Decarbonisation Compliance Timeline: What UK Businesses Must Achieve by 2030, 2035 and 2050

What does the UK's Net Zero commitment mean for businesses?

The UK was the first major economy to legislate for Net Zero, committing to eliminate its contribution to climate change by 2050 through the Climate Change Act 2008. This legally binding target is supported by five-yearly carbon budgets that set maximum emission limits, ensuring progress happens at a measured pace rather than being deferred to future years.

Whilst the UK government is legally obligated to meet these targets, businesses are affected through sector-specific regulations, emissions reporting requirements and property standards designed to align industries with national limits.

The Climate Change Committee, which provides independent advice to the government, has confirmed that achieving Net Zero will require significant changes across all sectors of the economy.

Which Net Zero compliance requirements are already in effect?

Several mandatory reporting frameworks are already operational, affecting thousands of UK businesses:

Streamlined Energy and Carbon Reporting (SECR)

SECR requires large companies to disclose their energy use, carbon footprint and greenhouse gas emissions in annual financial reporting. You must comply if your business meets at least two of the following criteria: annual turnover of £36 million or more, balance sheet total of £18 million or more, or 250 or more employees.

Energy Savings Opportunity Scheme (ESOS)

ESOS mandates energy audits every four years for large enterprises with annual turnover exceeding £44 million and balance sheet totals over £38 million. The deadline for Phase 4 regulations is 5^th December 2027.

Minimum Energy Efficiency Standards (MEES)

MEES currently prohibit letting commercial properties with an Energy Performance Certificate (EPC) rating below E. This affects both new and existing tenancies, with exemptions only available under specific circumstances relating to cost-effectiveness or building protection status.

The Net Zero compliance timeline

Critical milestones by 2030

The end of this decade represents a crucial checkpoint for UK decarbonisation efforts. By 2030, the UK must achieve a 68% reduction in greenhouse gas emissions compared to 1990 levels under its Nationally Determined Contribution commitment.

For commercial property owners and occupiers, the most significant change will be the expected requirement for all non-domestic rented buildings to achieve an EPC rating of B. An interim milestone requiring EPC C is expected by 2027 or 2028, giving landlords compliance windows to meet these standards.

The Climate Change Committee projects that heat pump installations must reach 450,000 per year by 2030, whilst the government has committed to deploying at least 5 million tonnes of carbon dioxide per year through engineered removal technologies. The sustainable aviation fuel mandate will require 10% of jet fuel to come from sustainable sources.

Building momentum through 2035

The pace of change accelerates through the mid-2030s. By 2035, the UK must achieve an 81% emissions reduction from 1990 levels under its second Nationally Determined Contribution commitment. This represents a significant step up from the 2030 target and will require substantial investment in low-carbon infrastructure across all sectors.

All new and replacement heating systems must be low-carbon by 2035 to ensure a fully decarbonised housing stock by 2050. Heat pump installation rates are expected to reach 1.5 million per year, whilst engineered carbon removals must increase to around 23 million tonnes annually. By this point, the transformation of how we heat and power our buildings will be well underway, with approximately half of UK homes expected to use heat pumps by 2040.

Industrial sectors will need to accelerate their transition, with electricity projected to meet 61% of industrial energy demand by 2040. The main decarbonisation routes include electrification, fuel switching to hydrogen or bioenergy, resource and energy efficiency improvements, and carbon capture and storage.

The 2050 Net Zero deadline

Reaching Net Zero by 2050 requires eliminating virtually all greenhouse gas emissions whilst deploying substantial carbon removal capacity.

The Climate Change Committee's Balanced Net Zero Pathway projects that 75 to 81 million tonnes of engineered removals and 39 million tonnes of nature-based removals will be needed annually to offset residual emissions from sectors that cannot be completely decarbonised.

This legally binding target under the Climate Change Act 2008 represents the culmination of decades of sustained effort. By 2050, the UK's energy system, buildings, transport and industry must operate on fundamentally different principles than they do today, with fossil fuels largely eliminated except where they are combined with carbon capture technology.

What can I do to meet my sustainability goals today?

Understanding these compliance requirements is only the first step. Businesses that integrate decarbonisation strategies early will benefit from enhanced investor confidence, reduced operating costs and improved resilience against regulatory risk. 

Our decarbonisation specialists can help you develop a roadmap tailored to your specific circumstances, secure funding, and implement the necessary changes to your properties.

Discuss your sustainability goals with our team today

Whether you need support with energy efficiency improvements or compliance planning, we have over 180 years of experience helping organisations navigate complex property challenges. Call 0800 051 2593 or complete the form below to arrange a free consultation with one of our experts.