The UK government has relaunched the Net Zero Council, expanding its membership to drive the country’s transition to clean energy. Bringing together major businesses, civil society groups, and local authorities, the Council aims to align the UK’s net zero transition with economic growth, investment, and job creation.
The relaunch is built on public-private collaboration, ensuring that key industries and stakeholders can help shape the UK’s net zero strategy. As the Council sets its priorities for 2025-2026, businesses can start looking out for future implications for regulation, investment, and sector-specific decarbonisation.
What is the UK Net Zero Council?
The Net Zero Council was first launched in 2023 to provide expert guidance on the UK’s transition to net zero. Now relaunched under the leadership of Energy Secretary Ed Miliband and Co-op CEO Shirine Khoury-Haq, it aims to accelerate decarbonisation while ensuring economic benefits for businesses and communities. At the COP29 climate summit, UK Prime Minister Sir Keir Starmer announced a new target to cut the UK’s annual emissions by 81% versus 1990 levels by 2035.
The Council brings together a wide range of stakeholders, including representatives from HSBC, Siemens, Nestlé, the Local Government Association, the World Wildlife Fund, Aviva Investors, and the Trades Union Congress.
The expanded Council will focus on three core functions:
- Providing expert input to government net zero strategies.
- Helping high-emitting sectors develop roadmaps for transition.
- Supporting small and medium-sized enterprises (SMEs) in decarbonisation efforts.
What are the council’s main Net Zero priorities for 2025-2026?
1. Advising government on Net Zero strategy
The Council will provide expertise on the UK’s emissions reduction strategies, ensuring policies align with investment needs and sector-specific challenges.
2. Supporting sector-specific transition plans
The development of sector roadmaps aims to help businesses create net zero strategies, meet emissions reduction targets, and access funding for green investments, in a way which is more tailored to their type of activity.
3. Enabling SMEs to decarbonise
The Council will work on assisting small and medium-sized enterprises in lowering their greenhouse gas emissions while maximising the economic benefits of the net zero transition.
4. Engaging the public in the Net Zero transition
Public participation is critical for a fair transition. The Council will work with government and industry leaders to promote awareness of, and engagement with sustainability initiatives.
A new Delivery Group will be established to oversee these workstreams and ensure tangible progress.
What does this mean for UK businesses?
The Net Zero Council’s relaunch signals stronger government support for businesses transitioning to clean energy. Key takeaways for businesses include:
- Stronger policy frameworks: Businesses can expect more structured regulations on sustainability reporting, emissions reductions, and sector-specific transition plans.
- Increased investment opportunities: With a focus on clean energy growth, sectors such as renewable energy generation, green finance, and low-carbon technologies will benefit from expanded funding.
- Greater public-private collaboration: Companies will have more opportunities to shape policies, influence net zero strategies, and align with government-led sustainability initiatives.
- Support for SMEs: Smaller businesses will receive guidance and financial support to help them to reduce their emissions and improve energy efficiency.
Why UK businesses should focus on decarbonization
Future-proofing
If your business isn’t already working towards net zero, now is the time to act. The Council’s relaunch emphasises policy certainty, investment in clean technologies, and economic incentives for sustainable businesses. The UK’s industrial strategy is evolving to prioritise net zero, meaning businesses that fail to adapt risk falling behind in an increasingly regulated market.
Regulatory compliance
By beginning your decarbonisation journey now, you can future-proof your business against increasing regulatory requirements. Companies that align with the UK’s net zero targets will be better positioned to comply with evolving policies, avoid potential penalties, and benefit from potential finance and/or investment. The new government is expected to reinforce existing regulations, making proactive decarbonisation a necessity rather than an option.
Investment, development and green finance
Investment in green technologies and sustainable practices also makes businesses more attractive to investors and stakeholders. Green finance is expanding, and businesses with strong net zero commitments will find it easier to access funding and attract long-term investment. Sustainable development is now a major focus for financial institutions, which in turn provides businesses with opportunities to scale up green projects.
Strengthening brand reputation
Consumers and B2B clients are becoming more conscious of environmental impact, and businesses that show leadership in sustainability can strengthen their brand reputation and build consumer trust. Sustainable business practices can serve as a competitive advantage, helping to differentiate your company in the market. This is particularly important as international markets increasingly prioritise carbon reduction and sustainability in trade agreements.
Cost savings and energy efficiency
Energy efficiency improvements can lead to cost savings, reducing reliance on volatile fossil fuel prices and lowering operational expenses. By investing in renewable energy sources and improving energy efficiency, businesses can make their operations more resilient in the long term.
Innovation and collaboration at scale
Collaboration and innovation are also key aspects of the transition. Businesses that actively engage in cross-industry partnerships and supply chain improvements can benefit from shared expertise and new market opportunities. Innovation in clean technology and circular economy models will play a crucial role in defining the future of the UK economy. Achieving net zero at scale requires joint efforts between businesses, government, and international partners.
A turning point for UK climate strategy
The Net Zero Council’s relaunch marks a critical moment for the UK economy. Businesses must prepare for stricter regulations, increased investment opportunities, and stronger collaboration with government and civil society.
With objectives including clear sector roadmaps and support for SMEs, the Council’s initiatives aim to drive the transition while ensuring economic growth and energy security. For UK businesses, taking action on net zero now is both a necessity and an opportunity—one that can lead to long-term success, resilience, and a leadership role in the clean energy economy.
