Unleashing climate tech to achieve labour’s net-zero goals
4 min read
With 2030 climate targets fast approaching, climate tech is becoming a vital driver of the UK’s net-zero ambitions. Steve Race MP, Chair of the ClimateTech APPG, examines how cutting-edge innovation can help deliver a greener, fairer future for the UK
The Labour government has rightly made climate action and clean growth a national mission. Through the Green Prosperity Plan and the Planning and Infrastructure Bill, we are beginning to lay the foundations for a cleaner, fairer, more prosperous future. But if we are to meet our bold target of reducing carbon emissions by 68 per cent by 2030, and reaching net-zero by 2050, we must go further and faster. And central to that acceleration must be a new, enabling approach to climate tech.
Across the UK, a wave of innovation has the potential to generate energy, manage resources and cut carbon. From small modular nuclear reactors (SMRs) to wave and tidal energy platforms, new novel foods to new construction and housing solutions, climate tech startups are leading the charge. But too often, they are held back by regulation that was designed for yesterday’s challenges, not tomorrow’s solutions.
When speaking to tech start-ups, the overwhelming majority tell me that regulation is a major barrier to scaling – and many say it's the single biggest obstacle, ahead of finance or talent. That should concern all of us who are serious about decarbonisation. Our current regulatory approach is largely focused on managing legacy risks, rather than enabling rapid, responsible innovation.
We need a mindset shift. Regulation should reward carbon reduction, not just police compliance. It should be designed to accelerate solutions, not slow them down. That means embedding climate innovation outcomes into the mandates of key regulators – Ofgem, the Environment Agency, the Office for Nuclear Regulation and the FCA – and equipping them with the tools to adapt at pace.
The Planning and Infrastructure Bill is a step in the right direction, introducing statutory timelines and bringing net-zero into the decision-making framework. But on the ground, climate tech companies still face years-long delays and inconsistent decisions across hundreds of local planning authorities. A national “Net-Zero Test” for planning decisions and a “Climate Fast Track” for key infrastructure – like electric vehicle charging, solar and battery storage – would help unblock the system.
Nuclear also has a role to play, but only if we streamline the path for next-generation projects. Licensing for SMRs still takes up to 15 years – far too long. A fast-track siting regime, digital licensing, and joint regulatory sandboxes could cut this dramatically, while maintaining safety.
“From small modular nuclear reactors (SMRs) to wave and tidal energy platforms, new novel foods to new construction and housing solutions, climate tech startups are leading the charge”
We know this is possible. Within three months of the general election last year, the Labour government launched the Regulatory Innovation Office (RIO), a manifesto commitment with first-of-its-kind cross-sector capability. As a member of the Science, Innovation and Technology Committee, few things have excited me as much as what RIO and its sandbox approach could achieve.
RIO’s goal is to accelerate innovation in regulated sectors, ensuring that regulation keeps pace with technology in a limited number of sectors to enhance safety and security, deliver even better consumer outcomes, all while maximising the chance of the UK becoming home to technologies of the future.
I’ve already heard from innovators in the novel foods sector who are participating in one of RIO’s regulatory sandboxes that this new way of working is proving to be a catalyst for innovation in how regulators function. It’s not just the day-to-day focus of RIO that matters, but the signal it sends to entrepreneurs and large companies alike: the UK is the best place in the world to invent and innovate in regulated sectors.
This should just be the start – if proven to be successful, RIO should be quickly expanded to adopt further regulated sectors and embed carbon reduction in their work, too.
Ultimately, as the pace of innovation continues to accelerate, Parliament must be nimble and ensure regulation keeps pace with innovation. The Labour government has set the right destination to meet our climate goals. Climate tech will get us there – but only if we build the regulatory runway to let it take off.
