Labour sets out plans for Great British Energy at manifesto launch

The Labour Party launched their manifesto in Manchester this morning. Following the IEMA analysis of the Lib Dem, Tory and Green Party manifestos, Ben Goodwin, Director of Policy and Public Affairs at IEMA, looks at what the Labour Party has prioritised in relation to the sustainability agenda.

It should be acknowledged that in the build-up to this moment there has been large uncertainty around Labour's plans for transitioning the UK's economy onto a greener footing.

An initial pledge to spend £28 billion per year on its 'green investment plan' starting from day one was first delayed until halfway through their 5-year term and then subsequently scrapped altogether. The rationale for this was based on the poor state of the public finances that the party expects to inherit if they do go on to win the election.

Yet, for a party that has campaigned very openly on a growth ticket, there seems to be a point missed here. Investment in 'green' can deliver the right growth that is both clean and equitable for businesses and communities across the nation.

A well-trailed policy pledge ahead of the manifesto launch was to establish Great British Energy (GBE) and this of course does appear in the document unveiled today. The idea here is to create a publicly owned company with a mandate to invest in clean energy, e.g. wind, solar, tidal, nuclear and other emerging technologies.

It would have the autonomy to invest as its own entity or to do so in partnership with the private sector. Not too dissimilar in principle to the way in which the UK Infrastructure Bank operates; crowding in private investors for projects whereby the risk profile would potentially be off-putting without anchor support from the public sector.

The manifesto, as again trailed, also commits to achieving a zero-carbon electricity system by 2030. A central component in delivering this will be to double onshore wind capacity, which is something that IEMA has been calling for since the Skidmore review reported its findings last year.

The manifesto also sets out plans to triple solar power, and quadruple offshore wind by 2030. With investment in carbon capture and storage, hydrogen and marine energy, alongside the development of energy storage also part of Labour’s energy plans.

Labour has also pledged to reinstate the 2030 ban on new petrol and diesel cars if it wins the General Election, reversing the decision by the Conservatives in September last year to delay the ban until 2035.

The clean energy section of the manifesto also makes several pledges on jobs.

Indeed, Labour would reward clean energy developers with a British Jobs Bonus, allocating up to £500 million per year from 2026, to incentivise firms that offer good jobs, terms and conditions and build their manufacturing supply chains in the UK’s industrial heartlands, coastal areas, and energy communities.

We would urge that alongside this sort of investment, a green jobs plan is required. This would set out how investment in green jobs and skills will be channelled across different economic sectors so that we have a workforce that can deliver the green economy of the future.

The manifesto recognises the interdependencies of the climate and biodiversity crises. Commitments to expand nature-rich habitats such as wetlands, peat bogs and forests, including on public land are set out, whilst the manifesto also includes an aspiration to tackle the growing waste and resources challenge by moving towards a circular economy.

We would of course argue that the party would need to go much further than this. Establishing a national circular strategy to ensure materials and products needed for our transition to a net-zero economy are reused, remanufactured and recycled.

Likewise, whilst the manifesto does commit to achieving the various environmental targets set down by the Environment Act, the supporting detail on how this will be achieved is limited and there is no mention of establishing a specific plan to protect 30% of the land and of the sea for nature’s recovery by 2030 (30by30).

Our engagement in the election campaign will continue over the next couple of weeks and do tune into our webinar on Tuesday 18th June, when we will be discussing what the next government must do in its first few weeks and months in charge.

At the webinar, we will hear from the Aldersgate Group, British Chambers of Commerce and PLMR, a UK-based public affairs firm which is engaged in sustainability issues.

You can book your place at the session here.