The recent election of the Labour government in the UK, led by Prime Minister Keir Starmer, signifies a shift in policy on sustainability and climate action.
Early actions by the new UK government
Sustainability promises were a prominent feature in Labour’s election campaign and within the first week following the election, we have already seen the new government move quickly to deliver on some of these pledges. For example, the removal of the “de facto” ban on new onshore wind farms in England, which had meant such farms faced higher planning barriers than other infrastructure projects. The “UK’s National Wealth Fund” was launched on 9 July providing a £7.3 billion fund aimed at powering green investments and infrastructure development to boost the economy and promote clean energy, with the goal of enhancing energy independence and tackling climate change. Starmer's newly formed cabinet also makes way for greater socioeconomic diversity and gender equality in government, with the most state-educated ministers since 1945 and Rachel Reeves becoming the first female Chancellor of the Exchequer in UK history.
Climate commitments
As the world grapples with escalating climate challenges, the policies and actions of major economies like the UK’s are under intense scrutiny. In a message to civil servants within the Department for Energy, Security and Net Zero, Ed Miliband, as its new Secretary of State, reiterated the UK’s plan to reach zero-carbon power by 2030 and relaunched the country’s ambition to be a climate leader on the global stage.
Other pledges from the Labour manifesto
We expect further announcements in relation to the other commitments from the Labour party’s manifesto, which include the following:
- To use corporate and financial regulation to put pressure on the private sector, including a new requirement for financial institutions and large listed companies to publish transition plans aligned with the goals of the Paris Agreement.
- Further influence on the financial sector is set to come from the Bank of England, which will have climate considerations restored to its mandate after these were removed last year by Chancellor Jeremy Hunt.
- To make the UK “the green finance capital of the world”.
- To “decarbonise” electricity by 2030. To achieve this, Labour plans to work with the private sector to double onshore wind, triple solar power and quadruple offshore wind. Labour have also pledged to ramp up investment in carbon capture and storage, as well as hydrogen energy.
- To form a publicly-owned company, “Great British Energy”, which will be allocated £8.3 billion, funded by a windfall tax on oil and gas producers. Great British Energy will have a mandate to invest in clean energy technologies and individual projects, as well as to support local clean energy investment through funding for local authorities and low-cost loans for communities.
- To improve water quality, with a focus on reducing sewage in rivers and the sea.
- To establish the “Warm Homes Plan”, a £6.6 billion plan to help households cut costs by installing insulation, solar panels and low carbon heating by 2030.
- To reform employment laws by introducing day one employment rights for leave, sick pay, and protection against unfair dismissal. Other key reforms include banning so-called "exploitative" zero-hours contracts, introducing a new single "worker" status to cover everyone apart from those "genuinely self-employed", and reforming long-standing restrictions on trade unions.
Collaboration and innovation
Translating these commitments into tangible results will demand collaboration, innovation, strategic planning, and investment. Regardless of whether all pledges materialise, it is clear that the UK remains committed to achieving net zero emissions by 2050. Consequently, climate and sustainability should be top priorities for companies, who must closely monitor legislation and changes as they occur and be prepared to adapt swiftly.
To discuss any of the points raised above or how we can support your organisation, please contact one of our lawyers who would be very happy to discuss how we can help you.
Our content explained
Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.