Infrastructure at the heart of a pivotal moment for green policy

As Parliament prepared for summer recess, the month leading up to adjournment saw some major decisions which will have long term impact on the direction of Britain’s green energy and sustainability agenda. 

Though easily overshadowed by daily news, a clear thread ran through several major policy announcements: infrastructure. 

Once considered a relatively “unsexy” policy area, infrastructure is now at the heart of government hopes and debates about the green transition. This month began with Ed Miliband’s first State of the Climate address to the Commons. The Energy Secretary, facing pressure from Reform’s recent anti-net zero rhetoric, stressed that science is unequivocal: human emissions are driving more extreme weather. He argued that climate impacts are reshaping British lives and landscapes, insisting that decisions in Westminster carry global consequences. 

For years, Britain enjoyed unusual political consensus around net zero goals. But this unity has started to fracture, with Reform’s rise and tougher Conservative criticism, notably from Kemi Badenoch (and, ever nipping at her heels, Robert Jenrick). Sensing this shift, Miliband remade the case for net zero, arguing that the costs of inaction would disrupt daily life in Britain even more than the changes we need to make to deliver a green transition. 

This renewed sense of purpose set the stage for a series of government decisions, each shaping the UK’s energy and sustainability future.  

The most reported-on indicator was a comprehensive reform of water regulation. The government announced plans to abolish Ofwat, integrating its functions with the Drinking Water Inspectorate, Environment Agency and, in England, Natural England. This marks the most significant water regulation reform since privatisation in 1989. By creating a single, more powerful regulator, the government aims to break with a past marked by underinvestment and weak oversight. Steve Reed, Environment Secretary, described the move as a step towards restoring public trust, making water infrastructure resilient against both population growth and climate change. 

Critics have long argued that Ofwat allowed financial mismanagement and environmental neglect to become the norm. The government’s new approach aims to centralise responsibility, standing “on the side of customers, investors and the environment,” and laying the groundwork for more robust infrastructure.

 In addition to the broadly popular water reforms, the government made two further, more contentious decisions this month. Firstly, it scrapped the idea of zonal electricity pricing. Following a lengthy review, ministers concluded that dividing the country into regional electricity zones with variable wholesale prices would undermine investment, create a postcode pricing lottery (especially penalising the southeast), and raise industrial costs, potentially by more than 10% for sectors like steel. Instead, Miliband reaffirmed commitment to a reformed national pricing model, promising a fairer, more secure, and affordable system. This approach is designed to give government more control over infrastructure planning and investment for clean energy. It was widely welcomed by intensive energy users and green energy developers – but criticised by the likes of Octopus Energy, who had mounted a large public campaign in favour of a zonal switch. 

Secondly, the government amended nature protections in its flagship Planning and Infrastructure Bill. The changes prohibit using the new “nature restoration fund” to offset the loss of irreplaceable habitats, like ancient woodlands and chalk streams. They also require Natural England to verify that off-site restoration efforts will exceed on-site damage. Conservation groups welcomed these amendments, seeing them as stronger protection for vulnerable species and habitats. 

Interestingly, these measures closely resemble proposals from erstwhile Labour MP Chris Hinchliff, who was suspended (in part) for campaigning for such protections in opposition to government policy at the time. Though his original amendments failed, the government later adopted similar reforms, prompting criticism that the party punished him but ultimately conceded on the issues he raised. However, there has been staunch criticism from other quarters, too: influential campaign group Labour YIMBY has taken a dim view of the government’s new amendments, arguing the new position hands Natural England a de facto veto on development. While recess has necessitated a pause on Bill for now, this is an argument that will not be going away any time soon. 

What unites these developments is the recognition that infrastructure is destiny. Miliband’s call to action highlights that infrastructure—energy grids, water networks, vital public utilities—forms the backbone of any serious sustainability strategy. Government’s willingness to overhaul legacy institutions signals a new appetite for systemic change, extending beyond the environment to economic and social spheres as well. 

As Parliament breaks for summer, the flurry of policies leaves Britain at a crossroads. The commitments are bold, the structures significant, but real progress will depend on delivery. The central lesson of this session is clear: infrastructure has moved from the margins to the very core of Britain’s green ambitions.