Driving economic growth: How the UK’s climate targets unlock business action and investment
UK Corporate Leaders Group, We Mean Business Coalition
The UK is at a critical moment in delivering against its climate targets. Having already demonstrated how climate action can drive economic growth, it needs to build on this, and fast.
The UK’s new NDC 2035 set the benchmark for ambition internationally when it was announced in 2024, building on the country’s longstanding leadership of being the first in the world to create a legally binding national framework for cutting greenhouse gas emissions. The priority now is implementation, requiring clear direction and smart policies that will unlock business investments and deliver secure, affordable clean energy for all. The recently published Carbon Budget and Growth Delivery Plan recognises this need and clearly acknowledges the critical role of business in enabling the UK to meet its climate targets.
UK businesses have also shown leadership, with thousands setting targets for reaching climate neutrality. They recognise the economic imperative for the UK to act so they can take advantage of the opportunities this presents in a transition that is already well underway; the green economy is growing faster than any other part of the UK economy and is an important source of green jobs. Through government setting out consistent and clear policy frameworks and removing barriers to action, businesses know that investment can be unlocked, and implementation can be fast tracked, supporting even greater economic growth.
However, while the UK has made good progress, some policy gaps remain. Areas such as innovation, electrification, creating better homes, and protecting nature are still key priorities. In delivering against these, government must bring business and the public with it – instilling pride in the progress the UK has already made and demonstrating the positive benefits to lives, livelihoods, communities and nature.
This report, a collaboration between the We Mean Business Coalition and the UK Corporate Leaders Group, calls for the UK government and businesses to work together to deliver emissions reductions that set the UK on track to meet its climate targets. The UK has already demonstrated it can deliver economic growth while reducing emissions. Now is the time for strong domestic action that secures growth and prosperity, setting further examples for other countries to follow to raise ambition globally.