Green economy proponents attempt to preserve momentum, but net zero is increasingly political as Nigel Farage\u2019s Reform UK makes some election gains<\/p>\n
At a glance<\/p>\n
Green economy leaders highlight the business case for the clean energy transition as UK net zero policies face attacks from left and right<\/p>\n<\/li>\n
The rightwing Reform UK party, which campaigns against net zero, has made some gains in local elections held on May 1<\/p>\n<\/li>\n
Meanwhile, a report from the Climate Change Committee shows the UK is poorly prepared for climate change and its impacts could lessen economic output by up to 7 per cent of GDP by 2050<\/p>\n<\/li>\n<\/ul>\n
Businesses and research leaders used the Innovation Zero low-carbon industry conference this week in London to urge business leaders not to lose momentum on net zero, as criticism from around the UK grows.\u00a0<\/p>\n
\u201cWe\u2019ve got every reason to be optimistic\u2009.\u2009.\u2009.\u2009this is the route to prosperity and this is the time to invest,\u201d Rhian-Mari Thomas, chief executive of UK-based think-tank the Green Finance Institute, told Sustainable Views on the sidelines of the conference on Wednesday.<\/p>\n
She questioned why certain people were determined to make it \u201cso hard to change\u201d and whether they wanted to condemn the UK to a \u201cLuddite economy\u201d. She called on UK policymakers to maintain a \u201cstable political backdrop\u201d, and warned critics not to squander \u201cthe huge opportunity\u201d for the UK to lead on the green transition globally.<\/p>\n
On the other side of London, energy minister Michael Shanks had a similar message for sustainable investors at the Investment Association\u2019s Sustainability and Responsible Investment Conference.<\/p>\n
\u201cWe\u2019re not waiting for some future opportunity, we\u2019re accelerating towards it. The truth is that\u2019s what the rest of the world is doing as well,\u201d he said. \u201cYou [should] have confidence that we are going to stay the course.\u201d <\/p>\n
Both Shanks and Thomas highlighted research<\/a> commissioned by the Energy and Climate Intelligence Unit think tank, with analysis by the independent consultancy CBI Economics and The Data City in February showing the net zero economy is a major profit driver for the UK.\u00a0\u00a0<\/p>\n The UK\u2019s net zero economy generates \u00a383.1bn in gross value added, makes up 3.3 per cent of the wider economy, and has grown 10 per cent in the past year, it found.<\/p>\n Investment needs certainty<\/p>\n A report<\/a> published this week by BEAMA, the trade association representing manufacturers of electrical products, shows there is appetite for investment in green technologies but some businesses are getting spooked by economic uncertainty.\u00a0<\/p>\n Sales of electrification technologies reached a three-year high in the final quarter of 2024, but business optimism fell under the five-year average to the lowest figure in the past six quarters, finds the report, which surveyed electrical manufacturers that are members of BEAMA. <\/p>\n Businesses in the UK are grappling with rising costs, increased employment expenses following the autumn Budget<\/a>, persistently high energy prices, and ongoing uncertainty surrounding the impact of US trade policy, says the report.\u00a0<\/p>\n \u201cThis is the moment to have a clear industrial strategy for electrification which touches on the whole value and supply chain,\u201d BEAMA chief executive Yselkla Farmer says. The government is expected to publish its \u201cmodern industrial strategy\u201d<\/a> alongside the spending review on June 11.\u00a0\u00a0<\/p>\n Blair report fans the flames<\/p>\n UK net zero advocates had a challenging week<\/a>, in part, prompted by the self-titled think-tank of former Prime Minister Tony Blair, which published a report<\/a> on Tuesday criticising the international policy approach to net zero.\u00a0<\/p>\n \u201cPhasing out fossil fuels in the short term or limiting consumption is a strategy doomed to fail,\u201d writes Blair in a foreword to the report.<\/p>\n We\u2019ve got every reason to be optimistic\u2009.\u2009.\u2009.\u2009this is the route to prosperity and this is the time to invest<\/p>\n Current policy on climate change is \u201cunrealistic\u201d and should be replaced by more \u201cpragmatic\u201d approaches prioritising carbon capture and storage and nuclear, he adds.\u00a0<\/p>\n Blair also suggests policies being adopted by governments to reach net zero are unpopular with the global public.\u00a0<\/p>\n However, this is disputed by opinion polls. In April, a coalition of journalists, Covering Climate Now, launched the 89 Percent Project<\/a>, which seeks to raise awareness that between 80 per cent and 89 per cent of the world\u2019s population want more action from their leaders on climate.\u00a0\u00a0<\/p>\n \u2018We are winning the argument\u2019<\/p>\n Blair\u2019s comments were also published just days before Thursday\u2019s UK local elections.<\/p>\n The full results are not expected until Friday evening, but early results show the anti-net zero Reform UK party has made some wins. The party won in Runcorn and Helsby, beating Labour by just six votes, giving it its first mayor, and made significant council gains.<\/p>\n The TBI report does not suggest the UK abandons its net zero efforts, but the idea that net zero is unpopular has played into the hands of certain politicians.<\/p>\n \u201cWe are winning the argument,\u201d said Reform\u2019s leader Nigel Farage in a Facebook post<\/a> with a link to an article on Blair\u2019s comments.<\/p>\n UK prime minister Keir Starmer told parliament on Wednesday that Blair\u2019s comments are \u201cabsolutely aligned\u201d with the government\u2019s climate efforts, emphasising investments in carbon capture and storage and efforts to boost the UK\u2019s artificial intelligence sector.<\/p>\n The Tony Blair Institute also clarified<\/a> its stance on LinkedIn, saying \u201cwe support the government\u2019s 2050 net zero targets\u201d and that it recognises \u201cpeople support climate action\u201d.<\/p>\n Meanwhile, trade union Unite published a statement<\/a> saying the government must \u201cfundamentally rethink its approach to net zero policies and industrial strategy\u201d to include better protection for jobs. The statement follows the closure of Scotland\u2019s only oil refinery at Grangemouth by owner Petroineos, a joint venture PetroChina and the British company Ineos.\u00a0<\/p>\n Downplaying the science<\/p>\n Blair\u2019s comments have prompted anger among much of the climate movement. In London on Wednesday, Kumi Naidoo, South African climate activist and president of the Fossil Fuel Non-Proliferation Treaty Initiative, told audiences at Innovation Zero that Blair\u2019s comments were \u201ccriminal\u201d and that \u201cputting all your eggs in one carbon capture basket\u201d is \u201cirresponsible\u201d.\u00a0<\/p>\n Meanwhile, Nicholas Stern, chair of the London School of Economic\u2019s Grantham Research Institute on Climate Change, says the report is \u201cmuddled and misleading\u201d<\/a> and \u201cdownplays the science in its absence of a sense of urgency\u201d. <\/p>\n There is a good chance the economic damages to the UK could be even higher, when these estimates take into account the impact of extreme weather events, damages to ecosystems, and \u2018non-linear events\u2019 such as climate tipping points<\/p>\n The report fails to mention the cost of inaction on climate change, which could cause a global GDP drop of 22 per cent<\/a> by 2100, according to the World Economic Forum. But it does highlight the world\u2019s unpreparedness for climate change. \u201cFrom flood defences to green cities, we must prioritise adaptation efforts,\u201d says the TBI report.<\/p>\n UK adaptation on climate change<\/p>\n