The UK needs a new green economic story, not a race to the bottom
Sir Ian Cheshire
This article was first published in Reuters.
A tired debate is dominating UK politics – is green policy bad for economic growth? We’ve known for nearly a generation that this is a false choice. The fastest, most secure path to long-term prosperity is through the shift to clean energy. Investment in low-carbon industries is booming globally, opens new tab, while economies still reliant on fossil fuels are battling price volatility, stranded assets and investor uncertainty. The UK is perfectly placed to lead this shift, yet political leaders are failing to seize the opportunity.
Britain has been at the forefront of the clean energy transition for over a decade. It was the first major economy to pass legally binding targets, and completely phase out coal from its electricity mix. It has developed one of the world’s most advanced offshore wind industries, representing more than 40% of European offshore wind capacity, and has attracted record investment in green finance and clean tech.
Renewables now generate over 40% of the UK’s electricity, up from just 7% in 2010. Wind energy alone powers more UK homes than ever before, with offshore wind capacity expected to double by 2030. The UK’s low-carbon economy contributed 74 billion pounds to the UK in 2022-23, and targeted policies such as the Contracts for Difference scheme for renewables have proven that well-designed government interventions can unlock private sector capital at scale.
Yet, despite these successes, political uncertainty now threatens to erode investor confidence. With the prime minister not yet confirming he will block the Rosebank oilfield after a court ruled its approval unlawful, the government risks sending conflicting signals to businesses and investors. These types of seeming contradictions create uncertainty about the UK’s long-term direction, making it harder for companies to plan major infrastructure investments in renewables.
Meanwhile, global politics is shifting in ways that will impact Britain’s clean energy future. In the United States, Donald Trump’s return to the White House has led to a roll back of climate policies as he sets out a fossil-fuel-driven agenda. In Germany, elections this week saw the far-right gain more political ground, potentially threatening Europe’s leadership on clean energy policies. As other economies risk stalling on climate progress, the UK could position itself as the stable, reliable hub for clean energy investment – if only its leaders would step up with conviction and a clear plan.
Polling consistently shows the British public wants stronger government action, opens new tab on climate and clean energy policies. In fact, some surveys indicate that support for renewables remains high across all political demographics, including those sceptical of broader environmental policies. With much government emphasis on signalling policies to attract a growing right wing, the prime minister risks missing the opportunity to offer a clear vision for the country’s economic future that the British people desire.
The media narrative framing green policies as a costly burden on growth is outdated and misleading. No economy has ever prospered by clinging to obsolete industries. The public conversation needs to change.
Instead of constantly defending efforts to modernise the economy, the UK government and businesses must proactively shape the public narrative. The UK has the opportunity to tell its own success story – one that focuses on innovation, economic renewal and energy security. But it must do so with clarity, ambition and a message that resonates beyond policy and industry circles. That means framing the shift as a major national opportunity, not as an obligation, but as a modern industrial strategy that will deliver affordable energy, new jobs, stronger domestic supply chains and strengthen national energy security.
This must be the year that the UK government stops apologising for its ambitious leadership on the energy transition and starts making the economic case loud and clear. The choices made now will define the country’s long-term growth trajectory. With a proactive strategy and a bold, confident story to tell, Britain has the chance to lead the next industrial revolution – instead of watching it happen elsewhere.