Why Scope 2 Emissions Are Falling as the UK Grid Decarbonises
- Sophie Wragg
- 3 days ago
- 3 min read
Over the last couple of months, I have been calculating carbon footprints for SMEs and there is one topic that is discussed each time – the fall in Scope 2 emissions. So, I thought I would dive into it here.
Scope 2 emissions focus solely on the emissions given off when generating the electricity that you use. The UK’s electricity system continued to evolve rapidly in 2025 — and for businesses tracking their carbon footprint, these changes matter more than ever. The government’s official electricity emissions conversion factor fell from 0.20705 kgCO₂e/kWh (kilograms of Carbon Dioxide equivalent per kilowatt hour) in 2024 to 0.177 kgCO₂e/kWh in 2025, a significant drop. Even if your electricity consumption stayed exactly the same, your Scope 2 emissions will have fallen.
So, what’s behind this shift?
A Year of Changing Generation Patterns
According to the Energy Dashboard’s 2025 Electricity Review, Great Britain saw several important trends:
1. Renewables reached a new high
Renewables (excluding biomass) supplied 37.3% of electricity in 2025, up from 35.7% in 2024.
Solar was the standout performer, growing 32% year‑on‑year and setting multiple new records.
Wind remained the largest single source at nearly 30% of generation.
This growth in low‑carbon generation is a key driver behind the falling conversion factor.
2. Coal is now completely gone
2025 marked the first full year with no coal generation at all, removing one of the most carbon‑intensive sources from the grid mix.
3. Gas use increased — but the grid still got cleaner overall
Gas generation rose slightly to 26.8% of supply, largely because nuclear output fell by around 10%. Despite this, the overall carbon intensity of the grid continued its long‑term downward trend.
4. Electricity demand is rising
Demand grew by nearly 3%, reflecting the ongoing electrification of heat and transport. Even with higher demand, the grid managed to deliver lower emissions per unit of electricity.
Why the Conversion Factor Dropped
The government’s annual conversion factor reflects the average carbon intensity of the UK electricity grid. The 2025 drop to 0.177 kgCO₂e/kWh is driven by:
Higher renewable generation (especially solar)
The complete removal of coal
Continued improvements in system efficiency
A grid increasingly capable of balancing variable renewables
Even though gas generation increased slightly, the overall mix still shifted toward cleaner sources.
What This Means for Your Business and Your Scope 2 Emissions
If your electricity use stayed the same between 2024 and 2025, your Scope 2 emissions have automatically decreased because each kilowatt hour now carries a smaller carbon footprint.
This is good news — but it’s also a reminder that:
Reducing consumption still matters. Lower carbon intensity doesn’t remove the need for efficiency.
Switching to renewables remains impactful. A greener grid helps, but renewable tariffs and onsite generation still offer additional reductions.
Electrification becomes even more attractive. As electricity gets cleaner, shifting from fossil fuels to electric technologies delivers bigger carbon savings.
A Cleaner Grid, and a Clearer Path Forward
The UK’s 2025 energy story is one of steady progress: more renewables, no coal, and a grid that continues to decarbonise even as demand grows. For SMEs, this means lower reported emissions and a stronger foundation for long‑term sustainability planning.
If you’d like help interpreting what this means for your own carbon footprint — or how to build these insights into your sustainability strategy — I’m always happy to explore it with you.
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