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King Charles has outlined the new government’s legislative programme for the next four years, including major reforms in transport, planning and energy.
UK Labour has One of the key election issues, energy security, is high on the agenda of the new Labour government in its first months in office. After suggestions that a publicly owned company could help drive the clean energy transition, improve supply chain issues and reduce bills, it has now been confirmed that Great British Energy will be created. Legislation will also be introduced to ‘help unlock investment in energy infrastructure’. This includes the production of sustainable aviation fuel and investment in related infrastructure.
“The announcement that the UK government plans to establish Great British Energy and invest billions of pounds in renewables is a significant step in the right direction for the UK’s journey to net zero. All organisations need to address their greenhouse gas emissions and governments creating the conditions for access to cleaner energy is a key piece of the puzzle,” said Rachel Delacour, CEO and founder of sustainability company Sweep.
UK Labour sets GB Energy on fire, promises nationalized rail
‘However, it is vital that the government puts the right structure in place around a project of this scale,’ she continued. ‘This means monitoring it through rigorous data collection processes, understanding Great British Energy’s impact on the environment itself, and giving users – particularly businesses – the detailed insights they need to reduce carbon emissions. Only by taking such measures can Great British Energy truly monitor its impact in the UK and support UK businesses to meet science-based climate targets.’
Others echoed some of these concerns, suggesting that Labour’s ambitions to make Britain a ‘green energy superpower’ were out of step with current regulations on infrastructure planning, deployment and development. Another warning sign was the skills shortage, with the UK government needing to look at shortcomings across the system as it develops the policy framework.
‘The scale of ambition and the promise of state support, however limited, will be very attractive to investors, who will feel they have a high degree of certainty about backing UK projects,’ said Jonathan Croley, Partner, Energy & Resources, Ashfords LLP. ‘However, the 2030 clean grid target will be a huge challenge. It is an extremely short timeline to line up investments, start up and execute schemes. Haste is never good, when it creates bottlenecks, competition for a limited supply chain and price increases as a result.
‘Setting up a new solar farm also currently requires a lot of regulatory compliance from various regulators, and the more this process can be streamlined, the easier it will be to attract investment,’ he continued. ‘GB Energy and its commitment to working with the private sector to unlock growth and investment is one of the most high-profile energy promises, but the industry response has been muted. At best it could be a useful partner for risky schemes, at worst it could be unnecessary competition.’
Elsewhere confirmation was found that sustainable aviation fuel [SAF] will be a focus of Britain’s green industrial growth is another positive given that the country is already a leader in this area and the country is still heavily reliant on air travel. Meanwhile, water regulators such as the Environment Agency, Office for Environmental Protection and industry body Ofwat will see their powers strengthened.
It is unclear what this means for the already tight budgets and resources, Environment Magazine yesterday a market-wide investigation was reported, with every supplier in England and Wales now being monitored for performance, including waste and pollution incidents, while other suppliers are now facing criminal investigations for environmental damage and negligence.
Housing regulations are also being updated, as the party pledges to ‘Get Britain Building’. The main aim is to increase the speed of delivery of new ‘high-quality housing and infrastructure’, although changes to speed up the planning, approval and construction process are likely to raise some eyebrows given the potential health, safety and environmental impacts this could unintentionally bring.
In contrast, a new National Wealth Fund has been widely welcomed for the opportunities it will create within net zero and decarbonisation, and accelerates the transition in priority areas that are already on track to become major centres of industry, including clean energy. It will also accelerate international investment, helping to address some of the challenges in accessing funding for low and zero carbon infrastructure projects.
‘By identifying the National Wealth Fund as a top priority, the government is demonstrating its determination to transform the way we share public and private risk, giving private investors the confidence they need to invest in technologies and infrastructure that will drive growth and create jobs,” said Dr Rhian-Mari Thomas, CEO of the Green Finance Institute and Chair of the National Wealth Fund Taskforce.
‘Implementing the Taskforce’s recommendations will boost investment in priority areas, accelerate the decarbonisation of our economy and position the UK for greater international investment,’ they continued. ‘But time is of the essence. We need the Government to maintain the momentum that has characterised the Taskforce’s work so far, so that capital is deployed at pace.’
With local leaders often seen as best placed to develop new climate-focused policies based on the specificities of their area, the idea of increasing devolved powers will also be welcomed by many. Metro Mayors and Combined Authorities will see greater autonomy, and there has been a separate pledge to allow councils to take control of their own bus services, following the example of Greater Manchester and London.
UK Labour & The announcements on transport didn’t stop there either. Rail franchising is set to undergo a major overhaul, with the creation of Great British Railways, effectively bringing operators into public ownership. It comes less than 24 hours after the boss of Avanti West Coast was summoned to talks with the new Transport Secretary, Louise Haigh, to discuss the company’s “unacceptable” performance. The company had the third-worst punctuality record in the country in March 2024, with one in 15 trains cancelled on routes serving major cities including Glasgow, Manchester, Liverpool, Birmingham and London.
“There is much to be genuinely hopeful about in the King’s Speech today,” said Jamie Peters, climate co-ordinator at Friends of the Earth. “The government is making it easier for people to choose greener travel options by committing to an overhaul of our trains and bus services, has announced changes to our ageing energy system and says it will seize the clean jobs and global leadership opportunities that the transition to a zero-carbon economy will bring. All of this will help put us back on track to meet the UK’s climate targets, including the goal of cutting emissions by more than two-thirds by 2030.”
‘However, there are still areas where we need to see the new government go much further and faster, namely nature,’ they continued. ‘It’s great that they plan to take tougher action against polluting water companies, but the government must enshrine the right to a healthy environment in law, so that communities affected by pollution can enjoy cleaner, healthier local areas,’ they continued. ‘It’s encouraging progress compared to the regression of recent years, but if we are to protect communities on the frontline of climate and environmental damage, and safeguard the planet for future generations, we need to see a scale of ambition that matches the enormous challenge ahead.’
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Image: Jason Thompson
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