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Briefing

Policy levers for a net zero NHS: four priorities for the future

Published November 2024
Time to read clock icon About 16 mins
Authors
NHS net zero

Key points

  • Transitioning to low-carbon health care is essential for the NHS to respond to the health emergency of climate change and meet its 2045 net zero target in England.
  • The new government’s priorities for the NHS, including the shift from sickness to prevention and from hospitals to the community, will help meet this ambitious target. However, these shifts alone cannot drive decarbonisation of the NHS at scale.
  • Achieving a net zero NHS will take concerted action. Government and NHS policymakers must apply national policy levers shaping care delivery in the NHS in England – such as financial incentives, regulation, and performance targets – to drive rather than detract from progress.
  • This long read assesses how national policy levers are currently being used in relation to net zero health care, where the gaps are and what could be changed to make faster progress. As the government develops the 10-Year Health Plan, a new long-term reform agenda for the NHS in England, we identify four priorities for policymakers to ensure progress on net zero is maintained:  
  1. Strengthen existing accountability for net zero by building on existing governance, measurement and reporting infrastructure. Robust accountability measures are essential to ensure sustainability is prioritised.
  2. Systematically consider environmental sustainability when reforming policy levers. Meaningfully embedding consideration of environmental impacts can identify and unlock co-benefits, help to avoid creating unintended consequences and increase our knowledge of what good looks like.  
  3. Coordinate and maintain focus around agreed priorities for action on net zero care. Policy levers for net zero health care should align with other health priorities to maximise co-benefits, while coordinated and consistent policies are needed to drive progress. 
  4. Address key policy gaps on net zero. Action taken now on approaches to capital investment, health technology appraisals, innovation, and workforce capacity and capability for sustainable quality improvement can lay the groundwork for progress in the years ahead.   
 

Introduction

The NHS in England has a legally binding commitment to achieve net zero by 2040 for its direct carbon emissions and 2045 for the emissions it influences. Doing so is essential to respond to the health emergency of climate change but will require major transformation of services over the next 20 years to low-carbon health care.  

We have previously set out what low-carbon health care looks like and how it supports other health system priorities such as prevention, quality and efficiency, with examples of where this is already happening in the NHS today. Low-carbon health care:  

  • prevents ill health and reduces the need for health care to begin with 
  • improves the management of disease and moves care out of carbon-intensive hospital settings 
  • eliminates avoidable waste of resources and unnecessary interventions, and 
  • uses lower carbon medicines, treatments and products.  

While there is consensus on the features of low-carbon care, it is far less clear how to bring about these changes at the scale and speed needed to meet the net zero target.  

The Labour government has promised fundamental reforms of the NHS through three key shifts: from sickness to prevention; hospitals to communities; and analogue to digital. These shifts need to support the transition to a net zero NHS, but are insufficient on their own to drive progress at the scale and speed required. The government’s plans will be set out in a 10-Year Health Plan for the NHS. With the next decade critical for meeting NHS decarbonisation targets (emissions need to reduce by 80% by 2036–2039), sustainability considerations must be embedded into long-term reforms and  ensure that the new government’s policies are driving rather than detracting from progress. 

National policy needs to steer the health system towards this objective. However, the major national policy levers currently used to drive change in the NHS in England – such as financial incentives, regulation and performance targets – were not designed with environmental sustainability in mind. This may be helping or hindering progress towards net zero in ways not currently known. While many countries now have national commitments to decarbonise their health systems, with approaches varying and progress generally at an early stage, relatively little is understood about how national policy can meet this complex goal. 

Here, we assess how major national policy levers currently used in the NHS in England could be supporting or blocking progress towards net zero. We then suggest four areas of focus for national policymakers to ensure progress is maintained. Our findings are informed by a review of relevant policy documents and literature, conversations with 21 expert stakeholders and a roundtable in August 2024 to test and refine our findings (organisations in attendance are listed in Box 3). We focus on understanding the role of national NHS policy in decarbonising health care delivery, recognising progress will also depend on effective policy to improve prevention, for which many of the policy levers lie beyond health care.  

 

How are national policy levers in the NHS supporting or hindering low-carbon care?

We define national policy levers in the NHS in England as factors influencing health system performance that can be adjusted by government or NHS England. We draw on a World Health Organization framework to classify major policy levers in four broad categories: governance and oversight; funding; stewardship of resources; and shaping service delivery. 

We undertook desk research to identify policy levers in these categories that explicitly reference environmental sustainability as an objective. We supplemented this by speaking to expert stakeholders to identify other policy levers influencing the transition to net zero care, assess the impact and identify priorities for progress. This approach identified policy levers with indirect impact as well as those that explicitly consider sustainability, although this is inherently influenced by the perspectives of stakeholders interviewed and may not be comprehensive. We sought to mitigate these limitations by interviewing stakeholders from a broad range of organisations and testing our findings in the roundtable discussion (Box 3).  

1. Governance and oversight  

Governance and oversight levers include legislation and regulation, strategy and vision, systems of accountability (eg targets) and the collection, analysis and monitoring of performance data. These levers can drive change by enforcing standards, rewarding progress on defined goals and providing consequences for underperformance or non-compliance. 

The government and NHS have introduced a mix of governance and oversight mechanisms in recent years with the aim of driving progress on the net zero target. The Health and Care Act 2022 requires NHS organisations to have due regard to net zero and environmental targets, and gives NHS England power to publish statutory guidance for the transition to net zero. Adding a new NHS value on ‘environmental responsibilities’ is one of the proposed changes to the NHS constitution, with results of the consultation awaited. NHS emissions at national level are reported publicly in the NHS annual report. 

Regionally and locally, all integrated care systems (ICSs) and NHS trusts are required to publish ‘green plans’ for how the targets will be achieved, and to provide an annual summary of progress on delivery, covering actions taken and planned, with quantitative progress data within their annual report. Environmental sustainability has also been included in the Care Quality Commission’s single assessment framework, meaning that the quality regulator considers a provider’s approach to sustainability as part of its ‘well led’ assessment (Box 1). Trusts and integrated care boards (ICBs) return data used to calculate national NHS emissions, and while many trusts and ICBs have calculated and reported their own emissions, they are not required to do so. However, stakeholders felt that oversight and accountability on net zero could be strengthened. For example, these mechanisms tend to focus on strategy and reporting, with the consequences for lack of progress towards net zero carbon emissions unclear. 

Further, these accountability mechanisms are separate from the NHS’s overall approach to the oversight of ICSs and NHS trusts, set out in the NHS oversight framework. This separation was considered a major risk to delivery as it may mean that sustainable care is deprioritised compared with goals accompanied by more robust accountability mechanisms. While other levers setting system priorities and expectations, such as operational planning and guidance, have on occasion included environmentally focused goals (including in 2020–21 and 2024–25) and aligned goals such as prevention, environmental impacts or sustainability co-benefits of these priorities are often not explicitly considered. 

Every NHS organisation – including NHS trusts, NHS foundation trusts, ICBs and NHS England – must:

  • In the exercise of their functions, have regard to:
    • the need to contribute to compliance with the Climate Change Act 2008 (UK net zero emissions target) and the Environment Act 2021 (environmental targets)
    • the need to adapt to any current or predicted impacts of climate change identified in the most recent risk assessment report under the Climate Change Act 2008
    • have a board-level representative responsible for leading on net zero.
  • This means that a failure to have regard to these duties could lead to a challenge to a decision made.
  • ICSs and NHS trusts are required to maintain and deliver a green plan. 
  • The NHS Standard Contract has since 2020/21 had sustainability requirements of providers, including to: 
    • have in place clear, detailed plans in relation to specified areas, such as reducing air pollution from fleet vehicles and reducing greenhouse gas emissions from premises
    • provide an annual summary of progress against their green plan to the coordinating commissioner 
    • report quantitative progress data in their annual report.
  • National progress on emissions is reported in the NHS annual report, while data used to calculate this, such as medical gases used, are collected from NHS trusts and ICBs quarterly and summarised in a dashboard available to NHS users. 
  • The CQC has included a quality statement on environmental sustainability and sustainable development in the ‘well-led’ domain of the single assessment framework. 

2. Funding 

Funding levers include the national payment models for paying providers for NHS services. A complex mix of payment mechanisms are used in primary and secondary care, including block payments, activity-based payments (the national tariff), blended payments, capitation, payment for performance and fee for service. These levers drive change by incentivising providers to deliver care in a way that maximises their funding. 

While direct financial penalties have been levied by the Environment Agency on NHS trusts for exceeding overall emissions targets, no payment mechanisms for care delivery in the NHS are designed to directly drive progress on net zero. Financial incentives for lower carbon inhaler prescribing in general practice were introduced in 2021, but scrapped shortly after in 2023 as part of a broader restructuring of incentives (Box 2).  

Indirectly, however, there are a range of payments based on health outcomes, quality of care (such as Commissioning for Quality and Innovation (CQUIN)), and preventative services (for example in primary care) that could theoretically support a shift to lower carbon care delivery, even though this is not their goal. However, there are also major payment mechanisms that could be blocking progress. Activity-based payments – an important part of the payment model for the acute sector – have widely been considered to disincentivise moving care out of hospital and towards care that is preventative or closer to home.  Stakeholders also noted major funding barriers to transitioning to low-carbon care. 

Short-term budgeting cycles and lack of whole-life-cycle approaches to costing in decision making prevent investment in more financially and environmentally sustainable models of care. These include investing in reusable equipment and infrastructure for its use and moving towards more preventative approaches that result in long-term health gains and savings. These funding barriers are compounded by challenges accessing both the mainstream and decarbonisation-focused capital funding necessary to deliver decarbonisation. While the increase in capital investment recently announced in the autumn Budget has been welcomed, it comes against a backdrop of huge maintenance backlogs and long-term underinvestment in infrastructure, such as buildings and equipment. There is a dedicated public sector decarbonisation scheme trusts can access, but stakeholders saw this as insufficient for the scale of investment needed across the NHS estate.    

Inhalers prescribed in respiratory diseases such as asthma are an NHS carbon hotspot. Both UK asthma outcomes and inhaler emissions are the worst in Western Europe.  

Several policy levers have been introduced in recent years to reduce emissions and improve outcomes in asthma care:  

How effectively were these levers coordinated? The timing of the IIF financial incentives was not coordinated with quality improvement tools such as the Greener Practice High Quality Low Carbon Asthma Care toolkit, though they may have encouraged uptake of them. Nor were the IIF incentives integrated with existing quality incentives in the Quality and Outcomes Framework, meaning opportunities to maximise health and climate co-benefits may have been missed. Clinical guidance by NICE during the time period of the IIF also did not mention environmental considerations in prescribing (though forthcoming updated joint NICE/British Thoracic Society guidelines are expected to recommend environmental impact be considered along with clinical factors and patient choice in treatment decisions). 

As for the impact of these policies, annual inhaler emissions fell by over 300 kilotonnes carbon dioxide equivalent from 2019/20 to 2023/24. The emissions saved are equivalent to an average UK petrol car driving 1.8 billion km; or to the sun and back more than five times. However, the IIF aims are far from being met: for example, it aimed that more-polluting inhalers would make up no more than 25% of prescriptions nationally – in line with other European countries – by 2023/24, but these still form over 50% of prescriptions. There is also wide regional and local variation in prescribing practices, which may reflect inconsistent local implementation support, guidance and capability building. 

3. Stewarding resources  

Policy levers in this category include medicines and devices regulation, health technology appraisal and procurement frameworks. These levers drive change through determining the resources available to NHS organisations and staff. 

There are key examples of levers in this category that seek to reduce the environmental impact of the resources used in the NHS, but also important gaps where sustainability is not systematically considered.  

Desflurane, an anaesthetic gas used for surgery, was identified as a carbon hotspot in the NHS: 1 hour of surgery using desflurane is equivalent to driving 200–400km. NHS England set targets to reduce the use of desflurane in the Standard Contract since 2020 and, supported by anaesthetists’ professional bodies, fully decommissioned the use of desflurane in routine practice across the NHS in 2024.  

Strong policy levers have also been introduced to decarbonise the supply chain for the NHS in England, which accounts for the largest part of the NHS’s indirect emissions. Procurement may be done locally, such as by trusts, or centrally via the NHS supply chain. Suppliers are required to meet increasingly stringent sustainability requirements and, from 2030, only suppliers that can demonstrate progress through emissions reporting will qualify for NHS contracts. The government’s recently published Design for Life roadmap, which aims to end the use of avoidable single-use products by 2045, is a significant development. With the supply chain of the NHS in England fragmented and vast (it currently includes over half a million products), some stakeholders prioritised rationalising this catalogue using value-based procurement approaches, which have been shown to improve health outcomes and reduce emissions. 

Stakeholders thought other policy levers influencing resources used in the NHS were underutilised for sustainability. Authorisation to bring medicines and devices to market in the UK is regulated by the Medicines and Healthcare products Regulatory Agency (MHRA) based on safety, quality and efficacy. Currently there is no dedicated pathway for re-authorisation when products are reformulated to be more sustainable, which was perceived as a disincentive by some stakeholders. Health technology appraisals undertaken by NICE determine which medicines and technologies are approved for NHS use according to how well they deliver good outcomes and value for money. Currently, neither marketing authorisation nor health technology appraisals collect data on the environmental impacts of new technologies. Stakeholders saw this as a gap in which regulators and evaluators could use their influence to enable environmental impact data use in medicines and technology authorisation, reformulation, health technology appraisal and procurement.

4. Shaping service delivery  

Policy levers in this category include national guidelines and standards, and strategies to improve the delivery of care. These levers drive change through providing evidence, guidance, training and support to improve quality of care and reduce unwarranted differences in practice. 

Service delivery and how NHS resources are used also matter for sustainability, as demonstrated by regional variation in prescribing patterns of asthma inhalers (Box 2). While there are many examples of successful sustainable changes in practice at local level, there is very limited adoption of these shifts at a wider scale. 

NICE has produced some evidence and tools to directly support policymakers, clinicians and patients to consider the environmental impact of treatments. NICE also considers sustainability as one factor when prioritising topics for new guidance. However, these developments are small scale relative to the vast amount of national clinical guidelines produced by NICE, which do not explicitly consider environmental sustainability. National clinical guidance was seen by stakeholders as a lever that is underutilised by not systematically considering the environmental impacts of care pathways in guideline development. 

Getting it Right First Time (GIRFT) is a national clinical improvement programme focused on identifying and addressing unwarranted variation in clinical outcomes and service efficiency by sharing best practice. The GIRFT initiative has also been shown to contribute to lower carbon care delivery. For example, reducing unwarranted variation in day case surgery rates, and avoiding unnecessary hospital admissions after surgery, reduces emissions while improving clinical outcomes. Stakeholders felt there was scope to further realise the potential environmental, quality and efficiency co-benefits of GIRFT by systematically including sustainability metrics alongside quality and efficiency. 

Stakeholders also identified levers shaping care delivery that do not fully support sustainable practices. Infection prevention and control policies were an area where varied local interpretation of unclear guidance was seen as particularly hindering the adoption of approved reusable medical equipment. 

Policy levers in the NHS for building staff capacity and capability for delivering sustainable care are also a gap. While NHS IMPACT, the shared national NHS improvement approach, aligns with low-carbon care in its aim to improve quality and efficiency, it does not integrate sustainability into its approach to building improvement capacity and capability (for example through a sustainable quality improvement model).  

Assessing the overall policy landscape  

How far are policy levers in the NHS supporting the net zero ambition in England? The picture is mixed. Few policy levers are directly designed to drive progress on net zero and many do not consider it at all. Most activity has happened in governance and oversight (driving change through targets, planning, and data collection) and in stewarding resources (driving change through placing requirements on NHS suppliers).  

In other areas, where supportive policy levers exist, they are often small scale or piecemeal, such as the handful of NICE publications addressing sustainability or the patchwork of policies aimed at lower carbon inhaler prescribing (Box 2). Policy levers to decarbonise care have tended to focus on making low-carbon switches in ‘carbon hotspots’ (such as desflurane use), rather than working towards sustainability being considered systematically in decision making or care commissioning.   

Supportive policy levers often lack coordination. For example, while there is guidance from the centre for how organisations and ICSs should develop green plans, this is not accompanied by accountability mechanisms for ensuring delivery on the aims (Box 1). Progress on reducing inhaler emissions has been made, but ambitious aims for decarbonising and improving asthma care have not been fully realised, potentially hindered by uncoordinated and inconsistent policy (Box 2).  

Some policy levers that have potential to drive progress on net zero have not considered sustainability objectives at all, such as medicines regulation or health technology assessments. There are also policy levers that may be indirectly supporting sustainability objectives, even when this is not their goal. These include the range of payment mechanisms, operational planning and guidance, and clinical guidelines that promote prevention and optimal disease management (which as such may be reducing demand for more carbon-intensive care). Conversely, levers designed for other objectives – such as the payment by results system, intended to maximise hospital elective activity – may have unintended damaging consequences for the net zero goal.  

 

Four priorities for future health policy 

Our assessment of how far policy levers in the NHS are supporting the transition to low-carbon care in England suggests four areas of focus for future policy.   

1. Strengthen existing accountability for net zero  

Stakeholders felt that progress on sustainable care can be accelerated by strengthening the accountability policy levers that are already in place. This would be relatively straightforward  as it builds on existing governance, measurement and reporting systems.  

As the NHS net zero ambition moves from strategy to implementation, accountability for delivery becomes increasingly important. Previous work has shown that robust accountability systems are essential for progress towards similarly cross-cutting and long-term system priorities, such as health inequalities. Without strong accountability there is the risk of sustainability, like health inequalities, being crowded out by other priorities such as reducing hospital waiting lists.    

Three main areas for action were suggested in our stakeholder interviews and roundtable discussion:  

  • Strengthen performance management with clearer expectations and support. Existing levers for NHS organisations such as CQC guidance, NHS standard contract conditions and green plan guidance could be strengthened by setting out consistent minimum expectations for sustainable care delivery and embedding expectations of continuous improvement over time. Providing greater clarity on lines of accountability and mandating senior responsibility for delivery were also suggested.  
  • Improve data collection and reporting. Stakeholders identified missed opportunities to collect more meaningful data from providers aligned with long-term priorities. Making local data publicly available could also highlight high and low performing areas, increasing accountability for progress and supporting action to reduce variation.  
  • Integrate sustainability with existing oversight mechanisms. Major forms of accountability in the NHS, such as the oversight framework, should demonstrate to health leaders that net zero care is a priority alongside other goals through closer alignment with net zero NHS strategy.

2. Systematically consider environmental impacts when reforming policy levers  

Our assessment identified policy levers for other objectives that may be indirectly supporting the drive to net zero by promoting good management of disease and reducing demand for more resource-intensive care. For example, NICE clinical guidelines aim to optimise quality and cost-effectiveness of care. However, not explicitly considering net zero and its interaction with other goals, such as quality and efficiency, could mean that opportunities are missed to both highlight and maximise health and climate co-benefits.  

Conversely, some levers that do not consider environmental impacts may be hindering progress – such as the payment by results system in secondary care. It is important to identify and understand these potential tensions so that informed decisions can be taken on the trade-offs and risks mitigated where possible. For example, low-carbon models of surgical care could be embedded in strategies to increase elective activity; or sustainability built into financial incentives as quality is for CQUINS.  

The consensus view among stakeholders was that policymakers should systematically consider impacts on the sustainability of care when designing and reviewing policies and evaluating their effects. This would identify opportunities to maximise co-benefits, avoid unintended consequences and build knowledge of what good looks like. This is especially important for policy areas such as payment mechanisms where it is not yet clear – from either the NHS experience or internationally – what financial levers would effectively drive high quality and low-carbon care. 

3. Coordinate and maintain focus around agreed priorities  

No single policy lever can bring about system transformation. Coordinating levers around agreed areas of focus is key. Activity has previously been targeted on carbon hotspots areas of clinical practice, such as anaesthetic gases. But, as decarbonisation of the NHS progresses, new priorities will be harder to find.  

Potential approaches to identifying and coordinating shared priorities suggested by stakeholders included:   

  • Aligning policy action with existing system priorities. Stakeholders suggested identifying priorities for sustainable care that maximise co-benefits for other health system goals, such as quality, health inequalities and productivity. Net zero priority-setting could dock into existing priority setting approaches, such as those for identifying areas for improving quality and efficiency (such as the GIRFT programme) and reducing health inequalities (such as the clinical pathways and population groups identified in NHS England’s CORE20PLUS5 approach).  
  • Developing new methods to identify priorities. For example, bodies involved in health technologies, innovation and research could undertake horizon scanning to identify and prioritise new opportunities and challenges for the transition to sustainable care. Another suggestion was to build on the GIRFT methodology to identify drivers of unwarranted variation in the sustainability of care to target action on. 
  • Maintaining focus on agreed priorities is also crucial. The start-stop use of financial levers to shape inhaler prescribing, with improvements falling short of stated aims, has shown the importance of both coordination and consistency to bring about large-scale change in clinical practice (Box 2). 

4. Address key policy gaps  

Policy areas prioritised by a number of stakeholders as needing more action included:  

  • Capital investment. Suggestions included cost-neutral approaches, such as introducing longer term funding cycles or allowing greater capital spend that improves return on investment or reduces resource use and costs over time. Other suggested approaches included allowing NHS organisations to borrow from the Treasury’s National Wealth Fund, as local authorities can, to decarbonise the NHS estate; and requiring large public sector capital investments to assess their carbon impact.  
  • Health technology regulation, appraisal and innovation. As new health technologies such as diagnostics or treatments emerge, we need to understand how they influence the environmental impact of care pathways. Stakeholders saw a role for regulators, health technology evaluators and others in the innovation space, such as MHRA, NICE and HINs, to start collecting environmental data about health technologies’ environmental impacts now. This can set the groundwork for using environmental data in decision making, such as in technology assessments, procurement, and prioritising innovations for adoption and spread longer term.   
  • Staff capacity and capability building. Upskilling the workforce to improve the sustainability of care as part of quality improvement was seen by many stakeholders as a priority. However, many of the levers to support this currently sit outside the NHS – from third-sector provided courses and programmes on Sustainable Quality Improvement, to training offers by some Royal Colleges for their members. Embedding sustainable quality improvement in national NHS-led approaches to improvement would help drive sustainable practices at the scale required.  
 

Conclusion

Major and rapid transformation towards low-carbon care is required for the NHS in England to reach net zero by 2045 for all of its emissions, direct and indirect. For this to happen, national policy levers must align with and drive forward these changes. However, the extent to which current policy levers in the NHS are supporting the net zero goal is mixed.  

The new government is embarking on an ambitious 10-year reform programme for the NHS in England. This is likely to require reviewing and adapting major policy levers to achieve its priorities – many of which align well with sustainability principles. To improve progress on net zero in the critical years ahead, national policymakers should first strengthen and build on existing accountability for net zero. Second, systematically consider net zero when designing and reviewing policy levers for other goals. Third, coordinate and maintain the focus of new policy for net zero around agreed priorities. And lastly, focus on addressing key gaps where there are levers with untapped potential to help drive lower carbon care.  

Without focused government action on these priorities there is unlikely to be progress on net zero at the pace needed to meet the legally binding targets. This could leave the NHS unprepared to deal with the escalating health harms and care disruptions caused by the climate emergency. But by building consideration of the net zero goal into long-term reforms, rather than seeing them as separate, there is a real opportunity to improve health and health care now and ensure quality care is sustained into the future. 

Care Quality Commission     

Centre for Sustainable Healthcare 

Greater Manchester Integrated Care Board 

Greener Practice

Health Innovation Networks 

Imperial College London  

The King’s Fund     

National Institute for Health and Care Excellence

NHS England

NHS Sussex Integrated Care Board

The Shelford Group

Sustainable Healthcare Coalition  

University of Cambridge 

University College London Hospitals NHS Foundation Trust

University of Oxford

Related download

Table 1: Policy levers
(184.48 KB)

Further reading

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