Britain has been presented with an opportunity to partake in the green industrial revolution, but it is contingent upon the government’s swift actions to support its industry, according to a significant new report. The Institute for Public Policy Research (IPPR) thinktank has conducted an analysis revealing that while the UK has experienced a faster rate of deindustrialization than any other comparable nation in the developed world, it still has the potential to reconstruct its manufacturing foundation and compete in the production of green technologies necessary to achieve net zero emissions.
The release of this new report coincides with a global race among countries to dominate the green technology market, including electric cars, solar panels, and wind turbines. On Tuesday, the White House imposed 100% tariffs on imports of Chinese electric vehicles and 50% tariffs on Chinese solar panels. In response, both the US and China have implemented extensive subsidy programs to support their respective green manufacturing industries.
In contrast, the UK has yet to introduce any schemes equivalent to those in the US, China, or the EU, despite various government promises to “level up” and implement “industrial strategy” initiatives. The new IPPR analysis is one of the first attempts to identify sectors within the UK economy that have the potential to compete on a global scale. It concludes that while the country has deindustrialized at a rapid pace, it still maintains a comparative advantage in certain industries, such as the production of heat pumps, wind turbines, and green transport, including electric cars and trains.
The findings of this analysis hold significant weight, as the IPPR is widely recognized as the UK’s leading left-leaning thinktank and has close ties to the Labour Party. Labour’s shadow secretary for energy security and net zero, Ed Miliband, stated that the party is eagerly anticipating the release of the IPPR report as they work to develop their own plan for the UK’s industry. Miliband also emphasized the importance of implementing a comprehensive industrial strategy in order to position the country as an attractive destination for green investment amidst the global race towards net zero.
George Dibb, IPPR’s associate director for economic policy, further elaborated, stating that the UK has a competitive edge in over 150 products crucial to the net zero transition. He emphasized the need to build upon this advantage in order to fully seize the potential of future-facing growth opportunities. Dibb highlighted three specific sectors where the UK is well-positioned to capitalize on these opportunities: heat pumps, green transport, and wind.
In response to the report, Miliband criticized the current government for failing to act in the best interest of British industries, instead allowing jobs to be outsourced and surrendering to other countries in the race for green investment. He emphasized Labour’s commitment to implementing a new era of industrial policy, with a focus on supporting and revitalizing national industries. This includes plans to establish GB Energy, a publicly owned energy company, and a National Wealth Fund to invest in the strength of British industries.
