Labour has been elected; now it must follow up with action on climate protection

The Conservatives’ decision to oppose net zero contributed to their worst defeat in the party’s history.

As it became clear that Labour had, as expected, won a landslide victory in yesterday’s UK general election, coupled with strong results from the Liberal Democrats and the Greens, many commentators stressed that the British public clearly wanted climate action. Yet Labour did not make climate action or environmental issues central to its campaign.

The party must now prove that it is prepared to invest not only in the energy transition, but also in greening transport, making agriculture much more sustainable and resilient, and protecting and restoring nature if it is to meet its climate goals. Its climate action, particularly in financial terms, will also be important on the international stage now that outgoing British Prime Minister Rishi Sunak is no longer in a leadership role.

Although Reform, the only party fully opposed to net zero emissions, won four seats and its leader Nigel Farage was elected to Parliament for the first time, the general conclusion was that the Conservative Party’s attempts to slow down the energy transition and exaggerate its potential costs had backfired. Not only did Labour win a clear victory, but the Liberal Democrats and Greens, with their strong commitments to climate action, also did well. The Liberal Democrats won 71 seats and the Greens four.

“It is clear that the Prime Minister’s strategy of downplaying environmental issues has not turned the party’s fortunes around,” Sam Hall, director of the Conservative Environment Network, said on X as the results were announced last night. “To build back, we must once again offer a positive Conservative vision for the environment.”

Manon Dufour, executive director of the independent climate change think tank E3G in Brussels, called Sunak’s decision to delay and water down climate policy a “strategic mistake that makes the Conservative Party unelectable.”

Rachel Solomon Williams, chief executive of business organisation Aldersgate Group, said the result showed that “the public has recognised the economic and social benefits that a strong climate and environmental policy programme can bring to the country”.

Need for clear guidelines

The first message from companies and investors to the new government was to send clear policy signals to stimulate investment in the green economy.

“Businesses and investors are ready and waiting to play their part, but stability and clarity will be critical to enable them to do so,” Solomon Williams said in a statement. “The UK has fallen behind international competitors in the race for green investment. It is now imperative that the new government acts urgently to address this issue and put the economy on a solid footing for the future.”

By working with investors and businesses, the UK can attract billions in green investment, create a sustainable future, boost the economy and create new jobs.

James Alexander, CEO of the UK Sustainable Finance and Investment Association, said investors “look forward to working with the new government, which must act quickly to remove barriers to private investment in our sustainable future”.

“By working with investors and businesses, the UK can attract billions in green investment, create a sustainable future, grow the economy and create new jobs,” Alexander told Sustainable Views.

Paul Hamalainen, Director of FS RegCentre and sustainability expert at consultancy Forvis Mazars, said: “Sustainability has moved up the priority list of the political electorate over time and so it is of paramount importance that the new Labour government outlines what shade of green its future government will be.

“London still ranks first in the Global Green Finance Index, but will it maintain this lead or lose ground?” asked Hamalainen. “Important parts of UK financial regulation relating to green investments and climate disclosures are still in the pipeline.”

He suggested that the new administration could send a clear message on sustainability by “following the US example and introducing a comprehensive financing and incentive package that accelerates the transition to a clean energy economy.”

Beyond energy

Mark Chapman, founder of the Zero Carbon Forum, stressed that the Labour Party must go far beyond decarbonising the electricity system.

“The energy transition will reduce about half of man-made greenhouse gas emissions,” he said. “The other half can only be achieved by moving to a regenerative food system and adopting a circular approach to the production and use of products and materials.”

Edward Davey, head of the World Resources Institute’s UK office, also stressed the importance of the government looking beyond energy.

“The first priority is to accelerate the implementation of ambitious national climate policies that specifically address voters’ concerns, including on net zero, clean energy, land use and nature,” Davey said in a statement. “The new government must publish an ambitious national climate plan later this year with revised targets that take into account the latest evidence from the Climate Change Committee. It should also deliver on its election promises on wastewater, freshwater, sustainable agriculture and protecting and restoring nature.”

Taking a leadership role in climate finance

Davey also reminded Labour of its international obligations and called on the government to “restore trust with partners in the global South who are facing the devastating impacts of climate change and growing debt”.

As a first step, he proposed that the UK “commit to providing significant climate and development finance to the poorest countries – by recommitting its contribution to the International Climate Fund, by ensuring it increases in line with official development assistance, and by announcing a review of the UK’s financial instruments”.

“The UK should also push strongly to replenish the World Bank’s International Development Association and make a significant additional contribution to the Loss and Damage Fund,” Davey added. “As an influential leader in global finance, we expect the UK government to commit to an ambitious climate finance target to be agreed at the COP29 climate summit in Baku.”

As well as a new climate finance target, Davey said the UK should also “help negotiate a broader finance package to support inclusive, climate-resilient and nature-friendly development plans”. This could be done by bringing together “international financial institution reform and capital increases with South-South finance, international taxation, work to build a highly integrated carbon market and a comprehensive debt relief package”, he said.

Finally, the UK should set up a technical assistance fund to help countries shape climate, nature and development transitions and ensure that these transition plans are supported with international finance, Davey added.