Policy levers for a net zero NHS: four priorities for the future
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:
- 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.
- 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.
- 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.
- 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.
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:
- NHS standard contracts and green plan guidance highlighted inhalers as an area for action by ICSs and trusts
- the National Institute for Health and Care Excellence (NICE) produced a patient decision aid on asthma inhalers and climate change
- national medicines optimisation opportunities (from which ICBs select an area to focus on) have included asthma care since 2023
- the NHS England rapid uptake products programme 2021/22 aimed to improve diagnosis of asthma and treatment for severe forms of the disease, with implementation led by the NHS Accelerated Access Collaborative and Health Innovation Networks (HINs)
- the Investment and Impact Fund (IIF), a voluntary financial incentive scheme for primary care networks covering a range of quality and efficiency goals, included indicators for high-quality, low-carbon inhaler prescribing from 2021/22 – although these and other indicators were suspended during the NHS’s response to a surge in COVID-19. These indicators, along with others, were removed earlier than originally planned when the entire IIF was restructured in 2023/24.
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.
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