carbon economy.