It was established on 7 February 2023 by a cabinet reshuffle under the Rishi Sunak premiership.

The department is scrutinised by the Energy Security and Net Zero Select Committee.

The creation of the new department was described by Downing Street as an opportunity to "focus on giving the UK cheaper, cleaner, more secure sources of energy – cutting bills, cutting emissions, and cutting dependence on international energy supplies.

"[4] The London School of Economics's Grantham Research Institute on Climate Change and the Environment welcomed the creation of the new department saying that it "signalled a commitment to delivering net zero" and "showed that MPs on the right of the Conservative Party have failed to win the argument for weakening climate policy."

However, the LSE warned that the new department would have to "persuade other departments and the Treasury to accelerate action on cutting greenhouse gas emissions across the economy outside the energy sector" to be effective.