Labour is recasting its green growth plan as the British version of the US’s Inflation Reduction Act to underline its ambition to invest in good, clean energy jobs.
Ed Miliband, the shadow net zero secretary, will set out how the party’s green prosperity plan will deliver a multi-billion investment by government and businesses to drive jobs in green industries.
He will urge the government to “stop moaning” about the US Act, a landmark piece of legislation from Joe Biden’s administration that is boosting investment in domestic energy production while promoting clean energy, and instead match its ambition.
Ahead of the government setting out its own revised net zero plans on Thursday, Miliband has called on ministers to end the ban on onshore windfarms and step up investment in energy efficiency for Britain’s homes.
Rishi Sunak’s plans later this week are expected to include the government’s response to a high court ruling that its net zero strategy was unlawful. But green groups have expressed concern that the plans will not go far enough and could contain support for continued fossil fuel use.
At an event hosted by the Green Alliance, Miliband will warn that the UK, with all of its natural assets, cannot fall behind the US and the EU.
“What we have seen from the UK government is the actions of a group of people caught in the headlights,” he will say.
“[The trade secretary] Kemi Badenoch dismisses the Inflation Reduction Act as ‘protectionist’. Our current energy secretary Grant Shapps calls it ‘dangerous’. The chancellor dismisses it too.
“I profoundly disagree with this approach. As the US and Europe speed off into the distance in the global race for green industry, we are sitting back in the changing rooms moaning about the rules. Sore loser syndrome won’t win any jobs for Britain.”
He will add: “Of course, we must remain an open economy, welcoming foreign investment and goods. Not everything in the green economy could or should be produced here.
“But we are not neutral about where things are built. Joe Biden wants the future Made in America. We want the future Made in Britain.”
Miliband will argue that the UK should not underestimate its own potential, saying: “Now some people, not just in government, will say we cannot compete with Inflation Reduction Act.
“How, they say, can we compete with the United States with its population five times ours and its huge financial firepower? And throw in the EU and China and they say we need to get real.
“But such defeatism is not just pessimistic but plain wrong. It misunderstands the reality of the scale of the opportunity presented by the biggest transformation of the global economy in 300 years.
“And it deeply misunderstands our unique potential as a country to compete and win in this green revolution that has begun.”
Labour’s own plans include a “net zero mandate” for every key regulator, as well as a new national wealth fund to invest in partnership with the private sector.
Keir Starmer has already announced plans for a new publicly owned energy company, GB Energy.
