The climate and nature crisis is the greatest long-term global challenge that we face. However, capitalising on the clean energy transition represents a huge opportunity to generate growth, tackle the cost-of-living crisis, and transform Britain’s energy system into an independent blueprint for other countries to follow.
The new government is already taking immediate steps to capitalise on it. As previewed in Labour’s manifesto, the new government is following through on its climate commitments with a series of ambitious policies. As Parliament goes into recess for the summer, we explore how these initiatives promise to reshape Britain's energy landscape and set the country on a path toward a more sustainable future.
Let’s explore the recent wave of green policy initiatives that have emerged from Westminster in the past few weeks.
First up, we have the Great British Energy Bill. No, it's not about tea-powered turbines (despite what some may think). Instead, this bill introduces a publicly owned energy company with a substantial £8.3 billion budget. Great British Energy is partnering with The Crown Estate to achieve up to 30GW of new offshore wind capacity by 2030.
Impact on cleantech: GB Energy represents a bold step towards energy independence and sustainability. If implemented correctly, it could reduce our country’s carbon footprint and create swathes of renewable energy sector jobs. Additionally, the target offshore wind capacity would be enough to power approximately 20 million homes.
Not content with just one piggy bank, Labour has unveiled the National Wealth Fund Bill. This £7.3 billion treasure chest is designed to transform Britain into a green investment hotspot. The goal is to attract three pounds from private investors for every pound of public money invested, thereby multiplying the impact of public funds.
Impact on cleantech: A fund such as this can be expected to drive investment into innovative green technologies, support the transition to clean energy, and position the UK as a leader in sustainable finance. Projects funded could range from advanced renewable technologies to green infrastructure developments. As this funding line is developed, it’s crucial that sufficient financing is dedicated to commercialising strategic tech sectors and scaling solutions in which the UK have an innovation edge.
For those concerned about their carbon footprint when jetting off to Ibiza (or other fun holiday destination), there’s hope on the horizon. The Sustainable Aviation Fuel Bill aims to bolster the UK's sustainable fuel production. While it's not quite solar-powered planes, this initiative marks a significant step forward.
Impact on cleantech: Sustainable aviation fuels (SAFs) can reduce carbon emissions by up to 80% compared to traditional jet fuels, making air travel significantly more environmentally friendly. However, they struggle with financial viability compared to traditional carbon-based fuels. Public support for these solutions can aid in their uptake, and spur more cost-effective innovation.
The Crown Estate is getting a makeover too. It has been given new borrowing powers, which enables it to invest more heavily in offshore wind.
Impact on cleantech: The Crown Estate's enhanced role underscores the importance of strategic public-private investments in achieving national climate goals. Its increased capacity for investment is likely to significantly boost the UK's renewable energy output. However, effective collaboration with stakeholders will be key to ensure that the growth of the clean energy sector is balanced with other competing priorities, such as nature recovery.
Labour is not pulling any punches with their target for zero-carbon electricity by 2030. The new government has appointed Chris Stark as the Chief Delivery Advisor for their target for zero-carbon electricity by 2030. No pressure, Chris—you've only got to revolutionise the entire power sector in six years!
Impact on cleantech: Achieving this ambitious target will require overcoming significant challenges, including upgrading infrastructure and fostering public-private partnerships. However, success would place the UK at the forefront of global efforts to combat climate change.
Not content with just transforming the UK, Labour is pushing for a global Clean Power Alliance. The alliance is being called a 'reverse OPEC,' with members aiming to decarbonise their power systems by 2030. Instead of manipulating oil prices like OPEC, they will collaborate on supply chains and grids to maintain low energy costs. It's like the Scooby Gang, but instead of fighting vampires and demons, they're taking on climate change. Let's hope they have as much success as Buffy and her friends did in saving the world – which is, to say, a lot.
Impact on cleantech: The Clean Power Alliance aims to foster international collaboration on clean energy initiatives, sharing technologies and strategies to combat global climate change. This initiative could amplify the impact of the UK’s policies on a global scale.
All these green dreams need funding, and that's where the multi-year Spending Review comes in. We'll know more on 30th October when the Budget is announced. Mark your calendars, energy enthusiasts!
Impact on cleantech: The Spending Review will be crucial in determining the allocation of funds for cleantech initiatives. Thus, setting the pace for the UK's green transition. It's an opportunity to prioritise investments that will drive sustainable growth. It's vital that funding is used creatively and strategically to deliver the greatest value, ensuring that every pound drives maximum impact. If the UK is to emerge as a global cleantech champion, we must focus on strategic sectors in which we have a chance to claim leadership.
The winds of change are blowing strong in the UK! The new policy statement on onshore wind, announced on 8 July 2024, sets a gusty goal to double onshore wind energy by 2030. The plan? Sweep away the cobwebs of the old ban on onshore wind in England and give it equal footing with other energy developments in the National Planning Policy Framework (NPPF). More broadly, the NPPF is also proposing changes to the planning system that drive greater commercial development in the engine room of the UK’s clean, economic future.
Impact on cleantech: Planning hurdles represent one of the most problematic barriers to cleantech projects in the UK. This move is set to clear this blockage, which could supercharge Britain's clean power mission, cut energy bills, and create a whirlwind of high-skilled jobs. Naturally, many other factors and variables will determine the success of these endeavours, but it must be noted that this is an excellent first step. Further planning reform across sectors would be able to tear down barriers to production for other projects, as well.
Labour is hitting the ground running (or should that be cycling?) with their climate agenda. From wind farms to wealth funds, sustainable fuels to spending reviews, they are pulling out all the stops to paint Britain green. At least, that’s the impression they leave as they close up shop for the summer. However, many details about how each piece of legislation will affect Cleantech are yet to be revealed, leaving some uncertainty about the specifics of their impact. Will these measures be enough to meet their ambitious targets? Only time will tell. But one thing’s for sure—it’s going to be an interesting ride.
