Barclays has released a new policy report that highlights the need for targeted measures to help local governments in England achieve their net zero emissions targets. The report, titled “Turning local government ambition into action: Unlocking regional potential in driving growth and the green economy,” recommends steps to address the challenges councils face as they work toward climate goals.
The report points out that local governments control or influence a significant share of emissions in England but are often not at the center of national policy discussions about decarbonization. This issue is becoming more important as reforms move forward to create new Strategic Authorities.
According to Barclays, effective local action could lead to the creation of 700,000 jobs by 2030. Strategies tailored to specific regions could also bring about £431 billion in energy savings and social benefits, such as improved health and more resilient energy systems. However, councils are currently limited by funding constraints, skills shortages, and complex public funding processes. Scaling up private finance for transition projects remains a challenge.
To close the gap between climate ambitions and practical delivery, Barclays’ report makes three main recommendations:
- Empower public finance organizations by strengthening the National Wealth Fund and Great British Energy. This includes streamlining access for local authorities, supporting project aggregation, and expanding technical assistance to help councils develop investment-ready pipelines.
- Address structural barriers by ensuring that new governance structures for Strategic Authorities support environmental leadership objectives.
- Enhance policy coherence through better coordination between national and local strategies. The report suggests using the Net Zero Council as a coordinating body and involving Strategic Authorities more deeply in national planning.
Sophie Fry, Head of Sustainability Policy Development at Barclays, said: “Councils’ deep understanding of local context means they can tailor decarbonisation strategies that work for their regions. With the right support, they can turn ambition into action, creating jobs, attracting investment, and contributing to a sustainable future.”
Barclays works with nearly 70% of UK local government bodies. The report was developed after consultations with net zero leads from these organizations and reflects concerns about the gap between ambition and delivery on climate goals.
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