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Industrial Decarbonisation Strategy

Last updated: 16 June 2021

Building on the Prime Minister’s 10 Point Plan for a Green Industrial Revolution published in 2020, the new Industrial Decarbonisation Strategy sets out the government’s vision for building a competitive, greener future for the manufacturing and construction sector.      

The stimulus expects to create and support 80 000 jobs over the next 30 years, whilst cutting emissions by two-thirds in just 15 years, and increasing greener energy sources to 20 TWh in the UK's industry energy supply (increasing use of low carbon energy sources to around 40% of industry's total energy consumption).      

To kick start the process, £171 million from the Industrial Decarbonisation Challenge has been allocated to 9 green tech projects in Scotland, South Wales and North West, Humber and Teesside in England, to undertake engineering and design studies for the rollout of decarbonisation infrastructure, such as carbon capture, usage and storage (CCUS) and hydrogen.      

To reduce carbon emissions from public buildings including hospitals, schools and council buildings, £932 million has been directed to 429 projects across England. The Public Sector Decarbonisation Scheme funds low carbon heating systems, such as heat pumps, and energy efficiency measures like insulation and LED lighting.      The government will also introduce new rules on measuring the energy and carbon performance of the UK’s largest commercial and industrial buildings, including office blocks and factories, in England and Wales. The move could provide potential savings to businesses of around £2 billion per year in energy costs in 2030 and aim to reduce annual carbon emissions by over 2 million tonnes – approximately 10% of the current emissions from commercial and industrial buildings.

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