Net Zero Watch press release 11th July 2025 Labour’s Net Zero plans collide with political and economic reality The headlines UK UK abandons zonal pricing Net Zero to cost £800bn, warns OBR NHS’s Net

Net Zero Watch press release

11th July 2025

Labour’s Net Zero plans collide with political and economic reality

The headlines

UK

  • UK abandons zonal pricing

  • Net Zero to cost £800bn, warns OBR

  • NHS’s Net Zero plans divert funds from care

  • Delays to vital cables blow hole in Miliband’s 2030 grid plans

  • Top government adviser: heat pump savings not clear

  • Reform axes Kent Net Zero plans to save £40m

International

  • Populist surge threatens EU Green Deal

  • German industrialists to Merz: Net Zero is “killing” competitiveness

Etcetera

  • Media, op-eds and all the rest.

From the blog

  • The true cost of our energy delusions

UK

UK abandons zonal pricing

Ed Miliband has dropped zonal pricing plans amid fears of investor backlash and higher bills for southern households. The Guardian reports that the Energy Secretary is under pressure from Number 10 to show when his reforms will lower bills. Net Zero Watch welcomed the news on zonal pricing, calling the proposal a “sticking plaster” that avoids fixing the core issue.

Net Zero to cost UK £800bn, warns fiscal watchdog

The OBR has warned that Net Zero could cost the UK government £803 billion by 2050, with £30bn a year in spending and lost tax revenues—mainly from scrapped fuel duties. Responding, Net Zero Watch’s Andrew Montford said the real cost to the whole economy could be ten times higher.

NHS’ Net Zero ambitions divert funds from care

The NHS’s ambitious goal to hit net zero by 2040 is under fire as waiting lists top 7 million and financial pressures intensify. Reform UK and other critics argue that strict decarbonisation rules—extending to 80,000 suppliers—are driving up procurement costs and diverting resources from patient care.

Delays to vital cables blow hole in Miliband’s 2030 grid plans

The Times reports that delays to two major grid upgrades — Norwich to Tilbury and Sea Link — mean new offshore wind can’t be used, forcing billpayers to cover £4.2bn in wasted power by 2030.

Top government adviser: heat pump savings not clear

The government’s top scientific adviser has admitted it’s unclear whether heat pumps save money. Despite being central to Miliband’s Net Zero plan, they remain costly, unpopular, and may not cut bills — prompting warnings of a “mis-selling scandal” and growing public resistance.

Reform UK axes Kent Net Zero plans to save £40m

Kent Council will ditch electric cars and green building upgrades under Reform UK plans to cut £40m in spending. Party leaders say this is just the start of slashing waste across local government.

International

Populist surge threatens EU Green Deal

Politico reports that the Patriots for Europe, which is backed by Le Pen and Orbán, now lead EU Parliament talks on 2040 emissions targets. Their rise threatens to stall or weaken the Green Deal as the centre-right European People’s Party, the largest grouping in the EU Parliament, faces pressure to choose between centrists or the populist right.

German industrialists to Merz: Net Zero is “killing” competitiveness

German industrial leaders have warned Chancellor Merz that decarbonisation policies are driving job losses and soaring energy prices. In a stark letter, they say the energy transition has failed and risks “killing” Germany’s industrial base unless immediate reforms are made to restore affordable, reliable power.

Etcetera…

Andrew was on Talk TV to talk about national resilience and flood defences.

The Guardian’s Nils Pratley says scrapping zonal pricing avoids investor chaos but soaring grid costs remain a serious issue. With bills rising and the grid unprepared, Pratley says Miliband must ditch absolutism on the 2030 target—or risk blowing public support for Net Zero altogether.

A new report by AEI/YouGov finds US voters favour cheap, reliable energy over green orthodoxy. Most oppose phasing out fossil fuels, won’t pay more than $1/month for climate action, and prefer natural gas to wind.

From the blog

Thu, Jul 10

The true cost of our energy delusions

In its latest Fiscal Risks and Sustainability Report, the Office for Budget Responsibility confirms the consequences of nearly two decades of failed energy policy. Not deliberately, of course. The

 Read More 

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