Britain has an opportunity to become a global leader in the green industrial revolution, but swift and strong action from the government is needed, according to a significant new report by the Institute for Public Policy Research (IPPR)
Despite recent backtracking on ambitious green investment promises, Labour is awaiting the report, which highlights the potential for restoring the UK’s manufacturing sector through green technologies.
The IPPR, a thinktank with strong connections to the Labour Party, emphasises that the UK has deindustrialised more rapidly than any other developed nation. However, it also identifies sectors where the country can still gain a competitive edge, particularly in the manufacturing of heat pumps, wind turbines, and green transportation such as electric vehicles and trains.
The green industrial revolution: Global race for green tech
Nations worldwide compete for dominance in green technology. The White House recently announced 100% tariffs on Chinese electric vehicles and 50% tariffs on Chinese solar panels, part of a broader strategy to support domestic green manufacturing through substantial subsidies.
The EU has also rolled out extensive support schemes to boost its green tech industries.
Despite various government promises, there are no initiatives comparable to the ones in the US, China, or the EU, raising concerns about the UK’s ability to compete on the global stage.
Areas of potential
The IPPR’s analysis is among the first to pinpoint specific sectors where the UK holds a comparative advantage. The country has strong potential to produce heat pumps, wind turbines, and electric transportation. These findings offer an opportunity for rebuilding the UK’s manufacturing base, crucial for achieving net-zero emissions targets and revitalising the economy.
The Shadow Chancellor, has recently scaled back the party’s green investment pledge from £28 billion. The anticipation surrounding the IPPR’s findings suggests a renewed focus on green industry within Labour’s strategy.
The IPPR report shows the need for a strong industrial strategy to position the UK at the forefront of the green industrial revolution. As global competitors ramp up their investments and support for green technologies, the UK must act decisively to capitalise on its strengths and secure a leading role in the future of sustainable manufacturing.
