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UK local authorities are significantly increasing their climate efforts, identifying £67 billion worth of climate projects, even as nearly half say budget constraints are impeding progress. This is according to…
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UK Local Authorities Plan £67 Billion in Climate Projects: CDP Report – ESG News
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UK Local Authorities Plan £67 Billion in Climate Projects: CDP Report
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UK Local Authorities Plan £67 Billion in Climate Projects: CDP Report
by ESG News
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July 4, 2025
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Climate Commitment Surges: 96% of UK local authorities now have climate action plans—up from 58% in 2018—covering 59% of the population and 55% of national emissions.
Investment Gap Widens: 333 local climate infrastructure projects worth £67 billion have been identified, but 48% of authorities cite budget constraints as the top barrier.
Public Services at Risk: 83% of local authorities warn climate hazards could shut down essential health and social work operations.
UK local authorities are significantly increasing their climate efforts, identifying £67 billion worth of climate projects, even as nearly half say budget constraints are impeding progress. This is according to a new CDP report, From disclosure to action: Strengthening climate and economic resilience in UK communities, which captures responses from 104 authorities representing over half of the UK’s population, emissions, and GDP.
With the UK’s GDP projected to shrink by over 7% by 2050 due to climate disruptions, the role of local governments has become increasingly vital. All participating local authorities have emissions reduction targets, and 96% now have formal climate action plans—up from just 58% in 2018.
Hanah Paik, Interim Director of Cities, States and Regions at CDP, said:
“It’s encouraging to see so many local authorities stepping up with clear climate targets and actionable plans, building the resilience needed to protect lives and livelihoods. But ambition alone isn’t enough.”
Local governments are facing mounting environmental pressures. Extreme heat and flooding top the list of reported hazards, with the most vulnerable populations identified as elderly people (89%), individuals with health conditions (87%), and low-income households (86%). Notably, 83% of authorities see these risks as capable of disrupting essential health and social care services.
Despite challenges, local climate initiatives are delivering broad social and economic co-benefits—including lower energy costs, job creation, and reduced fuel poverty. However, the pace of progress is threatened by financial shortfalls.
Nearly half (48%) of surveyed authorities report budget capacity as their most significant hurdle. Sixty-nine councils alone have outlined 333 climate infrastructure projects requiring funding, with £27 billion needed immediately.
“Local authorities have identified hundreds of climate projects, yet nearly half face major funding barriers,” Paik added. “Without consistent, long-term investment, we risk slowing the pace of local progress and missing national climate goals.”
UK cities continue to lead internationally, with nearly a quarter of CDP’s 2024 Cities, States and Regions A List made up of UK local authorities.
RELATED ARTICLE: Green Climate Fund Commits $687M to Climate Resilience, Forestry, and Early Warning Projects
Examples of UK Local Climate Action:
Manchester City Council is retrofitting 700 council-owned social housing units, projected to cut carbon emissions by up to 2,000 tonnes annually.
Birmingham City Council has developed Tyseley Energy Park, integrating low- and zero-carbon technologies to address urban challenges in energy, transport, heating, and waste.
Brighton & Hove City Council has upgraded over 18,000 streetlights through its LED replacement program, reducing electricity use by 48.1% and emissions by 78.1% since 2017.
Greater London Authority expanded its Business Climate Challenge to over 200 workplaces in 2023. Participants have reduced energy use by an average of 7%, cutting 1.6 tonnes CO₂e per site and saving £2,840 each on average.
“If we want thriving, resilient communities and an Earth-positive future, we must back local action with the financial support it needs to succeed,” Paik concluded.
Read the full report here.
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