Green policies of New Labour

Green policies of New Labour

Labour's landslide victory in the 2024 general election has ushered in a new era of political and legal change for the UK, especially on the issues of climate and sustainability.

Green policies of New Labour

a. Wind energy

One of the first and most significant steps that Labour has taken is to lift the de facto ban on new onshore wind farms in England, which was imposed by the previous Conservative government in 2015.

Labour is revising the planning policy to place onshore wind on the same footing as other energy development in the National Planning Policy Framework (NPPF), and has also announced that it will consult on whether to bring large wind farms back into the Nationally Significant Infrastructure Projects regime, meaning that the Secretary of State for Energy Security and Net Zero (Ed Miliband) would have sign off, keeping the decision on large developments at a national rather than local level. As Rachel Reeves noted in her first speech as Chancellor, the Secretaries of State for Transport and Energy Security and Net Zero should prioritise decisions on infrastructure projects that have been sitting unresolved for too long. This policy change reflects Labour's commitment to doubling onshore wind energy by 2030, and is expected to boost renewable energy generation, create jobs, and reduce energy bills and emissions.

However, it also raises some legal challenges and opportunities for developers, local authorities, communities, and environmental groups, who will have to navigate the new planning regime and its implications for local democracy, environmental impact assessment, and community benefits.

b. Industrial decarbonisation

Another major policy area that Labour has focused on is industrial decarbonisation, which is seen as a key driver for economic growth, regional development and green jobs.

Labour has allocated £7.3 billion through a new National Wealth Fund (NWF) to invest in ports, green hydrogen, green steel, industrial clusters and gigafactories, with the aim of attracting at least £3 of private sector funding for every £1 of public sector investment.

Labour has pledged to establish a new publicly owned clean power company, Great British Energy (GBE), with an initial investment of £8.3 billion to fund renewable energy projects, support community energy schemes, and help scale up new low carbon technologies, such as floating offshore wind, tidal power and hydrogen. This is a key priority for the new government,

expected to be introduced via a new Energy Independence Bill. Unlike the Électricité de France SA (EDF, the French multinational electric utility company owned by the French government) it is intended to enter the market as a smaller player investing in clean energy projects, and not to re-nationalise the energy sector. Labour's broader objectives include transforming GBE into a major player akin to state-owned energy behemoths like Norway's Equinor, Denmark's Ørsted, or Sweden's Vattenfall. Despite being government-owned, these entities maintain autonomy in the market.

These initiatives are likely to create new legal frameworks and incentives for businesses to participate in the green industrial transition, as well as new obligations and standards to ensure alignment with the 1.5 degree Celsius goal of the Paris Agreement.

c. Nature and biodiversity

Labour has also made some important commitments on nature and biodiversity, which are often overlooked or side-lined in the climate debate. Labour has pledged to reverse the decline in biodiversity and natural habitats, by planting millions of trees, creating three new national forests and nine new national river walks, and ensuring that all new developments contribute to biodiversity net gain.

These policies will require new legislations and enforcement mechanisms which will implement - human rights, a healthy environment, hold UK companies accountable for environmental harm in the UK or overseas, and prevent countries from dumping lower-quality goods into the British markets.

They will also create new opportunities and challenges for businesses, NGOs, and communities to engage in nature-based solutions, environmental justice and green finance.

Conclusion

In conclusion, Labour's green transition agenda represents a radical and ambitious shift in the UK's climate and sustainability policy, which will have profound legal implications for businesses and society. Labour has already taken some bold and decisive actions to deliver on its promises, but it also faces some complex and contentious issues that will require careful balancing of interests, trade-offs, and compromises. The legal profession has a crucial role to play in supporting and scrutinising Labour's green transition, and ensuring that it is fair, effective, and inclusive. 

Alex Taylor

Trainee and Macfarlanes LLP