Regulatory Reform Urged to Boost UK Investment and Green Initiatives

At Sir Keir Starmer’s investment summit, former Google CEO Eric Schmidt called for the UK government to appoint a “minister of anti-regulation” to address what he views as regulatory barriers stifling innovation and investment. Schmidt’s remarks emphasize the urgent need for reform to help the UK achieve its green ambitions, particularly its target of reducing emissions by 68% by 2030 in line with the Paris Agreement.

Schmidt highlighted that regulatory delays are obstructing the nation’s decarbonisation efforts, warning that without prompt action, the UK risks failing to meet its environmental targets. His comments resonate with growing concerns among government officials regarding slow grid connections and bureaucratic hurdles that threaten the country’s plans for a net-zero power system by 2030.

Business Secretary Jonathan Reynolds echoed Schmidt’s sentiments, admitting that regulatory inefficiencies represent one of the most significant challenges facing the UK, especially in the renewable energy sector. Projects like offshore wind farms, he noted, can take more than a decade to secure approval, thereby impeding progress in achieving climate goals.

Chancellor Rachel Reeves also weighed in, criticizing the inadequacies of past water regulations, particularly in light of the ongoing crisis at Thames Water. She underscored the pressing need for substantial investment in infrastructure but insisted that any price increases for consumers should be directed toward improvements rather than enhancing shareholder profits.

Schmidt’s call for regulatory reform aligns with sentiments expressed by other industry leaders. Greg Jackson, CEO of Octopus Energy, has recently urged the government to lower barriers to the installation of heat pumps, a crucial component of the UK’s green energy transition. Jackson specifically criticized the requirement for planning permission for heat pumps, arguing that such regulatory obstacles deter potential customers and slow progress toward a more sustainable energy landscape.

The discussions at the summit highlight a growing consensus among business leaders and politicians alike regarding the need for a streamlined regulatory framework to facilitate investment and innovation in the UK’s renewable energy sector. As the government seeks to accelerate its decarbonisation efforts, the pressure is mounting to address these regulatory challenges to ensure the nation remains on track to meet its climate commitments.