The UK’s Green Industrial Revolution: How Are We Doing, and What’s Next?

Editor’s Note: This piece is brought to you by Adam Ellis, a sustainability consultant and researcher for BIGA.

Abstract

This paper explores the evolution of the UK’s energy transition from 2023 to 2025 within the broader context of a global “Green Industrial Revolution.” It analyses key policy developments, including the Energy Act 2023 and the Great British Insulation Scheme, alongside shifts in renewable energy capacity, transport decarbonisation, and nuclear expansion. By 2024, renewable sources generated over half of the UK’s electricity for the first time, and emissions dropped 4% year-on-year. The green sector grew substantially, contributing £83 billion in gross value added and supporting nearly one million jobs. However, fossil fuels still dominate heating and transport, and infrastructure limitations, intermittency, and political uncertainty pose challenges. The paper compares UK progress to international counterparts, drawing lessons from countries like Denmark, Germany, and Norway. It also examines the need to balance decarbonisation with biodiversity protection, highlighting global examples—such as Costa Rica and Bhutan—that integrate renewable growth with conservation. The paper concludes by outlining strategies to strengthen the UK’s approach, from accelerating grid upgrades and energy storage to expanding low-carbon heating and engaging communities. The UK’s trajectory offers both inspiration and caution: while leading in clean electricity, it must ensure a just, stable, and ecologically sensitive path to net zero by 2050. 

Introduction

The relationship between net zero policy and biodiversity conservation has become increasingly prominent within the UK’s environmental agenda. Since first investigating this intersection in 2023, the UK has undergone significant policy developments, even as global approaches diverged. While countries such as the United States have scaled back climate commitments, the UK continues to pursue a transition away from fossil fuels under the banner of a “Green Industrial Revolution” — a global shift toward cleaner energy and low-carbon industries, echoing the scale of the first Industrial Revolution but driven by sustainability.

From 2023 to 2025, the UK’s net zero strategy has adapted to a complex mix of economic pressures, energy security concerns, and shifting political priorities. Central to this period was the Energy Act 2023, which introduced reforms to support carbon capture and storage, hydrogen infrastructure, and nuclear power—key components of the UK’s long-term decarbonisation agenda.

Additional policy measures included the Great British Insulation Scheme, aimed at improving household energy efficiency, and a revised Zero Emission Vehicle (ZEV) mandate, which delayed the phase-out of internal combustion vehicles to 2035. The approval of Sizewell C in 2025 reinforced the government’s commitment to reliable low-carbon energy. Political divisions—particularly between the Labour leadership and Conservative sceptics—also continue to shape the pace and direction of the UK’s net zero journey.

How Are We Doing?

Since 2023, the UK has made notable strides towards its net zero goals, notably by decarbonising its power sector and growing its green economy. This is proven in the data.

• Electricity Generation: In 2024, renewable sources supplied 50.8% of the UK’s electricity, surpassing fossil fuels for the first time. Wind power alone accounted for approximately 30% of generation.
• Emissions Reduction: UK greenhouse gas emissions fell by 4% in 2024, totalling 371 million metric tonnes of CO₂ equivalent. This reduction—equivalent to nearly 15.5 million tonnes—was largely driven by the closure of the last coal-fired power station and declining industrial emissions. This is equivalent to 376 million round-trip flights between London to New York.
• Economic Growth: The green economy expanded by 10% in 2024, contributing £83 billion in gross value added and supporting almost one million jobs across 22,000 businesses. Average salaries in the sector stood at £43,000, which is above the national average.

Despite these gains, challenges remain:

• Fossil Fuel Reliance: Natural gas still accounted for 30% of electricity in 2024, and fossil fuels dominate overall energy use outside of the national grid – e.g. in heating and transport.
• Sectoral Lag: Decarbonisation in home heating (predominantly gas boilers) and transport (petrol and diesel vehicles) continues to trail behind progress in electricity and the conservative government pushed back the deadline for non-electric vehicles to be phased out.

Where does this place on in the Global Standing:

• The UK ranks among global leaders in renewable electricity share, closely following Spain (56%) and Germany (>50%) as of 2024.
• Denmark and Portugal remain ahead (80% renewables), but the UK’s scale and industrial legacy make its transition especially significant.
• From 2010 to 2022, the UK recorded the fastest clean electricity growth in the G7, moving from one of the worst performers to one of the best.
• The UK was the first major economy to legislate for net zero by 2050 and has reduced emissions by over 45% since 1990, outperforming many of its international peers.

These achievements position the UK as a key player in the global green transition, with leadership in offshore wind, policy innovation, and climate commitment—though full decarbonisation will require broader action across all sectors.

What Initiatives, Policies, and Political/International Relations Context has Fuelled The Transition?

The UK’s energy transition has been underpinned by a series of deliberate and long-term policy decisions. Central to this was the Climate Change Act of 2008, which introduced legally binding carbon budgets and, following its 2019 amendment, committed the UK to achieving net-zero emissions by 2050. This legislative framework created policy continuity across successive governments, enabling sustained investment in clean energy. One of the most impactful measures has been the introduction of Contracts for Difference (CfDs), which guarantee fixed electricity prices for renewable generators and have helped the UK become a global leader in offshore wind. Earlier support mechanisms, such as Feed-in Tariffs and the Renewables Obligation, also played a key role in growing solar and onshore wind capacity.

The UK’s coal phase-out has been another defining element of its transition. Once central to the national energy mix, coal has now been virtually eliminated, with the final plant closing in 2024. In its place, the UK has prioritised renewable sources, alongside low-carbon alternatives like nuclear and gas with carbon capture. A legally supported target to fully decarbonise the power sector by 2035 has accelerated this shift. Supporting infrastructure has expanded in parallel, including storage solutions, smarter electricity grids, and interconnectors that enable energy trading with European neighbours. 

Beyond electricity, policies in transport and heating have aimed to reduce fossil fuel reliance more broadly. The proposed ban on new petrol and diesel cars, despite being extended to 2035, did accelerated electric vehicle adoption. Similarly, a 2035 deadline for new gas boiler installations has increased focus on low-carbon heating alternatives, such as heat pumps and district heating. However, while some programmes like the Green Homes Grant faced setbacks, other schemes—like the Boiler Upgrade Scheme—have continued efforts to improve energy efficiency in homes.

These policy actions have been reinforced by industrial strategy. The government’s 2020 Ten Point Plan for a Green Industrial Revolution set targets for offshore wind, hydrogen, green finance, and job creation. It also positioned decarbonisation as a major economic opportunity, supporting green jobs and manufacturing across the country. Political consensus has generally supported the direction of travel, though recent delays to some targets have sparked debate. Labour, for example, has proposed even more ambitious timelines under its Green Prosperity Plan, including a 2030 deadline for carbon-free electricity (bringing the original deadline forward 5 years).

Internationally, the UK has remained an active climate leader. It hosted COP26 in 2021 and has launched global partnerships, such as the Powering Past Coal Alliance, to support other countries in their energy transitions. Post-Brexit, the UK introduced its own Emissions Trading Scheme and continues to align with European initiatives like the North Seas Energy Cooperation. Geopolitical events—especially the war in Ukraine—have further highlighted the importance of energy security and supply chain resilience. As a result, the UK’s focus on domestic renewable generation and industrial self-sufficiency has only intensified, reinforcing both climate goals and strategic independence.

What Are the Benefits and Issues of the UK’s Energy Transition?

The UK’s energy transition offers a range of significant benefits.

1. The most direct is its impact on emissions reduction. By replacing coal and gas with wind, solar, and other low-carbon sources, the UK has cut power sector emissions by more than 70% since 2010. This not only helps meet national carbon budgets but also delivers public health benefits through cleaner air, as sulphur dioxide and particulate pollution from coal-fired plants have been virtually eliminated.

2. A second major benefit lies in energy sovereignty and national security. Unlike imported fossil fuels, domestic renewables such as wind and solar are both inexhaustible and immune to global price shocks. During the 2021–2022 energy crisis, countries with higher shares of renewables faced less exposure to soaring gas prices. For the UK, boosting clean energy generation strengthens long-term supply stability and reduces reliance on geopolitically sensitive imports, enhancing foreign policy flexibility and trade independence.
3. Economically, the transition is generating jobs and new industries. The growth of offshore wind has revitalised port communities, while investment in electric vehicles, energy efficiency, and green tech is positioning the UK as a competitor in the global clean economy. Decarbonisation is now recognised as a central pillar of industrial strategy, with potential for long-term productivity gains, export opportunities, and regional development.
4. Over time, renewables are also expected to reduce energy costs. While the upfront capital expenditure is substantial, operating costs for wind and solar are far lower than fossil fuel-based generation. Renewable auctions have already delivered record-low electricity prices. If market mechanisms are improved to pass these savings to consumers, bills could fall and businesses would benefit from more predictable energy inputs. Additionally, renewables shield the economy from fossil fuel price volatility.
5. The transition brings environmental co-benefits, from quieter, cleaner cities to reduced risks of ecological damage from oil spills and mining. By taking a global leadership role in climate action, the UK enhances its moral authority and helps avert the worst climate-related impacts, such as extreme weather and sea-level rise.

However, several challenges remain.

1. Grid infrastructure is a critical bottleneck. Many renewable projects face multi-year delays for connection due to limited transmission capacity. The existing grid, built for centralised fossil fuel generation, must be adapted for variable, decentralised sources. Storage capacity must also scale up significantly—using batteries, hydrogen or pumped hydro—to ensure supply stability during low-generation periods.

2. Planning, permitting, and local opposition continue to slow project development. Onshore wind was effectively stalled in England for years due to restrictive policy and public resistance. Even now, new solar farms or transmission lines can trigger community objections. Addressing these concerns while maintaining development momentum is a delicate task, requiring improved consultation, benefit-sharing models, and streamlined planning processes.
3. The intermittent nature of renewables demands a reimagining of how energy is balanced. Currently, gas provides backup during periods of low wind or sun. As fossil fuel use declines, new methods—such as smart demand systems, flexible tariffs, and advanced storage—must take over to maintain frequency and voltage stability across the grid. Without effective alternatives, achieving the 2035 clean power goal may prove difficult.
4. The economic transition must be just and inclusive. While green jobs are growing, there are regions and sectors tied to fossil fuel industries that risk being left behind. Retraining workers, supporting communities in transition, and equitably distributing the costs of new infrastructure are essential to maintain public support and prevent social inequalities from widening.
5. Political uncertainty also poses risks. Energy infrastructure takes years to plan and deliver, meaning investors rely on consistent policy signals. Sudden changes—such as the abrupt end to solar subsidies in 2015, delays to key auctions or the delay in electric vehicles after car manufacturers had invested large sums of money—can undermine confidence. Moreover, fluctuating public sentiment and debates about the pace and cost of transition can influence political will. Maintaining policy continuity, clear targets, and transparent communication is key to staying on course.
6. Finally, supply chain constraints represent a growing challenge. Rising global demand for materials like steel, rare earth metals, and lithium is pushing up prices and limiting availability. The UK’s ability to deliver on its renewable targets increasingly depends on secure supply chains, skilled labour, and specialist equipment. Investment in domestic manufacturing, workforce training, and international cooperation will be vital to avoid costly delays.

In conclusion, the UK’s energy transition promises wide-ranging environmental, economic, and social benefits, from emissions reductions and green job creation to energy security and global climate leadership. Yet success will depend on how effectively it addresses the practical, political, and social barriers that lie ahead.

How the UK Can Improve

Despite strong progress, there are several areas in which the UK could accelerate and strengthen its energy transition.

1. Upgrading Planning Systems and Grid Infrastructure

One of the most pressing areas for improvement in the UK’s energy transition is the modernisation of its planning processes and energy infrastructure. Grid bottlenecks and delays in approving renewable energy projects have significantly slowed deployment. Germany, facing similar challenges, designated key transmission projects as nationally important, streamlined consent procedures, and even placed lines underground to address local concerns. Ireland has improved grid stability by investing in advanced management systems like the DS3 programme, allowing a small national grid to operate safely with high wind penetration. The UK could take similar action: fast-tracking approval processes, prioritising funding for National Grid upgrades, and expanding interconnectors—such as undersea links to Scandinavia and continental Europe—to absorb more renewable power efficiently.

2. Unlocking Onshore Wind and Solar Potential

While the UK is a global leader in offshore wind, it lags behind in deploying onshore wind and solar, particularly in England. In contrast, Denmark and the Netherlands have used community benefit models and partial ownership to build strong public support for onshore renewables. Adopting similar approaches—such as offering local bill discounts or profit shares—could help the UK unlock more capacity. Germany’s experience with feed-in tariffs also shows the value of supporting small-scale and community-led renewable projects. Further diversification of the renewable mix is possible too: cold-climate countries like Sweden and Canada have successfully used biomass and hydro alongside wind. Additionally, despite their relatively low solar potential, Germany and Belgium far exceed the UK in installed solar capacity per capita. Incentivising rooftop solar and supporting low-impact ground arrays would help the UK better utilise its own solar resources.

3. Scaling Energy Storage and Grid Flexibility

To address the challenge of intermittency, the UK must rapidly expand its energy storage and flexibility solutions. Locations like California and South Australia have deployed vast battery farms to balance supply and demand, reducing reliance on fossil fuel backup. The UK has begun developing projects such as the Minety battery installation, but scaling this capacity is essential. Longer-duration storage options, such as pumped hydro in Scotland or thermal storage systems, also need greater investment. Germany and the Netherlands provide strong models for integrating green hydrogen as a flexible energy store, converting excess renewable electricity into storable fuel. Drawing on these examples, the UK can strengthen supply resilience even during extended periods of low wind or solar output.

4. Beyond Decarbonising the Power Sector

While progress in clean electricity is clear, the UK must now extend decarbonisation efforts across transport, heating, and heavy industry. Norway has successfully electrified its vehicle fleet—with over 80% of new car sales being electric—through tax incentives, charging infrastructure, and public support. Furthermore, Sweden and Finland have nearly eliminated oil in heating, relying instead on district heating networks, biomass, and heat pumps. The UK could adopt similar measures, including greater subsidies for low-carbon heating and municipal investment in local heat networks. In industry, Germany’s Hydrogen Steel initiative and carbon capture projects demonstrate viable paths to decarbonise hard-to-abate sectors. The UK has begun to roll out its own industrial decarbonisation clusters in regions such as the Humber and Merseyside, but continued investment and international knowledge sharing will be key to success.

5. Ensuring Policy Stability and Building Public Trust

A successful transition depends on stable, ambitious policymaking. In countries like Denmark and New Zealand, cross-party climate agreements and robust independent monitoring bodies have helped maintain long-term momentum. The UK could further empower institutions like the Climate Change Committee to ensure policies align with targets and adapt when necessary. In addition, setting intermediate sector-specific goals—for heat, transport, and energy—would enhance accountability. Public engagement is equally important. Fostering a shared national commitment to sustainability, as seen in Costa Rica, can help maintain political and public support even in times of economic uncertainty. Clear communication of both benefits and costs will be essential to avoid delays and build a resilient social mandate for change.

6. Integrating Biodiversity for a Truly Sustainable Transition

The energy transition must work in harmony with biodiversity conservation. Poorly sited renewable infrastructure can disrupt habitats, threaten species, or fragment natural landscapes. In the UK, wind farms have had to adjust to avoid bird migration paths, and solar arrays have been redesigned to support pollinators through wildflower planting. These examples show the importance of thoughtful project design, robust environmental assessments, and nature-sensitive planning.

Internationally, countries such as Costa Rica, Bhutan, Norway, and Kenya have demonstrated that renewables and biodiversity can coexist. Costa Rica, for example, gets almost 100% of its electricity from renewables and has protected forests covering almost 50% of its and mass. These nations protect vast natural areas, involve communities in conservation, and adapt renewable infrastructure to local ecosystems. The UK has already launched initiatives like Nature Recovery Networks and is exploring land use models that combine energy production with ecological restoration. By learning from these best practices, the UK can pursue climate action in tandem with ecological stewardship—ensuring that the green revolution benefits not just the atmosphere, but the natural world as well.

Conclusion

The United Kingdom stands at a critical juncture in its pursuit of a green industrial future. Over the past two decades, a combination of legislation, strategic policy interventions, and sustained political commitment has driven measurable progress—most notably in the decarbonisation of the power sector. The closure of coal-fired plants, rapid growth in offshore wind, and legal commitment to net-zero by 2050 have all positioned the UK as a global leader in clean electricity. Yet, this momentum must now be extended across the entire energy system and broader economy.

To accelerate the transition, the UK must confront and resolve infrastructure bottlenecks, particularly in planning and grid capacity. Scaling up onshore wind and solar, expanding energy storage, and ensuring system flexibility will be essential to maintaining reliability as fossil fuels are phased out. Furthermore, deep decarbonisation in transport, heating, and industry must be prioritised, with greater investment in low-carbon technologies and stronger regulatory frameworks. Lessons from international peers demonstrate that ambition, policy coherence, and public engagement are critical to success.

Just as importantly, the transition must be made resilient and inclusive. Policy consistency and equitable investment are necessary to maintain investor confidence and public trust, especially in communities vulnerable to economic disruption. Simultaneously, the integration of biodiversity considerations ensures the UK’s energy revolution is not only low-carbon but truly sustainable. International examples—from Costa Rica to Norway—highlight how climate action can coexist with ecological protection, offering the UK a clear blueprint for progress.

In sum, while much has been achieved, the next phase of the UK’s transition demands greater scale, speed, and sensitivity. With strategic investment, cross-sector decarbonisation, and a commitment to environmental integrity, the UK can realise its ambition of a just, secure, and nature-positive net-zero future—one that serves as a model for industrialised nations worldwide. The UK’s journey is far from over, but its destination is clear – a cleaner, more resilient, and nature-positive future that benefits both people and the planet.

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