British Labor Party unveils new energy policy in election battle

Campaigning in Scotland, Labor leader Keir Starmer detailed plans for a public company called Great British Energy to lead the financing of green energy projects.

The new Scotland-based entity, which it has promised to set up “very soon” if the party wins power on July 4, will aim to cut household energy bills, create jobs and lead the UK’s energy transition towards net zero.

“Renewable energy is cheap. There’s a huge reward here, lower bills, security, a new generation of jobs, so clean energy is the best chance we’ve had in a generation to create the next generation of jobs,” Starmer said.

The policy was immediately sharply criticized by Conservative Prime Minister Rishi Sunak as “incoherent” and unable to ensure energy security.

The two leaders will face off in their first debate of the campaign on Tuesday. Broadcaster ITV announced on Friday that there would also be a second debate on June 13 with the participation of all seven main party leaders.

Opinion polls show Labor winning the election, with Sunak’s Tories struggling after years of scandal, Brexit upheaval and a cost of living crisis.

In announcing his energy policy, Starmer sought to refute claims that Labor’s pledge not to issue new oil and gas drilling licenses in the North Sea would result in large-scale job losses.

“We are not turning off the taps, we are not revoking licenses and oil and gas will be part of the mix for decades to come,” he said at an event in Greenock, near Glasgow.

“There will be new jobs, tens of thousands of new jobs, created by the transition to renewable energy, and GB Energy locating in Scotland will make Scotland its hub.”

– “Completely unattainable”? –

Starmer previously told BBC Radio that a Labor government would borrow £8 billion ($10.6 billion) to fund the entity, while private investors would be sought for up to three times that amount.

Labor also said funding would come from an “appropriate” windfall profits tax on oil and gas companies.

Labor says GB Energy will invest in domestic energy sources, securing energy supplies and reducing electricity and gas prices, which have skyrocketed following key producer Russia’s invasion of Ukraine in 2022.

It would initially invest in wind, solar and other projects in a bid to make Scotland a global leader in new technologies such as floating offshore wind, hydrogen and carbon capture and storage.

The party argues that the plans will lower energy bills and reduce dependence on foreign, sometimes hostile producers such as Russia, while taxpayers will pocket a share of the sector’s profits.

Sunak said the plans were “completely unworkable”.

“In my view, we must prioritize the energy security of this country, which is why we will continue to support the UK energy industry in the North Sea,” he said, noting that his government supports continued oil and gas exploration.

The UK has pledged to cut greenhouse gas emissions to net zero by 2050, but experts have warned of “worryingly slow” recent progress.

Sunak has faced criticism for a series of U-turns on climate policy seen as a rollback of efforts.

Labour’s commitment to the benchmark was questioned after Starmer abandoned a pledge to spend £28 billion a year on green infrastructure.

On Friday he insisted the party’s policies would ensure the 2050 target was met and criticized his Tory rival’s approach.

“The worst thing we can do now is do what Rishi Sunak is doing and bury our heads in the sand,” Starmer said.

The Labor leader also revealed that former UK chief scientific adviser Patrick Vallance, a key figurehead in the Covid era, has backed Labour’s GB Energy plan.

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