Miliband to defend net zero as £100bn clean energy pledge signals economic growth
With private sector commitments for offshore wind, solar, and grid upgrades set to exceed £100bn by 2031, Miliband faces pressure to maintain policy consistency despite internal government tensions and union criticism.
UK Energy Secretary Ed Miliband is scheduled to address London Climate Action Week on Tuesday afternoon, where he will argue that maintaining the country’s net zero targets is a prerequisite for sustained economic growth and job creation. The speech coincides with the release of data indicating that private sector companies have pledged more than £100bn in clean energy investment since the current government took office, a figure Miliband intends to present as evidence of a booming clean economy.
The announced investments, primarily directed towards offshore wind, solar power, and electricity grid upgrades between 2024 and 2031, include significant contributions from both domestic and international sources. Specific commitments include nearly £14bn in Scotland, £7.5bn from Japan’s Sumitomo conglomerate, £40bn from the National Grid for infrastructure upgrades, and £1.7bn for social housing retrofitting from major banks and pension insurers such as Barclays, NatWest, Lloyds, and Rothesay.
Miliband is expected to frame the speech as a validation of a pro-business industrial strategy, stating that the achievement resulted from government clarity of mission and partnership with the private sector rather than regulatory obstruction. He is likely to emphasise that progressive governance in difficult economic times requires collaboration with business to secure growth, extending beyond current renewable projects to include nuclear energy, electrification, and carbon capture and storage.
The address occurs against a backdrop of intense political speculation regarding Miliband’s potential appointment as chancellor should Prime Minister Keir Starmer step down in favour of Greater Manchester Mayor Andy Burnham. Critics, including cabinet ministers, right-wing media, and trade unions, have frequently argued that net zero policies act as a drag on the economy. Sharon Graham, general secretary of the Unite union, has warned that Miliband would be a “noose around the neck” of job creation if he assumed the chancellor role in a Burnham-led government.
Despite this opposition, experts and investment data suggest the clean energy sector is outperforming other industries. The Confederation of British Industry has previously found that the UK’s net zero economy has grown faster than the wider economy and generates higher-paying jobs. Bob Ward of the Grantham Research Institute and Ed Matthew of E3G have argued that clear political commitment is essential to mobilise private investment and that renewable energy is critical for reducing reliance on expensive fossil fuels, which have cost Britain £183bn since the Russian invasion of Ukraine.
The future of these commitments remains uncertain within the current administration. While Starmer has supported renewable energy, advisers such as former chief of staff Morgan McSweeney have pushed for a watering down of initiatives, including halving a planned £28bn public sector investment in low-carbon plans. Meanwhile, Burnham, a former champion of green initiatives, has recently tempered his tone, expressing openness to expanding North Sea oil and gas drilling and contrasting his “re-industrialisation” agenda with net zero policies.