UK chancellor Jeremy Hunt failed to mention the term “climate change” at all when setting out the government’s spring budget – the first since it was confirmed that 2023 was Earth’s hottest year on record.
As expected, Hunt used his budget speech to announce that the government is freezing fuel duty on petrol and diesel for the 14th year in a row.
As of 2023, this policy had added up to 7% to UK emissions, according to previous Carbon Brief analysis.
The chancellor also announced a year-long extension to the windfall tax on oil-and-gas companies, but failed to commit to spending the money raised on new climate investments.
Hunt did not offer any new policies to help boost the rollout of key low-carbon technologies, such as electric vehicles (EVs) and heat pumps.
He also pledged no further changes to the government’s long-term regime of maximising oil and gas production.
Overall, despite some confirmation of further funding for supply chains, analysts described the budget as a “missed opportunity” for boosting low-carbon industries and accelerating the transition away from fossil fuels in the UK.
Alongside the budget, the government also confirmed key details of its sixth auction round for new renewable energy projects, including a pot worth just over £1bn.
With a UK general election on the horizon – and Labour enjoying a substantial lead in the polls – this budget is likely to be Hunt’s last as chancellor.
Below, Carbon Brief runs through the key announcements.
Fuel duty
The government has frozen fuel duty on petrol and diesel for the 14th year in a row.
This persistent policy amounts to a significant tax cut, as fuel duty has dropped considerably in real terms over the years rather than rising with inflation.
The freeze makes it cheaper to drive a car and reduces the incentive to use more fuel-efficient models. As of 2023, Carbon Brief calculated that fuel duty freezes had increased UK carbon dioxide (CO2) emissions by up to 7%.
Hunt has also opted to retain an extra 5p cut in duty, which was first introduced in 2022 to address rising fuel costs. This reduced the rate on petrol and diesel from 57.95p per litre to 52.95p.
In the 2022 spring statement, it was described as a temporary measure. The government stated the 5p cut would end on 23 March 2024 “as part of the government’s commitment to fiscal responsibility and ensuring trust and confidence in our national finances”.
However, Hunt announced that it will remain in place for another year. This is despite fuel prices now being comfortably lower than they were during the energy crisis.
These two measures have been a major drain on public finances.
Together, they will cost the Treasury £3.1bn in 2024-25, with a cumulative cost of around £90bn since 2010, according to official figures released by the Office for Budget Responsibility.
Analysis performed by the Social Market Foundation (SMF) in the run up to the spring budget places the cumulative figure far higher, at £130bn.
The thinktank adds that the cost of maintaining fuel duty freezes would rise to more than £200bn by 2030 – “enough to fund the entire NHS for a year”.
With the government under pressure from the right of the Conservative party and the right-leaning press to cut taxes, the fuel-duty freeze was trailed in the Times ahead of the budget as one of the “two main tax cuts” planned by the chancellor, along with a reduction in national insurance.
The Sun claimed responsibility for Hunt’s continued fuel duty freeze, due to the newspaper’s long-standing “Keep It Down” campaign, which it runs with the climate-sceptic lobbyist and Reform Party London mayoral candidate Howard Cox. A recent Sun editorial stated:
“Seven Tory chancellors have cursed us for it. To them it has ‘cost’ £90bn in tax they would love to have spent.”
Instead, the Sun points to the benefits for “British motorists”. Pro-motoring lobbyists have argued that a fuel-duty cut is a necessary bulwark against the “war on motorists” taking place in the UK. The government has absorbed this message, with prime minister Rishi Sunak announcing last year he was “slamming the brakes on the war on motorists”.
The government describes its fuel duty freeze as part of its efforts to “support people with the cost of living”.
The opposition Labour Party has also backed the fuel-duty freeze on these grounds. Last year, shadow chancellor Rachel Reeves threw her weight behind it to help the “many families and businesses reliant on their cars”.
Yet analysis by the SMF shows that, despite rhetoric that emphasises benefits for ordinary, hard-working people, fuel-duty cuts disproportionately benefit wealthier people. This is because they are more likely to own cars and the cars they own are more likely to be less fuel-efficient models, such as SUVs.
As a result, the thinktank says maintaining the 2022 fuel-duty cut will save the UK’s richest people around three times as much money as the nation’s poorest.
Moreover, analysis by the RAC Foundation at the end of 2023 found that the government’s cuts to fuel prices had not all been passed onto consumers. Instead, it concluded that fossil-fuel retailers had kept savings from lower wholesale costs for themselves, leaving drivers “paying 10p [per litre] more than they should be”.
Meanwhile, the cost of bus and coach fares has risen far more than the cost of running a car, as rail fares in England and Wales increased by 5% this year.
The SMF has proposed that investment in public transport would be a more effective way to save households money.
Others have suggested that such investments could also be a major driver of economic growth. For example, government advisors at the National Infrastructure Commission argued last year that the UK should invest £22bn in mass transit schemes outside London in the coming years.
Instead, the most significant public-transport policy the government has introduced in recent months has been cancelling the northern leg of the HS2 train line.
Air passenger duty
Hunt also announced an increase in air passenger duty on “non-economy” passengers as a revenue-raising measure to help pay for tax cuts elsewhere.
As a result, those flying business class, premium economy, first class or in private jets will pay a higher price for plane tickets.
This policy will raise between £110m and £140m annually from 2025 through to 2029, according to government figures.
The budget document explains that this is a measure to bring air passenger duty in line with high inflation and maintain its value in real terms.
Nevertheless, it emphasises that for the 70% of passengers flying economy, or on short-haul flights, “rates will remain frozen” in order to “keep the cost of flying down”.
In fact, in 2021 when Sunak was chancellor, the government cut air passenger duty in half for domestic flights, making air travel cheaper within the UK. Reversing this change would bring in an extra £69m to the Treasury, according to the Campaign for Better Transport.
Campaigners have proposed a more expansive “frequent flyer levy” in order to actively discourage flying and cut emissions from aviation, which accounts for around 3% of UK emissions.
According to New Economics Foundation modelling, this could have raised £4bn in revenues in 2022.
As it stands, the government has no explicit plans to reduce demand for air travel in the UK. This is despite such plans being flagged repeatedly by government climate advisors the Climate Change Committee (CCC) as a missing part of the UK’s strategy to reach net-zero.
Windfall tax
Hunt used his budget to extend the windfall tax on North Sea oil and gas companies by another year, bringing its scheduled end date to March 2029.
This was despite opposition from Scottish Conservatives, according to BBC News – and the energy secretary Claire Coutinho, according to Politico.
He told parliament this extension would raise £1.5bn. However, he did not say what this additional money would be spent on.
He added that the “energy profits levy”, as the windfall tax is known, would be abolished “should market prices fall to their historic norm for a sustained period of time”.
In a statement, Kate Mulvany, principal consultant at consultancy Cornwall Insight, said that the move “could be seen as positive for decarbonisation if the resulting profits are used to deliver the UK’s net-zero plan”, but added:
“Yet, without a solid transition strategy away from the UK’s oil and gas dependence and no assurance that tax revenues will directly support decarbonisation initiatives, the potential upheaval in investment could outweigh the benefits.”
Ahead of the budget, both the Times and Bloomberg reported that the tax extension was being described as one of the measures that could help fund Hunt’s 2p cut in national insurance.
Labour has also proposed extending the tax by a year, if elected to power, Politico reported. Additionally, Labour intends to raise the levy on oil-and-gas company profits from 75% to 78%. It has pledged to spend the money raised on low-carbon investments.
Oil-and-gas trade group Offshore Energies UK has called the Labour proposal “alarming” and claimed that it could lead to job losses in the sector. (See Carbon Brief’s factcheck of misleading claims surrounding North Sea oil and gas.)
Elsewhere in his budget speech, Hunt did not commit to any other changes on fossil-fuel investment policies.
This was to the dismay of many environmental groups and energy experts, who had urged the chancellor to commit to new measures to end reliance on oil and gas. In a statement, Esin Serin, policy fellow at the Grantham Research Institute on Climate Change and the Environment, said:
“The chancellor should be making more of the tax system to drive the transition away from fossil fuels.”
Clean technology
Hunt announced that the government is buying two nuclear sites from Hitachi for £160m, in a move reportedly aimed at quickly delivering nuclear expansion plans.
The sites are at Wylfa in Anglesey, Wales and Oldbury-on-Severn in South Gloucestershire. The decision follows a period of uncertainty for Wylfa, after the closure of the previous nuclear power plant at the site in 2015.
Hitachi had planned to build a new 2.9 gigawatt (GW) nuclear plant on the site for a reported £20bn. However, the Japanese conglomerate announced it was shelving the plans in 2019.
Additionally, Hunt announced that the government has moved onto the next stage in its competition to build “small modular reactors” (SMRs). There are now six companies that have been invited to submit their initial tender responses by June.
The chancellor confirmed a £120m increase in funding for the “green industries growth accelerator” (GIGA), a fund designed to support the expansion of ”strong and sustainable clean energy supply chains” in the UK. The increase was announced earlier this week.
This will bring the total amount in the fund to £1.1bn, according to the budget documents, up from £960m announced in the autumn statement in November.
GIGA is designed to support carbon capture, usage and storage (CCUS), engineered greenhouse gas removals (GGRs) and hydrogen, offshore wind and electricity networks, as well as civil nuclear power.
The fund will be split between these sectors, with around £390m earmarked for electricity networks and offshore wind supply chains, and around £390m earmarked for CCUS and hydrogen, the treasury’s note stated.
In January, the Department for Energy Security and Net Zero announced £300m will be used to fund the production of a type of nuclear fuel known as “high-assay low-enriched uranium” (HALEU). Currently, Russia is the only producer of HALEU, so the domestic production plan is designed to help end “Russia’s reign”, the government states, as well as to support the UK’s wider plans to deliver “up to” 24GW of nuclear power by 2050.
In a statement, trade association RenewableUK’s chief executive Dan McGrail said:
“The increase in GIGA funding to secure further private investment in green manufacturing jobs will enable us to supply more goods and services to projects here and abroad. It’s also good to see that nearly £400m of that funding will be used specifically to grow our offshore wind supply chain and electricity networks.”
Additionally, earlier this week the government trailed £360m for manufacturing projects and for research and development. This includes almost £73m in combined government and industry investment in the development of electric vehicle (EV) technology.
This will be supported by more than £36m of government funding awarded through the UK’s “advanced propulsion centre”, the Treasury notes, including four projects that are developing technologies for battery EVs.
Renewable auction budget
Alongside the budget, the government also confirmed key details of its sixth auction (AR6) round for new renewable energy projects, including a pot worth just over £1bn.
This follows last year’s fifth auction round, which failed to secure any new offshore wind projects for the first time.
The budget documents said the £1bn budget for AR6 is the “largest ever” and includes £800m specifically for offshore wind.
If winning projects bid at the maximum price for offshore wind announced last year of £73 per megawatt hour (MWh) in 2012 prices, then the £800m budget would only be sufficient to secure just 3GW of new capacity, Carbon Brief analysis shows.
However, consultancy LCP Delta said it could be sufficient to secure 4-6GW of new capacity, implying that it assumes winning projects will bid at prices around £50-60/MWh. In a statement, it added:
“This is certainly a welcome development given last year’s failed auction. However, it may not be enough to get the UK back on track with time running out to build the additional 23GW needed [to meet its 50GW target] by 2030.”
The government has a target of building 50GW of offshore wind by 2030. There is currently around 15GW in operation and another 14GW either under construction, awarded a contract or having already taken a final investment decision, according to trade association Energy UK.
This means another 21GW of new capacity would be needed to hit the 50GW by 2030 target, implying a need for at least 10GW in each of the next two auction rounds, according to industry body Energy UK.
In addition to the £800m pot for offshore wind, the government has confirmed the upcoming auction will include up to £105m for “pot two” technologies including onshore wind, solar, energy from waste with combined heat and power and others, as well as £120m for “pot three” technologies including floating offshore wind, geothermal, tidal stream, wave and others.
Electric cars
Ahead of the budget, an open letter by the motoring lobby group FairCharge called on the chancellor to end the higher rates of VAT on public electric car charging, when compared to home charging.
People who charge their EVs at home only pay 5% VAT on their bills, but the 38% of the population without driveways who would have to use public chargers pay the full VAT rate of 20%, presenting a “charging injustice”, the group told the Daily Mirror.
The Society of Motor Manufacturers and Traders also called for VAT on public EV charging points to be cut, to be in line with the VAT on home charging points.
Speaking to the Times, Mike Hawes, chief executive of the group, said that high VAT rates on public charging points were part of a “triple tax barrier” to more private ownership of EVs.
He also urged the chancellor to reverse proposed excise duty changes that treat upmarket electric cars as luxuries rather than essentials, increasing car taxes by up to £2,000, and to cut the 20% VAT that new car buyers have to pay on new EVs.
However, during the budget, Hunt did not mention any new measures to boost EVs.
The post UK spring budget 2024: Key climate and energy announcements appeared first on Carbon Brief.
Orhan Solak is deputy director of Türkiye’s Directorate of Climate Change.
In today’s fraught economic context, everyone is looking to do more with less, and financing climate action is no exception. Yet there are clear opportunities to make better use of existing funding to achieve climate goals, including the repurposing of more than $700 billion in agricultural subsidies to support a just rural transition.
While public support for agriculture and food security has increasingly been reflected in global climate discussions, particularly in the context of the Paris Agreement’s Global Goal on Adaptation (GGA), the scale and urgency of current challenges call for stronger consensus and rapid implementation of practical, context-sensitive solutions.
The need to empower farmers to adopt sustainable practices, such as reducing food loss, cutting waste, building resilience and managing water resources wisely, is not a modern ethos. It echoes the model of Göbeklitepe, civilisation’s earliest-known settlement, built on the principles of solidarity, balance and harmony with nature.
This historical perspective underscores that sustainable resource management is deeply rooted in human development, and it reinforces the importance of aligning today’s agricultural transformation with both environmental integrity and social equity.
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However, to date, public support for farming globally has largely prioritised synthetic fertilisers and input-intensive production models, often overlooking more sustainable, resource-efficient and resilience-oriented agricultural practices.
The good news is that countries are increasingly recognising that climate action cannot come at the cost of food security, dignified livelihoods and greater equality. Any transition to more sustainable food systems must be “just” for the farmers and the rural communities that underpin them.
Enhancing long-term food security
As COP31 President, Türkiye will draw on its unique historical and geographical position as a bridge between regions and civilisations to foster dialogue, strengthen cooperation and mobilise collective efforts toward scaling up finance towards net zero targets, a vital pillar of this year’s COP31 climate talks in Antalya.
Moving forward, greater emphasis should be placed on supporting sustainable and climate-resilient agricultural systems through targeted investments, capacity-building, innovation and nature-positive practices.
Strengthening support for efficient water use, soil health, agroecological approaches and circular production models can enhance long-term food security while improving resilience to climate-related shocks.
Comment: Nature cannot be ignored by Europe’s next big budget
In this context, aligning agricultural policies and financing mechanisms with sustainability objectives will be essential not only for protecting natural resources, but also for ensuring inclusive rural development and intergenerational equity.
A just rural transition that achieves climate goals and zero waste without undermining agricultural communities and economies is not possible without countries providing the necessary financial support. Redirecting agricultural subsidies offers a promising path toward both objectives, but only when reform is carefully designed and sensitive to context. Done well, it can offer a way to ease pressure on governments to find fresh funding.
New high-level panel to offer alternatives
This is the mission of a new High-Level Panel for a Just Rural Transition, recently launched in Ankara. Together with panel members that include former heads of state, senior officials from international organisations, and government representatives from across Africa, the Americas and Europe, I believe we can provide governments worldwide with viable and sustainable alternatives.
In the context of heightened scrutiny over international aid and finance, redirecting existing funding makes both economic and environmental sense.
New data shows rich nations likely missed 2025 goal to double adaptation finance
In Türkiye, farm subsidies have, for several years, increasingly supported organic farming through an established certification system aligned with international standards. The Green Deal Action Plan, published in 2021, set out objectives to reduce the use of pesticides and chemical fertilisers, promote organic production, increase renewable energy use, and improve waste and residue management.
In addition, Türkiye’s Climate Change Adaptation Strategy and Action Plan (2024–2030) further strengthens this policy direction by integrating climate resilience considerations into agricultural practices and supporting sustainable land and resource management approaches.
Other countries are also embracing innovative approaches. Malawi, for example, is piloting a system in which subsidies for synthetic fertiliser are conditional on other, more climate-positive practices such as diversifying the crops planted to help improve soil health or applying soil conservation measures and managing soil organic matter. Elsewhere, the UK is also shifting to a model that rewards environmental stewardship through its Sustainable Farming Incentive (SFI).
The exact ways in which farm subsidies are redirected will depend on each country’s specific circumstances and needs, but the overall approach is one that stands to benefit all nations.
Channelling public support away from high-emission practices is not only a strategy for addressing today’s challenges, but also one that helps build long-term resilience.
Just Transition Mechanism consultations in Bonn
This month’s Bonn Climate Conference will mark an important milestone on the road to COP31, helping to shape the agenda for the negotiations in Antalya six months later.
Countries will consult over the Just Transition Mechanism, the financial framework designed to ensure the transition to a climate-neutral economy is fair. This is a vital opportunity to ensure that agrifood systems and rural communities are placed at the heart of its agenda, and it is a moment to reinforce the philosophy of COP 31: from dialogue to consensus and action.
To accelerate climate action at the “COP of the Future”, we must learn from the past and improve upon it through strengthened dialogue, consensus-building, and concrete, action-oriented outcomes.
Countries should recognise that a just rural transition requires action not only from actors within the agrifood system, but across all relevant sectors and industries. Momentum is steadily growing, and under Türkiye’s COP31 Presidency priorities, this agenda is expected to feature prominently. This momentum sets the stage for a defining COP31 for climate equity and inclusive climate action.
The post Agricultural subsidies can be repurposed for a just and sustainable rural transition appeared first on Climate Home News.
Agricultural subsidies can be repurposed for a just and sustainable rural transition
Scientists’ discovery of hollowed coral skeletons after a 2019 bleaching event reveals a reef that isn’t coming back.
This story was supported by the Pulitzer Center.
Coral Reefs in French Polynesia Are Stuck Between Life and Death
The invigorating thing about public speaking is that you never quite know who is in the audience. There’s always a chance, of course, that someone wants to have a bit of a go at you, or maybe there’s an attendee with a particular take on things, who wants to ask one of those ‘questions that is more of a statement’; and then there’s those precious moments when the stars align and a memorable connection is made.
A couple of weeks ago, I’d participated in a panel discussion at an event, and the crowd was beginning to dissipate when a couple of strangers approached me to introduce themselves and say ‘hello’.
It turned out that Helen, Miranda, and I had all been in the same room in April, when each of us was part of the Greenpeace contingent inside Woodside’s 2026 Annual General Meeting in Perth, though we did not meet that day.
AGMs are significant set-piece occasions for companies, at which their corporate leadership wants to project competence and boost investor confidence. But for those of us with other concerns on our minds, an AGM is an opportunity to hold corporate leaders to account.
This year, a significant number of community advocacy groups, including Greenpeace, were present at Woodside’s AGM to challenge the company on its plans to drill for gas around Scott Reef—Australia’s largest freestanding oceanic reef atoll, and host to an incredible array of rare and endangered creatures, including green sea turtles and pygmy blue whales.
My role was to accept a shareholder proxy, suit up, and ask the company’s chair, Richard Goyder, some direct questions about the environmental damage that Woodside’s plans threaten to Scott Reef and the global climate.
Helen and Miranda, though, were present to play a completely different role. ‘We were a bit nervous that day’, Miranda told me. And no wonder, given what they were planning to do.
As new CEO Liz Westcott took the lectern, she was abruptly interrupted by a literally unearthly sound: whale song, playing from a speaker that Greenpeace activists had snuck into the room.
It was an aural haunting of Woodside’s AGM by the ghosts of its business strategy. Westcott opted to try to continue speaking, while security moved among the rows, attempting without success to work out where the sound was coming from.
When the whale track had played through, the relief on the podium felt palpable; but the return to corporate calm was short-lived.
Miranda, Helen, and other small groups of choristers—all evidently talented singers in their own right—began to stand up in small groups to perform a bespoke ‘Save Scott Reef’ variation on an iconic Australian song:
Hands off Scott Reef
Don’t be so Reckless
She don’t like that kind of behaviour…
It is a cliche, but true, to say that bravery comes in many different forms. It demands guts and resolve to stand up in a closed and heavily securitised room, with an unsympathetic audience; and to sing a song of no denying to one of the most powerful corporations in Australia, unaccompanied, from a cold start, with only your voices to fill the cavernous corporate space.
It was a wonderful thing to witness: the moral clarity of the message and the bold cheekiness of the activity; and a profoundly galvanising thing to feel, the indefatigable lifting of the spirit that we experience when we hear human voices rising in harmony and purpose. Miranda, Helen and their mates were brilliant.
Don’t be so Reckless…
As each small group rose in choreographed turn to pick up the song, they were apprehended by security and escorted out, singing to the last, as they were exited from the room.
Already, more than 500,000 people have joined the campaign to stop Woodside from drilling gas at Scott Reef. So when Helen, Miranda and friends stood up to sing, they did so on behalf of more than half a million people.
‘I’d never done anything like that before’, Helen told me, ‘I’d definitely do it again’.
Protest songs are both catalytic and emblematic of dynamic moments of social change. There is beauty, creativity, defiance, camaraderie and love to be found in singing together.
Helen and Miranda, it was great to meet you both. To you and all the other amazing folks who stood up and sang, thank you for your courage, commitment and the power of your voices. Your singing mattered for the half million, for the whales and the other creatures of Scott Reef, and for life in the ocean and on earth itself.
*As anyone of a certain age will probably recognise, the phrase is derived from the Midnight Oil anthem, US Forces.
Q and A
A few people have asked me recently about where the implementation of the national nature law reforms stand? Specifically, It seemed like good news when the Environment Protection and Biodiversity Conservation Act (EPBC) reforms were passed last year, but now it appears that they could be going wrong in the implementation. What’s happening?
We welcomed the Australian parliament’s passing of long-awaited nature law reforms just before Christmas last year as a fulfilment of an election promise, but remained clear-eyed that the proof of these reforms would be in how well they were implemented.
At this stage, the first two draft National Environmental Standards (NES) released by Federal Environment Minister Murray Watt’s department fall well short of what is required to actually protect nature. So things are once again in the balance.
The NES are the rules intended to guide decisions on projects that require assessment under the EPBC Act. They should draw a hard line to protect nature, but instead, the proposed standards are full of loopholes that legal experts warn are inimical to achieving the whole point of the Act–the protection of nature.
Glenn Walker who is Greenpeace Australia Pacific’s Head of Nature Program has mapped out the shortcomings of the NES in great detail on our blog. Greenpeace has made is views clear to both the Federal Environment Department and Minister Murray Watt, urging that the NES must be fixed, as have many others.
We are continuing to work closely with other environmental organisations, both to engage closely and to campaign publicly–there is still the opportunity to get this right to achieve the potential of the amended EPBC Act to actually do what it says on the cover–protect the environment.
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