UK firms must prepare for phasing out of carbon emissions

UK companies will face fundamental changes to their operating environment as the government moves to phase out environmentally unfriendly business practices to meet its 2050 net zero carbon emission target.

The UK Energy Research Centre (UKERC) said many companies will be impacted by the government’s disruptive approach towards building the zero-carbon economy.

The target was passed in the Commons earlier this month, but companies were not ready for the change.

Jim Watson, a director at the UKERC, said some sectors would be more affected than others with heating, transport and construction among those facing the biggest changes, said the report.

“The electricity sector has already gone through a major change, for example, but other sectors are at the starting point and the government is going to have to be the disruptor here.”

He also noted that companies involved in running the UK’s gas networks might need to consider “an exit, or managed decline”.

The government had already set an end-2040 deadline for sales of traditional combustion engine cars to stop, although hybrids would need to be added to the list of banned vehicles.