Energy and Environment – Action or just more “hot air”?

The Labour manifesto promised quite a number of changes for the energy sector and others that will potentially impact the environment. We, obviously, wait to see when these will be enacted. 

However, on energy, they have promised a publicly owned clean energy company, “Great British Energy”, which will invest in and support clean technology and power projects. 

Labour has said that this will cut bills for good and boost energy security, and it will be paid for by a windfall tax on the oil and gas giants. The plan is to capitalise on it with £8.3 billion over the course of this Parliament. 

Labour will be enacting an Energy Independence Act, which will be the framework for their new energy and climate policies and establish a National Infrastructure and Service Transformation Authority to oversee and develop infrastructure projects. 

They have also indicated that they are going to set up a National Wealth Fund from which £1 billion will be allocated to the deployment of carbon capture and £500 million to green hydrogen projects.

Labour plans to increase the UK’s onshore wind, offshore wind, and solar panel output and invest in other renewable energy strategies. They also plan to increase the lifetime of existing nuclear projects, and whilst acknowledging that new nuclear projects are essential for the achievement of energy security, they have said that they will finish the construction of Hinkley C. 

Amongst many other election promises, they have said that they will fast-track the roll-out of electric vehicle charging points, reduce standing charges on energy bills, and invest significant funds in home energy upgrades, creating a “Warm Homes Plan” to provide financial support for the installation of insulation, solar panels, batteries, and low carbon heating into homes.

All of these are to be welcomed and could make a significant contribution to improving our energy security and moving the UK further down the road to Net Zero.

Labour’s commitment to the environment is a little less obvious and specific, but they do intend to put failing water companies under special measures to clean up our water. 

They have said that there will be no significant change from the current policies for agri-environment schemes and that they intend to continue with the ELMs scheme. They also intend to work with farmers and scientists on measures to eradicate Bovine TB and improve animal welfare. 

It will be interesting to see how far Labour goes on questions of Biodiversity Net Gain, especially when balancing the demands on our land to produce food, build houses and produce energy. 

However, one change that could be introduced relatively promptly would be their intention to update national planning policy to “meet the needs of the modern economy” and, in particular, to make it easier to build laboratories, digital infrastructure and gigafactories.

Their housing targets are ambitious and follow years of missed targets under the previous administrations. 

As the King’s Speech is due to be delivered as I write this, we wait to see what they propose for their coming year in office.