"Investors in the private sector do it (investment) better […] Government's role is making sure the path is clear for investors to succeed"
- Prime Minister Keir Starmer, International Innovation Summit 2024
Prime Minister Keir Starmer’s recent speech at the International Investment Summit highlighted the critical link between clean energy technologies and economic growth. With a bold message delivered against a striking red backdrop, the Prime Minister emphasised the need for decisive policy action to drive dynamic growth across the UK economy. Indeed, this focus is crucial to inspire investor confidence and encourage greater investment in British cleantech innovation
The speech, which took place at the Guildhall – a historic landmark in the heart of the City of London, was presented just days after the new government passed its first 100 days in office. There have been promising signs that the government is listening to investors, but some concerns exist around how the government will tackle the full spectrum of issues that might challenge the deployment of cleantech innovation. With this milestone, Cleantech for UK used the opportunity to review the progress made towards British cleantech competitiveness and explore what remains to be done.
Planning Reform
One major issue for the cleantech sector has been the cumbersome planning system, which has long delayed the deployment of green infrastructure and the scaling of clean technologies. The government's commitment to reforming planning processes is a positive step.
Accelerating projects such as renewable energy installations, electric vehicle infrastructure, and energy efficient housing will not only stimulate economic growth but also help the UK meet its climate targets. Streamlining planning will enable cleantech companies to move faster, benefiting communities, improving connectivity, and reducing consumer costs through cleaner, more efficient technologies.
Skills
Another challenge facing scaling cleantech companies is the shortage of skilled labour. As clean sectors grow, so does the demand for workers skilled in enabling technologies, such as renewable energy, energy storage, and advanced manufacturing.
Thus, the government’s plan to reshape the apprenticeship levy into a more flexible growth and skills levy sends a positive signal. This change has the potential to provide cleantech businesses with the talent they need to innovate and expand, while also offering valuable opportunities for workers to reskill and join this high-growth sector.
AI
key theme at the summit was the transformative role of AI and other emerging technologies. AI has the potential to enable, accelerate, and scale solutions rapidly. While the UK boasts valuable data resources like the internationally renowned UK Biobank, this alone does not ensure AI’s successful integration across the broader UK economy, particularly in cleantech. Integrating AI into legacy systems, such as existing energy infrastructure, will be both costly and complex. For AI to make a real impact, it must be applied across the private sector—and quickly.
Much left to do
While the first 100 days of this government has shown promising signs, with positive announcements suggesting growth will remain a priority, now is not the time for complacency. There is still significant work ahead to ensure sustainable growth that brings clean innovation to the forefront. As Chancellor Rachel Reeves prepares to deliver her first fiscal statement at the end of October, it presents a pivotal opportunity for the government to prioritise cleantech innovation as part of its broader economic mission. However, our eyes remain on how the government plans to integrate innovation into long term policy, such as the National Wealth Fund and Great British Energy remain front and centre.
Cleantech for UK will continue to engage with its members and government officials to ensure the voice of the cleantech sector is heard on the critical issues that will shape our economic and environmental future. Now is the time to seize this opportunity.
