Weakening UK net zero policy would damage economy, warns climate chief

The UK's chief climate adviser has warned that weakening the country's net zero policy would disrupt business and damage the economy. Nigel Topping, chair of the Climate Change Committee (CCC), stated that policy U-turns are damaging to investor confidence and that investing in clean energy is essential for economic growth.

The warning came as the CCC published its latest report to parliament, assessing progress toward the 2050 net zero target. The report found that while renewable energy adoption and electric vehicle uptake are progressing well, the installation of heat pumps is severely lagging. Topping cited a CBI report showing the net zero economy is worth approximately £100 billion a year to the UK, growing faster than other sectors and providing higher-paid jobs.

Political uncertainty adds to the stakes. Following Prime Minister Keir Starmer's resignation, the green credentials of likely successor Andy Burnham have come under scrutiny. Burnham has supported offshore wind and renewables, but some advisers have contrasted his "reindustrialisation" agenda with net zero, despite economic evidence that they are complementary. Topping made clear that weakening clean economy efforts would deter businesses and investors, increase reliance on fossil fuels, and raise living costs.

The report highlighted concerns over heat pump uptake. Heat pumps are at least three times more efficient than gas boilers but have high upfront costs. Due to the UK's energy market structure, electricity is more expensive than gas, meaning heat pumps do not always save consumers money. Installations in existing homes rose only 7% this year, compared with 56% the previous year. However, when used alongside solar panels and electric vehicles, heat pumps can save urban households about £1,200 a year and rural homes up to £1,900, though these savings are mainly accessible to wealthier households. Some heat pumps also double as air conditioners, interest in which has surged during a record heatwave.

Topping called for breaking the link between electricity prices and gas costs to reflect cheaper renewable power and make heat pumps more attractive. He urged support for lower-income households to decarbonize and warned against disinformation. Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, noted that high fossil fuel prices are driving public interest in net zero technologies like solar panels and EVs, but the UK still lags behind Germany and France in heat pump adoption.