Labour’s energy and sustainability plans unfold
With a new Government in power what changes in sustainable strategy, if any, can we expect for the future of the UK?
The new Labour party, led by prime minister Sir Keir Starmer, pledged in its manifesto to make Britain a “clean energy superpower.”
To achieve this, it has set out plans to:
- establish Great British Energy, a publicly owned green energy company
- upgrade five million homes through its Warm Homes Plan
- improve privately rented homes to a minimum energy efficiency standard
Introducing Great British Energy
In the King’s Speech, it was confirmed that Great British Energy will “develop, own and operate energy projects such as wind farms, using public money as an anchor for further private sector investment.”
£8.3 billion has been allocated to turn Britain into a national energy system operator – this is one of the biggest market interventions for decades.
The Government claims that this will “help us take back control of the country’s energy, achieve energy independence, create new jobs, save money for households and tackle climate change”.
But what does this mean for businesses?
1. Lower energy bills
This is a big promise for businesses.
The new Government is pledging to increase investment in renewable energy and to deliver clean power by 2030.
In doing so, this would reduce our reliance on energy from overseas, which is something that contributes to our higher annual energy bills.
Lower energy bills ultimately means lower running costs for businesses. A real positive if rolled out successfully.
2. Strategic planning is required
Labour’s pledge for complete energy independence will have implications for businesses. A net zero economy will require businesses of all sizes across the UK to decarbonise.
Larger companies will be targeted by regulators first, but sustainability related requirements will trickle down to SMEs.
Businesses both large and small need to start rolling out sustainability plans and actions to support the pledge to be clean power only by 2030.
It’s worth being forward thinking and proactive in this area to ensure that you can meet the impending requirements that will inevitably come your way.
3. Adapting to environmental regulations
Labour plans to start blocking bonuses for executives of polluting companies and may also introduce criminal chargers on persistent polluters.
If you’re looking to expand into the renewable energy sector now is the time, The Green Prosperity Plan presents many new market opportunities.
5. Sustainability data requirements
SMEs will be subject to the Procurement Policy Note (PPN) – this means that any suppliers providing goods or services to the public sector may need to disclose their greenhouse gas emissions, carbon reduction plans and social value information.
6. Introducing the green finance capital of the world
If you work in the finance sector, Labour is intending to make the UK the first green finance capital of the world.
This means that UK-regulated financial institutions will be required to develop transition plans that align with the Paris Agreement, ensuring financial support for sustainable initiatives.
What next?
The plans that Labour have set out are certainly bold and ambitious, with significant implications for businesses of all sizes across the UK.
Businesses that prepare for changing regulations, climate plans, strategic investment and more renewable energy will be more likely to thrive in this newer green environment.
References
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