Industrial Decarbonisation Strategy

Last updated: 25 March 2022

The new Industrial Decarbonisation Strategy sets out the government’s vision for building a competitive, greener future for the manufacturing and construction sector.      


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

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

£932 million has been allocated to 429 projects across England to cut carbon emissions from public facilities such as hospitals, schools, and municipal offices. Low-carbon heating systems, such as heat pumps, and energy efficiency improvements, such as insulation and LED lighting, are funded through the Public Sector Decarbonisation Scheme.

In England and Wales, the government will also adopt new criteria for monitoring the energy and carbon performance of the country's major commercial and industrial structures, such as office buildings and factories. The move could save businesses nearly £2 billion per year in energy expenses by 2030, while also aiming to decrease annual carbon emissions by over 2 million tonnes, or about 10% of present emissions from commercial and industrial buildings.

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