The UK’s net zero direction is firmly digital
Following recent court rulings that found earlier climate plans lacking, the UK Government yesterday (29 October 2025) published its Carbon Budget and Growth Delivery Plan, alongside Unlocking the Benefits of the Clean Energy Economy and an accompany Investor Prospectus. While the Carbon Budget fulfils the UK’s statutory duty under the Climate Change Act 2008 to set legally binding five-year emissions limits, it is Unlocking the Benefits of the Clean Energy Economy that sets out how these ambitions will be achieved and how clean energy will power jobs, growth and innovation across the economy.
The document is structured around four core objectives: energy security and lower bills; jobs and growth; improved quality of life; and protecting our natural world. Together, these form the basis of this government’s approach to climate delivery – one that embeds net zero at the heart of the national growth model. The government highlights that the clean energy sector is now growing three times faster than the wider economy, and is expected to employ around 800,000 people by 2030.
From a techUK perspective, this strategy is significant. It positions digital infrastructure, data and connectivity as foundational to a net zero future for the UK. We take a deeper dive into the plan to understand what it means for the tech sector and digital opportunities more widely.
Digital technologies as the not so hidden enabler of net zero
The journey to full decarbonisation is inseparable from the UK’s capacity to deploy and integrate digital technologies across the energy system and wider economy. The decarbonisation challenge is increasingly one of systems intelligence: how data, connectivity and digital control can make clean technologies work at scale, reliably and affordably. Smart meters, batteries, digital twins and other technologies will be fundamental to ensure that the UK can generate, store, use and manage electricity in a far more efficient way.
The government’s framing of this as both a carbon and growth plan aligns closely with techUK’s long-standing message that digital infrastructure is not only a climate enabler but a driver of economic competitiveness and productivity. This new plan points to a clean-energy transition that hinges on data-driven coordination and on the capacity of our digital infrastructure to connect those systems efficiently. Digitalisation is therefore not an optional layer of innovation but the backbone of how the UK will decarbonise at the pace required.
Investors and finance key to everything
Alongside this, the Investor Prospectus document sets out the investment case for the clean-energy transition, outlining where private capital will be most critical and highlighting opportunities across emerging low-carbon technologies. For the technology sector, this represents a clear signal: digital capabilities are now recognised as core to investment and growth. Unlocking that opportunity will require close collaboration between government, investors and industry to ensure that data-driven innovation, resilience and interoperability are embedded from the start.
The government's planned Cleantech Innovation Challenges, launching in summer 2026, will mobilise investment in priority areas and accelerate deployment – with digital solutions likely to play a starring role in industrial processes, supply chains and energy efficiency.
Importantly, the plan also acknowledges that achieving this transformation will depend on the strength and agility of the UK’s significant SME base. Continued support for SMEs through procurement reform, innovation funding and skills development will therefore be vital to turn the strategy’s ambition into delivery on the ground.
What techUK members should watch for
Discussed across these documents and in other government strategies are a series of opportunities for industry to get involved, including
- As distribution networks upgrade to handle distributed generation, demand for grid management software, energy storage systems, and demand-response technologies will surge
- The British Industrial Competitiveness Scheme and British Industry Supercharger provide support for energy-intensive firms, creating opportunities for digital efficiency solutions
- The £1.2 billion investment in skills transformation includes training the next generation in priority sectors including clean energy, with five Clean Energy Technical Excellence Colleges being established
- The forthcoming Circular Economy Strategy will focus on reducing waste and reusing materials, with the waste and recycling industry estimating £15 billion of infrastructure investment and 40,000 new jobs
As implementation begins, techUK will continue to champion the central role of digital technologies, and the innovative businesses behind them, in realising the UK’s 2030 and 2050 targets. Data, connectivity and digital innovation will be key not only to meeting carbon targets, but to unlocking new growth, jobs and resilience across the economy.
Josh Turpin
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
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