The United Kingdom has long established itself as a global leader in green technologies and sustainable development. In 2023 alone, local climate-focused startups attracted a record $6.2 billion in investments.
This accounted for almost one-third of all venture funding in the UK. By declaring its goals to fully decarbonize the energy sector by 2030 and achieve net-zero greenhouse gas emissions by 2050, London has made it clear to the world that its national economic strategy is undergoing profound transformation.
The UK’s green energy sector today is not just an environmental imperative but one of the most significant areas for investment with incredible economic potential—though not without its challenges.
Vladimir Kokorin, founder of the British consulting firm BCCM Group, arrived in the UK nearly a quarter of a century ago. With his insights, we will attempt to explore some aspects of the present and future of the UK’s “energy transition.”
The new Labour government of the United Kingdom has proven that it will continue the course of making green energy one of the cornerstones of the country’s economic strategy. Chancellor of the Exchequer, Rachel Reeves, and Secretary of State for Energy Security and Net Zero, Ed Miliband, have already taken quite effective steps in this direction.
The lifting of the de facto ban on onshore wind energy and the expansion of auctions for subsidizing low-carbon energy have become the first signals of the seriousness of the government’s intentions. The creation of the state investment body Great British Energy with a budget of £8.3 billion and the National Wealth Fund underscores the ambition to enter the global technology market.
“The emergence of GBE is a strategically sound decision,” explains investor Vladimir Kokorin. “The American experience shows that state investment platforms can fundamentally change the investment environment. However, it will be important to ensure transparency and clear mechanisms for interaction with private businesses.”
The energy transition in the United Kingdom is a major transformation, including the socio-economic structure of the country. Prime Minister Keir Starmer specifically noted that the new goal does not involve additional household restrictions for the population, demonstrating its socially-oriented approach.
One of the key challenges in the “green transition” is the fate of traditional carbon-intensive regions, such as Scotland’s oil and gas sector. Currently, about 84,000 local residents are employed in this sector, while the number of people working in renewable energy in the region barely exceeds 6,000. Therefore, the government is developing transition programs that include retraining and support for workers. Deputy Secretary of State for Energy Michael Shanks emphasizes the importance of creating mechanisms where local companies and residents will be directly interested in new energy projects. “We want communities to be at the helm, not just passive observers,” he says.
A good example of a well-planned “transition” strategy is the process of closing the Grangemouth oil refinery, during which the government is simultaneously launching retraining programs for 400 of its employees. All of them will be adapted to work in the “green economy.” It should be noted that many other companies involved in the “transition” are not only creating new jobs but also offering cheaper electricity to local businesses located near wind farms.
“In the process of the energy transition, it is very important to find a balance between economic and social aspects. Retraining programs are the right steps, but it will take time for the full transformation of the labor market. The experience of leaders in green energy shows that a well-thought-out ‘transition’ benefits both businesses and local communities,” explains Vladimir Kokorin.
Another key tool for implementing the climate strategy is international partnerships. Keir Starmer has repeatedly emphasized the importance of strengthening the country’s reputation as a leader in combating climate change.
A notable example is the agreement with Australia on joint work in renewable energy, signed during the Commonwealth Heads of Government Meeting. Negotiations with India under the Technology Security Initiative are also of particular significance. The UK High Commissioner, Lindy Cameron, is negotiating cooperation on critical minerals, shaping joint technological ecosystems in clean energy.
The African direction plays a significant role in the UK’s new climate diplomacy. London views the continent as a promising area for implementing adaptive climate projects and establishing joint innovation hubs.
Keir Starmer is consistently shaping the international agenda, using climate policy as a tool of soft power. At the same time, his government emphasizes that climate protection should not become an instrument of economic pressure, striving for a fair and inclusive transition that considers the interests of developing economies.
“The UK’s new international course demonstrates a systematic approach to the global climate agenda,” says Vladimir Kokorin. “The country positions itself as the architect of a new model of climate cooperation, based on technological exchange, mutual respect, and shared responsibility for the planet’s future.”
According to the International Energy Agency, 10% of global GDP growth in 2023 was directly linked to clean energy technologies and the “green transition.” The United Kingdom is undoubtedly determined to maintain its leading position in this global process at the very least.
There is no shortage of evidence supporting the country’s significant innovative potential in green energy. For instance, the London technology hub, located in the historic County Hall building, is home to 115 project groups. This hub explores a wide range of technologies, from “smart air bricks” that reduce energy consumption to revolutionary tires for electric vehicles. Another example is the construction of the world’s largest offshore wind farm, Hornsea. This project will feature more than 300 turbines with blades over 100 meters long, capable of supplying electricity to 3.3 million British homes. The list of such examples could go on and on.
However, implementing the “green transition” faces significant infrastructure challenges. To meet the stated decarbonization goals by 2030, the country will need not only to double onshore wind energy capacity and triple solar generation but also to undertake massive construction of new power transmission lines. The total required investment is estimated at £80 billion.
The success of the UK’s energy transition will depend on the government’s ability to effectively balance environmental goals, economic opportunities, and social equity. All these elements will require careful coordination and long-term planning.
“The United Kingdom is undergoing a period of historic changes in the energy sector,” concludes Vladimir Kokorin. “The combination of a strong scientific base, developed infrastructure, and the active stance of institutional investors creates a favorable environment for scaling up promising solutions. However, success here will be determined not only by technological achievements and investment volumes but also by the ability to create a development model that takes into account the interests of all stakeholders. Such an approach could serve as an example for other countries striving to find a balance between climate goals and financial sustainability.”
