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UK chancellor Rachel Reeves has delivered Labour’s first budget since 2009, promising to “fix the foundations” of the economy through increased investment in areas including clean energy. 

Announcing the budget in parliament, Reeves became the UK’s first-ever female chancellor to lift the “red box”. 

The “historic” budget confirms new “fiscal rules” that Reeves says will enable increased government investment, to support priorities including making the UK a “clean-energy superpower”. 

Despite speculation ahead of the budget, Reeves extended a 14-year freeze in fuel-duty that has cost the exchequer a cumulative total of £100bn and left overall UK carbon dioxide (CO2) emissions as much as 7% higher than they would have been. 

Elsewhere, the budget hiked taxes on private jets, extended incentives for electric vehicles, confirmed an increase in the rate of windfall tax on oil and gas companies and pledged investment in technologies including “green hydrogen” and carbon capture and storage. 

Below, Carbon Brief runs through the key announcements.

‘Fixing the foundations’

Reeves presented Labour’s first autumn budget in 14 years, following its sweep to victory in the general election in July. 

Much of the framing in the run-up focused on how the Labour government would go about tackling the “slow growth, stagnant living standards and crumbling public services” they put down to 14 years of Conservative rule. 

A few days before the budget, a government release stated that prime minister Keir Starmer would “reject austerity, chaos and decline in favour of economic stability, investment and reform”. The release said the budget would look to “fix the foundations” of the UK. 

One key announcement trailed before the budget was a change to the government’s self-imposed “fiscal rules”, which are supposed to ensure that the balance of public revenue, spending and borrowing remains on a stable footing.

This change in the way public debt is measured will allow the government to fund extra investment in infrastructure and public services.

The budget “red book” says that the government’s new “investment rule” is to reduce “public-sector net financial liabilities” as a proportion of the overall size of the UK economy, within three years of each budget forecast. It explains: “This rule keeps debt on a sustainable path while allowing the step change needed in investment.”

In an interview with BBC News in the week before the budget, Reeves had said the change was being done “so that we can grow our economy and bring jobs and growth to Britain”.

The International Monetary Fund (IMF) warned last week that public investment in new technologies and the energy transition is “badly needed”, in order to drive growth in the UK. 

Speaking in Washington at the IMF annual meeting earlier in October, Reeves had said she would target investment to drive innovation in the transition to clean energy and upgraded infrastructure as part of the budget.

She reiterated this message in her budget speech, saying that her plans would help in “delivering our [government’s] mission to make Britain a clean energy superpower”.

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Transport and fuel duty

Reeves announced a bundle of measures concerning transport, ranging from a tax hike on private jets to the confirmation of improved regional train lines.

One of the chancellor’s most high-profile and controversial moves was maintaining the freeze on fuel duty paid by motorists on petrol and diesel.

Successive Conservative-led governments have cancelled planned inflation-linked fuel duty increases every year since 2010, meaning rates have been slashed in real terms.

In 2022, fuel duty was also cut by 5p per litre in response to the global energy crisis – a temporary measure that was subsequently extended in the spring budget in 2023

As such, thinktank the Institute for Fiscal Studies (IFS) found that fuel duty was already 37% lower in real terms in 2023 than the rate planned in 2010. 

Successive cuts and freezes in fuel duty have increased the UK’s CO2 emissions by as much as 7%, according to Carbon Brief analysis in 2023. 

Moreover, the fuel-duty cuts and freezes have cost the Treasury a cumulative total of some £100bn since 2010, according to the official Office for Budget Responsibility (OBR).

Fuel duty is the “only major tax that persistently fell” in recent years, the OBR says. It adds that if fuel duty remains frozen, it would cost the Treasury a further £5bn a year by 2030.

In the lead-up to the autumn statement, speculation had grown that Reeves might end the temporary 5p cut in fuel duty and reinstate inflation-linked increases, which could have seen an overall hike of 8p per litre, from the current rate of 53p 

However, in the end, the government decided to once again freeze fuel duty and extend the “temporary” 5p cut “for one year, at a cost of £3bn next year”. It justifies this as a measure to support “hard-working families and businesses”.

Increasing fuel duty is very unpopular and there has been a strong lobbying effort to block it. The Sun, which is the UK’s most widely read newspaper, has sustained a “14-year campaign”, promoted by climate-sceptic motoring lobbyists and applauded by senior Conservatives, to keep fuel duty frozen.

As Carbon Brief analysis shows, the newspaper has significantly ramped up its efforts under the new Labour government – more than doubling the number of editorials urging the government not to end the freeze. The newspaper describes the idea as “unthinkable” and a “masterpiece of self-harm” that would harm “working people”.

Number of editorials in the Sun newspaper mentioning the fuel duty freeze, between 2020 and October 2024.
Number of editorials in the Sun newspaper mentioning the fuel duty freeze, between 2020 and October 2024. Source: Carbon Brief analysis.

Despite the framing by both the government and the Sun, analysis by thinktank the Social Market Foundation shows that the poorest households benefit far less from lower fuel duty than the richest, who tend to drive more and own more vehicles.

Ahead of the budget, Starmer announced that the single bus fare cap in England will be raised to £3. This is an increase from the current limit of £2, introduced under the Conservative government and set to expire in December. 

The government says this higher price will allow it to “develop a more sustainable model of government support for the bus sector that is better value for taxpayers and bus passengers”.

However, the choice came under fire from Green MPs and climate NGOs, particularly in light of the fuel-duty freeze. They noted that the cost of low-carbon transport, such as buses, has increased by far more than the cost of driving cars in recent years. It would have cost £300m  per year to extend the £2 bus fare cap, according to the New Economics Foundation.

The budget also commits to investing in a handful of new rail lines and upgrades, including the Transpennine Route Upgrade between York and Manchester and East West Rail to connect Oxford, Milton Keynes and Cambridge. There is also money for electrifying some lines.

Notably, the government also confirmed plans to fund the tunnelling of the HS2 line to central London. (The previous Conservative government significantly scaled back the HS2 project and said the final section going into central London would be dependent on private investment.)

The budget also includes adjustments to taxes on flights, with air passenger duty increased to “correct for below-inflation uprating in recent years” – equating to an extra £2 on short-haul flights in economy class. (In 2021, the Conservative government cut air passenger duty in half for domestic flights.)

A more dramatic change was a 50% increase in duty for “larger private jets”, which Reeves said would amount to £450 per passenger. The budget documents note that the government “will consult on extending this rate to all private jets within the air passenger duty regime”.

Finally, the government commits to extending the “advanced fuels fund” for an extra year to support the production of “sustainable aviation fuels”.

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Electric-vehicle incentives

The budget contains a number of commitments to support the rollout of electric vehicles, in line with the government’s target of ending the sale of pure petrol and diesel cars by 2030, and extending this target to vans by 2035.

Among these measures are tax incentives to encourage people to purchase electric vehicles.

The rapid growth in UK electric cars sales in recent years has been driven partly by company-car purchases, which have benefited from generous tax breaks for low-carbon models.

The budget confirms that benefit-in-kind (BIK) tax rates for company cars will continue to favour electric cars, increasing by 2% per year out to 2029-20. 

However, plug-in hybrid vehicles will no longer benefit, with rates increasing far more “to align more closely with rates for internal combustion engine vehicles”.

Another change in the budget involves increasing the gap between the rate of vehicle excise duty paid in the first year by electric vehicles relative to other cars. (First-year vehicle excise duty payments are based on a new car’s CO2 emissions.)

The first-year rate will remain frozen until 2029-30 for zero-carbon vehicles, while hybrids and internal combustion engine vehicles will see increases. Cars emitting more than 76g of CO2 per km will see their first-year rates doubling from 1 April 2025.

The budget also confirms that the government will extend, for a further year, “green” first-year allowances – which can be deducted from the full cost of profits before tax – for “qualifying expenditure” on zero-emission cars and plants or machinery for electric vehicle charging points.

Other measures in the budget include investing over £200m in 2025-26 to accelerate the rollout of electric vehicles charging points. There is also £120m to support people in purchasing electric vans through the plug-in vehicle grant scheme, and to support the manufacture of wheelchair accessible electric vans.

Looking more broadly at electric vehicle manufacture, the government has also committed £2bn in support for the automotive sector, “including the zero-emissions vehicle manufacturing sector and supply chain”.

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Clean-energy investment

Measures in the budget supporting clean energy and net-zero include funding for investment in carbon capture and storage (CCS), nuclear and “green hydrogen” made with renewable electricity.

In addition, the budget documents tout the government’s “national wealth fund” as a route to supporting private-sector investment in clean energy:

“[T]he government will take further measures to catalyse private investment in the economy. This includes creating the national wealth fund to catalyse over £70bn of private investment in the UK’s clean energy and growth industries.”

In her speech, Reeves said the budget confirmed plans to capitalise the national wealth fund, which would “invest in the industries of the future, from gigafactories [for batteries or electric vehicles] to ports to green hydrogen”.

Responding to the budget, Ed Matthew, campaigns director for thinktank E3G, said in a statement:

“After years of flatlining investment, the government must now seize the opportunity of the ‘investment rule’ to make the UK a clean-energy superpower and boost green homes investment further. It is clean technology where our future prosperity lies, boosting productivity, making us competitive and weaning us off expensive and volatile fossil fuels. It’s the economic opportunity of the century.”

Funding announcements include £3.9bn for CCS projects between 2025-2026. These will help “decarbonise industry, support flexible power generation, and capitalise on the UK’s geographic and technical strengths”, the budget notes.

This follows the government pledging up to £21.7bn to support getting the UK’s first CCS projects up and running over the next 25 years, in an announcement at the beginning of October. The nearly £22bn funding is designed to support the development of two undersea carbon storage sites and pipelines, with the capacity to store more than 8.5m tonnes of CO2 per year. 

The budget also includes support for the “first round of electrolytic [green] hydrogen production contracts, harnessing renewable energy to decarbonise industry across the length and breadth of the UK”. This will support 11 green hydrogen producers across the country.

Other key technologies to win support in the budget include nuclear, with a £2.7bn settlement announced to continue the development of Sizewell C through 2025-26.

In August, the government announced it would provide up to £.5bn, as part of a new subsidy scheme for the planned new nuclear power plant in Suffolk. 

The equity and debt-raise process for Sizewell C is set to move into its final stages and conclude in spring 2025. Following this, a final investment decision will be made.

Separately, the budget announces “significant support” for UK fusion energy research, “to build on the UK’s position as a global leader in sustainable nuclear energy”.

Great British Energy will receive £125m in funding for 2025-26, the budget notes. This follows news in July that the publicly owned energy company would receive an initial capitalisation of £8.3bn of new money over this parliament. 

The budget also confirms £163m in funding to continue the “industrial energy transformation fund” from 2025-26 to 2027-28. 

The budget states that the government will help accelerate grid connections and build new network infrastructure. The government is working with the new National Energy System Operator (NESO) and energy regulator Ofgem to develop a “robust grid connection” process. 

As part of the commitment to “securing the UK’s place as a global leader in clean energy, protecting consumers and driving economic growth” the budget also notes that the government has commissioned advice from NESO on reaching net-zero electricity by 2030. This will feed into the government’s own “clean-power 2030 action plan”.

Other key upcoming documents, noted in the budget and expected over the coming year, include a response to the annual progress report from the government’s advisory Climate Change Committee, an updated “carbon budget delivery plan” setting out how it will meet legally-binding climate goals and a new industrial strategy. 

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North Sea tax

The budget also confirms an increase in the windfall tax on oil and gas companies. The energy profits levy (EPL) will rise by three percentage points to 38% from 1 November.

Established in May 2022 in response to record profits enjoyed by oil and gas companies during the global energy crisis, the government announced the increase to 38% in July. 

The budget confirms that an “investment allowance” of 29% will be abolished, but the rate of the “decarbonisation allowance” will be set at 66%. No additional changes to the tax relief available through the EPL will be made, which has also been extended by a year to 31 March 2030.

Further to this, the budget says the government will publish a consultation in early 2025 on how the taxation of oil and gas profits will respond to price shocks in the future.

Oil and gas company shares rose in response to the budget, according to the Financial Times, which says the changes to the EPL were “less tough than feared”. For example, Harbour Energy’s stock climbed 4.5% to 277p, according to the newspaper. 

At the same time as the budget, the government announced a consultation into “scope 3” emissions from offshore oil and gas production, meaning the emissions associated with burning resulting fuels.

This follows a “landmark” Supreme Court ruling earlier this year, which found that Surrey County Council had acted unlawfully by granting planning permission to the Horse Hill oil project without considering the environmental impact of burning the oil it would produce. 

The consultation will be part of efforts to develop new guidance for assessing the end-use emissions of oil and gas projects, as well as help “provide stability for the oil and gas industry, support investment, protect jobs and ensure a fair, orderly and prosperous transition”, the budget document says.

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Other announcements

The budget includes a number of other announcements relating to climate and energy.

One such measure is £3.4bn in investment towards a “warm homes plan” for heat decarbonisation and household energy efficiency over the next three years.

In its manifesto, Labour committed to £13.2bn of funding for these issues over the course of this parliament and the budget describes the £3.4bn investment as “the first step”.

The government says this money includes £1.8bn to support fuel-poverty schemes. It adds that it will increase funding for the “boiler upgrade scheme” – which supports the rollout of heat pumps in England and Wales – this year and next.

The budget also confirms £5bn over two years to support a “more productive and environmentally sustainable agricultural sector in England” and more than £400m for tree-planting and peatland restoration.

It adds that the government is “facing significant funding pressures” of almost £600m in 2024-25 for flood defences and farm schemes. The budget states that, “while the government is meeting those commitments this year, it is necessary to review these plans from 2025-26 to ensure they are affordable”.

The government also states that the Foreign, Commonwealth and Development Office (FCDO) is forecast to spend more than £2bn on international climate action in 2024-25. (The previous Conservative government had forecast a total international climate finance spend of £2.5-2.8bn in that year.)

The post UK autumn budget 2024: Key climate and energy announcements appeared first on Carbon Brief.

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Interview: COP31 president says electrification is ‘surest way to protect citizens’

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Last month, COP31 president-designate Murat Kurum launched a target for 35% of the world’s final energy to come from electricity by 2035.

In an interview with Carbon Brief, Kurum says that the target was not a political choice, but instead reflects the latest evidence on “what is needed to keep 1.5C within reach”.

The ongoing Hormuz crisis means there is an “urgent” need for renewables and electrification, which are the “surest and cleanest way to protect citizens” from high energy prices.

Kurum says that the Brazilian and Ethiopian presidencies of COP30 and COP32, as well as the EU, UK and Canada, have welcomed the target.

He adds that “all have confirmed it will be central to discussions at COP31”.

In the interview, Kurum – who is also Turkey’s minister of environment, urbanisation and climate change – tells Carbon Brief where the target came from and what he expects to happen next.

Carbon Brief: You recently launched a target for 35% of the world’s final energy to come from electricity by 2035. Where did this idea come from?

Murat Kurum: The “35 by 35” target is grounded in technical data and based on the IEA [International Energy Agency] and IRENA [International Renewable Energy Agency] analysis of what is needed to keep [the 1.5C Paris Agreement target] within reach. The level was not chosen politically. Rather, it reflects what the science and the energy modelling tell us is required.

CB: Why do you think an electrification target is important right now?

MK: The case for the target is urgent right now. The latest war in the Gulf has made energy diversification – and, in particular, renewable energy transition and electrification – a top global priority, because it is the surest and cleanest way to protect citizens around the world from high and volatile energy prices.

At a time of real fragmentation in international relations, a single, shared target is needed to focus global efforts by aligning governments, businesses and investors behind a common benchmark and to send a clear market signal.

CB: Which countries are supporting this target so far?

MK: The reaction so far has been extremely positive and, while we presented our target at the UN June climate meetings in Bonn, our earlier conversations with parties at both the Petersberg and Copenhagen climate dialogues paved the way for this launch.

For example, the EU, UK, and Canada have welcomed the target, as have the Brazilian COP30 and Ethiopian COP32 presidencies. All have confirmed it will be central to discussions at COP31.

This support has been reflected in the business community as well, with polling by the We Mean Business Coalition showing that 90% of businesses expect to have largely electrified their operations by 2035 and that 88% expect electrification will make their business more competitive.

CB: How do you hope and expect to see this taken forward at the COP? Could it be in the formal COP outcomes, or part of the second global stocktake?

MK: We are now taking electrification forward as an “action agenda” initiative to bring actors together and drive progress. The action agenda and the [formal COP] negotiations are separate, but complementary, with different processes and thresholds, and it is too early to say what all countries might be able to agree in the negotiations. That is for parties to determine as the year progresses.

We are focused and determined to use COP31 as a moment to spark a global conversation about electrification.

CB: What are the key priorities for reaching the target?

MK: The critical sectors for reaching the target are buildings, transport and industry, which together account for around 45% of global emissions. Financial support for the developing world and investment in grids and infrastructure is also crucial.

The target also builds on COP28’s target to triple renewable energy capacity and seeks to take advantage of the tumbling cost of renewable power and other technologies critical to the energy transition. This is a journey that Turkey itself is taking ambitious steps on, including our plan to reach 120GW [gigawatts] of renewable capacity by 2035.

This interview was first published in the 10 July 2026 edition of Carbon Brief’s DeBriefed weekly newsletter. Sign up for free.

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DeBriefed 10 July 2026: Deadly Europe heat | EU electrification leak | COP31 president interview

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Welcome to Carbon Brief’s DeBriefed. 
An essential guide to the week’s key developments relating to climate change.

This week

‘Catastrophic’ climate impacts

RECORD HEAT: Western Europe experienced its hottest June on record – some 3C above average – according to analysis covered by the Guardian. It said the finding came “as the UK enters its third heatwave of the year and wildfires ravage France and Spain”. Le Monde said 10,000 people had been evacuated due to wildfires in southern France.

‘EXCESS DEATHS’: The June heatwave killed more than 2,700 people in France, according to a guest post analysis for Carbon Brief. Similar analysis for Germany said there had been more than 5,000 “excess deaths”, reported Bloomberg. Meanwhile, an ongoing heatwave in the US has killed at least 30 people, said USA Today.

STORM TEST: Floods have killed 39 people in Guangxi province in southern China, said state-run newspaper China Daily. Scientists warned that climate change and the weather phenomenon El Niño are exposing China to “catastrophic storms” that will test its resilience in 2026, reported Reuters. The nation’s latest official climate report found that “extreme weather and climate events…have become more frequent and severe”, said China National Radio.

Around the world

  • EU ELECTRIFICATION: The European Commission is set to unveil a 2040 target for EU electrification on 17 July, reported Bloomberg. Citing a leaked draft, it said the plan would aim to cut oil use in half and gas use by two-thirds.
  • PEAKING PLAN: China has published an “action plan” for peaking emissions during the 15th five-year plan period to 2030, reported Xinhua. It lists targets including “new energy vehicles” making up 30% of cars on the road by 2030, said Reuters.
  • CLIMATE ‘FLAT EARTHER’: The Trump administration has appointed Matthew Wielicki, described by Politico as a “climate critic”, to lead the office in charge of the US national climate assessment. Common Dreams quoted a scientist describing the move as “like putting a flat-earther in charge of NASA”.
  • UGANDAN SUIT: A group of farmers from Uganda have launched a legal suit in London against the East African oil pipeline, according to Climate Home News.

23%

The share of Irish electricity used by data centres in 2025, reported the Irish Times.

2%

The share of global electricity used by data centres in the same year, according to Carbon Brief analysis of the Energy Institute statistical review.


Latest climate research

  • Meltwater from the western Himalayan glaciers will peak at around 2C of warming, before declining at higher warming levels | Environmental Research Letters
  • Current coral restoration efforts may be unsuitable for temperate reefs, including those in the Mediterranean | Nature Ecology & Evolution
  • People tend to underestimate the level of “broad public support” for climate action | Nature Climate Change

(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Monday, Tuesday, Wednesday, Thursday and Friday.)

Captured

Average number of days per year with a daily maximum temperature of at least 30C in a selection of major European cities, for each decade since the 1950s

Carbon Brief explained – via eight facts – why air conditioning rates in some parts of Europe are relatively low, as the technology emerges as a new front in the global “culture war” over climate action. Analysis for the article illustrated that, in many parts of the world’s fastest-warming continent, air conditioning simply was not needed in the past.

Spotlight

COP31 president speaks to Carbon Brief on electrification

This week, Carbon Brief interviews Murat Kurum, president-designate of the COP31 UN climate talks in November and Turkey’s minister of environment, urbanisation and climate change, on his target to boost global electrification.

Carbon Brief: You recently launched a target for 35% of the world’s final energy to come from electricity by 2035. Where did this idea come from?

Murat Kurum: The “35 by 35” target is grounded in technical data and based on the IEA [International Energy Agency] and IRENA [International Renewable Energy Agency] analysis of what is needed to keep [the 1.5C Paris Agreement target] within reach. The level was not chosen politically. Rather, it reflects what the science and the energy modelling tell us is required.

CB: Why do you think an electrification target is important right now?

MK: The case for the target is urgent right now. The latest war in the Gulf has made energy diversification – and, in particular, renewable energy transition and electrification – a top global priority, because it is the surest and cleanest way to protect citizens around the world from high and volatile energy prices.

At a time of real fragmentation in international relations, a single, shared target is needed to focus global efforts by aligning governments, businesses and investors behind a common benchmark and to send a clear market signal.

COP31 president-designate Murat Kurum. Credit: Supplied by COP31 secretariat
COP31 president-designate Murat Kurum. Credit: Supplied by COP31 secretariat

CB: Which countries are supporting this target so far?

MK: The reaction so far has been extremely positive and, while we presented our target at the UN June climate meetings in Bonn, our earlier conversations with parties at both the Petersberg and Copenhagen climate dialogues paved the way for this launch.

For example, the EU, UK, and Canada have welcomed the target, as have the Brazilian COP30 and Ethiopian COP32 presidencies. All have confirmed it will be central to discussions at COP31.

This support has been reflected in the business community as well, with polling by the We Mean Business Coalition showing that 90% of businesses expect to have largely electrified their operations by 2035 and that 88% expect electrification will make their business more competitive.

CB: How do you hope and expect to see this taken forward at the COP? Could it be in the formal COP outcomes, or part of the second global stocktake?

MK: We are now taking electrification forward as an “action agenda” initiative to bring actors together and drive progress. The action agenda and the [formal COP] negotiations are separate, but complementary, with different processes and thresholds, and it is too early to say what all countries might be able to agree in the negotiations. That is for parties to determine as the year progresses.

We are focused and determined to use COP31 as a moment to spark a global conversation about electrification.

CB: What are the key priorities for reaching the target?

MK: The critical sectors for reaching the target are buildings, transport and industry, which together account for around 45% of global emissions. Financial support for the developing world and investment in grids and infrastructure is also crucial.

The target also builds on COP28’s target to triple renewable energy capacity and seeks to take advantage of the tumbling cost of renewable power and other technologies critical to the energy transition. This is a journey that Turkey itself is taking ambitious steps on, including our plan to reach 120GW [gigawatts] of renewable capacity by 2035.

Watch, read, listen

HEATED: A Financial Times long read asked if Europe – the world’s fastest-warming continent – is “prepared for a world of extreme heat”.

LITIGATED: The Outrage and Optimism podcast spoke to Prof Joana Setzer and Catherine Higham about the latest trends in climate litigation.

‘SHATTERED’: Confidence in fossil-fuel exports via the strait of Hormuz has been “shattered”, wrote IEA chief Fatih Birol for Foreign Policy.

Coming up

Pick of the jobs

DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.

This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.

The post DeBriefed 10 July 2026: Deadly Europe heat | EU electrification leak | COP31 president interview appeared first on Carbon Brief.

DeBriefed 10 July 2026: Deadly Europe heat | EU electrification leak | COP31 president interview

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Eight facts about air conditioning amid an overheated global debate

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As successive heatwaves hit Europe, air-conditioning (AC) has emerged as a new front in the international “culture war” over climate action.

France, Germany and the UK have experienced record-breaking heat and thousands of heat-related deaths this summer, with June temperatures in many regions passing 40C.

This has drawn attention to the relatively low rates of AC use in these countries – and in Europe as a whole – especially when compared to its widespread adoption in the US.

Legacy newspapers, bloggers and even Elon Musk have all weighed in on “European hostility” to AC, criticising Europe’s “cultural conservatism” and “overbearing governments”.

Right-wing politicians, including National Rally in France and the UK Conservatives, have styled themselves as champions of AC, while opposing efforts to tackle climate change.

Missing from most of these interventions is the fact that human-caused climate change has made once-rare heat far more common, in what is the world’s fastest warming continent.

Carbon Brief analysis for this article shows that, until the 2020s, it was rare for many European cities to see days above 30C, making AC an unnecessary expense.

Here, Carbon Brief explains – via eight facts – why AC rates in some parts of Europe are relatively low, as well as clarifies and contextualises some of the misleading claims circulating about the technology.

Much of Europe has not needed AC in the past

AC installation rates in northern parts of Europe are very low. The best available estimates suggest that 6% of households in Germany and just 4% in England use AC.

However, these rates are largely explained by the historical climates in these nations.

Unlike the US, much of the housing stock and infrastructure in Europe was built at a time when AC did not exist and was not necessary.

Moreover, nations such as France, Germany and the UK have only started to regularly experience extreme heat in recent decades.

The chart below shows the average number of days per year, in each decade since the 1950s, when maximum temperatures have exceeded 30C in major European cities. Capitals such as London and Paris have seen a significant jump since around 2000.

Average number of days per year with a daily maximum temperature of at least 30C in a selection of major European cities, for each decade since the 1950s
Average number of days per year with a daily maximum temperature of at least 30C in a selection of major European cities, for each decade since the 1950s. Source: Copernicus ERA5, Carbon Brief analysis by Dr Zeke Hausfather.

Prof Jan Rosenow, an energy and climate researcher at the University of Oxford, tells Carbon Brief:

“For most of the 20th century, northern Europe simply didn’t need cooling. Homes in Britain and Germany were built to keep heat in, not out, because winters were cold and summers rarely hot.”

Much of the commentary about the relatively low rates of European AC use focuses on cultural or “ideological” factors. (See: Some European nations have ‘resisted’ AC – but its popularity is growing.)

However, Rosenow says people’s views on AC in these countries likely stem from their historically colder climates. He adds:

“Attitudes formed around those facts, not the other way round…There is a cultural element, but it is the product of climate, not of some green ideological project.”

In the past, many in Europe relied on traditional methods to keep buildings cool. Richard Black, head of communications at Climate Analytics, made this point in a post on LinkedIn:

“Once, residents of cities such as Paris could cope with summer heatwaves by opening shutters and windows during the night, and closing them again in the morning to trap the cool air inside…We’ve reached a limit to this sort of adaptation.”

Now, with Europe around 2.5C warmer than pre-industrial levels, climate change is routinely driving record-breaking heatwaves, even in the north of the continent.

This is forcing a reappraisal of societies that were “built for a climate that no longer exists”, as the UK’s Climate Change Committee (CCC) put it in a recent report.

Experts broadly agree that much of Europe will indeed need more AC, particularly in spaces housing the most vulnerable populations, such as care homes, schools and hospitals.

At the same time, they also emphasise broader, “passive” efforts to make cities and homes cooler alongside increased AC use. (See: AC is not the only answer to overheating cities.)

Back to top

AC is already widely used in hotter parts of Europe

During periods of extreme heat, articles criticising “European hostility” towards the technology frequently note that “only about 20%” of households in Europe have AC.

Often, this is contrasted with the US, where more than 90% of households have AC installed. (In fact, the US is something of a global outlier, matched only by Japan.)

However, the continent-wide figure for Europe obscures the reality. In southern Europe – where temperatures are and have always been higher – AC is relatively common.

The map below, based on official EU data, shows that southern European nations use far more household energy for “space cooling” than those in the north.

Percentage share of household energy consumption used for “space cooling”, including AC, in EU member states and the Balkans
Percentage share of household energy consumption used for “space cooling”, including AC, in EU member states and the Balkans. Source: Eurostat.

Government figures show that nearly 60% of Italian households have AC. Household-level data in many countries is patchy, but various analyses have placed that figure at 70-80% in Greece and 41% in Spain – with higher penetration in the hotter, southern part of the country.

The same pattern can be seen within France. International coverage has stressed the country’s “cultural resistance to AC”, citing a nationwide figure from 2020 that suggests “only” 25% of French households have AC.

However, polling data from customers of the Hello Watt energy app suggests that there is a distinct north-south divide in French uptake. At least 60% of households in Mediterranean regions of France are equipped with AC, according to these figures.

This can be seen in the map below, with households across northern regions, including Paris, reporting far lower AC installation rates, often below 5%.

Percentage share of households equipped with AC in departments of mainland France
Percentage share of households equipped with AC in departments of mainland France, according to polling data. Source: Hello Watt.

Finally, when making such comparisons to Europe, it is worth noting that high rates of AC use reported for the entire US also obscure significant differences between – and within – US states. This, too, aligns with differences in regional climate.

Hotter states in the US south have near-universal AC access. But in Washington, a north-western state with a climate more comparable to that of western Europe, 66% of people have AC in their homes.

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Some European nations have ‘resisted’ AC – but its popularity is growing

International commentators have written extensively about Europe’s “longstanding resistance to cooling technology”, especially when compared to the US.

Newspaper editorials in the Washington Post and the Wall Street Journal, alongside numerous op-eds and blog posts, have added fuel to this “culture war”. Elon Musk has even promoted an AI-generated message stating that Europeans “should just install AC”.

Often, European attitudes are attributed to “guilt” about AC’s energy demand, “cultural conservatism” or “overbearing governments”. One commentator ascribed divergent attitudes in Europe and the US to “different ideas about physical suffering and sacrifice”.

Meanwhile, right-leaning commentators and climate-sceptic groups have blamed “climate policies, which view AC as an unnecessary luxury”.

In general, these critiques often fail to consider the most obvious explanation, which is that AC adoption is low in northern Europe because the historical climate made AC unnecessary.

Critical articles have instead drawn attention to restrictions on AC use in some European countries, as well as the lack of support for AC in official heatwave guidance.

For France, in particular, polling has indeed highlighted widespread disapproval of AC, both on environmental grounds and due to alleged health impacts. Such messages have also been voiced regularly in French media and by left-leaning and green politicians.

However, across Europe there are plenty of signs that such attitudes are shifting, following successive spells of extreme heat.

Amid the June heatwave, there were reports from Germany, France and the UK of “skyrocketing” AC sales. This surge was even acknowledged by the foreign ministry in China, due to the nation’s role in supplying many of these products.

The shift is taking place in politics as well. Marine Tondelier, leader of the French Green party – which has traditionally opposed AC – recently stated that “there are places where we just can’t do without AC anymore”.

Overall, AC has been on the rise across Europe, with France, Spain and the Netherlands all using more than twice as much energy for AC and other “space cooling” technologies in 2024 as they did in 2015.

AC production in Germany has also risen by at least 75% in recent years and a growing share of German homes are being built with it installed.

Notably, there is little evidence that “climate policies” are blocking Europeans from installing AC. Polling in Germany shows that, while people are concerned about environmental impacts, the high costs of installing and running it are perceived as greater barriers.

Finally, there is an important distinction between individual AC units in people’s homes and installing them in public spaces, such as hospitals, care homes and schools.

While neither is widespread in France, support for the latter can increasingly be found across the political spectrum, from Greens to the far-right National Rally (RN).

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AC emissions are growing, but its climate impact could be limited

Some people have noted that a wider rollout of AC in Europe could drive up emissions.

As noted in the Financial Times by columnist and chief data reporter John Burn-Murdoch, there is a logic to this argument, “at least superficially”. He writes:

“AC uses a lot of energy; if the proposed defence against emissions-driven global warming means emitting more, then we have an obvious problem.”

The emissions impact of AC depends heavily on the generation mix of a country’s power sector.

According to the International Energy Agency (IEA), “space cooling” – mostly AC, but this does include some fans – used 2,100 terawatt-hours (TWh) of power globally in 2022.

As such, it was responsible for 1bn tonnes of carbon dioxide (CO2) from electricity use globally. This equates to around 2.7% of total CO2 emissions globally from fossil fuels and industry.

(As well as indirect emissions through power use, AC units can also directly release greenhouse gases – used as AC refrigerants – when they leak or are improperly disposed of. Following the 2016 Kigali Amendment, countries are progressively trying to phase down the use of potent greenhouse gases in AC units.)

In a LinkedIn post, Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air and regular Carbon Brief contributor, says:

“There is a lot of alarmist messaging about how much electricity AC uses. However, on an annual basis, the demand is not that substantial. Currently, AC uses about 1% of electricity in the EU and catching up to adoption rates in the US would double this.”

According to the IEA estimates from 2018, “if left unchecked, energy demand from AC will more than triple by 2050”, reaching 6,200TWh of power.

By mid-century, households would contribute the most to the increase (70%), with at least two-thirds of the world’s households potentially having AC, according to the Paris-based agency.

Decarbonising electricity grids and energy-efficiency improvements can reduce AC emissions and their impact on climate.

For instance, in countries with a low-carbon electricity mix – such as France, where nuclear energy accounts for 67% of its electricity generation – expanding AC would have a more limited climate impact than in other countries.

In countries such as India, there could be a more significant increase in emissions as AC is adopted, due to the role coal plays in the country’s energy mix, especially during the night. Demand is growing fast – following low access historically – and many AC units are inefficient, with high electricity use.

According to a new working paper from the India Energy and Climate Center (IECC) at the University of California, Berkeley, “room AC” – portable plug-in units, as opposed to those permanently installed in buildings – already accounts for nearly one-quarter of India’s peak electricity demand (60-70GW) – and this is before the majority of Indian households have bought their first AC unit.

Dr Nikit Abhyankar, co-faculty director of the IECC, tells Carbon Brief that, as AC use is expanded across the world, it should be paired with solar and battery storage, where the “economics have completely shifted” in the last few years. This will help to cut both energy bills and emissions.

According to the IEA, accelerating energy efficiency improvements could deliver more than one-third of all CO2 emission reductions between now and 2030.

The global energy demand needed to run ACs alone in 2050 could be reduced by 1,300GW – the equivalent of all of China and India’s coal plants – through energy efficiency measures, it estimates.

Aditya Valiathan Pillai, a climate adaptation researcher at King’s College London, tells Carbon Brief that, as the use of AC expands, there is a conversation to be had about where and “what type of technology [is used] and who gets access” to it.

A final point is that many AC units are air-to-air heat pumps, which can efficiently heat homes, as well as keeping them cool. As such, wider AC adoption could boost the adoption of electrified heat, helping to cut emissions from gas boilers.

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Heat from AC can contribute to directly warming cities

Some critics of AC mention its electricity demands and associated CO2 emissions from fossil-fuel combustion, which contribute to raising the temperature of the entire planet. (See: AC emissions are growing, but its climate impact could be limited.)

But AC also has a localised impact. It works by removing heat from indoor air and pushing it outdoors, raising temperatures on the street and exacerbating the “urban heat island” effect.

Left-leaning French politicians are among those citing this as an argument against AC, particularly in cities. Indeed, Emmanuel Grégoire, the Socialist mayor of Paris, appeared to be making this point in an interview with Le Monde, during the June heatwave:

“[AC] can be useful for cooling collective spaces and protecting the most vulnerable populations, but individual AC is a scourge – it makes the problem worse by heating the city even more.”

One study concludes that, in a city such as Phoenix, Arizona, where the technology is widespread, AC use during a heatwave can raise night-time temperatures by 1-1.5C.

Another models a nine-day heatwave in Paris – in a future with “massive” AC use – and finds an increase in external temperature of more than 2C, due to heat emitted by the units.

Given this, some scientists argue that AC can be a form of climate “maladaptation” – referring to actions that backfire and make people more vulnerable to global warming.

The Intergovernmental Panel on Climate Change (IPCC) has highlighted this issue, concluding:

“AC may constitute a maladaptation because of its high demands on energy and associated heat emissions, especially in high-density cities.”

Compared to the US, more people in Europe live in dense, urban areas. According to Dr Vincent Viguié, a climate change economist at École des Ponts ParisTech, this could leave Europeans more exposed to heat from AC units. He tells Carbon Brief:

“If you live in a neighbourhood that is not dense, like in a suburban neighbourhood or in the countryside, you don’t care about this…So, once again, there is a key difference between US and European cities.”

Viguié is among the experts arguing that other climate-adaptation measures should be considered alongside AC, to keep entire cities cool – not just individual homes. He says:

“It’s not to say that the heat released by AC by itself is a reason to forbid AC…It’s just that not taking that into account may lead to bad decisions.”

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More AC could help to reduce heat deaths in Europe

Heatwaves can be deadly, especially for older or vulnerable members of society.

According to climate scientists at World Weather Attribution, “heatwaves cause more deaths in Europe than all other natural hazards combined”.

The heatwave in June 2026 is estimated to have killed more than 20,000 people in Europe. In France – which has seen some of the hottest temperatures – the heatwave caused more than 2,700 heat-related deaths, according to analysis published by Carbon Brief.

AC does help to protect people from the effects of extreme heat. A 2021 study found that globally, AC averted an estimated 190,000 heat-related deaths annually during 2019-21.

With its much higher penetration of AC, the US has fewer deaths due to extreme heat than Europe.

Heat kills around 11 people out of every 100,000 in Europe, compared to around two people in the US, according to analysis by data scientist Dr Hannah Ritchie from Our World in Data.

Several publications have pointed out that “Europe’s heatwaves are deadlier than American gun violence”. While this is technically accurate in absolute terms, Ritchie says the comparison is “a bit silly” for a number of reasons, not least because on a per-capita basis, US gun deaths are higher.

Average annual deaths per 100,000 for heat and gun deaths in the US (red) and Europe (blue) to as close to the end of 2024 as possible
Average annual deaths per 100,000 for heat and gun deaths in the US (red) and Europe (blue) to as close to the end of 2024 as possible. Heat deaths are based on excess death methodology, not death certificates. Source: By the Numbers.

However, experts suggest that AC is only one part of a wider effort to protect people from extreme heat.

A 2020 study looking at heat-related mortality in Canada, Japan, Spain and the US, found that excess deaths due to heat decreased between 1972 and 2009.

For example, the proportion of deaths due to extreme heat fell from 1.7% to 0.5% over the period in the US and 3.5% to 2.8% in Spain.

However, an increase in AC only explained 16.7% of the drop in the US and 14.3% in Spain.

The research concludes that “other factors have played an equal or more important role in increasing the resilience of populations”. This is supported by research that shows changes to cities, such as planting more trees, as well as behavioural shifts and public-health measures, can all protect people from dangerous heat.

Additionally, across Europe there is already a range of policies and measures in place to protect the most vulnerable from heatwaves. Many of these were brought in following the unprecedented summer of 2003, when 70,000 died from extreme heat.

These policies were highlighted by French environment minister Agnès Pannier-Runacher, in response to the far-right National Rally (RN) party’s AC proposals:

“The incompetent RN has just found out that nursing homes need air-conditioned rooms. Thank you, but it’s actually been mandatory since 2004.”

Another study found that measures that have already been rolled out in France would cut the projected death toll of a 2003-like heatwave by more than 75%. This is in part due to the expansion of AC in places such as nursing homes, but also other approaches, such as heat action plans.

For example, France has a multi-tiered action plan, which includes local governments ensuring access to cooled spaces and water, keeping a list of vulnerable individuals for targeted interventions, as well as national information campaigns.

According to the UN’s office for disaster risk reduction, this French plan has led to a “significant reduction in heat-related mortality”.

While action plans have proved successful in a number of nations, less than half of European countries have such a plan in place.

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‘Net-zero rules’ are not blocking AC installation in the UK

In the UK, Conservative politicians and right-leaning media have tried to pit the adoption of AC against net-zero policy.

Writing in the climate-sceptic Daily Telegraph, columnist Matthew Lynn claimed falsely:

“Strict net-zero rules now mean that aircon is effectively banned in the UK.”

(Further down the article, he concedes: “AC is not strictly speaking banned in new-build homes in the UK. But tough environmental rules mean that it is very hard, and expensive, to install in practice.”)

The same narrative has been used in articles by GB News, the Sun and others. A separate article in the Daily Telegraph’s “money” section goes further, claiming that AC had been “torn from homes under net-zero clampdown”.

A blog post from the Ministry of Housing, Communities and Local Government rebuts these claims, stating:

“There has been media coverage this week suggesting that AC is banned in homes. This is incorrect.”

For the UK, while it is true that fewer than 5% of homes currently have AC, this is largely due to the fact that it was not hot enough in the past to warrant the expense. Historically, the focus has therefore been on keeping buildings warm, rather than cool.

Extreme heat has previously been rare in the country, so homes were built with insulation and other measures to keep heat in during the “dank winters”. (See: Much of Europe has not needed AC in the past.)

Current regulations do not ban the installation of AC outright. However – as the government’s blog post notes – there is no blanket rule, meaning there are some localised differences.

Certain areas – or certain kinds of properties – may be subject to additional complications for installing AC.

In a 2025 video on Instagram, shadow secretary of state for energy security and net-zero Claire Coutinho referenced the London plan, for example, which is a framework for development in the capital launched in 2021. She said:

“[London mayor] Sadiq Khan says no. The London plan says we shouldn’t have air con because it uses too much energy. But this is mad! This is a poverty mindset that we need to get away from.”

The London Plan does not stop homes from having AC. It simply says that, for new buildings, passive design measures should be prioritised, such as the orientation of the building, the window design and incorporation of measures such as external shading and trees.

A recent response from the mayor added further measures, such as the need to “minimise the necessity for the operation of mechanical measures including AC, which would further add to the heat island effect within urban areas and add operational cost to residents”.

Elsewhere, new-build homes across England must meet the requirements of “part O” of the 2022 building regulation updates. This includes addressing overheating in buildings through energy-efficient design and prioritising passive cooling, with AC as a last resort.

For existing buildings, most AC units fall under “permitted development rights”, meaning no planning application is required to install them.

Additionally, regulations were relaxed in 2025 to make it easier to install an air-to-air heat pump – which can both heat and cool air – without planning permission.

This means that, far from blocking the expansion of AC, net-zero policy has made it easier to install specific cooling systems.

Speaking to Carbon Brief, Andrew Sissons, director of sustainable future at Nesta, says the government must now implement its announced £2,500 subsidy for air-to-air heat pumps “as quickly as possible”, to further ensure that the technology can be rolled out efficiently. He adds:

“[The government] should also continue to expand permitted development rights for air-to-air heat pumps, with a particular focus on flats and homes in denser areas. As long as heat pumps meet the MCS [Microgeneration Certification Scheme] noise test, there are few reasons to limit their use via the planning system.”

Some properties, such as large homes, listed buildings or those in conservation areas, may still require planning permission to install an air-to-air heat pump or other AC. Sissons notes that this can add cost and delay to installation.

While it cannot be said that AC has been blocked or banned due to net-zero, neither has it been prioritised.

This may shift as temperatures continue to rise. UK government advisors at the Climate Change Committee (CCC) suggest that 22% of the UK’s housing stock will likely need active cooling, such as AC, to cope with 2C of global warming.

The CCC’s recent adaptation report also calls for all new homes to be built using low-cost, passive cooling measures, alongside more AC.

Active cooling such as AC is more likely to be needed for retrofitting existing homes, the report adds.

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AC is not the only answer to overheating cities

AC has become increasingly politicised in Europe, as demonstrated by France’s RN party announcing its “grand plan for AC” in all public buildings.

As noted by Dutch MEP Gerben-Jan Gerbrandy, this “far-right” embrace of AC is coming from the same people who for years have “delayed emissions reductions”.

In response, left-leaning policymakers in Europe have frequently downplayed the role of AC, prioritising programmes of urban greening and retrofitting older buildings.

Such approaches for dealing with extreme heat have already proved successful. Therefore, many experts argue that these methods, alongside AC, will be essential to prepare for a hotter world.

According to the IPCC’s sixth assessment report, adaptive infrastructure, such as urban forests and green roofs, can reduce energy use because of cooling, with co-benefits for climate, air quality, physical and mental health.

While retrofitting older buildings for heat as well as insulating them from the cold might prove challenging, urban greening and an active shade policy – one that determines how much of every street is exposed to direct sunlight – are simple measures cities can adopt.

Some experts have also warned about the high cost of running AC, expressing concerns that excessive reliance on the technology could increase energy poverty.

In a Carbon Brief guest post published in 2025, researchers at the Basque Centre for Climate Change found that framing AC as the “default solution” can miss the opportunity to design “more inclusive, human-centred responses” to rising temperatures.

William Lewis, a PhD candidate and one of the guest post’s authors, tells Carbon Brief it is not a case of “one or the other”, when considering AC and other options:

“We have this opportunity in European countries to choose a slightly different path [from the US], which isn’t AC in every single home.”

King’s College London’s Pillai says that, by centring the debate on AC, the far-right response to the heatwaves in Europe has “completely neglected the science of how you cool human beings”.

There are many solutions, he adds, that are already widely used across hot developing countries, such as ceiling fans, windows that open and cross-ventilation, as well as strategies to reduce cumulative hours of heat exposure.

Pillai tells Carbon Brief that, while places reaching 42C and higher “definitely need to think about AC very seriously”, places in the “low to mid 30Cs” could rely on these alternatives.

Behavioural change, he adds, is the “least glamorous part” of heat policy, but “pulls most of the weight” of protecting people. These include a wide range of actions and responses – from reducing heat exposure, to wearing lighter clothing and drinking more water and fluids.

There are also workplace protections. Pillai tells Carbon Brief that these could include legislation on mandatory work breaks, cooling and shade requirements at workplaces, as well as health insurance that covers heat stress days that have been lost by heat-exposed workers.

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The post Eight facts about air conditioning amid an overheated global debate appeared first on Carbon Brief.

Eight facts about air conditioning amid an overheated global debate

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