28 June 2024

Westminster view

Dear readers, donors and subscribers

Curiously, Net Zero has been the dog that doesn’t bark at this election. The topic could have been given more attention in the debates, but ultimately that would have been unlikely to change the fact that the subject simply hasn’t captured public attention in a significant way during the election campaign.

But the implications of Net Zero won’t be hard to ignore for long. Especially if what looks like a likely incoming Labour administration sticks to its target of a zero emissions electricity grid by 2030 – a policy that energy economist, Gordon Hughes, warns could double electricity prices.

Labour’s desire to increase climate policy ‘ambition’ comes at a time when, around the world, politicians and companies are recognising that a more pragmatic approach is needed. This week saw major EU utilities warn that the sector was becoming ‘uninvestible’. A clash between political hubris and reality grows closer.

With best wishes and sincere thanks to our generous donors who make our work possible,

Harry

Harry Wilkinson is head of policy at Net Zero Watch. As always, please don’t reply to this email address, which is not monitored.

The headlines

UK elections

• Labour’s plans to double electricity prices

• Labour moots a Net Zero delivery office

• Cross-party group calls for Labour flexibility on North Sea

• Net Zero to cost ‘hundreds of billions’

• Reform sees growth opportunity in North Sea

Around the world

• EU utilities blast decarbonisation

• BMW cancels huge battery order

• Lufthansa introduces environmental levy on flight prices

• EU’s largest renewables company scales back in the sector

Decarbonisation

• Drivers return to petrol

• Motor industry calls for EV subsidies

• Motor manufacturer threatens to abandon UK production

• BP shuns new renewables projects

Etcetera

• Battery plant fires

• More green hypocrisy

• New York Times late to the game

• Just Stop Oil arrests

UK elections

Labour’s plans to double electricity prices

Energy economist Professor Gordon Hughes said that Labour’s fantasy plans would double electricity prices (£). The Unite union refused to endorse Labour’s manifesto because of its enthusiasm for Net Zero.

Labour moots a Net Zero delivery office

The party’s transition team, led by formerly neutral civil servant Sue Gray, is considering setting up a Net Zero transition office, apparently as a ‘signal’ of its seriousness. Our Harry Wilkinson was on TNT radio discussing the idea.

Cross-party group calls for Labour flexibility on North Sea

A cross-party group, including several former energy ministers, called for Labour flexibility on the North Sea, pretending that carbon capture would ride to the rescue. Meanwhile, Serica, a North Sea operator, said it was looking abroad for future developments, and decried the UK’s tax regime. It warned that the country’s energy security was at risk.

Net Zero to cost hundreds of billions

The Shadow Chief Secretary to the Treasury was recorded as saying that Net Zero would cost ‘hundreds of billions’, although there was confusion as to whether this represented the cost to the economy or to the public sector.

Reform sees growth opportunity in North Sea

With the main parties prevaricating on the future of North Sea oil and gas, Reform declared that the industry is Scotland’s ‘greatest growth opportunity’, and said the SNP was negligent in abandoning it.

Around the world

EU utilities blast decarbonisation

The EU utilities industry is becoming uninvestable according to major players in the market, who say the energy system is ‘broken’. They are calling for an end to renewables subsidies,

BMW cancels huge battery order

In a further sign of the retreat from EVs, BMW cancelled a $2 billion order for batteries.

Lufthansa introduces environmental levy on flight prices

The German airline said the charge, of between 1 and 72 Euros, would cover the extra cost of using ‘sustainable aviation fuel’.

EU’s largest renewables company scales back in the sector

Seeing lower prices ahead as renewables oversupply hits, Statkraft announced that it would be scaling back its plans in the area.

Decarbonisation

Drivers return to petrol

A major motor dealership has said that drivers of EVs are increasingly returning to petrol and diesel when the time comes to replace them.

Motor industry calls for EV subsidies

The Society of Motor Manufacturers and Traders called for VAT on EVs to be halved, in order to give Labour’s proposed 2030 ban on hydrocarbon fuelled cars a chance of success.

Motor manufacturer threatens to abandon UK production

Stellantis, the owner of Vauxhall, Citroen and Peugeot, warned that Net Zero rules might force it to close down its two UK manufacturing plants.

BP shuns new renewables projects

BP is putting in place a freeze on all new offshore wind projects, as investors question the wisdom of its drive for greenery.

Etcetera

Battery plant fires

Dramatic footage emerged as a battery recycling plant near Glasgow went up in flames. In South Korea, a battery factory fire killed 22 people.

More green hypocrisy

Green Party leader Carla Denyer admitted to having a gas boiler rather than a heat pump. Few were surprised.

New York Times late to the game

Seven years after Net Zero Watch reported the news, the New York Times told its readers that most coral atolls are expanding.

Just Stop Oil arrests

Police conducted multiple raids on the homes of Just Stop Oil activists, on suspicion of planning to disrupt national infrastructure. It was reported that many of the organisation’s leading lights are keen long-haul air travellers.

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