Climate Change Committee's new Carbon Budget targets 87% cut to greenhouse gas emissions

The Climate Change Committee has presented the UK's Seventh Carbon Budget, covering the period from 2038 to 2042.
Published today (16 February), the latest Carbon Budget sets an ambitious target to reduce greenhouse gas emissions by 87% by 2040 compared to 1990 levels and is a crucial step towards achieving net zero emissions by 2050.
The advisory body has recommended a total emissions cap of 535 million tonnes of CO2 equivalent (MtCO2e) for the period 2038-2042, including emissions from international aviation and shipping.
The Budget emphasises the importance of electrification, renewable energy, and low-carbon technologies to drive down emissions while ensuring economic benefits and energy security.
Individual sectors are expected to contribute the following reductions:
- Transport: Expected to deliver 27% of the required emissions reductions, primarily through the transition to electric vehicles (EVs).
- Homes and Buildings: Will contribute 14% of reductions, focusing on low-carbon heating systems like heat pumps.
- Electricity Supply: Aiming for 12% reductions, with a significant expansion of offshore wind capacity.
- Industry: Targeting 11% reductions through electrification and carbon capture and storage (CCS).
- Agriculture and Land Use: Expected to contribute 7% through low-carbon farming techniques and increased tree planting.
Analysis: The outlook for UK agriculture
The Carbon Budget finds that emission reduction trends in the sector have flatlined and that whilst some emissions are expected to remain as there is no credible way to completely decarbonise, agriculture will still need to deliver rapid emissions reductions for the seventh carbon budget and require a transformation in UK land use.
The Budget notes 29 key measures that can combine to reduce emissions across agriculture and land use.
Many of these actions have been identified within AIC’s Sustainability Action Plan. However, there remains a strong focus on supporting farmers to diversify their income streams away from livestock agriculture and through using low-carbon farming practices, with opportunities arising in areas such as woodland creation, peatland restoration, energy crops, and renewable energy.
Even taking into account the above, the budget notes that by 2040 agriculture and aviation will be the dominant source of UK emissions and that by 2050 remaining emissions from agriculture and land use are balanced by the carbon sequestered by land-based measures – particularly woodland creation, peatland restoration and energy crops.
More about AIC's Sustainability Action Plan

AIC’s Action Plan for Sustainable Efficiency is your guide to meaningful progress, offering practical actions to reduce environmental impact, support market access, and secure long-term resilience.
All agri-supply businesses are encouraged to explore the Action Plan and engage with AIC for further support. For queries and further information, contact AIC’s Head of Sustainability Vicky Robinson ([email protected]) or Policy Manager Andrew Pearson ([email protected]).
Go to the Sustainability webpage to find out more, or click below.