Labour's net zero plans 'will cost £116 billion'

Sir Keir's Green Promise; was criticized by the Tories for costing «billions of pounds more every year, meaning higher taxes or energy bills for working people, hitting everyone's pockets»; Photo: Ben Birchall/PA Wire

Labour's net-zero emissions plans will cost £116 billion, new analysis finds.

Sir Keir Starmer's pledge to decarbonise Britain's electricity grid by 2030 will cost more than £116 billion. 15.5 billion additional investment per year until the start of the next decade.

This is more than double what is needed over the same period to achieve net zero capacity by 2035, which is the government's current target.

An analysis by Aurora Energy Research, a policy exchange set up by Oxford University academics, found that decarbonizing the UK's energy system by 2030 would cost £116 billion over the next 11 years.

Analysts concluded that even if such sums were available, supply chain constraints, skills shortages and lead times make meeting the 2030 target «infeasible».

Earlier this month, Ed Miliband, shadow minister on climate change, said Labor was “committed to delivering a decarbonized energy system by 2030, which would be the core commitment of any major country in the world.”

This is five years earlier than the government's current target for achieving the same target. The target recommended by the independent Climate Change Committee, which Aurora said would require £104.6bn of extra investment between now and 2035.

The Policy Exchange report outlines the implications of the push to achieve net zero. by 2030, a scenario consistent with the Labor Party's political vision.

'Can't build at the pace required'

Compared to what they describe as the current policy trajectory and market environment for the UK energy sector, an additional £116 billion of investment will be required by 2035.

Bim Afolami, Chancellor of the Exchequer, said that a report on Monday found that «Sir Keir's green promise will cost billions of pounds more every year, meaning higher taxes or energy bills for working people, hitting everyone's pockets.»

«Labour's unfunded spending liability has only increased,» he added.

Aurora concluded that under current policy the UK would not reach net zero in the energy sector until 2051; achieving net zero by 2035 is considered possible, “although significant new measures will be required.”

“Achieving net zero capacity before then will likely not be possible due to limited time to achieve the transformation.”

“Achieving net zero capacity before then will likely not be possible due to limited time to achieve the transformation.”

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The report added: «Net zero capacity in 2030 cannot realistically be achieved as a combination of legislative deadlines, planning, permitting, project development and supply chain constraints mean that the required system overhaul cannot be completed on time.»

Ian Mansfield of Policy Exchange said: “Decarbonising the energy system by 2030 is simply not possible. Given the state of public finances, it is difficult to see how any government could find the extra £93 billion needed — but even if the money were available, it is simply not possible to build new renewable energy generation at the pace required.»

» Tackling climate change is a priority, but we must do so based on goals that can actually be achieved.»

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The report comes ahead of the Labor leader's trip to North Wales on Monday, where he will argue that their plans for Great British Energy could «get Putin off our throats».

Labor has promised to do this. include Great British Energy, a state-owned company which they claim will give the UK «true energy independence» and make the country a world leader in floating offshore wind.

Sir Keir said: «After fourteen years when The Tory government has groveled to fossil fuel dictators, Labour's plan for energy independence will take Putin's boot off our throats and empower communities across Britain.»

“Great British energy will be built to last, and wind farms, carbon capture and all the good jobs that come with it will be built to last too. This will be the legacy of the next Labor government.”

A Labor spokesman said: “After 14 years, the government is still not on track to meet its clean energy targets. The UK cannot afford another five years of Rishi Sunak's inaction.

“The Conservatives have blocked offshore wind, crashed the offshore wind market, stalled on energy efficiency and failed to tackle an outdated planning system. this meant over £200 billion of private sector investment would be put on hold.

“Labour's Green Prosperity Plan will secure our country's energy security through investment in domestic clean energy, cutting costs and boosting our national energy security. The Labor Party will attract billions in private investment and create good jobs in Britain's industrial heartlands.»