The UK’s official electricity emission factor is falling 26% for 2026. It’s the biggest single-year cut in years and reflects two years of grid changes plus a new way of calculating the data.
Why the number matters
Lower emission factors feed straight into carbon reporting and, over time, can help keep energy costs down as more renewables come online. We’re already seeing the impact in our own energy price comparisons – greener power is becoming the cheaper option for many homes.
Key policy moves to watch
- UK CBAM starts January 2027, putting a carbon price on imports like steel, cement and aluminium.
- The UK Emissions Trading Scheme continues to drive industrial cuts, with iron and steel emissions already down sharply.
- New Science-Based Targets guidance (SBTi Version 2.0) will push more companies to set credible climate goals.
Heatwave warning
Research published by Imperial College London found that during recent UK heatwaves, around 2,700 people had died from overheating, of which 1,100 were identified as being a result of the climate crisis.
Imperial College London
The figures underline why faster grid decarbonisation and better home insulation both matter.
We’ll keep tracking how these policy shifts affect bills and supplier offers. If you’re due for renewal, compare the latest energy deals on our site to see what’s available now.
