Turning our back on net zero is bad for bills and bad for business

Consensus builds certainty. It’s against this backdrop the UK has surged forward in the race for clean power, with renewables now supplying over half our electricity.

The UK’s green economy is growing ten times faster than the national average, and we’re a respected leader on the world stage.

With Reform UK’s vow to block new renewable energy projects and the Conservatives’ pledge to repeal the Climate Change Act, this era of consensus is over.

For businesses, including the more than 400 I work for every day, this is a worrying development. Most large British companies have net-zero policies, and the vast majority say they need more commitment on this, not less.

At a time of increasing economic and geopolitical uncertainty, no business leader will thank a government that seeks to tear up settled law and add chaos into their operating environment.

These concerns are even greater for the tens of thousands of entrepreneurs who’ve built their businesses in the green economy.

Research shows their jobs are better paid, more productive than other sectors, and more widespread across the UK, including in coastal areas at risk of being left behind.

Perhaps business leaders would be more willing to embrace the uncertainty of these policies if they believed they would lead to a more prosperous and secure Britain.

Unfortunately, proposals to tear up settled policies will likely have the opposite effect.

Threatening to renege on contracts will make our investors worried their money is at risk, jeopardising the UK's future growth.

Halting home-grown renewable energy projects only makes us more reliant on the expensive, volatile foreign gas that has been pushing up bills for consumers and businesses.

So, why would we go back to an expensive, fossil fuel-powered grid when we’re in the middle of a clean energy revolution? It’s certainly not a popular option, as over 75% of voters say they’re in favour of renewable energy generation.

Even if the UK was to make this decision, the road back to coal and gas is hardly an easy one. There is no queue of new gas-fired plants ready to be deployed - unlike wind and solar assets that are the cheapest forms of new power generation and for which there is a deployable pipeline.

The renewable energy CfD scheme – that some have proposed scrapping - has saved the UK billions in recent years. The UK is also well placed to take advantage of the benefits of less well-known renewable energy sources like biomethane and geothermal, both to bring costs down even more, and to provide future-proofed jobs.

Businesses have experienced so many difficulties in recent years, and we know from our members that leaders are crying out for clear, consistent government policies.

Attempts to dismantle net-zero and our clean energy industry will only jeopardise jobs, investments and livelihoods - making life even harder for the businesses, and people, powering our economy.

______________

Trevor Hutchings is CEO of The Renewable Energy Association

LBC Opinion provides a platform for diverse opinions on current affairs and matters of public interest.

The views expressed are those of the authors and do not necessarily reflect the official LBC position.

To contact us email opinion@lbc.co.uk