General Election 2024: Sustainability and Sustainable Finance

The General Election is almost upon us. So, what are the parties saying on sustainability, net zero, and sustainable finance.

We’ve summarized the main pledges made by the two leading parties - the Conservatives and Labour – to bring insight and clarity to this important policy area.

Conservatives

Rishi Sunak and the Conservatives must undoubtedly tread a careful line on sustainability, providing reassurance to traditional conservative voters and the vocal anti-woke brigade, while also appealing to the business and finance communities who have typically supported them. But despite calls from all corners to provide clarity and certainty in this area of policy, not least to drive UK competitiveness with its more ambitious neighbours the US and EU, the Conservatives seem to have adopted the age-old stance that sustainability is expensive and therefore undesirable.

The PM’s promise of a “pragmatic and proportionate approach to net zero” which avoids what he calls “unaffordable eco zealotry” is the outcome of that notion. Given popular sentiment for climate action and continuing business calls for policy ambition on sustainability, we aren’t hopeful this is a winning tactic.

Similarly, while the Conservative leader claims he is committed to reaching net zero by 2050, he has also pledged “no new green levies or charges” and promised to support for the expansion of North Sea oil and gas production as well as the development of new gas power stations. Its unclear how these last items fit with the national net zero target, which the government is already struggling to meet, even before these commitments were made.   

Labour

Unsurprisingly, Labour is offering a somewhat more ambitious range of pledges on sustainability, including increased spending on renewables, a new publicly-owned energy company, support for domestic energy efficiency, and help to decarbonise our most carbon intensive sectors (manufacturing, ports etc).

But on sustainable finance, Labour have left out quite a bit from their more ambitious earlier plans (set out in their Financing Growth Plan). No sign for example of plans to set a clear timeline for the delivery of the delayed UK Green Taxonomy or to align the UK with key sustainable finance frameworks such as the International Sustainability Standards Board (ISSB). And a lack of detail on how they’ll implement the commitments that did make it into the manifesto.

Perhaps they thought these details were too boring for a manifesto, or perhaps they haven’t decided yet themselves.

In summary, not much new from the Conservatives. And though Labour have some sensible ideas, it seems a shame they didn’t go for something more bold, or indeed detailed. And of course, assuming they win, it remains to be seen if and how they’ll implement these pledges.

We wait with baited breath.

Read our full analysis here: General Election 2024: What Labour and the Conservatives say on sustainability and sustainable finance – Global Relay Intelligence & Practice