Environmental Audit Committee warns that fairness must drive Seventh Carbon Budget plans

5th Mar 2026

The Environmental Audit Committee has published a report analysing the Seventh Carbon Budget.

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Yesterday, 4th March, the Environmental Audit Committee published a report analysing the Seventh Carbon Budget.

The Committee warns that mixed policy signals, including proposals to introduce pay-per-mile charging for electric vehicles, risk weakening public and investor confidence, while contradictory decisions such as airport expansion must be transparently reconciled with the pathway required to meet the UK’s legally binding environmental targets. 

These misaligned choices signal that net zero is a “conditional ambition rather than a binding national obligation”, MPs warn and would slow the uptake of low-carbon technologies, deter investment and undermine confidence net zero. 

The Environmental Audit Committee was invited by the Government to assess the Climate Change Committee advice for the UK’s Seventh Carbon Budget (CB7) proposals, covering the years 2038-2042. Carbon Budgets, established by the Climate Change Act 2008, cap the total greenhouse gases the UK can emit over five-year periods.

Alongside written evidence, the Committee also held roundtable discussions with representatives of sectors across the UK economy, to understand what challenges and opportunities the Government would face in delivering the carbon budget. 

In the report, the Committee warns against confusing decarbonisation with deindustrialisation; allowing production to relocate abroad would weaken the UK’s industrial base while doing little to reduce global emissions. It calls for ministers to clearly set out how CB7 will prevent the offshoring of emissions and support domestic decarbonisation in energy-intensive and trade-exposed sectors. 

In its advice for the Seventh Carbon Budget (CB7) the Climate Change Committee advised CB7 be set at the “ambitious but deliverable” level of 535 million tonnes of carbon dioxide equivalent (MtCO2e). This level is technically credible, the Committee finds, but will require tough political decisions as the ‘low hanging fruit’ of decarbonisation have largely been achieved. Reducing emissions will become more complex, more capital-intensive and more dependent on coordinated action across infrastructure, markets and behaviour.

Priority Policy Recommendations  

Several priority policy recommendations from the CCC's Seventh Carbon Budget mirror recent CIHT asks, including:  

  • Implement regulations requiring that all new cars and vans sold after 2030 must be able to travel a significant distance using electrical power alone. Clarity on and effective implementation of phase-out dates for ending the sale of new petrol and diesel cars and vans is essential for the transition to EVs. Legislation will be required to establish ambitious targets for the ZEV mandate from 2031 to 2035 if hybrids are still allowed post 2030. 

  • Develop a strategy to deliver the required charging infrastructure for heavy-duty vehicles, including HGVs and buses. This would give operators confidence to invest in new technologies. This should include guidance on establishing new grid connections, delays to which currently pose a significant barrier to ZEV uptake. This is especially relevant for the infrastructure and construction delivery sectors including construction and maintenance of highways. Currently lack of heavy-duty vehicle charging infrastructure is a barrier for contractors in decarbonising their vehicle fleet and construction plants.  

  • Highlight the benefits of zero-emission vehicles. Government and industry should actively provide information on the benefits of EVs. Many consumers are unaware that EVs could already be cost saving for them on a lifetime basis (depending on annual distance driven, car type, and whether they have access to home charging) and are unaware how rapidly upfront EV prices are falling. They can also be unaware of the extent of charging availability and misinformed about battery longevity and EV lifecycle emissions. 

CIHT looks forward to engaging with the Climate Change Committee and working with the UK Government to realise the potential of the Seventh Carbon Budget's recommendations for transport and working to deliver a transport network that is fit for all our futures.

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