Empowering local authorities for a place-based approach to net zero

Enabling cities and regions with the right powers is key to delivering net zero in a way that is both effective and relevant. The ability of local authorities to act decisively on climate is shaped by the mandates, resources and autonomy they possess.

Since the NZIIC’s A place-based approach to net zero report was published in 2021, there has been a significant shift in the devolution of powers, enabling cities to tailor interventions to their unique circumstances and drive meaningful change.

Historically, local authorities and city regions have had limited influence over emissions within their boundaries. National policies often set the direction, but local government lacked the authority to implement solutions that matched local needs. The English Devolution White Paper, published in late 2024, signalled a change, setting out how to grant strategic authorities new powers in areas such as retrofit funding, local energy planning and coordination of heat networks.

Devolution is not just about transferring responsibilities; it’s about enabling innovation. Local authorities are closer to the challenges and opportunities of their communities. With the right powers, they can experiment, adapt and scale solutions that work. For example, the ability to set local planning regulations, invest in public transport, or coordinate energy networks allows cities to address emissions in ways that are both ambitious and pragmatic.

This principle is increasingly recognised in national policy. The government’s new Local Power Plan reinforces the shift toward locally driven decision making, stating that “the future won’t be built from Westminster but place by place, community by community”. This message aligns strongly with the growing case for devolved powers that enable cities and regions to deliver solutions relevant to their unique social, economic and environmental contexts.

Power in practice

One of the most compelling examples of devolved powers in action is the Greater Manchester Bee Network, which is an integrated public transport system that unifies buses, Metrolink trams, local trains, walking, cycling and wheeling into one network for seamless, affordable and sustainable travel. Faced with resistance to congestion charges, Manchester used its newly acquired devolved powers to create this integrated public transport system. By bringing local bus systems back into public control, the city was able to design services that reflected the needs of its communities, reduced emissions and improved mobility. This approach not only addressed climate goals but also delivered tangible benefits in terms of accessibility and public health.

Overcoming barriers

Despite progress, local powers remain uneven and funding is often scarce. Many public sector organisations lack the upfront capital to invest in net zero initiatives and are seeking off-balance sheet financial solutions. The National Wealth Fund aims to support regional and local authorities in building the financial literacy and partnerships needed to accelerate delivery. However, navigating the complex landscape of funding and finance remains a challenge.

Another barrier is the tension between local and national priorities. For example, the previously proposed deep coal mine near Whitehaven in Cumbria highlighted the limitations of local powers. The council approved the project based on employment benefits but, whether it was for or against the proposal, it had limited grounds to consider climate impacts or decline permission on this basis. The subsequent court challenge and project cancellation underscored the need for clearer mandates and better integration of climate considerations into local decision-making.

This disconnect between local and national priorities is starting to be addressed. UK100 research shows that councils themselves are calling for a new statutory climate duty as part of a reset in their relationship with national government. This reflects a growing recognition – both locally and centrally – that clearer mandates, aligned priorities and shared accountability are essential for accelerating net zero delivery.

A demonstration of this are the greater links between the national energy agenda and the needs of the local authorities created by Great British Energy’s Local Power Plan and the Regional Energy Strategic Planning approach being steered through the National Energy Systems Operator (NESO). In addition, these plans look set to be backed by the National Wealth Fund, which has taken on a significant place-based approach to its mission.

Key takeaways for local authorities

Local authorities should actively embrace devolution by engaging with government institutions to align with the growing “local power plan” agenda and secure enhanced local powers. Devolution is expected to be the primary mechanism through which greater authority over net zero initiatives will be granted, making early involvement essential.

This need for preparedness is reinforced by the introduction of the Local Government Outcomes Framework, which for the first time sets out a more consistent set of expectations for how local authorities will deliver across social, economic and climate related priorities. The inclusion of climate outcomes signals a clear direction of travel: future powers and funding are likely to be tied to demonstrable progress on net zero. As such, building local capacity, strengthening partnerships and developing cross authority conversations around regional energy planning will be crucial to ensuring that authorities are ready to make full and effective use of upcoming powers.

Authorities should set bold ambitions by using new mandates to establish ambitious climate targets. These commitments not only drive progress but also enable a clear democratic signal that local communities support decisive action on climate change.

Leading the net zero transition

The journey to net zero isn’t just a technical challenge, it’s a leadership opportunity. Local authorities have a unique role to play in shaping the future of climate action and that starts with advocating for the powers needed to make a real difference. But influence alone isn’t enough; building capacity is essential. This means investing in skills, strengthening stakeholder engagement and fostering collaboration across sectors. When new powers arrive, those who have prepared will be ready to act decisively and effectively.

Ambition must be at the heart of this effort. Devolved powers create the mechanisms to act on bold, locally relevant climate targets – one that reflect the aspirations of the community and send a clear signal that climate action is a shared priority.

Climate considerations should underpin every decision. From planning and procurement to service delivery, the outcomes that come with it - such as energy security, improved health, lower bills, increased resilience - should be embedded in the DNA of local governance and an integral narrative of the public conversations that go with it. This isn’t about compliance – it’s about leadership, resilience and creating a future where communities thrive.

The devolution of powers to local authorities is transforming the landscape of net zero delivery. By embracing new mandates, building capacity and fostering collaboration, cities can lead the way in creating sustainable, resilient communities. The journey is not without challenges, but with the right powers, local authorities can turn ambition into action and deliver real-world impact on climate and the local economy.

Powers are essential, but they only deliver real impact when aligned with the three pillars introduced in the first article of this thought leadership series. Our next focus will turn to partnerships and the vital role they play in driving meaningful, sustainable progress.