Summary
Summary
- An unenviable industrial in-tray: The new UK government faces the task of developing a new green industrial strategy at the same time as accelerating growth in an economy that has experienced the second slowest recovery in the G7; creating well-paying jobs amid 15 years of wage stagnation; and enhancing national security through robust energy policies and supply chain resilience. We argue there are no ‘Swiss Army Knives’ in industrial strategy: each challenge requires its own policy tools.
- Learning from the past: Case studies from the UK's wind energy and Germany's solar industries reveal that rapid deployment of green technologies can fail to translate into domestic job creation and local economic gains. There is a need for strategic, adaptive planning and careful analysis of the trade-offs involved when crafting industrial strategies. A good-jobs strategy should sit alongside the green and growth missions crafted by the new government.
- Navigating future choices: Our paper sketches out what the options are for the government’s approach in two areas: retrofitting homes and green steel. We set out the tensions between different objectives in the decarbonization process and show how pursuing these objectives simultaneously could fall short on all fronts. This does not rule out concerted action, but indicates the need for effective decision-making processes. The UK government will need to make difficult choices up front and in the open.
- Putting policy into practice: We propose a new decision-making framework to navigate these trade-offs. An effective green industrial strategy will need a blend of national and local decision-making, with the national government focusing on highvalue sectors and technological innovation, and local governments managing regionspecific initiatives. A successful approach involves embedding adaptive policymaking processes, enforcing conditionalities on public incentives, and strengthening both business and community voices to create collaboration and innovation across all levels of government.
Citations
Doshi, V. and Spencer, H. (2024). “Renewing Britain: Navigating Trade-offs in the UK’s Green Industrial Strategy.” Reimagining the Economy Policy Paper, Harvard University Kennedy School of Government.