UK energy policy must be realistic

Friday, 31 March 2023

(The Telegraph) Unachievable and costly moves such as the 2030 ban on sale of new petrol cars, compulsory solar panels and heat pumps need to be revisited

Thursday is “energy security day”, or has been styled as such by the Government. Environmental campaigners are objecting that it was supposed to be a “green day” on which further unrealistic targets for net zero would be unveiled. The fact that Grant Shapps, the Energy Secretary, is focusing on keeping the lights on is a welcome shift in emphasis while adhering to green ambitions.

Activists even complained about plans to launch the policy in Aberdeen, home to one of the great success stories of recent British industrial innovation and job creation, yet demonised now for its association with oil and gas extraction.

The debate has taken on a surreal nature. The Government is committed to banning the sale of new petrol and diesel cars in less than seven years from now, even though the infrastructure for a significant move to electric cars will not be available by then.

Moreover, the British ban has been thrown into chaos by an EU decision to water down its own restrictions on petrol and diesel cars under pressure from the German automotive industry. This will allow vehicles to be fitted with internal combustion engines as long as they burn certain carbon-neutral petrol alternatives. The EU’s proposed ban takes effect in 2035 but e-fuels will be permitted, which will slow the manufacture of electric vehicles by the Continent’s car firms.

Mr Shapps is expected to give the go-ahead to new offshore drilling in the North Sea. But as was disclosed this week, oil and gas companies are reluctant to invest in such schemes because of windfall taxes and political uncertainty. They face putting money into projects that could well be made unprofitable or halted by a future Labour government within 18 months.

Net zero campaigners will no doubt denounce any reprieve for the carbon-based energy companies, however modest. They also oppose a much-needed revival of the nuclear power industry. But they need to be sensible. Boris Johnson brought forward the vehicle ban by five years without any rationale for doing so.

Other unachievable and costly moves such as compulsory solar panels and heat pumps need to be revisited. Above all, environmental policy needs to be realistic. A more nuanced debate both in the political sphere and in schools, where children are being scared witless by apocalyptic climate-change forecasts, would also not go amiss.