Labour’s first year in government: Where does climate policy stand? 

This week marks one year since Labour’s election victory — a key moment to assess how far the Government has come in delivering on its climate and environmental commitments. In this blog, lead author Sofie Surraco reflects on the progress to date and highlights where further, more strategic action is urgently needed to tackle the ‘stickier’ challenges in climate policy. 

Over the last year, the Centre for Climate Engagement has tracked the Government’s green policy developments through our UK Quarterly Policy Update series with Chapter Zero UK. This week marks the one-year anniversary of Labour’s election to government, presenting an opportunity to reflect on its progress with manifesto commitments, and make clear where more strategic policy action is needed to address the ‘stickier’ climate issues.  

This first year has seen several climate policy announcements.  The UK was one of the first countries to reveal its updated Nationally Determined Contribution (NDC) at COP29, with a commitment to cut UK emissions by 81% before 2035. This pledge echoes Labour’s flagship economic policy, the Green Prosperity Plan (GPP), a significant feature of the party’s election campaign. Announced in 2021, the GPP set out a commitment to invest £28 billion a year in green industries but was later reduced to just £23.7 billion across the whole parliament. Such a policy pivot, so early in Labour’s Government, was a cause for scepticism, heightening concerns over its ability to turn the page on green policy U-turns made by previous governments.   

Of course, Starmer’s Government has faced a difficult global backdrop. The Trump administration’s rollback on climate change policy, the corresponding surge in ESG backlash (as shown in the EU’s omnibus proposals to ‘simplify’ sustainability reporting mandates), global tariff disputes, and international conflicts have created an increasingly volatile political, social, and economic landscape.  

Despite these challenges, the core mission of delivering Clean Power by 2030 stands – ‘mission’ being a key word. In power, Labour has pushed forward its mission-based government, establishing five national missions to guide their Plan for Change. Across these missions, the UK’s overarching legally-binding target of reaching net zero emissions by 2050 remains.  

This target is still within reach, as was concluded in June by the UK’s climate advisory group, the Climate Change Committee (CCC), in its Progress in reducing emissions report. This (somewhat) optimistic picture of the UK’s progress followed a more sober report issued in April, Progress in adapting to climate change, which found that the UK is making inadequate progress on climate adaptation, with no measurable progress on any of the CCC’s 46 indicators for a ‘well-adapted UK’.  

In trying to unpack these different outlooks on climate progress, it is beneficial to zoom in on the key initiatives that have defined the year. The following sections outline some of the developments across a number of key policy areas for Labour: energy, planning, fiscal rules, devolution, and restoring the UK-EU relationship.  

Energy policy at the forefront 

Energy security and the transformation of the UK’s energy system has been a central focus of Labour’s first year. Within days of taking office, Energy Secretary Ed Miliband, lifted the de facto ban on onshore wind projects, removing planning restrictions that previously impeded the rollout of domestic onshore wind technologies. This represented a significant step towards the Government’s pledge to double onshore wind capacity by 2030. Similar approvals were made for three major solar farms, which together are expected to generate enough energy to supply around 400,000 homes. The UK marked the formal phase-out of coal power in September 2024, “ending a century and a half of coal playing a central role in powering the British Economy”. 

In contrast to this more definitive phaseout of coal power, licensing for oil and gas production remains a contentious issue. While the Government has pledged not to issue new oil and gas licenses, a court ruled in January 2025 that, in light of Finch v Surrey County Council, the Government must reassess existing proposals for new oil and gas production at Rosebank and Jackdaw oil fields. New Government guidance issued in June 2025 means that offshore developers can begin to submit applications for new extraction at already-licensed fields – which has been described as a “litmus test of climate leadership”. Whether or not these approvals are granted will have a significant impact on the UK’s carbon budgeting, especially in light of the CCC’s advice to the Government on its recommended emissions level limit for the Seventh Carbon Budget (2038-2042), which must be confirmed by June 2026.   

Increased focus on home-grown green energy reflects the goals set out in the Clean Power 2030 Action Plan, published in December 2024. One of the first steps for delivering this Plan included setting up Great British Energy (GBE), which was established by the Great British Energy Act in May 2025 as a publicly-owned clean power company with a committed budget of £8.3 billion over five years to deliver clean energy projects. In the Chancellor’s June 2025 Spending Review, it was announced that £2.5 billion of this funding will be directed towards the development of small-scale nuclear power plants, leaving a smaller budget for wind and solar. Altogether, the Government sees this Spending Review as confirmation of “the biggest programme of investment in homegrown energy in UK history” – from £14.2 billion in funding to build the Sizewell C nuclear power station, to £9.4 billion for carbon capture industries.  

Labour’s growth-orientated approach to the renewables rollout has an undeniable impact on the UK public’s finances. A critical tension for the Government is balancing its promise of a more equitable and affordable renewable energy system with the upfront cost of renewables leading to higher energy bills for UK consumers. With structural reforms underway, attention must now home in on how costs can be brought down in an efficient way – and one that brings measurable delivery of clean energy targets. It’s worth noting that, while energy policy has sensibly been at the centre of Labour’s agenda, there is a risk that continued prioritisation of energy alone undermines the broader systems change needed across sectors. The CCC’s June 2025 progress report finds that over 80% of emissions savings up to 2030 must come from sectors outside energy supply.    

Building a more efficient planning system  

Planning has been a hot topic over the year. Labour has set a goal of revitalising the UK’s planning system, with a target of building 1.5 million new homes, in part by reimposing population-based housing targets on local authorities. While key to fixing the housing crisis, new developments must navigate complex environmental considerations. One such requirement is Biodiversity Net Gain (BNG), a policy designed to ensure that new buildings contribute positively to the natural environment, although some have identified this as an area the government may be “tempted to trim obligations if housebuilding rates falter”. The Government is currently consulting on proposals to streamline planning rules through simplified BNG rules, which “could leave the BNG system dead in the water and, with it, the government’s main guarantee of nature-positive planning.” The risks of this must not be understated – strong ecological protections are essential for ensuring that new housing remains aligned with the UK’s broader climate goals. The Government’s January 2025 decision to delay debate on the proposed Climate and Nature Bill – which would introduce new legally-binding targets of climate change and protecting nature – raises concerns about its active commitment to these very goals.   

The difficulty in reconciling the Government’s push for growth and its commitment to the environment was particularly apparent in its support for a third runway at Heathrow. Criticism of the move highlighted the expected rise in emissions and aviation’s position as one of the hardest sectors to decarbonise. The defence that these emissions will be offset by sustainable fuels is considered unconvincing, particularly in light of the limited delivery of Sustainable Aviation Fuel (SAF) mandate.  

The inconsistent implementation of climate adaptation plans also extends to devolution. The English Development White Paper, published in December 2024, calls for ‘simpler local government structures’, in which local authorities are granted enhanced powers in strategic planning, transport, and employment growth. Efforts to streamline local government responsibilities must not overlook the potential to embed climate and nature outcomes in all devolution deals. Imposing a statutory climate duty on all levels of local government would enable more consistent climate outcomes – a recommendation that has been suggested repeatedly. With over a third of the UK’s territorial emissions being produced in city regions governed by directly elected mayors, it is clear that local authorities are critical actors in delivering emissions reductions, and they should be supported by a clear mandate and the tools to act on this. At the CCE, we are developing a Locally Determined Contribution (LDC) framework, designed to support local authorities in setting, tracking, and delivering climate goals aligned with national targets. As the Government’s devolution mission takes shape, we look forward to seeing how it can enable climate action at the local level. 

Learnings from the Local Elections 

The outcomes of the May 2025 local elections provide important insights for Labour in terms of how its policy agenda is resonating with the UK public. A headline result was Reform UK’s success with council seat wins (41% for Reform UK versus 6% won by Labour). According to polling by ECIU, more than half of voters (54%) who planned to vote for Reform UK support policies to stop climate change and put in place targets to keep the UK on track – but when it came to voting, immigration and healthcare outweighed climate and environmental concerns. Where Labour lost out, economic insecurity and inadequate public services, rather than disapproval of net zero goals, appear to be the driving concern. Amongst MPs, the reported consensus is that the Government “needs to tighten its messaging”, spelling out the benefits of its policies for the general public.  

As noted, net zero is a particular point of contention, made clear by Tony Blair’s public criticism of Labour’s policy approach just days before the May elections. In a report for the Tony Blair Institute for Global Change, he claimed that the policies set out to achieve the target of net zero emissions by 2050 were “riven with irrationality”, and that the Government risks alienating voters who are being asked “to make financial sacrifices and changes in lifestyle when they know that their impact on global emissions is minimal.” While Blair’s critique reiterated important questions, critics have argued it underrepresented the decarbonisation progress being made across the global economy. Responses to the report have reinforced that the consensus on the need to act on climate “remains rock solid in the public”, highlighting that half of UK parliamentarians and 70% of the UK public consistently underestimate this support for net zero, according to analysis by Climate Barometer.  Public opinion on where responsibility for leading climate action lies is fundamental to our work at the CCE, as explored at our recent Citizens’ Climate Jury hosted as part of Cambridge Zero Community Day. 

Despite this, it is clear that economic concerns are a defining issue for the public, with the proportion of people who say they are living comfortably falling from 50% before the pandemic to a record low of 35% according to 2025 research by the National Centre for Social Research. Labour must more clearly position climate resilience as a critical component to providing solutions to these everyday challenges and delivering material benefits to people. 

A forward look 

In terms of tracking progress going forward, there are a number of climate-relevant debates which my colleagues and I will continue to follow closely. These include:  

• Proposals to link the UK emissions trading scheme (ETS) with the EU ETS, and consultation on how to enhance integrity in the voluntary carbon market through government intervention and guidance;  
  
• The development of green skills programmes as part of the new Modern Industrial Strategy;  
  
• The ongoing delays to the development of the UK Green Taxonomy;  
  
• How the government should respond to emerging environmental risks and opportunities associated with AI;  
  
• The outcomes of biodiversity net gain consultations and how these are likely to impact the planning system;  
  
• Implementation of the new Government guidance on oil and gas licensing – particularly as it relates to approvals for Rosebank and Jackdaw oil fields;
  
• The EU’s omnibus rollbacks and what their implications might be for the UK.   

More broadly, to counter criticism that the Labour Government’s “centre of gravity […] isn’t visibly committed to net zero”, the climate imperative must run through all policy priorities in the Plan for Change. The Government should be confident in the position that strategic climate action is a necessary public good and can be leveraged for its benefits. As we have seen, there is a lot for Labour to take forward into this second year in office. Work is well underway, and it is in the public interest to stay true to course, led by confident leadership, informed climate science, and shared enthusiasm for a more resilient and prosperous UK. 

With all of these issues, there is an ongoing need to strengthen public participation and build consensus in the delivery of the UK’s green transition. It is encouraging that the Government plans to publish a Net Zero Public Participation Strategy in 2025. At the CCE, we look forward to engaging with the Government on its approach to public engagement in policymaking.  

For tailored policy briefings, or media enquiries please email: climate@hughes.cam.ac.uk