Weakening net zero policy will spook investors', warns UK's climate adviser

"He said: The business community want strong, stable policy signals, and flip-flopping is not good for investment. We see it right now in the US with a huge brain drain and capital drain, as whole sectors are being de-invested or even attacked. Consistency in the direction of UK policy over the last 20 years when successive Labour and Conservative governments vowed to press ahead with tackling the climate crisis, until Rishi Sunak's premiership had benefitted the economy, he said."

"At present, the way the UK's privatised electricity market works means that the price of electricity is usually set by the price of gas, which has been high and volatile. The thing driving high costs now is gas, Topping said. Very high gas prices right now have added to borrowing because the government's had to support business and citizens. So we're very confident there are big economic savings, particularly on electrification, which gives a big efficiency benefit."

Weakening or changing net zero policy would deter investors and spook financial markets. Strong climate policy delivers economic benefits for the UK. Business communities require strong, stable policy signals because flip-flopping harms investment and can trigger brain drain and capital flight. Consistency in UK climate policy over two decades benefited the economy, and a fragmenting political consensus risks undermining that advantage. Electricity prices are currently set by volatile gas markets, driving high costs and extra government borrowing. Market reforms, shifting green levies into general taxation, and rapid electrification could lower costs, boost efficiency and cut energy imports by over 75%.

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