UK Local Councils Plan £67 Billion Climate Projects

Local authorities in the United Kingdom are amplifying climate action with the unveiling of huge climate infrastructure projects worth £67 billion. But a new report from CDP (the formerly known Carbon Disclosure Project) unearths a bitter fiscal hurdle that could reverse the progress, with almost half of UK councils reporting budget constraints as the single biggest obstacle to roll out.

As per CDP's recent report, From Disclosure to Action: Building Climate and Economic Resilience in UK Communities, extensive local climate action has been observed. It was the year 2018 when 58% of local councils had published climate action plans. The percentage now is a whopping 96%, representing 59% of the population and 55% of the national UK emissions. This change is a sign of increasing awareness and accountability by councils in light of the increasing climate crisis.

The report is drawn from 104 local governments accounting for more than half the population of the country, greenhouse gas emissions, and GDP. All of these governments have adopted reduction targets, some of which already have started to take action locally to avoid causing harm to the environment. However, CDP cautions that ambition alone will not suffice. Without sufficient and sustained investment, local climate plans can risk not making the difference they are intended to.

The immediacy of the crisis is further exacerbated by economic projections that envision the UK GDP in a possibility of contracting by over 7% by 2050 due to climate disturbance. Participation of local authorities in building climate resilience has thus become more imperative. The CDP report explains how there are presently 333 identified climate infrastructure projects and almost half (48%) of them indicate that they are hindered by inadequate funding.

Hanah Paik, Interim Director of Cities, States and Regions, at CDP, indicated that there was a twofold nature to the case: one of optimism and concern. "It is reassuring to see so many local governments coming forward with clear climate ambition and concrete plans for action, building the resilience necessary to safeguard lives and livelihoods," Paik said. "But ambition is not enough."

Of the numerous risks listed in the report, the most critical are flooding and heat, and it is the most vulnerable groups—those that are low-income families, elderly, and with pre-existing health issues—who will be the hardest hit by these effects. The concern was that 83% of local councils said that such climate risks would lead to the cancellation of key public services, particularly in the health and social care domains.

Alongside these threats, the report also highlights the promising socio-economic benefits regional action on climate change is already yielding. There are energy cost savings, the establishment of green jobs, and fuel poverty reductions for several councils. These statistics highlight the opportunity for climate action to provide both environmental and economic returns—if there is enough funding provided to maintain it.

The financing gaps are still one of the most stringent challenges the report presents. Of the 333 identified projects, £27 billion must be spent instantly to drive these projects ahead. Paik referred to this gap as a significant obstacle. "Local authorities have prepared hundreds of climate projects, but almost half have significant funding barriers," she explained. "Unless we commit repeated and ongoing investment, we risk reducing the pace of local action and missing national climate targets."

In spite of the challenge, a number of UK cities are becoming world leaders on climate action. Almost one-quarter of CDP's 2024 Cities, States, and Regions A List are UK local governments—a reflection of UK leadership in sub-national climate policy.

Examples from the real world show the concrete measures that are being taken. Manchester City Council is retrofitting 700 social housing residences, a plan set to reduce carbon emissions by up to 2,000 tonnes every year. In Birmingham, the Tyseley Energy Park is a flagship initiative that features low- and zero-carbon technologies in responding to urban energy, transport, heat, and waste challenges. Brighton & Hove City Council also made considerable progress, fitting more than 18,000 new LED streetlights, which reduced electricity usage by 48.1% and emissions by 78.1% compared to 2017.

London's action should also be highlighted. The Greater London Authority doubled its Business Climate Challenge in 2023 to more than 200 businesses. Together, the participating businesses saved 7% on their energy usage on average, reducing 1.6 tonnes of CO₂ equivalent per site and saving approximately £2,840 each.

The CDP and leaders' message is one of clarity: while policy guidelines and action plans are first steps, they need to be supported by strong financial commitments if they are to achieve their full potential. As the climate emergency accelerates, national and international investment in local climate projects becomes ever more essential.

"If we desire thriving, sustainable communities and an Earth-positive future, then we need to empower local action with the capital it requires to get there," Paik concluded.