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Wednesday, Dec 31, 2025

UK Retail Net-Zero Targets at Risk Without Stronger State Support, Industry Body Says

UK Retail Net-Zero Targets at Risk Without Stronger State Support, Industry Body Says

British Retail Consortium warns private investment alone cannot deliver climate goals without faster planning, energy and infrastructure reform
Britain’s retail sector has warned that its commitment to reaching net-zero emissions is unlikely to succeed without far stronger and more coordinated action from government, as rising costs and structural barriers undermine private-sector efforts.

In a new assessment, the British Retail Consortium said retailers are investing heavily to decarbonise stores, logistics and supply chains, but the pace required to meet national climate targets cannot be sustained without public intervention to unlock infrastructure, planning reform and affordable clean energy.

The organisation said retailers have already reduced their direct emissions significantly over the past decade through efficiency measures, renewable power purchases and changes to transport fleets.

However, it cautioned that further progress depends on factors largely outside companies’ control, including grid capacity, the speed of connections for renewable energy, and the rollout of low-carbon heating and freight solutions.

Retailers also face growing pressure from high energy prices, labour shortages and weak consumer demand, which limit their ability to absorb the upfront costs of decarbonisation.

The consortium urged ministers to accelerate grid upgrades, streamline planning rules for renewable installations, and provide clearer long-term policy signals to encourage investment.

It said collaboration between government and business is essential if the UK is to meet its legally binding climate commitments while protecting jobs and keeping prices affordable for consumers.

Without that partnership, the group warned, the arithmetic behind retail’s net-zero ambitions simply does not add up.
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