Policies aiming for net zero emissions could potentially lead to thousands falling into poverty, according to recent research.

The Institute for Community Studies has published a new report that highlights the importance of ensuring a fair and inclusive transition to net zero carbon emissions in the UK. The research, conducted by The Young Foundation, brings together participatory primary research, a review of poverty and social justice literature, and a review of scenarios of change towards net zero in the UK.

Emily Morrison, Director of Sustainability and Just Transition at The Young Foundation, states that there is a public will, appetite, and urgency to participate in the transition to net zero, even among the most vulnerable and poorest households. However, the report suggests that current policy may not be enabling the full participation of these groups.

The report shares findings with local government and communities in four English local authorities, exploring what incentives, levers, and policies might unlock greater, inclusive participation in transition. It warns that existing net zero policies risk making the poor poorer and pushing struggling communities further into deprivation.

To prevent this, the report outlines key policy recommendations. These include:

Preventing adverse economic impacts on low-income and vulnerable communities by designing net zero policies that explicitly account for social equity and poverty reduction goals.
Supporting inclusive participation through partnerships and collaboration involving diverse stakeholders — including communities, academic institutions, private sector, and non-profits — to co-produce solutions.
Embedding community voices and lived experiences directly into policy design and implementation processes.
Fostering transparent knowledge sharing and capacity building at the community level to empower poorer groups to benefit from economic and social opportunities emerging from the transition to net zero.
Aligning net zero initiatives with broader social protection and economic inclusion programs to address psychosocial and capital constraints that poor households face.

These policy ideas come from the Institute’s analysis of challenges in current net zero transition approaches and stress the importance of more equitable, participatory frameworks to achieve environmental goals without worsening poverty.

The research also identifies UK households and communities at risk of 'transition poverty' due to increased cost-of-living. People with existing debt, those in social or rented housing, and communities with fragile economies are expected to face the greatest barriers to net zero participation. The Young Foundation calls for the removal of barriers to participation in the transition to net zero and the maximization of local readiness to ensure fair and just outcomes.

Morrison emphasizes the need for policy and practice that aligns with real people's lives and the places they live in to avoid winners and losers in net zero transition. She suggests building participation instead of waiting to nudge people and hoping they'll comply, and removing barriers, building on community assets, and maximizing local readiness to reconcile decarbonization with fair and just outcomes.

Despite financial distress, the majority of the public have shown an interest in helping to achieve net zero goals. People are interested in participating in low-carbon living, with some adopting DIY strategies at home. However, local councils and central government are not trusted to lead sustainable changes, leading people to take matters into their own hands.

The report calls for an integrated system with strategic alignment between national and local government, public service providers, the private sector, and communities. Morrison warns against allowing net zero transition to become another part of UK policy that needs to be 'levelled up'. Instead, she suggests building participation and ensuring that the transition to net zero is a collective effort that includes everyone.

In summary, the Institute for Community Studies recommends integrated, participatory, and equity-focused policies to ensure that the net zero transition prevents poverty harms and promotes inclusive involvement by marginalized communities. The report underscores the importance of a fair and just transition to net zero, one that prioritizes the needs of the most vulnerable and ensures that no one is left behind in the UK's pursuit of a greener future.

Policies aiming for net zero emissions could potentially lead to thousands falling into poverty, according to recent research.