Few sectors have given the new Labour government a warmer welcome than the green economy, and with good reason.
The Conservative government had a better track record on climate action than its many critics recognised, helping to drive rapid growth across green industries even as the rest of the economy stagnated. But over the last two years in particular, the combination of delayed policy decisions, mixed messages from Ministers, and Prime Minister Rishi Sunak’s attempt to drag the net zero transition into the never-ending culture wars really started to take its toll on many green businesses’ confidence and investment plans.
In contrast, Labour secured a landslide victory on a platform promising a step-change in the UK’s decarbonisation efforts. It has a clear mandate to deliver sweeping reforms that should prove transformational for the green economy. It is little wonder that there is suddenly a degree of cautious optimism coursing through the green economy.
Stoking optimism
In its first few weeks in office, Labour has sought to actively stoke this optimism. Within days, Energy Security and Net Zero Secretary Ed Miliband and Chancellor Rachel Reeves had lifted the ‘de facto’ ban on new onshore wind farms, approved three new solar farms, launched a National Wealth Fund for investing in green industries, and appointed the former boss of the Climate Change Committee to lead a new cross-government agency to deliver on Labour’s target of clean power by 2030.
This flurry of announcements was followed by a King’s Speech where around a quarter of the new bills were focused on boosting green investment and protecting the environment, including the critical Planning and Infrastructure Bill that promises to tear down barriers to new renewables and grid projects.
Much of this agenda has been focused on eye-catching green mega-projects – giant solar farms, pylon projects, gigafactories, offshore wind farms, and green steel plants – but it also promises to deliver a major boost to smaller scale clean technologies deployed by businesses and households across the UK.
Boost for rooftop solar and domestic clean tech
Miliband has already revived the UK’s solar taskforce and one of its first jobs will be to feed into a new strategy to boost rooftop solar deployment. Reports have suggested planning rules and building standards could be tweaked to make it easier to install solar on homes and offices. A similar onshore wind taskforce will now work on accelerating the roll out of new projects, while one of the overlooked aspects of the proposed GB Energy is the potential for it to co-invest in community-owned projects.
Another policy area that has stayed largely under the radar involves Labour’s plans to ramp up investment in energy efficiency upgrades, heat pumps, and other domestic clean technologies, all of which should feed into a big increase in demand for clean tech installers. The full detail is yet to be confirmed and environmental campaigners remain concerned that Reeves’ fiscal rules mean Labour may struggle to mobilise the level of funding that is needed. But equally, Labour knows it cannot meet its emissions and clean energy targets without big improvements in energy efficiency and a huge increase in the roll out of heat pump technologies. New grant, loan, and skills programmes are all on their way, alongside more demanding green buildings standards.
We’ll be discussing all these policies and trends at the Net Zero Festival in London in October, by which point the new government’s priorities and plans will have become even clearer.
It is inevitable that Labour’s green honeymoon period will not last long. Big political battles loom, especially around how to fund new green infrastructure projects and how to deliver planning reforms that maintain nature protection while allowing more developments to get built.
But the opportunity is there to turbocharge a green economy that is already growing fast, and domestic renewables have an absolutely critical role to play in driving down energy bills, enhancing energy security, slashing emissions, and normalising climate action with the public. Green businesses will be hoping Labour now has the courage and the capabilities to deliver on its mandate. But equally, those same green businesses can help make sure that it does.
Rock The Vote: Net Zero Priorities for the Next Parliament is one of the topics at this year’s Net Zero Festival which takes place from 22 – 23 October in London.
Image of James Murray supplied by Business Green