On Wednesday 11^th June, the UK’s Chancellor of the Exchequer Rachel Reeves unveiled the first spending review under the current Labour Government. The SR is a major milestone in the UK’s economic calendar, setting out the Government’s spending priorities in the coming years. It covers department budgets through to 2028/29 and capital investment plans to 2029/30.

Research from UCL’s Faculty of Engineering Sciences (FES) has highlighted the growing need for targeted support in key areas that can help accelerate the transition to net zero. This includes optimising our energy sources by making better use of waste, increasing resilience to extreme heat and climate impacts, enabling a circular economy by prioritising resource efficiency, and investing in sustainable AI development to curb rising electricity demand from data centres. With targeted funding and support, these areas could unlock the changes needed to deliver climate goals. In this vein, we set out below some key SR announcements related to the circular economy, net zero and climate action – reflecting on how far these will go in delivering the change needed.

Big boost for nuclear, energy efficiency and low-carbon energy infrastructure

From home insulation to nuclear power and green technology, the Government has made its position clear in the spending review – energy and decarbonisation are a priority. The Department for Energy Security and Net Zero (DESNZ), secured a 16% boost in overall departmental spending – more than any other department[1][2]. The SR has emphasised that the increase is essential to securing “the UK’s electricity system with homegrown, clean power by 2030”[3].

Major investments include

• £14.2bn to build the Sizewell C nuclear plant, jointly owned by the UK Government and EDF Energy, which will help to deliver an estimated 10,000 new jobs, including 1,500 apprenticeships and power the equivalent of six million homes[4][5].
• £2.5bn for the development of small modular reactors (SMR’s) in partnership with Rolls Royce. SMRs are smaller-scale nuclear plants typically faster,and in theory cheaper, to construct than traditional plants[6].
• £2.5bn to build a world-first prototype fusion power plant, on the site of a former coal-fired power station in Nottinghamshire, as part of the government funded STEP STEP (Spherical Tokamak for Energy Production)
• £9.4bn for carbon capture and storage (CCS) projects, including support for Shell’s Acorn project in Aberdeenshire and Harbour Energy’s Viking project in Humberside[7].
• £13.2bn for the Warm Homes Plan to improve energy efficiency in homes, as set out in Labour’s manifesto.

Clean energy will be central to the UK’s future growth and resilience, and the additional investment into carbon capture and storage technologies is particularly welcome given the crucial role of these technologies in blue hydrogen production and sustainable energy from waste generation. Looking ahead, there is an opportunity to transform waste into a zero – or even negative – emissions energy source, contributing to the actual removal of greenhouse gases from the atmosphere, and providing a supply of clean energy[8]. These innovative processes are already under development at UCL, and have shown how waste can be transformed into higher value products such as aviation fuel and biogas, making them powerful tools on the path towards net zero.

Alongside this, there is a need to focus on sustainable AI systems development – given the UK’s ambition to become an AI superpower and the legally binding target to reach net zero by 2050. The SR’s prioritisation of Research and Development funding, and investment in a new supercomputer in Edinburgh; are both important steps in progressing the UK’s position as an AI leader. However, a focus on energy efficient, alternative computing systems like neuromorphic computing – where the UK already has considerable academic expertise – is needed. We look forward to more detail on how the UK plans to consolidate its computing power in the upcoming Compute Strategy.

Investment in flood defences welcome, but broader heat and flooding still needed

As climate-related impacts such as flooding intensify, enhancing the resilience of the UK’s infrastructure is critical. Flooding causes significant damage and infrastructure investment needs to be targeted to alleviate high risk areas. Thus, the Chancellor’s £4.2bn commitment to build and maintain flood defences over the next three years is an important step forward.

However, heat adaptation received little attention in the SR – despite costing the UK’s economy an estimated £260-300million per year, leading to service disruption, overheating and excess deaths[9]. A recent inquiry by the Environmental Audit Committee has shown the need for a comprehensive national heat resilience strategy and a national cooling action plan to increase the UK’s preparedness to a changing climate. This can be done by investing in cooling systems that support decarbonisation and don’t rely on energy consumption – such as nature-based solutions that provide effective cooling while also delivering co-benefits for health, wellbeing and biodiversity.

Waste management and circular economy received little attention

The Spending Review made surprisingly limited reference to waste management or circular economy initiatives. The most notable commitment is funding for local authorities to deliver Simpler Recycling as part of the Collection and Packaging waste reforms to help boost recycling across the UK.

As our recent policy brief has shown, adopting circular economy approaches is essential to reducing greenhouse gas emissions, preserving scarce and critical raw materials and increasing the resilience of our supply chains, particularly in high-emitting sectors such as construction. This includes investing in the underlying infrastructure to make reuse and reduce possible such as marketplaces for secondary, recycled or surplus materials. Research from the Circular Economy Centre for Construction Materials (ICEC-MCM) has highlighted how fiscal incentives need to align with circular economy goals to support a green transition – for example, the current lower rate of Landfill Tax at just c. £3 per tonne, does little to discourage cheap disposal of inert materials. The current HM Treasury consultation on reform of Landfill Tax therefore presents a valuable opportunity to align fiscal incentives with circular economy goals, and support materials to move up the waste management hierarchy.

Final Thoughts

The 2025 Spending Review marks a promising step toward making the UK’s net zero ambitions a reality, particularly through its investment into clean energy and low-carbon infrastructure. However, it is essential that policy design and the delivery of major initiatives – such as planning reform – are approached in a way that fully embeds circular economy principles to genuinely support environmental goals. The forthcoming Circular Economy Strategy being developed by the Circular Economy Taskforce, will set out plans to reduce waste across key sectors of the economy and improve resource efficiency. We look forward to seeing the strategy and supporting its delivery and implementation.

 

Acknowledgements

Written by Aleyna Prokudina, Policy Adviser at the Policy Impact Unit.

With thanks to Rupen Kalsi, Policy Adviser, and Poli Pencheva, Research Manager for their valuable support and comments throughout the writing of this piece.

References

1. https://www.gov.uk/government/publications/spending-review-2025-document/spending-review-2025-html
2. https://www.carbonbrief.org/uk-spending-review-2025-key-climate-and-energy-announcements/
3. https://www.theguardian.com/politics/2025/jun/11/spending-review-2025-who-are-the-winners-and-losers
4. https://www.theguardian.com/environment/2025/jun/12/reeves-review-shows-labour-plans-to-take-on-the-right-over-net-zero
5. https://gridbeyond.com/spending-review-key-climate-and-energy-announcements/
6. https://commonslibrary.parliament.uk/research-briefings/cbp-10276/
7. https://www.gov.uk/government/news/rolls-royce-smr-selected-to-build-small-modular-nuclear-reactors
8. https://www.upstreamonline.com/carbon-capture/uk-announces-backing-for-two-new-carbon-capture-projects/2-1-1831462
9. https://www.politico.eu/article/great-british-energy-budget-small-modular-reactors-nuclear-power/
10. https://www.fwi.co.uk/news/farm-policy/spending-review-defra-funding-higher-than-expected
11. https://www.lse.ac.uk/granthaminstitute/publication/turning-up-the-heat/#:~:text=The%202022%20heatwaves%20were%20associated,260%E2%80%93300%20million%20per%20year.
12. https://www.youtube.com/watch?v=9YNZEG_coO4
13. https://labour.org.uk/change/make-britain-a-clean-energy-superpower/
14. https://resource.co/article/spending-review-sidelines-waste-resources-sector-defra-faces-major-budget-cuts
15. https://www.energy.gov/ne/articles/4-key-benefits-advanced-small-modular-reactors
16. https://pubmed.ncbi.nlm.nih.gov/38000195/
17. https://committees.parliament.uk/publications/43103/documents/214494/default/
18. https://www.sepa.org.uk/regulations/waste/waste-electrical-and-electronic-equipment-weee/
19. https://www.upstreamonline.com/carbon-capture/uk-announces-backing-for-two-new-carbon-capture-projects/2-1-1831462

Footnotes

[1] https://www.theguardian.com/environment/2025/jun/12/reeves-review-shows-labour-plans-to-take-on-the-right-over-net-zero

https://www.theguardian.com/politics/2025/jun/11/spending-review-2025-who-are-the-winners-and-losers

[2] https://www.carbonbrief.org/uk-spending-review-2025-key-climate-and-energy-announcements/

[3] https://www.gov.uk/government/publications/spending-review-2025-document/spending-review-2025-html#growth-and-clean-energy

[4] https://www.essexchambers.co.uk/thousands-of-jobs-created-as-sizewell-c-investment-announced/#:~:text=10%2C000%20jobs%2C%20including%201%2C500%20apprenticeships,’golden%20age’%20of%20nuclear 

[5] https://www.gov.uk/government/news/thousands-of-jobs-to-be-created-as-government-announces-multi-billion-pound-investment-to-build-sizewell-c#:~:text=The%20equivalent%20of%20around%20six,and%20kick%2Dstarting%20economic%20growth

[6] https://www.energy.gov/ne/articles/4-key-benefits-advanced-small-modular-reactors

[7] https://www.upstreamonline.com/carbon-capture/uk-announces-backing-for-two-new-carbon-capture-projects/2-1-1831462

[8] https://pubmed.ncbi.nlm.nih.gov/38000195/

[9] https://www.lse.ac.uk/granthaminstitute/publication/turning-up-the-heat/#:~:text=The%202022%20heatwaves%20were%20associated,260%E2%80%93300%20million%20per%20year.

On 26 April, a cross-faculty student committee representing the MPA degrees from the UCL Institute for Innovation and Public Purpose (IIPP), UCL Department of Science, Technology, Engineering, and Public Policy (STEaPP), and UCL Department of Political Science (DoPS) hosted the second annual Summit on Sustainability.

The Summit brought together students, academics, and professionals for an interactive and collaborative learning experience as well as engaging discussions about ongoing action in sustainability. This year’s theme, the Power and Politics of Sustainability Transitions, aimed to navigate the increasingly complex world of activism, policy, and conflict surrounding sustainable transitions and solutions.

Collaboration with the UCL Climate Action Unit opened the Summit

Dr. Kris de Meyer from the UCL Climate Action Unit started the event off with a talk about climate change and the uncertainty of the future. He demonstrated how we are doing what we can because it’s what we know, but posed the question: “If we knew the solution, what might we do differently to get there?” The thought-provoking talk set the tone for the event and explored the different realities that can and do exist in sustainability.

Jon Alexander and Jane Davidson in fireside chat about collaboration

Co-founder of The New Citizenship Project and co-author of Citizens, Jon Alexander has worked to center the public at the heart of collaborative issues like climate change and economic insecurity – to treat people like Citizens not Consumers. He sat down with Jane Davidson, former Welsh Government minister and current chair of the Wales Net Zero 2035 Group, to discuss community participation in policymaking. Ms. Davidson delved into her history has a lawmaker in Wales, living through community collaboration for a better future. Her passion for sustainability led to the Wellbeing of Future Generations Act (2015), putting sustainability at the forefront of all government and public organization action.

Policy Pathways Simulation adapted from in-field work for MPA participation

After lunch, the UCL Climate Action Unit once again took the stage to deliver a two-hour activity in which the participating students and staff joined a Climate Strategy Advisory Board to advise on a hypothetical green transition plan set out by the Prime Minister. Policy Pathways was created by the Unit as a virtual exercise for policymakers and politicians to collaborate and deliver different methods of sustainability transitions through financial regulation, taxation, and public subsidies. The simulation was adapted for the Summit with the goal of providing groups with differing perspectives the chance to discuss and debate amongst themselves, leading to somewhat differing strategies.

After the activity, Dr. de Meyer showed that, in the field, stakeholders struggled to utilise the existing policy tools to deliver effective and affordable green transitions. He brought the conversation back to his opening talk, wherein he stated that we can only do what we know, so we must expand that knowledge in order to expand the reality of sustainability.

Multi-profession panel explores navigating power and politics in the field of sustainability

Moderated by one of the student organizers, the three-person panel discussed different actors’ roles in change, and how power plays into the sustainability movement when it comes to justice and representation. Selina Newell, Director of Climate Action Implementation at C40, Fatou Jeng, founder of Clean Earth Gambia and Youth Climate Advisor to the UN Secretary General, and Asad Rehman, Executive Director of War on Want, unpacked the different levels of action, from individual movements to global affairs. Much of the conversation focused on equity being utmost important for sustainability movements and recognising economic inequality as a major point of conflict when it comes to global change. The cross-sector backgrounds of the panellists offered unique insight into the different powers that activists and policymakers have to enact change through sustainability transitions.

Clare Farrell speaks on the failure of ‘sustainability’ and where to go from here

To round out the Summit, keynote speaker Clare Farrell, co-founder of Extinction Rebellion, delivered a talk titled Why Sustainability Isn’t Working Out. She spoke on her background in fashion and ethics, and how her work on the ground in activism led to the group’s message of civil rebellion for democratic change. Her thought-proving talk demonstrated the slow-moving and barrier-filled process of change through established political and economic institutions, and how the conventional perception of ‘sustainability’ has failed to come to fruition. Ms. Farrell guided the attendees to think about what must change now in order to achieve future goals in green transitions. She wrapped up the event by evoking hope in action now for change later.

After closing remarks, guests and attendees were invited to food and drinks for a two-hour networking social with open discussion and further questions.

Continuing cross-MPA collaboration and learning

Last year’s summit paved the way for the collaborative effort made this year. The three departments delivered learning in different contexts. Unifying those views for a cohesive and multi-perspective educational opportunity allowed the attendees and the committee to learn from both each other as well as the guests. Collaboration between the MPAs is imperative as we the students prepare to embark on our professional journeys as decision makers. Our ability to learn from each other must be fostered now so that it is not limited to these formal institutions. After coming together for this year’s Summit, we hope the relationship between the departments’ MPA programs continues to grow and furthers collaboration in the coming years.

Authors Note

Written by Erin Sebastian.

Erin along with the other organisers of the Sustainability Summit would like to give a special thanks to Kazuhiro Naito and Liam Orme for photography.

 

From Professor Jeremy Watson CBE FREng

The legal requirement for the UK to achieve Net Zero greenhouse gas emissions by 2050 presents society with a wide-ranging and demanding set of challenges whose solutions require holistic and cohesive systems thinking across all sectors of activity. Social, technical, political and policy considerations must be taken together and solutions evolved that are driven by need, and which are applicable and acceptable for the whole of UK society. The November 2021 COP 26 meeting to be hosted by the UK, throws all this into sharp focus and suggests that government will wish to clearly demonstrate methods and pathways by which the 2050 objectives can be achieved. A Net Zero What Works Centre (NZWWC) may be an innovative and effective approach to accelerating and focusing coherent action.

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