United Kingdom: Keir Starmer promises a green revolution, but at what price?

Labour promises to transform the UK into a leader in renewable energy, while facing criticism over the economic and social impacts of this transition.

Share:

Transition verte Royaume-Uni

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Labour Party, under the leadership of Keir Starmer, is committed to making the UK a green energy superpower. However, this ambition is causing concern among workers in the traditional energy sector, particularly in areas like Aberdeen, where the hydrocarbon industry is a major component of the local economy.

Energy transition and climate objectives

Labour plans to halt the granting of new oil and gas permits and to increase the windfall profits tax on fossil fuel producers. These measures aim to accelerate the transition to a low-carbon economy and achieve carbon neutrality by 2050. At the same time, the party promises to create 650,000 green jobs by 2030 through an £8.3 billion public investment fund, dubbed “Great British Energy”, headquartered in Scotland. Critics, notably from industry and opposition parties, estimate that these measures could threaten up to 100,000 jobs. Francesco Mazzafatti, President of Viaro Energy, warns that these changes could have dramatic consequences for North Sea workers.

Economic and social impact

The people of Aberdeen, who are heavily dependent on the oil and gas industry, are worried about the future of their jobs. Figures such as Stephen Flynn of the SNP and Chris Murray, a local unemployed man, stress the need to invest more in training for renewable energies to facilitate this transition. Labour’s proposals, while ambitious, are seen by some as insufficiently funded. Initially planned at £28 billion a year, the investment plan has been reduced to £23.7 billion over five years, raising questions about the feasibility of the targets set.

Perspectives and reflections

Despite the challenges, the goal of transforming the UK into a green energy superpower represents an unprecedented opportunity for the country. Creating jobs in the renewable energies sector and improving energy independence could not only help combat climate change, but also boost the national economy.
However, to make this transition a success, it will be crucial to support the workers and regions most affected by the decarbonization of the economy. Investment in training and education will be key to ensuring that no one is left behind in this process.

The gradual exit from CfD contracts is turning stable assets into infrastructures exposed to higher volatility, challenging expected returns and traditional financing models for the renewable sector.
The Canadian government introduces major legislative changes to the Energy Efficiency Act to support its national strategy and adapt to the realities of digital commerce.
Quebec becomes the only Canadian province where a carbon price still applies directly to fuels, as Ottawa eliminated the public-facing carbon tax in April 2025.
New Delhi launches a 72.8 bn INR incentive plan to build a 6,000-tonne domestic capacity for permanent magnets, amid rising Chinese export restrictions on critical components.
The rise of CfDs, PPAs and capacity mechanisms signals a structural shift: markets alone no longer cover 10–30-year financing needs, while spot prices have surged 400% in Europe since 2019.
Germany plans to finalise the €5.8bn ($6.34bn) purchase of a 25.1% stake in TenneT Germany to strengthen its control over critical national power grid infrastructure.
The Ghanaian government is implementing a reform of its energy system focused on increasing the use of local natural gas, aiming to reduce electricity production costs and limit the sector's financial imbalance.
On the 50th anniversary of its independence, Suriname announced a national roadmap including major public investment to develop its offshore oil reserves.
China's power generation capacity recorded strong growth in October, driven by continued expansion of solar and wind, according to official data from the National Energy Administration.
The 2026–2031 offshore programme proposes opening over one billion acres to oil exploration, triggering a regulatory clash between Washington, coastal states and legal advocacy groups.
The government of Mozambique is consolidating its gas transport and regasification assets under a public vehicle, anchoring the strategic Beira–Rompco corridor to support Rovuma projects and respond to South Africa’s gas dependency.
The British system operator NESO initiates a consultation process to define the methodology of eleven upcoming regional strategic plans aimed at coordinating energy needs across England, Scotland and Wales.
The Belém summit ends with a technical compromise prioritising forest investment and adaptation, while avoiding fossil fuel discussions and opening a climate–trade dialogue likely to trigger new regulatory disputes.
The Asian Development Bank and the Kyrgyz Republic have signed a financing agreement to strengthen energy infrastructure, climate resilience and regional connectivity, with over $700mn committed through 2027.
A study from the Oxford Institute for Energy Studies finds that energy-from-waste with carbon capture delivers nearly twice the climate benefit of converting waste into aviation fuel.
Signed for 25 years, the new concession contract between Sipperec, EDF and Enedis covers 87 municipalities in the Île-de-France region and commits the parties to managing and developing the public electricity distribution network until 2051.
The French Energy Regulatory Commission publishes its 2023–2024 report, detailing the crisis impact on gas and electricity markets and the measures deployed to support competition and rebuild consumer trust.
Gathered in Belém, states from Africa, Asia, Latin America and Europe support the adoption of a timeline for the gradual withdrawal from fossil fuels, despite expected resistance from several producer countries.
The E3 and the United States submit a resolution to the IAEA to formalise Iran's non-cooperation following the June strikes, consolidating the legal basis for tougher energy and financial sanctions.
The United Kingdom launches a taskforce led by the Energy Minister to strengthen the security of the national power grid after a full shutdown at Heathrow Airport caused by a substation fire.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.