Select Committee · Environmental Audit Committee

The Seventh Carbon Budget

Status: Open Opened: 23 Sep 2025 27 recommendations 13 conclusions 1 report

This Environmental Audit Committee inquiry will examine the Climate Change Committee's advice on the Seventh Carbon Budget. It will consider the assumptions and costs underpinning the CCC’s recommendations, explore the balance between emerging and established technologies, the policy choices facing Government, and the potential impacts on households, businesses and the wider economy. The inquiry will … Show more

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Reports

1 report
Title HC No. Published Items Response
8th Report - The Seventh Carbon Budget HC 1327 4 Mar 2026 40 Responded

Recommendations & Conclusions

20 items
1 Conclusion 8th Report - The Seventh Carbon Budget Accepted

The Climate Change Committee’s advised level for the Seventh Carbon Budget is technically credible, but...

The Climate Change Committee’s advised level for the Seventh Carbon Budget is technically credible, but will require tough political decisions, and represents a necessary checkpoint in the UK’s statutory pathway to net zero by 2050. (Conclusion, Paragraph 30) Read more

Government response AI summary
The government commits to proposing to Parliament that the seventh carbon budget be set in line with the Climate Change Committee’s recommended level of 535 MtCO₂e. A cross-government process will follow to develop the delivery pathway and new policies, considering the Committee's suggestions.
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5 Recommendation 8th Report - The Seventh Carbon Budget Accepted

In legislating for the Seventh Carbon Budget, the Government should consider the United Kingdom’s contribution...

In legislating for the Seventh Carbon Budget, the Government should consider the United Kingdom’s contribution to global efforts to limit warming, alongside its domestic statutory framework. While the UK has exercised international leadership through the Climate Change Act 2008, the statutory net zero target and its 2035 Nationally Determined Contribution, … Read more

Government response AI summary
The government states its commitment to ambitious climate action, guided by international cooperation and the Paris Agreement, and highlights that the Carbon Budget 7 Impact Assessment articulates how the chosen CB7 level is credibly aligned with pathways to limit global temperature increase to 1.5 °C.
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6 Recommendation 8th Report - The Seventh Carbon Budget Accepted

The Government should set out clearly in the impact assessment that will accompany the draft...

The Government should set out clearly in the impact assessment that will accompany the draft Carbon Budget Order, how the proposed legislative level of the Seventh Carbon Budget aligns with the United Kingdom’s legally binding obligations under the Paris Agreement, including how CB7 enables the UK to meet its status … Read more

Government response AI summary
The government states that the analysis published within the Carbon Budget 7 Impact Assessment articulates how the chosen CB7 level aligns credibly with pathways to limit global temperature increase to 1.5 °C, thereby addressing its Paris Agreement obligations.
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10 Recommendation 8th Report - The Seventh Carbon Budget Accepted

DESNZ should provide clear, consistent and sustained cross-government leadership on communication of net zero policy.

DESNZ should provide clear, consistent and sustained cross-government leadership on communication of net zero policy. Policy announcements and public messaging should reinforce, rather than dilute, the urgency of emissions reductions and the long-term direction of travel required to deliver the Seventh Carbon Budget. (Recommendation, Paragraph 57) Read more

Government response AI summary
The government agrees on the urgency and states that DESNZ already provides cross-government leadership on net zero communications, citing recent campaigns, a new Clean Energy website launched in September 2025, and an annual statement to Parliament as evidence of their commitment to clear public messaging.
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17 Recommendation 8th Report - The Seventh Carbon Budget Accepted

The Government should ensure that delivery of the Seventh Carbon Budget is grounded primarily in...

The Government should ensure that delivery of the Seventh Carbon Budget is grounded primarily in early, high-confidence emissions reductions where possible. Greenhouse gas removals should be treated as conditional and supplementary, not as substitutes for mitigation. (Recommendation, Paragraph 93) Read more

Government response AI summary
The government agrees on the importance of resilience and states its plans already prioritise early, high-confidence emissions reductions, with Greenhouse Gas Removals (GGRs) used to balance residual emissions; it will consider GGR Independent Review recommendations and set out the role of GGRs in a future …
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19 Recommendation 8th Report - The Seventh Carbon Budget Accepted

The Seventh Carbon Budget must deliver genuine emissions reductions, not reductions achieved by exporting emissions...

The Seventh Carbon Budget must deliver genuine emissions reductions, not reductions achieved by exporting emissions overseas. Meeting carbon budgets through offshoring would undermine their environmental purpose 61 and the integrity of the UK’s climate framework, and risks weakening public confidence in decarbonisation by creating the appearance of progress without reducing … Read more

Government response AI summary
The government agrees with the recommendation and is committed to preventing carbon leakage. It will gradually phase out free allocations for sectors covered by the UK Carbon Border Adjustment Mechanism (CBAM) from 2027, over an indicative 9-year period, to work with the introduction of the …
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20 Conclusion 8th Report - The Seventh Carbon Budget Accepted

Decarbonisation must not be confused with deindustrialisation.

Decarbonisation must not be confused with deindustrialisation. Allowing production to relocate abroad would weaken the UK’s industrial base while doing little to reduce global emissions. (Conclusion, Paragraph 102)

Government response AI summary
The government agrees that climate policies must prevent offshoring and support UK industry competitiveness. It highlights its commitment to decarbonise industry, existing investments, and specific policies like the UK ETS and the gradual phasing out of free allocations with the introduction of the UK Carbon …
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21 Conclusion 8th Report - The Seventh Carbon Budget Accepted

Delivering the Seventh Carbon Budget therefore requires a policy framework that supports domestic decarbonisation and...

Delivering the Seventh Carbon Budget therefore requires a policy framework that supports domestic decarbonisation and provides long-term certainty for investment in low-carbon production in the UK. Without this, there is a material risk that progress towards the carbon budgets is achieved on paper rather than through real emissions reductions. (Conclusion, … Read more

Government response AI summary
The government agrees that policies must support domestic decarbonisation and prevent carbon leakage. It highlights existing commitments, the UK Emissions Trading Scheme, and the gradual phasing out of free allocations for sectors covered by the UK Carbon Border Adjustment Mechanism from 2027, with the delivery …
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22 Recommendation 8th Report - The Seventh Carbon Budget Accepted

The Government should set out clearly how its carbon budget policies will prevent the offshoring...

The Government should set out clearly how its carbon budget policies will prevent the offshoring of emissions and support domestic decarbonisation, particularly in energy-intensive and trade-exposed sectors. (Recommendation, Paragraph 104)

Government response AI summary
The government agrees on the importance of preventing emissions offshoring and supporting UK industry decarbonisation. It commits to gradually phasing out free allocations for UK ETS sectors covered by the UK Carbon Border Adjustment Mechanism (CBAM) from 2027, over nine years, and states the full …
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23 Recommendation 8th Report - The Seventh Carbon Budget Accepted

The carbon budget delivery plan should provide clarity on how key policy mechanisms, including electricity...

The carbon budget delivery plan should provide clarity on how key policy mechanisms, including electricity price support, infrastructure delivery, and carbon pricing will operate together during the Seventh Carbon Budget period to support domestic investment and manage carbon leakage. (Recommendation, Paragraph 105) Read more

Government response AI summary
The government agrees with the recommendation and commits to ensuring climate policies do not drive offshoring. It states that the delivery plan will set out how key policy mechanisms, including electricity price support, infrastructure, and carbon pricing, will operate together during the CB7 period to …
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24 Recommendation 8th Report - The Seventh Carbon Budget Accepted

The Government should also set out how free allocation under the UK Emissions Trading Scheme...

The Government should also set out how free allocation under the UK Emissions Trading Scheme and the forthcoming UK Carbon Border Adjustment Mechanism will interact during the transition, with a commitment to review their combined effectiveness globally once the UK Carbon Border Adjustment Mechanism is in place. (Recommendation, Paragraph 106) Read more

Government response AI summary
The government accepts the recommendation, detailing that free allocations under the UK ETS will be gradually phased out for CBAM-covered sectors from 2027 over an indicative nine-year period, and commits to monitoring the effectiveness of this transition and interaction.
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25 Recommendation 8th Report - The Seventh Carbon Budget Accepted

We reiterate our previous recommendation in our report on Airport Expansion, and that of the...

We reiterate our previous recommendation in our report on Airport Expansion, and that of the Climate Change Committee, that the Government should provide Parliamentary time to legislate to include international aviation emissions within carbon budgets and the UK’s net zero targets, before laying the draft Carbon Budget Order. This is … Read more

Government response AI summary
The government accepted the recommendation, stating it laid a statutory instrument on 14 April 2026 to formally include international aviation and international shipping emissions in Carbon Budget 6, all subsequent carbon budgets, and the net zero target.
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29 Conclusion 8th Report - The Seventh Carbon Budget Accepted

Behaviour change at the scale required for the Seventh Carbon Budget will not occur by...

Behaviour change at the scale required for the Seventh Carbon Budget will not occur by default. It depends on policies that tangibly improve everyday life for households and communities. Warmer homes, lower running costs, cleaner air and better local environments are not ancillary benefits of climate action, but essential delivery … Read more

Government response AI summary
The government states that co-benefits are already central to its decarbonisation approach and will continue to guide future plans. It highlights ongoing engagement initiatives, plans to launch an annual Energising Britain event in 2026, and is creating a new Youth Climate and Nature Panel under …
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30 Recommendation 8th Report - The Seventh Carbon Budget Accepted

The Government should place delivery of co-benefits at the centre of its approach to the...

The Government should place delivery of co-benefits at the centre of its approach to the Seventh Carbon Budget. Policies intended to drive behaviour change should be designed from the outset to improve 63 affordability, health outcomes, air quality and local environments. Departments responsible for housing, transport, energy, planning and public … Read more

Government response AI summary
The government states that co-benefits were already central to its decarbonisation approach and will continue to guide future plans. It describes pursuing policies for tangible improvements and is committed to ongoing inclusive engagement, launching an annual Energising Britain event in 2026, and creating a new …
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31 Conclusion 8th Report - The Seventh Carbon Budget Accepted

Fairness is fundamental to the legitimacy of the Seventh Carbon Budget.

Fairness is fundamental to the legitimacy of the Seventh Carbon Budget. Where transition costs are experienced early and unevenly, while benefits arrive later or are less visible, public consent cannot be assumed. The current approach to funding energy policy risks placing disproportionate burdens on households with the fewest options, while … Read more

Government response AI summary
The government states that its published Impact Assessment and equality analysis already consider distributional impacts and fairness in the net zero transition, and that further impacts will be considered in detail as part of developing the CB7 delivery plan.
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32 Recommendation 8th Report - The Seventh Carbon Budget Accepted

The Government should further prioritise reducing electricity costs by removing appropriate policy costs from electricity...

The Government should further prioritise reducing electricity costs by removing appropriate policy costs from electricity bills and funding them through general taxation. This would improve affordability for households and businesses, strengthen incentives for the electrification of heat and transport, and avoid placing additional costs on households that are not yet … Read more

Government response AI summary
The government states it has already moved legacy costs from electricity bills to the Exchequer and taken other actions to reduce electricity costs. It is expanding the British Industrial Competitiveness Scheme, accelerating its £15 billion Warm Homes Plan with an uplift to the Boiler Upgrade …
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33 Recommendation 8th Report - The Seventh Carbon Budget Accepted

Alongside the Seventh Carbon Budget Delivery Plan, the Government should publish a Fairness and Distribution...

Alongside the Seventh Carbon Budget Delivery Plan, the Government should publish a Fairness and Distribution Assessment setting out the expected distributional impacts of carbon budget policies, identifying groups at risk of disproportionate costs, including workers whose jobs are displaced by the transition, and the measures in place to support them. … Read more

Government response AI summary
The government does not commit to publishing a separate Fairness and Distribution Assessment, but states it has already published an Impact Assessment with distributional analysis and an equality analysis, and that further impacts will be considered as part of developing the CB7 delivery plan.
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34 Recommendation 8th Report - The Seventh Carbon Budget Accepted

Public participation is an essential delivery requirement for the Seventh Carbon Budget, not a communications...

Public participation is an essential delivery requirement for the Seventh Carbon Budget, not a communications add-on. As decarbonisation increasingly depends on decisions taken by households and communities, public consent must be sustained through consistent leadership, honest explanation of trade-offs, and genuine two-way engagement that is rooted in credible, practical policy … Read more

Government response AI summary
The government highlights its focus on co-benefits and inclusive, participatory approaches for decarbonisation. It commits to launching an annual "Energising Britain" event in 2026 and creating a new Youth Climate and Nature Panel under the Net Zero Council to ensure engagement and embed intergenerational perspectives …
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36 Conclusion 8th Report - The Seventh Carbon Budget Accepted

Local authorities are essential to delivering the Seventh Carbon Budget as it will rely on...

Local authorities are essential to delivering the Seventh Carbon Budget as it will rely on place-based action rooted in local knowledge, trusted relationships and visible local benefits. Without a clear mandate and sustained funding, the Government cannot credibly expect local authorities to deliver the scale of change assumed under the … Read more

Government response AI summary
The government acknowledges the crucial role of local authorities and outlines several concrete actions, including continued and integrated funding schemes, the establishment of a Warm Homes Agency, and the development of a local net zero framework to provide clarity on their role.
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39 Recommendation 8th Report - The Seventh Carbon Budget Accepted

However, experience shows that Parliamentary scrutiny of carbon budgets has too often been cursory.

However, experience shows that Parliamentary scrutiny of carbon budgets has too often been cursory. The Sixth Carbon Budget, despite setting a legally binding emissions limit with implications for public spending, 65 infrastructure and everyday life, did not remotely receive commensurate Parliamentary focus. That approach is no longer defensible. As delivery … Read more

Government response AI summary
The government reiterates that the Climate Change Act already includes mechanisms for parliamentary scrutiny of carbon budgets, such as debates and approval, and states its approach will align with these statutory duties. It welcomes the Committee's suggestions, noting they will be considered during the development …
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Oral evidence sessions

3 sessions
Date Witnesses
7 Jan 2026 Emma Pinchbeck · Climate Change Committee, Nigel Topping · Climate Change Committee, Polly Cook · Leeds City Council, Professor Lorraine Whitmarsh MBE · Centre for Climate Change and Social Transformations, Toby Park · Behavioural Insights Team View ↗
3 Dec 2025 Caroline Bragg · Association for Decentralised Energy, Claire Dykta · National Grid Electricity System Operator (ESO), Dr Edmund Hughes · Green Marine Associates, Gareth Stace · UK Steel, Jonathon Counsell · International Airlines Group, Rt Hon Chris Huhne · Anaerobic Digestion and Bioresources Association, Tanya Sinclair · Electric Vehicles UK, Victoria Whitehouse · UKRI Industrial Decarbonisation Challenge View ↗
12 Nov 2025 Mike Childs · Friends of the Earth, Professor Joeri Rogelj · Imperial College Business School and Grantham Institute – Climate Change and Environment, Professor Michael Grubb · UCL, Sam Hunter Jones · ClientEarth, Shaun Spiers · Green Alliance View ↗

Who gave evidence

18 witnesses
WitnessOrganisationSessions
Caroline Bragg · Head of Policy Association for Decentralised Energy 1
Claire Dykta · Head of Markets National Grid Electricity System Operator (ESO) 1
Dr Edmund Hughes · Director Green Marine Associates 1
Emma Pinchbeck · CEO Climate Change Committee 1
Gareth Stace · Director General UK Steel 1
Jonathon Counsell · Group Sustainability Director International Airlines Group 1
Mike Childs · Head of Science, Policy and Research Friends of the Earth 1
Nigel Topping · Chair Climate Change Committee 1
Polly Cook · Chief Officer, Climate, Energy and Green Spaces Leeds City Council 1
Professor Joeri Rogelj · Director of Research Imperial College Business School and Grantham Institute – Climate Change and Environment 1
Professor Lorraine Whitmarsh MBE · Director Centre for Climate Change and Social Transformations 1
Professor Michael Grubb · Professor of Energy and Climate Change and Direct… UCL 1
Rt Hon Chris Huhne · Chair Anaerobic Digestion and Bioresources Association 1
Sam Hunter Jones · Senior Lawyer ClientEarth 1
Shaun Spiers · Executive Director Green Alliance 1
Tanya Sinclair · CEO Electric Vehicles UK 1
Toby Park · Director, Climate, Energy and Sustainability Behavioural Insights Team 1
Victoria Whitehouse · Deputy Director UKRI Industrial Decarbonisation Challenge 1

Correspondence

4 letters
DateDirectionTitle
23 Jun 2026 To cttee Letter from the Minister of Climate relating to The Seventh Carbon Budget, 22 J…
11 Feb 2026 From cttee Letter to the Secretary of State for Energy Security and Net Zero relating to d…
11 Feb 2026 To cttee Letter from the Chair of the Climate Change Committee, Nigel Topping CMG, relat…
12 Nov 2025 To cttee Letter from the Secretary of State for Energy Security and Net Zero relating t…