Rachel Reeves has insisted “net zero is the industrial opportunity of the 21st century” as she set out plans to boost growth in a slew of sectors.
But her backing for a third runway at Heathrow and road schemes, as well as pledges to reform environmental protections as part of a bid to get homes and infrastructure built, drew an immediate backlash.
In her speech, the Chancellor pointed to green investments by the National Wealth Fund, including £65 million for Connected Kerb to expand their electric vehicle-charging network across the UK and £28 million in Cornish Metals to provide raw materials for solar panels, wind turbines and electric vehicles.
Ms Reeves also said the Government is “removing barriers to deliver 16 gigawatts of offshore wind” in areas like East Anglia and Yorkshire.
The changes will allow the Government to designate new or extend existing marine protected areas to compensate for “unavoidable impacts” to the seabed by offshore wind farms, with the cost of designation and management funded by developers through a “marine recovery fund”, officials said.
Ms Reeves also announced backing for new roads and airport expansion, including a third runway at Heathrow, which critics said could wipe out the benefits of the Government’s clean power plan by increasing emissions.
And the Chancellor faced criticism over plans to reform environmental regulations to prevent delays in development, as she pointed to a £100 million bat tunnel which has been developed as part of the HS2 rail link.
Ms Reeves said the Government was reducing environmental requirements for developers paying into a nature restoration fund, so they could “focus on getting things built and stop worrying over the bats and the newts”, and changing the rules to stop “excessive use” of judicial reviews.
But Joan Edwards, director of policy and public affairs at The Wildlife Trusts, warned: “Bulldozing through nature-protected sites and creating a bonfire of environmental planning regulations will not drive the construction and growth we need, nor support efforts to address the nature and climate crises.”
She pointed to estimates that ongoing nature degradation was a drag on the UK economy and could lead to a 12% reduction in GDP in the years ahead, adding: “Investing in nature’s recovery would not only secure economic growth but also build resilience against climate change and nature’s decline.”
Dr Darren Moorcroft, chief executive at the Woodland Trust, also called for reforms to protect the remaining fragments of ancient woodland and other precious habitats, deliver nature on every new development and play its part towards meeting targets on species recovery and protected areas.
Shaun Spiers, executive director at environmental think tank Green Alliance, warned against “growth at any cost”.
He said: “The economic case for bigger airports and new roads is highly questionable, and it’s crystal clear that pushing ahead with these will fly in the face of the UK’s climate targets.
“Rachel Reeves recognises that the low carbon economy offers ‘the industrial opportunity of the 21st century’ – we should grasp this rather than chasing high carbon, high risk projects.”
Rachel Solomon Williams, executive director at the Aldersgate Group of companies, charities and other organisations pushing for ambitious climate and environmental policy, disagreed with the Chancellor’s assessment that environmental protection was obstructing growth.
“Nature is fundamental to the UK’s future prosperity and ensuring that it is protected and restored as part of new development will generate economic growth, increase innovation and create jobs,” she said.
David Walsh, head of public affairs at WWF, said there was “no trade-off” between economic growth and net zero.
“As the Chancellor rightly recognises, building a clean economy is the industrial opportunity of the 21st century,” he said.
“Now is the time to put pounds back in people’s pockets by insulating homes, decarbonising power, and investing in public transport,” he said, warning Ms Reeves was making a “costly mistake” with airport expansions that take decades to build and increase carbon emissions.
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