The United Kingdom (UK), ranking 13 out of 120 countries on the ETI 2023, has seen an 11% improvement in its ETI score over the last 10 years. It has been a consistent performer, demonstrating a strong enabling environment for energy transition, particularly on dimensions such as education and human capital, infrastructure, and regulation and political commitment. The UK’s momentum has
stabilized in the secure dimension but continues to lead in equitable and sustainable. As reported by Thanet District Council, “in 2019, the UK became the first major economy in the world to legislate a binding target to reach net zero emissions by 2050”.^{42 42}Coal has been phased out of power generation ahead of schedule, and the share of renewables in the energy mix has increased.

The UK’s legal framework, including the 2008 Climate Change Act, has provided stability and consistency for investors and businesses, contributing to the success of renewable energy deployment and emissions reduction. The energy policy, however, has undergone several changes in recent years, creating uncertainty in the market, and recent reports have highlighted the need to provide long-term policy commitments and regulations.⁴³⁴³ Even so, the country has made significant investments in offshore wind, with one of the largest installed capacities globally, and is considered a leader in this space. The development of a large domestic supply chain for offshore wind energy has also created jobs and economic growth, which is reflected in the high ETI scores for human capital.

Nuclear power is seen as a key part of the UK’s low-carbon energy mix, with recent investments to replace ageing infrastructure and introduce new facilities. The government’s ambition to increase solar energy generation capacity by up to 70 gigawatt (GW) by 2035 demonstrates its commitment to diversifying its energy mix further.⁴⁴⁴⁴ To reduce emissions from hard-to-abate sectors, the UK is investing £20 billion over the next two decades to scale up its carbon capture sector.⁴⁵⁴⁵ With its 2023 International Climate Finance (ICF) Strategy, the UK aims to double ICF to £11.6 billion between 2021-2022 and 2025-2026. It seeks to further accelerate the transition in both energy-producing and energy-consuming sectors by rapidly expanding the portfolio of renewable investments; working through coalitions and partnerships under the Breakthrough Agenda; increasing investments in research and development of low-carbon technologies; strengthening governance, policy and regulatory frameworks and strategic energy systems planning; and deploying clean energy projects in energy intensive industries.⁴⁶⁴⁶

Dependence on oil and gas has left the UK exposed to the global fossil fuel price shock. Annual “gas and electricity price increases to April 2022 were the largest ever recorded in a series going back to 1970, and have continued to rise as Russia has restricted the supply of gas to continental Europe”, increasing concerns about energy affordability and security.⁴⁷⁴⁷ To overcome these challenges,
the government has been actively transitioning its energy sector to meet its 2050 net-zero target, focusing on the production, distribution and consumption of energy in more sustainable ways. A British Energy Security Strategy was published, aiming to decarbonize the electricity system and “set strong and stretching targets for the roll-out of low-carbon electricity generation” in the coming decade, though much of the strategy focuses on “electricity generation and oil and gas supply”.⁴⁸⁴⁸

The UK faces challenges with its grid, so any lessons learned in this space could be applied to others as well. To deliver genuine energy security, the country is prioritizing improving energy efficiency and reducing energy demand by implementing policies to improve energy efficiency in buildings, transport and industry. The Heat and Buildings Strategy includes a phase-out of gas boilers by 2035 and the installation of 600,000 heat pumps per year by 2028.⁴⁹⁴⁹ The Future Homes Standard also sets new standards and regulations to reduce carbon emissions in new homes from 2025, acting as an incentive for solar installations in housing developments.⁵⁰⁵⁰ The UK has brought forward its target date for discontinuing the sale of new petrol and diesel cars in favour of electric vehicles from 2040 to 2030.⁵¹⁵¹ Backed by a £1.6 billion investment from the Electric Vehicle Infrastructure Strategy, the UK plans to expand its charging network to have 300,000 public chargers by 2030.⁵²⁵²