UK Update: Honesty and bold action required to meet Labour’s 2030 clean energy commitment

The in tray of any government is always full, let alone one returning to power after 14 years in opposition and promising change.

With many different issues competing for attention, it was heartening to see that Labour has wasted little time in making two major energy-related policy announcements.

The scrapping of the de facto ban on onshore windfarms and plans to prioritise energy projects in the planning system are hugely welcome for both the transition to net zero and our energy security.

However, this can only be the beginning if the UK is to maximise its potential as an energy world leader.

The Labour manifesto asserts that clean energy by 2030 is the party’s second mission – the first being the much-needed economic growth required to increase living standards and sustain public spending – and commits to making Britain a clean energy superpower. This, Labour says, will cut bills, create jobs and deliver security with cheaper, zero carbon electricity as part of the transition to net zero.

It’s an ambitious objective and covers the three key priorities required by any coherent energy policy: decarbonisation, security, and affordability.

With just six years until the target, the question is how we get there. That will require honesty from policymakers and industry about the scale of the challenge and associated costs, followed by further bold and swift action.

Government cannot deliver this change on its own. The establishment of Great British Energy as part of a wider £28 billion investment is broadly welcome, but this figure is dwarfed by the capital we need to attract from the private sector in order to expand and upgrade clean energy infrastructure.

Long-term fiscal and regulatory certainty as part of a broader industrial strategy, which has been sorely lacking over the last three decades, is crucial to giving energy companies and investors confidence to make this investment.

Without this, the 2030 target will simply not be achieved.

At the same time, we must be considerate of energy security in the intervening years. Although this figure fluctuates, at the time of writing more than 42% of electricity being transmitted via the National Grid was generated by coal and natural gas, reflecting our ongoing reliance on fossil fuels.

This is likely to be the case in the short to medium term, not just for security of supply but also for the commercial viability of the energy companies that are innovating and helping to ensure a phased and responsible transition.

Few things worth doing come easily, and decarbonising our energy system is no different.

However, if we are successful, the result will be a homegrown, future-proof and connected energy system that supports jobs and generates clean, affordable energy for people and businesses across the UK – and beyond.

Sir Keir Starmer will never have more political capital than he does now. Now is the time to act if we are to maximise the opportunities.

It will be interesting to see how the decision from recent rulings will affect government policy and energy law. Over the coming weeks, our colleagues will be reflecting on the outcome of recent cases and how they may impact policy and the momentum towards secure clean energy.

By Burness Paull LLP, Scotland, a Transatlantic Law International Affiliated Firm.  

For further information or for any assistance please contact ukscotland@transatlanticlaw.com

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