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            Net Zero Watch press release 11th July 2025 Labour&rsquo;s Net Zero plans collide with political and economic reality The headlines UK UK abandons zonal pricing Net Zero to cost &pound;800bn, warns OBR NHS&rsquo;s Net 
        
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      <h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;margin-top:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;text-align:center;">11th July 2025</h4><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;text-align:center;">Labour’s Net Zero plans collide with political and economic reality </h4>
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      <h3 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.9993959999999997em;mso-line-height-alt:1.9993959999999997em;margin-top:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:0em;">The headlines</h3><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">UK</p><ul data-rte-list="default" style="padding-left:25px;"><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">UK abandons zonal pricing</p></li><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Net Zero to cost £800bn, warns OBR</p></li><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">NHS’s Net Zero plans divert funds from care</p></li><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Delays to vital cables blow hole in Miliband’s 2030 grid plans</p></li><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Top government adviser: heat pump savings not clear</p></li><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Reform axes Kent Net Zero plans to save £40m</p></li></ul><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">International</p><ul data-rte-list="default" style="padding-left:25px;"><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Populist surge threatens EU Green Deal</p></li><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">German industrialists to Merz: Net Zero is “killing” competitiveness</p></li></ul><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Etcetera</p><ul data-rte-list="default" style="padding-left:25px;"><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Media, op-eds and all the rest.</p></li></ul><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">From the blog</p><ul data-rte-list="default" style="padding-left:25px;"><li style="font-weight:normal;margin-top:0px;margin-bottom:0px;margin-left:15px;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">The true cost of our energy delusions</p></li></ul><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;height:1.618em;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;"></p>
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      <h3 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.9993959999999997em;mso-line-height-alt:1.9993959999999997em;margin-top:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:0em;">UK</h3><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;">UK abandons zonal pricing</h4><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Ed Miliband has <a href="https://www.theguardian.com/business/2025/jul/08/government-rules-out-zonal-pricing-and-starts-search-for-alternative-plan" rel="nofollow" style="color:#858585 !important;">dropped</a> 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 <a href="https://www.theguardian.com/business/2025/jul/08/government-rules-out-zonal-pricing-and-starts-search-for-alternative-plan" rel="nofollow" style="color:#858585 !important;">welcomed</a> the news on zonal pricing, calling the proposal a “sticking plaster” that avoids fixing the core issue. </p><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;">Net Zero to cost UK £800bn, warns fiscal watchdog</h4><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">The OBR has <a href="https://www.thesun.co.uk/news/politics/35743943/net-zero-green-targets-costs-cimate-change/" rel="nofollow" style="color:#858585 !important;">warned</a> 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 <a href="https://x.com/aDissentient/status/1942583306891223438" rel="nofollow" style="color:#858585 !important;">said</a> the real cost to the whole economy could be ten times higher.</p><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;">NHS’ Net Zero ambitions divert funds from care</h4><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">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 <a href="https://www.telegraph.co.uk/business/2025/07/06/how-net-zero-stupidity-inspired-an-nhs-spending-spree/" rel="nofollow" style="color:#858585 !important;">argue</a> that strict decarbonisation rules—extending to 80,000 suppliers—are driving up procurement costs and diverting resources from patient care.</p><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;">Delays to vital cables blow hole in Miliband’s 2030 grid plans</h4><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">The Times <a href="https://www.thetimes.com/article/b14ada1e-5c87-4185-95bf-6fc46ec3177f?shareToken=23b0f88e353fcd1c0f5aca1ace9f2c85" rel="nofollow" style="color:#858585 !important;">reports</a> 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.</p><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;">Top government adviser: heat pump savings not clear</h4><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">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.</p><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;">Reform UK axes Kent Net Zero plans to save £40m</h4><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">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.</p>
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      <h3 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.9993959999999997em;mso-line-height-alt:1.9993959999999997em;margin-top:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:0em;">International</h3><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;">Populist surge threatens EU Green Deal</h4><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Politico <a href="https://www.politico.eu/article/the-far-right-climate-power-grab-green-deal-climate-neutrality/" rel="nofollow" style="color:#858585 !important;">reports</a> 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.</p><h4 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.414em;mso-line-height-alt:1.414em;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:.02em;">German industrialists to Merz: Net Zero is “killing” competitiveness</h4><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">German industrial leaders have <a href="https://www.netzerowatch.com/all-news/german-industrialists-letter-merz?ss_source=sscampaigns&amp;ss_campaign_id=6870dda7a1232c20012066d2&amp;ss_email_id=6870f613aaba0d451e35198e&amp;ss_campaign_name=Reality+bites&amp;ss_campaign_sent_date=2025-07-11T11%3A31%3A51Z" rel="nofollow" style="color:#858585 !important;">warned</a> 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.</p>
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      <h3 style="color:inherit;margin:1.414em 0 .5em;font-weight:400;line-height:1.25em;font-size:1.9993959999999997em;mso-line-height-alt:1.9993959999999997em;margin-top:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;letter-spacing:0em;">Etcetera…</h3><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">Andrew was on <a href="https://x.com/NetZeroWatch/status/1942212280478728194/video/1" rel="nofollow" style="color:#858585 !important;">Talk TV</a> to talk about national resilience and flood defences<a href="https://www.youtube.com/watch?v=2GfN_VP11bE" rel="nofollow" style="color:#858585 !important;">.</a></p><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">The Guardian’s Nils Pratley <a href="https://www.theguardian.com/business/nils-pratley-on-finance/2025/jul/10/zonal-pricing-energy-ed-miliband-2030-targets" rel="nofollow" style="color:#858585 !important;">says</a> 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.</p><p class="" style="color:inherit;font-size:1em;line-height:1.618em;margin:0 0 1.25em 0;font-weight:normal;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;">A new report by <a href="https://www.aei.org/research-products/report/the-science-vs-the-narrative-vs-the-voters-clarifying-the-public-debate-around-energy-and-climate/" rel="nofollow" style="color:#858585 !important;">AEI/YouGov</a> 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.</p>
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<div class="section-caption-text" style="margin:11px 0 22px 0;position:relative;"><p class="" style="color:inherit;font-size:1em;line-height:1.618em;font-weight:normal;margin-top:0;margin-bottom:0;font-family:'DejaVu Sans Condensed', 'Liberation Sans', 'Nimbus Sans L', 'Helvetica Neue', Helvetica, Arial, sans-serif;margin:11px 0 22px 0;position:relative;white-space:pre-wrap;">In its latest <a href="https://obr.uk/docs/dlm_uploads/Fiscal-risks-and-sustainability-report-July-2025.pdf" rel="nofollow" style="color:#858585 !important;"><span style="font-size:inherit;font-weight:inherit;line-height:inherit;margin:0;text-decoration:underline;"><em>Fiscal Risks and Sustainability Report</em></span></a>, the Office for Budget Responsibility confirms the consequences of nearly two decades of failed energy policy. Not deliberately, of course. The </p></div>


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