By John Forster, chair of Forster Group
LIKE many, I have been closely observing the outcomes of the General Election. The results signal a pivotal moment for our country, particularly concerning climate action and the imperative of achieving net zero. With Labour now in government, it’s crucial they prioritise climate policy to ensure we don’t continue to fall short of our targets, a trend that has been all too familiar in recent years.
The International Energy Agency (IEA) has highlighted that global clean energy plans remain insufficient to meet renewable goals by 2030. This stark reality is a wake-up call for the UK. Our nation, despite its ambitious targets, has frequently missed the mark. Scotland and the wider UK have experienced well-documented failures in meeting climate targets, yet the goal of net zero by 2050 remains within reach – provided that our government acts decisively and immediately.
Decarbonisation and the electrification of our economy is too slow. In 2023, global electricity production from burning fossil fuels reached an all-time high. While the proportion of electricity generated through renewable energy has also soared, emissions are not falling as needed.
This paradox underscores the urgency of the situation. Global temperatures are already perilously close to 1.5 degrees celsius above pre-industrial levels, and without immediate, substantial action, we risk surpassing this threshold.
Affordability is often cited as a barrier to the net zero transition. Many people are reluctant to bear the costs of decarbonising the economy. However, this perspective overlooks the long-term economic benefits and cost savings associated with renewable energy. Investing in clean energy technologies will create jobs, stimulate economic growth, and reduce energy costs over time. The new Labour government must prioritise funding and incentives for renewable projects to make the transition more accessible and affordable for businesses and households alike.
The only solution is faster decarbonisation and greater investment in renewable electricity generation. The government must accelerate the deployment of renewable energy sources such as solar and additional investment in energy storage and smart grid technologies will enhance the efficiency and reliability.
Significant action is required by 2030 to ensure we stay on track to meet the 2050 net zero targets. The current approach to renewable energy policy is alarmingly inadequate, failing to address the growing urgency of the climate crisis and lacks the input of the necessary experts and organisations that can drive meaningful change. The absence of these key stakeholders from the decision-making process has hindered progress and stifled innovation.
In this context, the creation of BlackRock’s new climate and decarbonisation stewardship guidelines offers a promising tool. These guidelines can help support decarbonisation by promoting responsible investment practices and encouraging companies to align their operations with climate goals. By integrating such principles, the new government can foster a more sustainable and resilient economic framework.
Politicians across all parties need to shift their focus towards substantive climate action. Meaningful engagement is crucial. Without it, we risk continuing down a path of insufficient action and missed opportunities. The new Labour government must establish a framework that not only sets ambitious targets but provides a clear, actionable roadmap.
The UK has the potential to be a renewables leader, but only if we make the right choices today. The election has recalibrated our approach to realising a future where we meet our climate targets and ensure a sustainable, prosperous future.
As we look to the future, it is clear that achieving our renewable energy goals is not only necessary but entirely possible. With the right policies, investment and collaboration, we can turn ambition into reality. The time for action is now, and the new government must lead the way.
