In today’s newsletter:
and more…. In 1972 Maurice Strong the first director of the United Nations Environment Programme stated that the world “had just 10 years to avoid catastrophe”. In 1989 his successor Mostafa Tolba raised the estimate to 18 years for “an environmental catastrophe as irreversible as any nuclear holocaust”. You may detect from your peaceful enjoyment of reading this on your smart phone, on dry land, unmolested by fallout or mutants driving sand buggies, that both were incorrect. In that context there is little new in the zeal with which the United Kingdom has gripped the challenge of climate change over the last 30 years. From Kyoto to ‘Net Zero by 2050’ we have taken the science of global warming seriously, but by acting unseriously, declaring emergencies and setting implausible policy aims, backed up by complex plans and compromised institutions embedding environmental goals in policy and law. What’s changed is that people can see it isn’t working and is making us less well off, which in the long run limits our capacity to do anything, including innovating for a cleaner greener world. Net Zero plans mean net zero prospects of delivering those aims, alongside everything else. The green growth paradox, that alternatives to polluting technologies tomorrow, require using polluting technologies today, speaks against trying to move away from the latter too quickly. Wind farms need steel, nuclear power needs concrete, solar power needs glass, and everyone needs chemicals. Energy intensive industries cannot yet be run competitively without fossil fuels. The denial of trade-offs in climate and environmental policy is a dangerous game and leads to bat tunnels and projects twelve years in development being blocked for failing to predict their impact on emissions in 2100. The speech by leader of the Opposition Kemi Badenoch this week, ending the Parliamentary consensus on Net Zero by 2050, makes it clear this message is getting through. She was being cautious, seeking to consult widely before committing to new policy, but the narrative shift is important, particularly the nod to the importance of markets in delivering change. Although this should be self-evident, 20 years ago we had some of the cheapest and cleanest energy in the world after privatisation drove the ‘dash for gas’. However, all of that Thatcherite wisdom was unlearnt, and we ended up with price controls, picking winners, hyper-regulation, bailouts on bills, supertaxes, micro-plans, and macro-bans. We seemed more concerned by plastic straws and heat pumps than whether Europe was becoming dangerously dependent on Russia and China for both our current and future energy needs. Her nudge on the tiller is also reflected in internal debates in the Government. There is talk of a reshuffle and a reprioritisation of ambitions from climate change to growth. The Conservatives moving into this space will encourage Reform to raise their game on ideas, after a rocky effort last month that appeared to be more about preventing and taxing things than creating the conditions for affordable abundance by exploiting the “treasure beneath our feet”. The anti-capitalist left will probably still be predicting the end of the world by teatime and arguing over whether nuclear power is good or evil, but the public want reassurance that they can afford to heat their homes. The IEA has been writing about these matters for some time and will be doing more. Soon, we will be launching a new programme that will seek to bring together thought leaders, opinion formers and stakeholders in the energy and climate space to meet this challenge and conceptualise a different future. One in which energy choices are driven by consumer and industrial demand, while better environmental choice are encouraged through markets and prices not plans and bans. If you might be interested in supporting or contributing to work like this we would welcome hearing from you. Andy Mayer COO and Energy Analyst P.S. The best way to never miss out on IEA work, get access to exclusive content, and support our research and educational programmes is to become a paid IEA Insider. IEA Podcast: Executive Director Tom Clougherty, Editorial Director Kristian Niemietz, and Communications Manager Reem Ibrahim discuss the abandonment of ‘woke’, Kemi Badenoch’s Net Zero speech, and the Government’s welfare reforms, IEA YouTube The black market for tobacco is out of control
Read coverage in The Daily Express See the full analysis on IEA Insider: Bank of England holds tight in a fog of uncertaintyResponding to the Bank of England's decision to hold interest rates at 4.5% Julian Jessop, Economics Fellow at the free market think tank the Institute of Economic Affairs, said:
Read in The Telegraph News, Views & Upcoming EventsMinisters to force firms to reveal ethnicity pay gap - Reem Ibrahim criticises Government plans to lay more burdens on business in The Times
Editorial and Research Fellow Len Shackleton lamented the Government’s lack of ambition on welfare reforms in The Independent
See also The Telegraph, CityAM, and GuidoFawkes Strategic Partnerships Manager Matthew Bowles wrote about what London could learn from New York in stopping crime in CapX You’re currently a free subscriber to Insider. For the full experience, upgrade your subscription. Paid subscribers support the IEA's charitable mission and receive special invites to exclusive events, including the thought-provoking IEA Book Club. We are offering all new subscribers a special offer. For a limited time only, you will receive 15% off and a complimentary copy of Dr Stephen Davies’ latest book, Apocalypse Next: The Economics of Global Catastrophic Risks. |