The Department for Energy Security and Net Zero (DESNZ) has published its annual update to Parliament on the government’s progress with the policy mechanisms implemented under the Electricity Market Reform programme. The update focuses on four key mechanisms: the Contracts for Difference (CfD) scheme, the Capacity Market (CM), the Electricity Demand Reduction pilot, and the Emissions Performance Standard. Following the general election in July 2024, the CfD scheme was allocated a £1.5bn budget for its sixth allocation round (AR6), resulting in a record 128 projects being awarded contracts, delivering 9.6 gigawatts (GW) of new low-carbon capacity. Preparations for AR7 are ongoing, and the government is collaborating with industry to further expand the CfD scheme to achieve the 2030 clean power target. The Capacity Market (CM) secured 42.8GW of electricity capacity for 2027/28 and 7.64GW for 2024/25, with rule changes implemented to support auction liquidity. No significant developments were reported for the Electricity Demand Reduction pilot or the Emissions Performance Standard.

The Department for Energy Security and Net Zero (DESNZ) has published the 2024 Nuclear Decommissioning Authority (NDA) Framework Document, setting out the broad governance and accountability framework within which the NDA, DESNZ as the Sponsor Department, UK Government Investments Limited (UKGI) as the Shareholder Representative of the DESNZ, and the Scottish Government will operate. It outlines the NDA’s core responsibilities, as well as how the day-to-day relationship between the NDA, the DESNZ, UKGI, and the Scottish Government, including matters pertaining to governance and financial matters, will work in practice.

The Department for Energy Security and Net Zero (DESNZ) has published the 2024 performance report for the UK Emissions Trading Scheme (UK ETS), marking the scheme’s fourth year of operation. The report provides a high-level overview of UK ETS infrastructure, participant data for installations and aviation, market oversight and compliance data. It also covers the functioning of the carbon market, including the supply and free allocation of UK Allowances (UKAs), auction results and the implementation of the Cost Containment Mechanism (CCM). Total recorded emissions for 2024 were 85,634,344 tCO₂e, representing an 11.5% decrease from 96,750,817 tCO₂e in 2023, driven by lower emissions across the power, industrial and fuel supply sectors. All 25 auctions held for the 2024 scheme year cleared successfully, with 68,964,000 UKAs auctioned, generating £2.56bn in revenue. The scheme maintained high compliance rates, with 99.99% for installations and 99.81% for aircraft operators since its launch in 2021. The CCM was not triggered during 2024. The UK ETS Authority is currently conducting the second phase of its monitoring and evaluation programme, which will assess the scheme’s long-term impacts, with findings due to be published in 2026.

The Department for Energy Security and Net Zero (DESNZ) has published its 2025 post implementation review (PIR) of the Energy Savings Opportunity Scheme (ESOS) Regulations 2014, SI 2014/1643. The review draws on the Phase 3 notification of compliance data from the Environment Agency, as well as unpublished interim data from Phase 3 action plans and follows the 2020 PIR. It recommends that no major changes be made to SI 2014/1643 until the conclusion of a full evaluation of the scheme in May 2026, after which a comprehensive PIR will be completed. The research aims to evaluate the effectiveness of energy audits and reporting in identifying and delivering energy efficiency savings across organisations.

The Department for Energy Security and Net Zero (DESNZ) has published the 2025-26 Renewables Obligation level, as well as the underpinning calculation methodology.

The Department for Energy Security and Net Zero (DESNZ) has published the UK renewables deployment supply chain readiness study – 2026 update, commissioned to Baringa Partners LLP, refreshing the 2024 assessment of supply chains for key renewable technologies supporting the Clean Power 2030 Action Plan to meet at least 95% low‑carbon electricity generation by 2030. The study finds that supply chain risks have reduced since 2024 but remain most acute for offshore wind, notably turbines, floating foundations, high voltage direct current cables and converter stations, ports and installation vessels, while onshore wind and solar photovoltaic face fewer constraints, mainly transformers, switchgear, planning and grid connections, alongside cross‑cutting skills shortages. It highlights recent UK Government interventions, including increased contract for difference (CfD) Administrative Strike Prices, offshore wind supply chain investment, the Clean Industry Bonus and the Clean Energy Jobs Plan, as critical to enabling renewables deployment at scale.

The Department for Energy Security and Net Zero (DESNZ) has published the July 2026 update to the 2025 Clean Flexibility Roadmap, introducing new commitments focused on consumer-led flexibility (CLF) and longer-term delivery outcomes. Key new commitments include assessing whether recipients of government support for low carbon technologies should be placed on flexible tariffs (with an opt-out option), taking legislative powers to remove final consumption levies for demand turn up and re-exported electricity to support bidirectional electric vehicle (EV) charging and domestic batteries, and future-proofing interoperability standards for energy smart appliances. The update also commits to supporting delivery of 7.6GW of Long Duration Electricity Storage (LDES) projects, ensuring CLF and storage are assessed and modelled as part of Reformed National Pricing reforms, advancing hydrogen-to-power through a dedicated business model and legislation, and creating flexibility-enabled energy procurement routes for schools, hospitals and government buildings. It also reports progress since the 2025 Roadmap, including the Warm Homes Plan, migration of more than 11.3 million smart meters to half-hourly settlement, and continued growth in grid-scale battery storage capacity.

The Department for Energy Security and Net Zero (DESNZ) has published the Statement on Civil Nuclear Fuel Use together with the Advanced Nuclear Framework, setting out a package of policy measures intended to accelerate privately led advanced nuclear projects while providing long-term clarity on fuel standards for civil nuclear reactors. The Advanced Nuclear Framework outlines the government’s approach to enabling the development and deployment of advanced nuclear technologies, including Small Modular Reactors, Advanced Modular Reactors and Micro Modular Reactors, with a clear emphasis on private sector delivery. The accompanying fuel use statement confirms the government’s position on the maximum enrichment levels permitted for civil nuclear fuel, with the aim of supporting investor confidence and facilitating long-term planning across the nuclear supply chain.

Environment analysis: The Department for Energy Security and Net Zero (DESNZ) has published the government response to its 2023 consultation on its proposals for a new six-year climate change agreements (CCA) scheme, to follow the existing scheme from 2025. Paul Collins, senior associate at Ashfords, provides comment on the development.

The Department for Energy Security and Net Zero (DESNZ) has published its response to a consultation on a six-year Climate Change Arrangements (CCA) scheme that continues the incentive of access to reduced Climate Change Levy (CCL) rates for eligible businesses in exchange for the delivery of negotiated energy efficiency or carbon targets. The government response re-affirms a new six-year CCA scheme, with targets to the end of 2030 (the first target period starting for existing CCA sectors on 1 January 2026) and will provide CCL reduced rates for those meeting their obligations until March 2033.

The Department for Energy Security and Net Zero (DESNZ) has published research documents from Imperial College London's Carbon Capture, Usage and Storage (CCUS) Innovation 2.0 project on carbon sequestration in the built environment. The 17 documents cover a range of technical areas, including carbonation and dissolution operations, flue gas recovery, concrete trials, process optimisation and business development phases. The project sought to develop and scale a carbon sequestration process capable of converting waste carbon dioxide from industrial facilities into construction products using patent-pending technology that separates globally abundant magnesium silicate minerals into magnesia and silica components. The process creates amorphous silica for use as a supplementary cementitious material in low-carbon concrete, alongside a concentrated magnesium solution for CO₂ sequestration to produce other construction materials.

The Department for Energy Security and Net Zero (DESNZ) has published the outcome of its call for evidence on a future carbon capture, usage and storage (CCUS) network strategy, to inform the transition to a self-sustaining and market-led sector. DESNZ found broad consensus that stable carbon pricing, clear regulatory frameworks, and predictable policy signals are essential to secure investment and reduce reliance on government support. Respondents emphasised the importance of diversified revenue streams, including industrial decarbonisation and hydrogen production, alongside improved market access such as cross-border CO₂ transport, to strengthen network utilisation and commercial viability. Flexible capacity products, integration of pipeline and non-pipeline transport, and coordinated infrastructure planning were also identified as key to improving efficiency and managing demand variability.