Not quite. UK emissions are almost half what they were in 1990, and renewable energy now generates more than half of the country's electricity. But there's still work to do, especially when it comes to heating our homes and reducing transport emissions. In this article, we review how the UK is progressing towards net zero, and what it means for homeowners.
“It’s easy to feel the climate challenge is too big, but the UK has already cut emissions by almost half compared with 1990, and renewables now generate over half of our electricity. That’s brilliant news, and homeowners can be part of the next chapter.
Simple steps like better insulation, solar panels or a heat pump can make your home warmer and cheaper to run. They can make it more appealing to buyers too. If the upfront cost feels like a hurdle, a green mortgage or further advance could help spread it. Speak to a mortgage adviser and let’s work out a plan that suits you.”
Karina Gerdes
Group Head of Sustainability
What is net zero?
Stand by for a quick science lesson. Net zero means balancing the greenhouse gases we produce with those we remove from the atmosphere. Some emissions, such as those from farming, are hard to avoid. These can be balanced through tree planting or technologies that capture carbon.
Why does net zero matter?
Lower emissions mean lower climate risk, fewer extreme weather events (the 2026 heatwave, anyone?) and more stable energy supplies.
Cleaner energy usually means lower long-term energy bills.
Energy-efficient homes tend to be warmer, cheaper to run and more attractive to buyers.
Carbon budgets
The UK’s climate targets are legally binding. They work through things called ‘carbon budgets’, which cap the greenhouse gases we can emit over five years.
The sixth budget aims for a 78% cut on 1990 levels by 2035. The UK Parliament also passed the seventh carbon budget (CB7) in June 2026, which sets an 87% cut on 1990 levels for 2038 to 2042.
The Climate Change Act and the 2050 target
The Climate Change Act 2008 made the UK’s climate targets law. In 2019, the target was strengthened binding the UK to reaching net zero by 2050.
Is the UK on track to reach net zero by 2050?
Not quite yet, and the Climate Change Committee’s (CCC) June 2026 progress report says we need to pick up the pace. Transport, heating and agriculture need to speed up most. The CCC also wants households to be better protected from swings in fossil fuel prices because, as consumers, we feel those swings in our energy bills.
How much UK emissions have fallen since 1990
Final figures for 2024 show UK emissions were 49% below 1990 levels, according to the CCC’s June 2026 report. That includes the UK’s share of international flights and shipping. It means we’re about halfway to net zero, which is a great start for UK emissions reduction.
How does the UK compare with other countries?
The UK is still one of the fastest reducers of emissions among major economies. A big reason is the move away from coal. Our last coal power station closed in September 2024. Since then, progress has slowed a little, and other countries are speeding up their renewable energy and home retrofit programmes. That’s a great reason for the UK to keep pushing.
Where UK emissions come from
Knowing where emissions come from shows why homes matter so much. Here’s the breakdown based on the UK Government’s provision greenhouse gas emission figures (by sector):
Transport (31%): the UK’s largest emitting sector, with domestic transport emissions rising in 2025.
Buildings and homes (22%): Covering building and product uses, including commercial and public buildings.
Energy supply (17% – combining electricity & fuel): falling quickly thanks to renewables.
Agriculture and land use (13%): slower to cut.
Industry (11%): still a big source, especially heavy manufacturing.
The shift to renewable energy
Here’s the good news. The UK’s electricity system has changed hugely over the past decade. Renewables generated just over half of our electricity in 2025, according to government figures. That’s the second year in a row above 50%. So, how is the UK tackling climate change? A big part of the answer is UK renewable energy.
Offshore and onshore wind
Wind is our biggest source of clean power, at around 30% of electricity in 2025. The government wants 43 to 50GW of offshore wind in the UK by 2030, per the Clean Power 2030 Action Plan – a big step up from today’s figure of over 16GW. For comparison, a gigawatt (GW) is a billion watts, enough to power approximately one million homes.
Solar power
Solar is booming. In 2025, more than 269,000 homes and buildings added panels, the highest number ever By March 2026, the UK had passed 2 million solar installations. April 2026 brought another 23,000 installations, with more than half on rooftops. Even better, rooftop solar can cut annual energy bills by up to £480. That makes it one of the quickest ways to save money on your bills and help the planet too.
Clean Power 2030 and the end of coal power in the UK
Clean Power 2030 is the plan to make nearly all of the UK’s electricity from clean sources by the end of this decade. Coal has already gone from the grid. Renewables supplied 53.1% of UK electricity in the first three months of 2026, up from just 6.9% in 2010.
Other renewables
Biomass, hydro and tidal power are smaller, but they add variety to the energy mix.
Why homes matter in the race to net zero
Our homes are a big part of the picture too, which means homeowners need to get up to speed with what’s going on.
The UK’s ageing housing stock
We have some of the oldest, least insulated homes in Europe. Many lose heat through walls, roofs and windows. That makes them cost more to heat and produce more carbon. The upside is that there’s lots of room to improve.
EPC ratings explained
An Energy Performance Certificate (EPC) rates a home from A (most efficient) to G. The average home is around band D. Private landlords will need to reach at least band C by 2030.
The Future Homes Standard for new builds
The Future Homes Standard is designed to make new homes in England zero carbon ready, with low-carbon heating and better insulation. That’s one reason new builds often cost less to run.
Government schemes and grants for homeowners
A few schemes can help with the cost of greener home improvements. Check each one’s rules before you apply, as they can change.
The Boiler Upgrade Scheme
Homeowners in England and Wales can get up to £7,500 off an air source, ground source or water source heat pump via the Boiler Upgrade Scheme. Your installer applies for you and takes the grant off your bill. Following the Autumn Budget, the BUS was extended until 2030.
If your home runs on oil or LPG, you can get an additional £9000 off the cost of your heat pump. However, this is set to end on March 2027.
The ECO4 Scheme
The ECO4 scheme helps eligible households with insulation and heating upgrades. What’s open changes regularly, so check what’s available now. ECO4 is due to close on 31 December 2026, so get your skates on.
The Warm Homes Plan
Launched in January 2026, the Warm Homes Plan puts £15 billion towards upgrading up to 5 million homes in England by 2030. It includes government-backed, low-interest loans for things like solar panels, batteries, insulation and heat pumps.
The Smart Export Guarantee
Install solar panels and you can earn money by sending unused electricity back to the grid. The Smart Export Guarantee (SEG) makes that possible. It started in January 2020 and replaced the Feed-in Tariff, which closed to new joiners in 2019.
Here’s how the SEG works:
Energy suppliers pay you for the spare electricity your panels send to the grid.
Rates vary, so it pays to compare tariffs.
Homeowners with an MCS-certified solar, wind or hydro system and a meter that records exports can apply.
Larger suppliers must offer a tariff.
Green mortgages and energy-efficient homes
A green mortgage can reward you for owning an efficient home, or help you make your home more efficient.
What is a green mortgage?
It’s a mortgage with a perk for energy-efficient homes. Some lenders offer:
Lower rates for homes with EPC A or B
Extra borrowing for retrofits
Incentives for improving your EPC rating after you buy
How energy efficiency affects your borrowing options
Some lenders offer better deals on efficient homes. Lower energy bills can also leave more room in your budget. Lenders look at that when they work out what you can borrow.
Use our Mortgage Borrowing Calculator to help you work out how much you might be able to borrow
Funding retrofits through a remortgage or further advance
You could borrow more against your home to pay for insulation, solar panels or a heat pump. A remortgage or further advance can do that. It’s worth comparing the costs, as you’ll pay the extra back over time.
Is a green mortgage right for you?
Thinking about improving your home’s EPC rating or funding energy-efficient upgrades? Speak to a mortgage adviser. They can help you work out whether a green mortgage, remortgage or further advance is the best way to pay for your plans. Request a callback or contact us today.
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Something to bear in mind...
Frequently asked questions
Not quite yet. Progress is strong in electricity, and heating, transport and agriculture are catching up.
The legal target is 2050.
Emissions in 2024 were 49% below 1990 levels, including international flights and shipping.
Just over half in 2025, at around 52%.
The Boiler Upgrade Scheme offers up to £7,500 towards a heat pump. The Warm Homes Plan also brings low-interest loans and support for lower-income households.
It’s a mortgage that rewards energy-efficient homes or helps you pay for improvements, often with a lower rate or cashback.
Improve your insulation, use energy more efficiently and think about a heat pump or solar panels when the time is right.