DESNZ report examines rebound effects in industrial decarbonisation

A clearer understanding of rebound effects is crucial for developing decarbonisation policies that truly reduce emissions.

A new report for the Department for Energy Security and Net Zero by Cambridge Industrial Innovation Policy in partnership with Cambridge Econometrics and the University of Leeds, explores how industrial energy and resource‑efficient measures can unintentionally trigger rebound effects.

‘Industrial energy and resource efficiency rebound effects’ explores how these effects might counteract expected reductions in energy or resource use, as economic responses such as increased consumption, production, or investment offset them, potentially impacting the UK’s ability to reach a net zero economy by 2050.

“This report examines how rebound effects can arise from industrial energy and resource efficiency measures, and what that means for policy appraisal and carbon modelling in the UK. As the UK works towards net zero, the report offers insights that will be key to turning efficiency gains into real-world impact,” said co-author Dr David Leal-Ayala.