The King’s Speech this morning (17 July) established the Labour government’s commitment to a clean energy transition.
The King’s Speech is written by the government and read at the State Opening of Parliament. Keir Starmer’s government has proposed a package of over 35 bills and draft bills for its first year in power, including establishing the much-anticipated Great British Energy.
Recognising the “urgency of the global climate challenge and the new job opportunities that can come from leading the development of the technologies of the future”, the climate policy is led – like much of the other bills in the package – by economic benefit.
Ahead of the speech, director of policy, campaigns and communications for the Council for the Protection of Rural England, Elli Moody, called for a focus on onshore wind, saying: “Properly planned onshore wind has an important role to play in the urgent decarbonisation of our energy system. New onshore wind developments must be strategically located away from sensitive landscapes and involve local communities in a transparent engagement process.
“We now need to see the government support onshore wind in cases where landscape sensitivity is considered and proposals have the backing of the local community. If the will is there, we can protect our valued landscapes and meet our nation’s energy needs simultaneously.”
The speech promised “a clean energy transition which will lower energy bills for consumers over time”.
To that end: “A Bill will be introduced to set up Great British Energy, a publicly owned clean power company headquartered in Scotland, which will help accelerate investment in renewable energy such as offshore wind.”
The King further mentioned legislation that would “help the country achieve energy independence and unlock investment in energy infrastructure”, as well as a bill supporting sustainable aviation fuel production.
The Great British Energy Bill secures Labour’s plans for GB Energy, which will not produce or provide power (despite early suggestions to that effect) but invest money alongside private companies. It will have £8.3 billion of public funding funnelled into it over the course of the Parliament, including £1.2 billion raised from increasing the windfall tax on oil and gas companies.
GB Energy is intended to kickstart technologies like tidal and wave power, floating wind turbines and carbon capture and storage (CCS). Interestingly, all of the pathways to net zero set out in National Grid ESO’s Future Energy Scenarios for 2024, published on Monday (15 July), rely heavily on CCS technology.
It will also put additional investment in wind, solar and nuclear power, and work with local communities to develop and maintain small and medium sized renewable projects, part of its Local Power Plan.
The climate agenda will have been well received by industry and the population alike. Labour’s win can partly be attributed to its more progressive pledges on climate; the general election results saw a huge vote share increase for the Green Party, which now has four Members of Parliament, representing a public acknowledgement of the importance of greener policymaking.
Yselkla Farmer, CEO of BEAMA, UK trade association for manufacturers and providers of energy infrastructure and systems that says it looks forward to being an active participant in the Government’s Industrial Strategy Council, praised the speed at which Labour has moved.
“We cannot scale up overnight. Whilst commitments have been made today, immediate action is required to mobilise public and private sector funding for the UK’s low carbon infrastructure and supply chain”, Farmer said.