What is the 2026 carbon budget and what does it mean for Welsh businesses?

As Wales prepares to enter its third carbon budget in the next couple of months, the implications for businesses are significant.

In the latest episode of Little Big Actions, ACT tutors Karuna Sparks and Wallis Pegington unpack what these targets mean for companies of all sizes regardless of where they are in their sustainability journey.

The upcoming third carbon budget targets an average 58% reduction in greenhouse gas emissions by 2030 compared to 1990 levels. Talking about these ambitious numbers, Wallis explained:

“Businesses need to work towards reducing their emissions to hit net zero. It’s not just compliance, it’s transformation.”

In the episode, the tutors explore how this shift represents both a challenge and an opportunity. “I would perhaps look at reframing the word ‘burden’ to ‘investment’,” Karuna said when discussing the cost implications of the budget. “This transition is not merely a necessity, it is an opportunity for SMEs to flourish in new supply chains tied to renewable energy, circular economy, and green infrastructure.”

From practical advice on reducing Scope 1, 2, and 3 emissions to fully-funded qualifications in Energy & Carbon Management, this episode offers insight for any business looking to decarbonise and future-proof its operations.

Talking about the importance of green skills when it comes to meeting these targets, Wallis added: “Training is very important as it educates us in the reasons why we are in a climate crisis, our legal obligations, and tools and techniques on how we can slow the impacts of our business activities.”

Listen to the latest episode of ACT’s Little Big Actions here.