The UK government’s Spring Statement, delivered on March 26, 2025, outlines further commitments to achieving net zero emissions and tackling climate change. This year’s statement introduces several key measures that will impact businesses and the broader community.
Here is a closer look at the highlights and their implications for our journey towards a sustainable future.
Strengthening the net zero commitment
Increased investment in green technologies
The government has pledged an additional £2 billion to support the development and deployment of green technologies. This investment will help to accelerate the transition to renewable energy sources, such as wind and solar power, and promote the adoption of energy-efficient solutions across various sectors.
Removal of the Climate Change Levy for green hydrogen
In a significant move, the government announced the removal of the Climate Change Levy (CCL) on electricity used to produce green hydrogen via electrolysis. This change aims to reduce the costs associated with green hydrogen production, making it a more viable and attractive option for businesses looking to decarbonise their operations.
Support for Carbon Capture and Storage (CCS)
The Spring Statement includes funding for Carbon Capture and Storage (CCS) projects. By capturing and storing carbon emissions from industrial processes, CCS technology can play a role in reducing the overall carbon footprint and achieving net-zero targets.
Enhancing climate resilience
Infrastructure Investments
The government has committed £13 billion over the next five years to enhance the UK’s infrastructure. This includes investments in sustainable transport, energy-efficient buildings, and resilient supply chains. These initiatives help to reduce emissions but also create high-skilled jobs and stimulate economic growth.
Regional growth and decarbonisation
The statement emphasises the importance of regional growth in the transition to a net-zero economy. Initiatives such as the National Wealth Fund and Great British Energy are designed to support regional decarbonisation efforts, ensuring that all parts of the UK benefit from the green transition.
Joe Fyans, Head of Research at Localis commented
The Net Zero Growth and Energy Security plans indicate a government which is beginning to match its rhetoric with action where decarbonisation is concerned, with an acknowledgment of the importance of the local state in delivering this ambitious target and the outlining of measures to aid councils in doing so. However, there is a troubling lack of urgency and clear overarching direction in the growth plan, and the thorny issue of decarbonisation under a two-track devolution system remains a concern.
Whilst UK Green Building Council (UKGBC), Simon McWhirter, Deputy Chief Executive said
We welcome the Treasury’s £2 billion investment in social and affordable housing, but these homes need to be aligned with a Future Homes Standard which ensures the high quality and energy-efficient homes people deserve, and prevents the need for expensive retrofitting in the future. The current proposals are simply far too anodyne and much more bravery is required. The UK urgently needs a comprehensive long-term National Retrofit Strategy, to deliver the warm, comfortable, healthy homes people need, with funding to match. Investment in our net zero future supports industry, business, and society – it is central to Labour’s promise to bring down household energy bills and revitalise the UK’s towns, cities, and infrastructure.
Implications for businesses
Regulatory compliance and opportunities
Businesses will need to align with the new regulations and take advantage of the opportunities presented by government incentives. This includes adopting renewable energy solutions, improving energy efficiency, and investing in green technologies.
Supply chain sustainability
The focus on Scope 3 emissions means that businesses must work closely with their suppliers to reduce indirect emissions. Sustainable procurement practices and collaboration with suppliers will be essential in achieving comprehensive carbon reduction goals.
Financial Benefits
Access to green financing options and government grants will support businesses in their sustainability initiatives. Companies that lead in sustainability will not only comply with regulations but also gain a competitive edge in the market.
Graham Paul, Service Delivery Director, TEAM Energy said
The UK government’s Spring Statement is a positive step forward in our collective journey towards net-zero emissions. The increased investment in green technologies and the removal of the Climate Change Levy for green hydrogen production are particularly encouraging. These measures will support our transition to renewable energy but also support businesses in adopting sustainable practices. For businesses, this presents both challenges and opportunities. At TEAM Energy, we are committed to helping our clients navigate these changes and achieve their sustainability goals. Together, we can create a greener, more resilient future.