Home to the first Industrial Revolution and a former coal-burning empire, the UK will become a “clean energy superpower”, the new Prime Minister Keir Starmer has promised.

Keir Starmer’s Labour Party ended 14 years of Conservative rule in July. Climate and energy were key agenda items in the Labour election campaign.

BECOME A “CLEAN” ENERGY SUPERPOWER

Key commitments include achieving a zero-carbon energy target by 2030, relaunching ambitions to become an international climate leader and rewriting the national strategy for net zero emissions.

To achieve such milestones, a Labour government would have to enact sweeping changes across every sector of the economy, from overhauling the planning system to drawing up a “just transition” plan for the North Sea oil and gas industry.

As well as delivering on campaign pledges, Labour will also address the backlog of overdue international frameworks, strategies and commitments that the previous government failed to deliver, according to Carbon Brief.

SIGNIFICANT POLICY REFORMS

Keir Starmer’s election manifesto sets an ambitious target of achieving “zero-carbon electricity” for the UK by 2030. This requires a massive build-out of renewable energy, doubling wind and solar capacity.

The target is ambitious, but is still considered achievable given the current state of the UK energy industry.

The European country has made significant strides in reducing its dependence on coal. The last coal-fired power plant is scheduled to close in September this year. This will require power plants to reduce the share of coal used in electricity generation from 40% (in 2012) to almost zero.

The next big challenge is to tackle the UK’s reliance on natural gas – which currently provides more than 30% of its electricity. The government will need to either phase out gas altogether or find effective ways to capture and store the greenhouse gases emitted by gas power plants.

Labour’s strategy includes a significant expansion of renewable energy capacity. Prime Minister Keir Starmer plans to double onshore wind capacity, quadruple offshore wind capacity and triple solar power.

Achieving these goals requires significant reform in the approval process for renewable energy projects, according to climate expert Joss Garman.

North Sea oil production has been steadily declining and is expected to continue to decline. In contrast to the Conservative approach of maximising North Sea resources, Labour has pledged to respect existing oil and gas licences but not to issue new ones. Oil and gas companies are currently taxed at 75%, a rate Labour proposes to increase to 78%.

The decline in North Sea oil and gas production will impact Scotland, particularly communities that rely on the industry. However, Scottish nationalists have advocated tighter control over these resources because they lie in Scottish waters.

The Conservatives have previously been criticised for delaying green policies, such as extending the ban on new petrol and diesel cars from 2030 to 2035. Labour aims to restore the ban to 2030 and plans to double funding for energy efficiency programmes.

ESTABLISHMENT OF STATE-OWNED ENERGY COMPANY

Another key project is the establishment of a state-owned energy company, Great British Energy (GB Energy), which would act as an investment vehicle for renewable energy and be headquartered in Scotland.

The aim is to exploit “the opportunity of Britain’s clean energy, making the country energy independent, eliminating Russia’s energy influence forever”, according to new Prime Minister Keir Starmer.

Specifically, on July 5, 2024, the new Energy Security and Net Zero Secretary Ed Miliband made his first official announcement in his new position, stating his priorities are to turn the UK into a clean energy superpower with the establishment of GB Energy.

GB Energy’s key functions include developing clean energy projects, investing in renewable energy and supporting local energy initiatives.

The UK government will invest £8.3bn in GB Energy to promote clean energy, according to the Energy Saving Trust. Some of the funding for GBE will come from an additional tax on the fossil fuel industry. The government is also looking to attract £60bn in private investment and involve GB Energy in a range of renewable energy projects, including carbon capture and tidal power, according to the BBC.

GB Energy will be directly responsible for generating 8 GW of renewable energy by 2030. The Crown Estate will work with GB Energy to expand offshore wind farms and attract private investment, with the aim of supporting up to 20-30GW of new offshore wind capacity by 2030.

GB Energy will not supply electricity directly but will co-invest in emerging technologies such as green hydrogen, floating offshore wind farms and tidal power, as well as scale up advanced technologies such as onshore wind, solar and nuclear power.

Although state-owned, GB Energy will carry out projects in partnership with local councils. Expected benefits include the development of renewable energy projects, lower electricity bills, increased energy security and the creation of 650,000 jobs.

The Government also plans to introduce the UK Energy Bill to create a favourable legal framework for GB Energy’s overall operations.

Always keen to be at the forefront of global climate efforts, the UK became the first of the industrialised powers to pass climate change legislation in 2008. Its emissions have fallen significantly since then.

In 2021, the country passed one of the world’s most ambitious climate laws, setting a legally binding target of reducing greenhouse gas emissions by 78% by 2035, compared to 1990 levels.

However, achieving this target will be difficult. A Labor government will face a domestic cost of living crisis, regional geopolitical instability and a series of extreme weather events due to rising fossil fuel emissions.