Climate and nature: what has the Labour Government delivered so far?

By Sophie Rogers, Account Executive 

Parliament’s Summer Recess, which began on 22nd July, sees MPs reorient their focus to their constituencies. For the current crop of MPs, of whom over half were elected at the last election, this will be the longest period they have had to fully engage with constituents with the support of a fully staffed office. 

This breather from the usual pace of Westminster gives those of us working on national policy some space to take stock, assess what has been achieved, and plan next steps ahead of Parliament’s return. 

Seahorse will be busy laying the groundwork with MPs, journalists, and officials to build new campaigns for our clients. In the meantime, read on for our stocktake of Labour’s key environmental policies, and what we will be working hard to achieve in year two.    

Energy - a cautious success story 

The Clean Power Mission is arguably one of the most successful in terms of government delivery to date, with the Planning & Infrastructure Bill and GB Energy up and running, and the Industrial Strategy, Future Homes Standard, and network reform all underway. The Clean Power Mission seeks to power GB’s electricity grid by at least 95% clean energy by 2030, and DESNZ has moved with impressive speed to overcome planning challenges and address community concerns.   

The delayed decision about REMA (review of electricity market arrangements) and ongoing challenges around network reform has, however, caused uncertainty, and the future role of key technologies like Battery Energy Storage Systems (BESS) and other low-carbon tech in the system remains to be addressed.  

This coming year, more attention will need to be paid to the retail market. Electricity bill reform, commitments to low-carbon flexibility, and a Warm Homes Plan that accelerates decarbonisation for all households will be needed to translate clean power to energy bill savings. 

Circular Economy - momentum is building 

Post-election, it’s been great to see Environment Secretary Steve Reed take up the circular economy as a priority, a welcome step that saw key policies like the single-use vapes ban over the line, while Ministers have enthusiastically advanced the vital Deposit Return Scheme which will launch in October 2027.  

However, it has been disappointing to see the cross-party consensus falter on this agenda, with the Conservatives disowning policies developed under the last government, including the Deposit Return Scheme and Extended Producer Responsibility for packaging. The Government has also been criticised for lacking ambition on tackling polluting waste incinerators and on their approach to chemical recycling, which raises serious ‘greenwashing’ concerns. 

When published in the Autumn for consultation, the Circular Economy Strategy must provide new and ambitious cross-departmental proposals, crucially with buy-in from the Treasury and DESNZ. It will need to tackle packaging waste with a plan for greater reuse/refill, and also address often ignored areas such as food and garden waste circularity (with the potential use of these materials for compost), as well as textiles and electronics. 

Marine – positive action but the big challenges remain 

A year since Steve Reed pledged to end bottom trawling in MPAs and Ed Miliband took over as Energy Secretary with a mandate to end new oil and gas, it’s been positive to see Defra’s new consultation to stop this destructive fishing practice in our supposed marine havens, and we are encouraged by DESNZ’s latest intervention to put greater environmental restrictions on North Sea oil and gas projects. 

However, the ongoing  EU-UK reset still risks maintaining the status quo of persistent overfishing that decimates fish stocks, harms small-scale fishers living on our coastlines, and puts our unique marine biodiversity at risk. Defra and DESNZ will need to show continued ambition to end destructive bottom trawling and oil and gas extraction in our seas. This will require a long-term strategy designed to end overfishing and ensure a just transition for small-scale fishers and coastal communities that play a critical role in our net zero and nature positive future. 

Nature – negative rhetoric but some green shoots 

The new government has frequently angered conservationists, with the Chancellor notably telling developers they could “stop worrying about the bats and the newts” earlier this year. This was followed by the Planning & Infrastructure Bill, which the Office for Environmental Protection judged in May (before new amendments), to be a “regression” of environmental protections. 

More positively, the Government used the Spending Review to announce a commitment to invest £2.7bn per year in sustainable farming and nature recovery from 2026/27 to 2028/29. Labour’s commitment to including farmers in the approach to regenerating nature is helping to tie these two fields together, rather than pit them against each other.  

Yet it's troubling that the Government may drop Biodiversity Net Gain rules for small developers - undermining a £454.6m industry that supports 4,500 jobs and restores 170,000 hectares of land annually. Nature markets need stable policy to thrive, especially as Defra faces real-terms budget cuts. The private sector is ready to invest - if the government holds its nerve. 

Water Pollution - opportunities emerge from major review 

The Water Special Measures Act was an early priority for the Government, and since then, cleaning up the UK’s rivers has remained a key issue for the public. Labour’s response to the sewage crisis has become symbolic of its wider promise to ‘clean up’ the mess left by 14 years of Conservative rule. 

The issue reached a new peak with the publication of Sir Jon Cunliffe’s independent review of the water sector. As a finance expert outside the industry, Cunliffe was tasked with untangling corporate negligence from systemic failure - seeking to make the UK’s water infrastructure investable again. 

While his recommendations fell short on embedding a public benefit duty or endorsing special administration for failing companies, the call for a National Water Strategy and municipal water system planners is a welcome step. 

The full extent of Defra’s adoption of Cunliffe’s recommendations will become clear in October when a White Paper is due. Until then, it will be the task of campaigners to determine how promising commitments such as a new regulator can be delivered with maximum impact, and to campaign for a second water bill to make Cunliffe’s recommendations a binding commitment.  

Conclusion  

Labour’s focus on growth has, at times, cast the environment as a competing priority. But increasingly, the party is working constructively with NGOs and industry to deliver win-win solutions. 

The pledge to make the UK a clean energy superpower is well underway - and at Seahorse, we’re proud to support developers and clean tech pioneers in driving that mission. Still, unresolved issues around Biodiversity Net Gain, planning reforms, and the lack of decisive action on failing water companies risk weakening Labour’s green credentials. There’s plenty more to push for in the year ahead.