Net-zero means that the greenhouse gases going into the atmosphere are in balance with those being removed.
Greenhouse gases are the major contributor to global warming and we create them largely through our power generation processes. In 2019 the UK government set out targets to reach net-zero emissions by 2050. This came as an extension to the previous commitment to an 80% reduction which has been in place since 1990. The UK has in fact been behind on meeting this target, but with an impactful shift of public attitudes in recent years, they have become more ambitious in what they aim to achieve.
Ofgem has set a clear precedent to the energy sector that it will play a crucial role in realising the UK’s net-zero target through its Decarbonisation Action Plan, emploring the energy industry to devise their own plans to reduce their emissions.