IEA Chief Operating Officer and Energy Analyst Andy Mayer has written in CapX criticising the government’s new windfall tax cut for being too little, too late.

Andy wrote:

“The best decision then would have been to admit over-reaction and scrap the windfall tax. We are 75-80% dependent on fossil fuels for our energy mix, and the only serious medium-term alternative to using our own resources are imports. Increasing imports however exposes us more to global shocks and higher emissions – LNG emits more than double the greenhouse gases than gas drilled here. The plan puts 215,000 North Sea jobs at risk, for no sensible reason bar ‘showing climate leadership’. Meanwhile low carbon investment, the preferred plan of all parties, will help, but not quickly enough. That is if can even by funded, even Labour have pulled back on their £28bn a year pledge.

“The Sunak administration will not do this, fearing a backlash from ‘Green Tory’ climate wets who like feeling virtuous at dinner parties; ‘One Nation’ Tory social democrats who are keener on Stalinist transition plans; and communitarian nimbies who hate infrastructure of all kinds. They really would rather pay Saudi and Qatari taxes for their heat and power than employ Scots.”

Read Andy’s full piece here.