UK Government Publishes 2035 Industrial Strategy to Drive Green Growth and Innovation
On 17 October 2024, the UK government published “Invest 2035: the UK’s modern industrial strategy” (the strategy) for public consultation. The strategy sets out a 10-year roadmap based on goals including driving economic growth, fostering innovation, and enhancing global competitiveness. The strategy is designed to position the UK at the forefront of emerging industries, boost productivity, and ensure that the UK adapts to global challenges. Key priorities include nurturing high-tech industries, supporting job creation, and improving infrastructure.
Reducing Regulatory Barriers to Innovation
The strategy also details the government’s objectives to create a regulatory environment that supports innovation, striking a balance between regulation and flexibility to ensure that emerging technologies and industries can thrive. This approach includes streamlining regulations in areas such as clean energy, advanced manufacturing, and digital technologies to foster faster development and deployment of innovative solutions.
The strategy points to the setting up of the Regulatory Innovation Office (RIO), announced earlier in October, which will seek to improve access to new technologies across a range of sectors. The RIO will therefore aim to help accelerate regulatory decisions for these new technologies.
Environmental Initiatives
Alongside its broader economic goals, the strategy emphasises several key environmental initiatives. It lays out a roadmap for achieving net zero emissions, creating a green economy, and fostering sustainable industries. Topics of note include net zero and decarbonization, green economy and clean growth, and climate change mitigation.
1. Net Zero and Decarbonization
The strategy underscores the UK’s commitment to reaching its net zero and environmental objectives.In 2019 the UK government committed to a 100% reduction in greenhouse gas emissions by 2050 as compared to a baseline of 1990. This was done via the Climate Change Act 2008 (2050 Target Amendment) Order 2019 and is a legally binding target. It aims to significantly reduce carbon emissions across sectors such as energy, transport, and industry by prioritizing renewable energy sources and investing in carbon capture and storage technologies. Decarbonization is not only framed as an environmental necessity but also as a driver of innovation and economic growth.
2. Green Economy and Clean Growth
The plan places significant emphasis on developing a green economy as a foundation for sustainable long-term growth. By promoting green technologies, supporting clean energy initiatives, and encouraging eco-friendly practices across industries, the government is hoping to stimulate job creation in the renewable energy and electric vehicle sectors, while securing its role as a leader in the global green market.
3. Climate Change Mitigation
Central to the strategy is a strong focus on mitigating climate change through various initiatives. These include improving energy efficiency in homes and businesses, reducing emissions from the transport sector, and boosting funding for research into low-carbon technologies. The government aims to support industries in becoming more resilient to climate impacts while reducing their overall carbon footprint.
Next Steps: Public Consultation
The government has opened a public consultation to gather input from businesses, industry leaders, and environmental organizations. This feedback will shape the next phase of implementation, and will help to refine the strategy’s environmental policies. The consultation is open until 24 November 2024, and comments can be submitted here.
The consultation will be followed by a detailed action plan, outlining specific measures and timelines to ensure the UK’s transition to a sustainable, net zero economy.
Latham & Watkins will continue to monitor developments related to the UK Industrial Strategy.
This post was prepared with the assistance of Toon Dictus in the London office of Latham & Watkins.