UK business confidence in achieving net zero by 2050 is waning despite growing policy clarity, according to the 2025 BSI Net Zero Barometer.
While 64% of businesses say they remain committed to the legally binding target, this figure is down from 83% in 2024 and only 25% say they are “very committed.”
The annual survey of 1,000 senior business leaders reveals that just over half (55%) believe they will meet net zero by 2050, down from 76% last year.
Nearly three-quarters (71%) of respondents now say the government cannot grow the economy while simultaneously reaching net zero and half believe the target itself is unrealistic.
This growing scepticism comes despite reduced uncertainty around energy transition policy, reported by 32% of businesses compared to 42% last year.
However, financial pressures remain a key barrier. Cost of action is the most cited challenge (86%), with a sharper impact on SMEs. While 93% of large firms remain committed to net zero, just 64% of SMEs say the same.
The number of firms with formal net zero targets has fallen from 60% to 36%.
Scott Steedman, Director-General, Standards at BSI, said: “Our latest Net Zero Barometer business survey shows a hiatus in corporate activity, probably linked to changes in government policy in the UK after the election and international backpedalling.”
Despite the slowdown, demand for support remains high. “The most important finding from the survey is that despite the slowdown, we found that 83% of UK businesses said that they were interested in support on how to make progress with net zero,” added Steedman.
Sebastiaan Van Dort, Director of Sustainability and Energy at BSI, added: “What is promising to see here is not a loss of belief in the need for climate action, but a call for more practical support.”
With more than half of firms planning to revise their strategies or targets, business leaders are looking for clearer frameworks and better tools to bridge the gap between ambition and feasibility.
Leaders say cooperation between government, industry and standards bodies is essential to regain momentum on the path to net zero.
Business confidence in net zero weakens appeared first on Energy Live News.