Business and NGOs outline top 10 priorities to grow UK clean industry

• A coalition of businesses, civil society organisations, and universities have today set out 10 priority actions for Keir Starmer’s government to kickstart a new era of clean industry.[1]
• Endorsed by organisations from carbon intensive industries to climate think tanks, the paper calls for bold action in the first 100 days, warning that the UK is falling behind in the race to profitable green industry.
• The 10 recommendations aim to leverage the UK’s competitive strengths and maximise clean industry’s ability to achieve emissions reductions while driving economic growth and securing jobs.

A coalition of businesses, civil society organisations, and universities today unveiled a bold action plan for Keir Starmer’s government to ignite a new era of clean industry.[2] Signatories include businesses such as National Grid and Cemex; climate organisations E3G, Green Alliance, and Aldersgate Group; and academic outfits Cranfield University and the Cambridge Institute for Sustainability Leadership. Together, they call for ambitious measures within the first 100 days of the new administration. The message is clear: the UK is at risk of falling behind in the global race to establish profitable green industries.

The briefing reveals that industry and manufacturing, contributing 9.3% of UK GVA (surpassing financial services),[3] face a precarious future. High-emissions production is becoming uncompetitive, but there has been little support to decarbonise these sectors and seize the opportunity presented by growing green markets. By supporting this shift now, the new government can leverage the UK’s strengths in industrial innovation and renewable energy to secure a sustainable commercial future. But they must act swiftly: as countries like the US race ahead with initiatives like the Inflation Reduction Act, the UK risks letting the opportunity slip through its fingers.

Labour’s manifesto pledges support for clean industry and manufacturing. These recommendations urge the government to turn those commitments into action, providing a clear roadmap for the new government to enhance its climate and industrial policies. Key priorities include a comprehensive green industrial strategy, support for high electricity costs, and an accelerated rollout of carbon capture and low carbon hydrogen.

This call to action is urgent and unequivocal. Keir Starmer’s government has a unique opportunity to position the UK as a leader in the global green economy. By swiftly implementing these 10 priority actions, the UK can transform its industrial landscape, create sustainable jobs, and secure a competitive edge. The unified voice of the signatories to this briefing underscores the critical need for immediate, bold measures to ensure the UK does not miss this pivotal moment to build a thriving, clean economy for the future.

Signatories

Associated British Ports (ABP)
Aldersgate Group
AVEVA
Buro Happold
Cambridge Institute for Sustainability Leadership
Cemex
Clean Air Taskforce
Cranfield University
E3G
Food and Drink Federation
Green Alliance
Industrial Decarbonisation Research and Innovation Centre (IDRIC)
Institute of Environmental Management and Assessment (IEMA)
Lucideon
Michelin
National Grid
Ramboll
Suez
Wilmott Dixon

Quotes

Martin Casey, Director Public Affairs, Communications & Social Impact, Cemex said: “These ten recommendations provide the new Government with clear and straightforward advice about what needs to be urgently done to deliver industrial decarbonisation whilst enhancing the competitiveness of UK businesses and re-skilling the workforce to ensure delivery.”

Niki Kesharaju, Senior Decarbonisation Strategy Manager, National Grid: “We welcome this briefing and the priorities it sets out to drive progress in industrial decarbonisation. The implementation of these priorities will provide greater clarity to networks on the future of industrial electrification. National Grid is actively supporting the transition to Net Zero to enable industrial decarbonisation through electrification. Our Great Grid Upgrade will deliver the largest overhaul of our grid in a generation. We look forward to continuing work with Ofgem, Government and the System Operator on accelerating connections to the grid, including those industries pursuing electrification pathways.”

Rachel Solomon Williams, Executive Director, Aldersgate Group, said: “Businesses have been consistent in calling for a credible industrial strategy that places decarbonisation at its core. In an increasingly competitive global landscape, the UK needs certainty and stability to drive much-needed investment and spur economic growth. We’re very pleased to see that the new Government has made this a key foundation of its plans for the UK, and now it’s time to hit the ground running and deliver. These recommendations, endorsed by business leaders, provide a pathway that will enable Keir Starmer’s government to move quickly to spark the growth of low-carbon industries that will power our economy in the future.”

Laith Whitwham, Senior Policy Advisor at climate think tank E3G said: “Industry and manufacturing play a major role in the UK economy, but their future lies in the green markets of tomorrow, not high carbon markets that have long been uncompetitive. The last government moved far too slowly to support industrial decarbonisation, meaning this economic opportunity is at risk. The new Labour government have made ambitious commitments in this area, these 10 priority actions would turn that commitment into delivery, putting the UK back on track for a new era of clean industry and manufacturing.”

Roz Bulleid, Policy Director at Green Alliance, said: “Labour put green economic growth in big bold letters in its pitch to voters and won a huge mandate in the general election. The new government is acting quickly and decisively on its campaign promises, but the reality is that years of u-turns and hesitation have dented investor confidence in the UK’s green transition and frustrated many of our leading firms. These 10 recommendations will help new ministers keep up momentum in office, and put UK industry back on the road to a green, prosperous future.”

Beverley Cornaby, Director of the Corporate Leaders Group said: “To cut greenhouse gas emissions from UK industry and manufacturing, the new government must address both short- and long-term priorities by implementing an ambitious green industrial strategy, enhancing electrification, and promoting sustainable innovation. The recommendations, endorsed by organisations across industry, academia, and civil society, provide a roadmap for decarbonising key sectors while ensuring competitiveness in growing green markets.”

References

[1] Briefing: Kickstarting a New Era of Clean Industry: Ten priorities endorsed by business, civil society, and academia
[2] The briefing referenced in this press release was produced by E3G, Aldersgate Group, Green Alliance, and the Cambridge Institute for Sustainability Leadership. While the signatories have endorsed the recommendations herein, they are not responsible for the views expressed herein and the findings and recommendations cannot be attributed to any one individual or organisation.
[3] House of Commons Library (May, 2024), Manufacturing: Key Economic Indicators