The Welsh Government

Population: 3.1 million (2012)

GDP: £52 billion (2014)

Country: UK

Total GHG emissions (year): 46.61 MtCO2e (2015)

Wales is one of the four nations that make up the UK. It has an area of just over 8,000 square miles (20,722 km²) and with a population of just over 3 million.

Wales has its own Government – the Welsh Government - and democratically elected legislature – the National Assembly for Wales. Devolved responsibilities include areas like health, education, economic development, transport, agriculture, housing, planning and the environment. In 1998, Wales became one of the first nations in the world to have a legal duty in relation to sustainable development at the heart of its constitution.

The Welsh Government has had a Climate Change Strategy in place since 2010. The strategy sets out the Welsh Government’s overarching commitments in terms of both reducing emissions and taking action to adapt to the consequences of climate change. The Climate Change Strategy set two headline emissions targets:

  • a 3% annual reduction in emissions (in areas of devolved competence)
  • a 40% reduction in overall emissions by 2020

Wales has met its 3% annual emissions target for each year to 2014 and in 2015 has decreased emissions against the 40% target by 19% against the 1990 baseline, with positive progress in areas such as waste management and recycling and energy efficiency in domestic homes. The Environment (Wales) Act 2016 puts in place a new statutory emission reduction target of a minimum of 80% in 2050 and provisions to set carbon budgets and interim targets to act as stepping stones towards the long term target.

Wales has a proportionately high share of the UK’s heavy industry and is a net exporter of energy. A significant proportion of Wales’ emissions are therefore covered by the EU Emissions Trading Scheme (ETS), accounting for 56% of Wales’ overall emissions in 2015.

Wales has a growing energy and environmental sector employing approximately 58,000 people in 2,066 companies. The sector has seen significant growth, with an increase of 90% from 2006 in sales turnover - from £1.24 billion to £2.36 billion.


At the heart of the innovative action being taken in Wales are the principles of Sustainable Development. This can be seen in a number of key areas, in particular the Government’s legislative program, the action to tackle fuel poverty whilst increasing energy efficiency and the successful drive to reduce waste and increase recycling.

Legislation for Sustainable Development

The current legislative program contains landmark legislation which further enshrines Wales’ commitment to sustainable development and strengthen efforts to tackle key intergenerational challenges like climate change.

The Well-being of Future Generations (Wales) Act places sustainable development as the central organising principle of the public sector in Wales. The Act is about improving the social, economic, environmental and cultural well-being of Wales and  sets ambitious and long-term goals for a prosperous, resilient, healthier, more equal Wales based on the sustainable development principles, whilst contributing to the delivery of the UN Sustainable Development Goals I The Act also establishes the role of a Future Generations Commissioner and aligns accountability against the achieving of the goals as the overarching purpose of public sector’s organisations in Wales.

The Environment (Wales) Act ensures Wales’ natural resources are managed sustainably to ensure they are able to deliver social, economic and environmental benefits, including nature based solutions to climate change adaptation and mitigation. Part 1 of the Act draws upon the ecosystem approach adopted by the Convention on Biological Diversity (CBD), which is essential to ensuring the resilience of ecosystems and tackling climate change. It also puts in place a new statutory emission target of at least 80% in 2050 and the legislative framework to set a series of carbon budgets and interim targets to act as stepping stones towards the new target. In addition the Act further strengthens action on waste thereby further supporting the move to a more circular economy.

The Planning (Wales) Act modernises Wales’ planning process with sustainable development in its centre, ensuring that planning decisions consider social, economic and environmental aspects.

These ground breaking pieces of legislation put sustainable development at the center of decision making in Wales and recognize the importance of the links and synergies between biodiversity, climate change and the UN Sustainable Development Goals (SDGs).

Tackling Fuel Poverty and Climate Change, whilst supporting Green Growth

Action on energy efficiency contributes strongly across our wellbeing goals and is a major factor in green growth, jobs, skills and supply chains; it is the most cost-effective means of meeting our commitments to reduce carbon emissions; it lowers costs for businesses in the public sector, and it can directly address fuel poverty and reduce domestic energy bills. The Welsh Government Warm Homes program, which includes the demand-led Nest scheme and area-based Arbed schemes, makes a significant contribution to social, economic and environmental objectives. Since 2011, Welsh Government Warm Homes program has provided advice and support to over 85,000 households and directly improved over 36,000 homes of households on low incomes or living in the most deprived areas of Wales.

Programs include the Arbed ERDF Project which has created more than 470 new jobs and provided over 60,000 hours of training to new and existing employees. This has helped to support a wider increase in employment in the energy and environment sector together with a 90% increase in sales since 2006, which saw it outperform the majority of other sectors in Wales as one of the few sectors to have continually grown throughout the recession.

Welsh Government’s approach to energy in the public sector is driving Green Growth. In 2014 Welsh Government identified a public sector energy pipeline with a capex of over £400 million. Welsh Government has increased support to unlock these projects, providing significant opportunities for green growth.

Recycling and circular economy

Towards Zero Waste, our waste strategy sets Wales on a path towards a more circular economy, in which ambitious targets for waste prevention and recycling were established. Wales is aiming to be a zero waste (100% recycling) nation by 2050 and to recycle at least 70% of waste by 2025. In order to achieve this, statutory recycling targets have been set, which, coupled with an investment of up to £750 million to support local authorities to deliver next generation waste facilities, has seen Wales achieve the highest recycling rates in the UK and become second in Europe from a low initial starting point and third in the world. Importantly, as well as significantly increasing recycling to 56%, work in the waste sector has significantly reduced emissions by 20.4% and delivered economic growth. The Welsh Government also anticipate savings against future costs of over £5.5 million on food waste and over £500 million on residual waste programs.

Provisions in the Environment (Wales) Act help to achieve more recycling by businesses and the public sector and in 2017, the Welsh Government confirmed its commitment to a circular economy by announcing a £6.5 million fund to help the country move towards a circular economy.

  • Key Targets / Successes

    Climate policy and GHG emissions reduction targets:​​​

    • Reduce emissions within devolved areas by 3% each year
    • Reduce all Welsh emissions by 40% from 1990 levels by 2020.
    • Build resilience and adapt to the consequences of climate change.

    The Welsh Government has further strengthened the climate change commitments through an Environment Act which:

    • A reduction in emission by a minimum of 80% in 2050;
    • Puts in place the legal framework for carbon budgeting and interim targets.

    Most innovative climate actions and emissions reduction successes:

    Since the adoption of the target in the 2010 strategy, Wales has met its 3% annual emissions target (to 2014) and progress against the 40% target has seen emissions decrease by 19% against the 1990 baseline (2015).

    The framework for climate change action in Wales has been further strengthened by the passing of the Well-being of future Generations Act (WBFGA) and Environment Act. The WBFG Act, in identifying long term goals to improve the well-being of Wales and apply sustainable development principles, makes specific reference to the need to act on climate change by reducing emissions, building resilience and ensuring that Wales is globally responsible in its actions. The Act also ensures that risks from climate change are taken into account and appoints a Future Generations Commissioner with advising on climate change as part of a wide remit. In addition, the Welsh Government strengthened its climate change commitments through an Environment Act which:

    • Includes a statutory target of at least an 80% target reduction of emissions in Wales by 2050;
    • Puts in place the legal framework for carbon budgeting and interim targets.

    Energy efficiency

    The Welsh Government has invested £108 million annually to achieve the Welsh Housing Quality Standard. Although the housing stock in Wales is quite old, 74% of the existing social housing has been brought up to an energy rating of D or above and the Welsh Government is working to 100% of all homes by 2020.

    The Welsh Government Warm Homes Programme includes two energy efficiency schemes, Nest and Arbed. Nest is a scheme working to help reduce the number of households in fuel poverty and make homes warmer and more energy efficient. It offers advice and support to save energy and maximise income. Arbed was established in 2009 to bring environmental, social and economic benefits to Wales and coordinate investment into the energy performance of Welsh homes. Since 2011, Welsh Government Warm Homes Programme has directly improved over 36,000 homes of households on low incomes or living in the most deprived areas of Wales, whilst providing jobs and training for local people. In particular, the Arbed ERDF project has delivered 32 schemes in 19 of the 22 local authorities across Wales, created more than 470 new jobs and provided over 60,000 hours of training to new and existing employees. The schemes have been delivered by companies that are based in Wales, with most being SMEs. So far the Programme has saved around 2.48Ktc and energy savings of 9.5 gigawatt hours.

    Wales is building on these successful schemes and looking to accelerate action and delivery through its Energy Efficiency Strategy and its support and advice service - Resource Efficient Wales (REW). REW is a single point of contact to support people and organisations to save energy and water and to reduce and re-use waste.

    As well as looking at social housing, the Welsh Government is also looking to lead by example and has reduced emissions on its own administrative estate by 32% in 2014/15.

    The public sector is a large focus of effort. In 2014 Welsh Government identified a public sector energy pipeline with a capex of over £400 million. Welsh Government has increased support to the public sector to address, a lack of capacity and capability and lack of available finance which have been identified as barriers to progression.

    Commercial Support - To supplement the technical support offered by Carbon Trust, we have grant funded Local Partnerships, a not-for-profit, commercial and legal consultancy, owned by the UK Treasury and Local Government Association, to work with the whole public sector to identify optimal commercial models, routes to finance, areas for improving projects economics and business case development. They also have a key role in gaining the buy-in of Directors, particularly Directors of Finance, who may be risk averse and unfamiliar with the types of projects we are trying to promote.

    Financial Support – Welsh Government have secured substantial extra capital finance which is available to the public sector. The finance is repayable, but offered at 0% interest, with public sector borrowers are able to pay back at a rate slower than the benefits accrue, so they can use the capital to make immediate revenue savings.

    Energy Performance Contracts - Re:fit Cymru is a service we have put together utilizing a grant we secured from the European Investment Bank. It enables organisations to adopt estate wide approach to energy efficiency/renewable energy. We provide a support service, which is accessed through a £10,000 contribution, with the rest paid for by Welsh Government. The support service helps the organisation understand the energy use of their estate, the opportunities for savings and supports process of appointing a private sector service provider from an OJEU compliant framework. The service provider undertakes detailed designs and delivers a program of work, which is typically phased. Crucially the service provider guarantees the energy savings, transferring the risk to the private sector. Paybacks are typically in the order of six to eight years, though the assets installed typically have lives of over 20 years.

    Eco-schools Programme

    The international Eco-schools Programme is particularly successful in Wales with over 90% of schools actively engaged, representing over 430,000 students. The program looks at energy, water; transport; waste minimization; biodiversity; healthy living; litter and global citizenship. The Eco-schools Programme engages and educates children and young people on issues such as climate change, as well as providing a platform for community engagement.

    Renewable Energy

    The Welsh Government’s energy policy, Energy Wales: A Low Carbon Transition, sets out Wales’s priorities for leading the transition to a low carbon economy in a way that delivers long term benefit for the people of Wales. The total capacity for renewable energy in Wales has grown to 3,357 MW by the end of 2016. The majority of this capacity is electricity, although low carbon heat capacity has also begun to grow significantly, almost doubling its 2014 capacity to 504 MW. There are more than 67,000 low carbon energy projects recorded across Wales.

    Wales has set stretching but realistic targets for renewable energy. These targets will help Wales to decarbonize its energy system, reduce long term costs and deliver greater benefits to Wales. The three targets are:

    • Wales to generate 70% of its electricity consumption from renewable energy by 2030.
    • One Gigawatt of renewable electricity capacity in Wales to be locally owned by 2030.
    • By 2020 new renewable energy projects to have at least an element of local ownership.

    Building on progress in on- and offshore wind energy, marine energy is also a key priority. Wales already has some smaller scale schemes and is now seeing proposals for major schemes like constructing a 320 MW tidal lagoon in South Wales between the ports of Swansea and Neath. If consented, it will be the first tidal lagoon in the UK, capable of powering over 155,000 homes (equivalent to 90% of Swansea Bay's annual domestic electricity use) for 120 years.

    The Welsh Government has been providing technical and financial support to local renewable energy projects since 2010. The Welsh Government Local Energy service provides support to communities, SMEs and social enterprises. Local Energy’s Development Officers provide technical support to groups to help develop renewable energy projects. These groups also have access to grants and loans to help with revenue and capital costs from the Local Energy service revolving loan fund.

    In total fifteen projects have been completed, with one other under construction. The largest community led project supported by the program is a 4.7 MW wind project which will provide several million pounds over its lifetime directly to the local community.

    Natural Resources Policy

    The Natural Resources Policy (NRP) is the second statutory product of the Environment (Wales) Act. It sets out the policies, priorities, opportunities and challenges for the sustainable management of natural resources (SMNR) in Wales.

    It also identifies the necessary actions in relation to climate change and biodiversity and to contribute towards achieving the goals across the Well-being of Future Generations Act.

    The three National priorities identified in the NRP are:

    • Delivering nature-based solutions,
    • Increasing renewable energy and resource efficiency,
    • Taking a place-based approach

    These priorities will support the delivery of Welsh Government’s ‘Prosperity for All – the national strategy’ and support our international contribution to the delivery of the UN’s Global Goals.

    The approach taken is based on international best practice, and supports the delivery of our international commitments in relation to biodiversity, climate change and sustainable development.  It draws on the national evidence base, the State of Natural Resources Report (SoNaRR), also produced by Natural Resources Wales which will also produce Area Statements to deliver the policy in a local context.

    The Natural Resources Policy will drive action across the whole of the Welsh Government and will require partnership working with stakeholders across sectors and the round-table working groups.

    The Natural Resources Policy sets the context for Area Statements, ensuring that the national priorities for the sustainable management of natural resources inform a place-based approach to local delivery.

    To be produced by Natural Resources Wales, Area Statements will help implement the NRP in a local context.

    They will provide evidence to support Public Authorities in complying with the S6 Biodiversity and Ecosystem Resilience Duty, Local Authorities when developing Local Development Plans and feed into Local Well-being Assessments and Plans.

    NRW have a range of levers and tools to implement Area Statements, as well as having a role to encourage and support other organisations to take area-based action. 

  • Current activities

    Flagship initiative

    The primary legislation that embeds sustainable development and strengthens the framework for climate change action through the application of the ecosystems approach and the legal requirement for carbon budgeting is particularly innovative. In this way, the Well-being of Future Generations Act and Environment Act builds on Wales’ previous achievements as one of the first nations in the world with a constitutional duty on sustainable development. The legislation demonstrates how the key international work streams covering the United Nations Sustainable Development Goals, United Nations Framework Convention on Climate Change and the United Nations Convention on Biological Diversity can be integrated at the sub-national level to drive real change. The legislation is also already gaining international recognition.

    In October, Natural Resources Wales published the first statutory product of the Environment Act, the State of Natural Resources Report which assesses the state of natural resources through the presentation of up-to-date evidence on the resilience of ecosystems and the benefits they provide now and in the future. Using a ground- breaking approach, NRW have tried to explicitly link the resilience of Welsh natural resources to the well-being of the people of Wales.

     The UN recently praised the Act saying: "The Wales Future Generations Act captures the spirit and essence of two decades of United Nations work in the area of sustainable development and serves as a model for other regions and countries… We hope that what Wales is doing today the world will do tomorrow. Action, more than words, is the hope for our current and future generations.”

    The Size of Wales is another example of an internationally innovative scheme developed in Wales and co-funded by the Welsh Government. The focus of the work has been to sustain an area of tropical forest the size of Wales. The aim of the project was to plant 1 million trees in highly deforested areas of Uganda to help restore soil stabilisation.

    The project has now achieved its aim with the Wales’ First Minister planting the one millionth tree in Mbale, Uganda in January 2015. The ambitious next phase of the project is now looking to plant 10 million trees and help five coffee co-operatives to grow shade trees to protect coffee crops, supporting over 30 villages to establish tree nurseries, and working with over 1,600 families. In 2011, the project was recognized by the UN as one of 10 lighthouse projects from around the world.


    The Welsh Government's 3% emissions reduction target includes a sectoral target for transport. Current and future actions will focus on reduction of transport emissions through promoting healthier and more active travel journeys, supporting public transport through significant investment in bus, rail and the Metro and enhancing network resilience.

    The Active Travel (Wales) Act 2013 is intended to enable more people to walk and cycle and generally travel by non-motorised transport. Making walking and cycling safer and more practical encourages healthier lifestyles, reduces carbon emissions and improves Wales’ environment.

    Work on delivery of the next phase of a modern, high-quality public transport Metro system for south east Wales could begin as early as 2017, estimated to cost £500 - £600 million, to serve the growing public transportation needs of the Cardiff Capital City.

    Sustainable land-use

    The Welsh Government’s Woodlands for Wales strategy sets out a 50 year plan for developing and using Welsh woodlands and trees to bring maximum benefit to the people of Wales. The strategy aims to increase urban woodland cover, and to make Wales’ woodland more diverse by planting a wide range of species that are more resilient to changes in climate as well as reducing Wales’ green house gas emissions. This work supports the delivery of the aspiration to plant 100,000ha of new woodland by 2040 and a goal has been set to plant 2,000ha of new woodland per year to 2020, the remaining life of the current Rural Communities Rural Development Plan.

    Farming Connect provides farm and forestry businesses with advice, guidance, training and events. It recognizes the valuable role the agricultural sector has in the future management of the environment and the sustainable use of Wales’ resources, with an emphasis on sustainable management as an essential and integral part of good business management. Activities include renewable energy generation and diversification, as well as climate change adaptation and sustainable management of natural resources and delivery of ecosystems services. The Rural Communities Rural Development Plan, through the Glastir land management scheme supports the delivery of environmental goods and services, for example woodland creation to combat climate change. Glastir provides beneficial outcomes for a range of woodland type, species, and soils and water. Early estimations suggest that Glastir could reduce greenhouse gas emissions on a farm by farm basis by up to 24%.

    International collaboration

    The Welsh Government is committed to playing its part internationally, working with partners through both the Climate Group and the Network for Regional Governments for Sustainable Development (nrg4SD) and building support for a global deal in Paris 2015. Wales are also founder members of nrg4SD’s newest initiative – the Regions for Biodiversity Learning Platform (R4BLP), established for supporting regions in designing and improving their efforts on biodiversity conservation.

    Since the Johannesburg Summit in 2002, the Welsh Government has developed a strong track record of international collaboration, with examples including:

    Being a founding signatory and chair of the session that agreed the Gauteng Declaration in 2002;

    The Wales for Africa programme in Mbale; Safeguarding an area of forest the Size of Wales in Africa (2015), a response to the dual challenge of climate change and international poverty reduction. The First Minister planted the one millionth tree in Mbale, Uganda in January 2015 and launched the ambitious next phase of the project looking to plant 10 million trees.

    Being a founding signatory to the Compact of States and Regions (2014); Being a founding signatory to the Subnational Global Climate Leadership Memorandum of Understanding (the ‘Under 2 MoU’ 2015).

    In addition Wales has many bilateral links with other partners, including in Africa. For example, Wales and Lesotho have been linked for almost thirty years, with Welsh charity Dolen Cymru, supported by the Welsh Government’s Wales for Africa Programme, creating life changing links through education, health and governance. The First Minister signed a Memorandum of Understanding with the Government of Lesotho in April 2014 to collaborate particularly with regards to climate change and sustainability. Through the clean energy grants scheme, in Summer 2014, Wales Africa Community Links worked with communities in Tanzania, Zanzibar and Uganda to bring rural electrification (using sustainable sources such as solar and hydro micro generation)


    The Welsh word for ‘children’ is ‘plant’ and as part of Wales’ commitment to future generations, for every child born or adopted in Wales, one native Welsh tree is planted in Wales together with one in Mbale, Uganda. This not only creates forests and increases carbon storage but also raises environmental awareness. The Ugandan trees also provide other benefits as they are grafted fruit trees planted outside people’s homes to provide much needed shade and a valuable extra source of food supporting resilience and adaption for Ugandans already experiencing the effects of climate change. Last year saw the 300,000th tree planted in Wales.

    Being a founding signatory to the Compact of States and Regions (2014); Being a founding signatory to the Subnational Global Climate Leadership Memorandum of Understanding (the ‘Under 2 MoU’ 2015).

    Nature Based Climate Action MOU

    Introduced at UNFCCC COP 21 in Paris in December 2015 by the Welsh Government with the sub-national governments for Basque, Catalonia, Manitoba, Quebec and São Paulo, the Nature Based Climate Action Memorandum of Understanding (MoU) brings together sub-national governments willing to ensure a nature based approach is a key pillar of their climate action.

    The MoU:

    • Offers an opportunity for states, regions, and cities to share ideas and best practices on the role nature bases solutions offer for climate adaptation and mitigation
    • Provides a model for other sub-national governments to join
    • Provides a platform for collaboration and cooperation opportunities to increase technical and scientific understanding 

    Signatories of the MOU have committed to:

    • Promote investments to enhance ecosystem resilience as part of the response to climate change
    • Look to natural and green infrastructure solutions 
    • Use tools and assessments that promote a wider understanding of the wider value of biodiversity and healthy ecosystems 
    • Develop tools that measure the benefits of joined up approaches
    • Increase technical and scientific cooperation

    In 2016, the Welsh Government gained membership of the International Union for the Conservation of Nature (IUCN).

    Innovative financing

    The Welsh Government is working to put in place the finance, support, innovation, skills and legislation to drive Green Growth and by April 2017 will have committed £35 million to Green Growth Wales, which is currently focused upon the public sector.

    The proposed Green Growth Wales funding regime assists in the aim to increase and accelerate projects to deliver green investment in Wales. It focuses primarily, though not exclusively, on encouraging investment in resource efficiency, renewable energy generation and waste projects.

    Green Growth Wales is developing a pipeline of projects encompassing renewable energy, resource efficiency and energy from waste. With the increased pipeline, further effort will be required to lever in private finance to support the largest projects. These projects will provide new opportunities for businesses in Wales and protect and create jobs. A package of project development support will ensure that organisations make use of the latest technologies and approaches that deliver the best energy solutions and maximise the opportunities for Welsh businesses.

    The Green Growth Wales innovative finance model has the ability to deliver across Wales in multiple sectors. As part of developing policies and proposals for decarbonisation, Welsh Government will explore the opportunities for innovative finance across all sectors.

    Building on our support of innovation, the Sêr Cymru program (which means Welsh Stars) looks to enhance and build on the research capacity in Wales and has committed £50 million, which complements the £85 million capital investment in the energy industry and wider climate change framework worth almost £164 million.


    The Welsh Government’s Climate Change Strategy includes an Adaptation Framework aiming to address Wales’ climate vulnerability by:

    • Building an evidence base on future impacts.
    • Mainstreaming adaptation to build capacity within organisations and communities.
    • Communicating adaptation to ensure that decision makers understand the risks and opportunities and are equipped to manage them.

    This is delivered through sector adaptation plans, which aim to embed climate resilience in Wales’ sectors’ aims and objectives for the coming century. It is supported by public sector guidance, which aims to help Welsh organisations adapt to the challenges of a changing climate. On a local level, the Well-being of Future Generations (Wales) Act 2015 contains a requirement that Climate Change risks are fully considered by public bodies in their well-being assessments.

     The Environment (Wales) Act 2016 sets out the approach for the sustainable management of natural resources in Wales, which will help to adapt to the impacts of climate change; in doing so enshrining the ecosystem approach from the UN Convention on Biological Diversity to deliver lasting, sustainable economic, social and environmental benefits which is essential to ensuring the resilience of ecosystems and tackling climate change.

    The UK Committee on Climate Change 2017 Climate Change Risk Assessment Evidence Report: Summary for Wales provides new evidence on the nature of risks to Wales and recommendations on the response required of Government. The Welsh Government is responding by developing a new Adaptation Delivery Plan in 2018. 

  • More info

    Devolved powers and competencies relevant to climate and energy:

    • agriculture, food, fisheries, forestry and rural development
    • economic development
    • education and training
    • environment
    • health and health services
    • highways and transport
    • housing
    • local government
    • town and country planning
    • water and flood defence

    Most important economic sectors:

    The following sectors all contribute significantly to the Welsh economy: energy and environment; advanced manufacturing and materials; ICT; creative industries; life sciences; financial and professional services; tourism; construction; and food and farming.

    GHG breakdown by sector (%):

    Sector Emissions % reduction from 1990 base year (in 2015)
    Transport 6.04 MtCO2e (13%) -1%
    Residential 3.64 MtCO2e (8%) -26%
    Business and industry 11.78 MtCO2e (25%) -28%
    Energy supply 17.45 MtCO2e (37%) -3%
    Agriculture 5.85 MtCO2e (13%) -15%
    LULUCF -0.34 MtCO2e (-1%) (+0.42 MtCO2e in 1990)
    Resource efficiency and waste 0.95 MtCO2e (2%) -72%
    Public sector 0.33 MtCO2e (1%) -57%
    International aviation and international shipping 0.91 MtCO2e (2%) -3%


    Power sector mix as at 2016 (%):













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