The ex-special adviser to the chancellor cautions that aggressive decarbonization for net zero is impeding the economy’s productivity potential.
According to a prominent policy analyst, net zero policies primarily benefit the ultra-rich while hindering opportunities for lower-income individuals to enhance their circumstances.
Mr. Darwall highlighted the economic impact of the 2008 financial crisis, which coincided with the passing of the Climate Change Act mandating a net zero greenhouse gas emissions target by 2050.
He emphasized the diversion of capital towards low-yielding or negative-yielding assets in the power generation sector, particularly wind and solar, due to the aggressive decarbonization efforts mandated by the Act.
Mr. Darwall asserted, “Mandating aggressive decarbonization undeniably hampers the economy’s productive capacity.”
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The former Treasury special adviser cautioned that “environmentalism is a more radical ideology than Marxism.”
Billionaires
He criticized the net zero push for not challenging the existing social hierarchy.
He highlighted prominent wealthy individuals like King Charles III, former New York Mayor Michael Bloomberg, and Bill Gates for showcasing their eco-friendly credentials.
Mr. Darwall remarked, “Economically, it’s quite radical, but socially, it perpetuates existing social divisions and restricts upward mobility for those at the lower end of the spectrum.”
He stated that green policies and decarbonization primarily serve the interests of the ultra-rich.
He mentioned that Bill Gates, for example, invests substantial amounts to remove carbon dioxide from the atmosphere using direct air capture technology due to his immense wealth.
However, he pointed out that such actions are feasible only for the wealthiest individuals, making it impractical for ordinary people to bear the financial burden of eco-friendly practices.
“This is more about the wealthy feeling morally righteous,” he added.
Green Jobs
He labeled environmentalism as an “anti-growth strategy” and debunked the notion of “green jobs” as promised by politicians.
“Green jobs do exist,” he acknowledged. “But they’re predominantly in China, not in Europe.”
He explained that Europe’s lack of competitiveness, especially in terms of energy costs, hinders the production of eco-friendly equipment, which is energy-intensive to manufacture.
He highlighted how green policies have inflated business costs in Britain, making it one of the most expensive places globally in terms of electricity bills.
“Essentially, key industries like steelmaking are facing closure in the UK,” he noted, adding concerns about the survival of oil refineries and the petrochemical sector.
He also drew attention to the legislation mandating car manufacturers to produce a minimum quota of electric vehicles, foreseeing a detrimental impact on the British automotive industry.
‘Deep Growth Trap’
Mr. Darwall criticized the wind industry for misleading the government on the affordability of wind energy.
He contended that the actual cost of offshore wind power exceeds initial estimates, creating financial challenges for the industry.
He highlighted the dilemma faced by the government in providing subsidies to wind farm companies to meet net zero emission targets while grappling with escalating costs.
He stressed the importance of economic growth to sustain the state and public services, noting the stagnation in growth since 2008.
“Green policies translate to perpetual austerity and high tax rates,” he warned, citing the current tax burden in Britain as the highest since the post-war era of the late 1940s.
He underscored the adverse impact of green policies on private and public consumption, as well as investment, due to the country’s low levels of public and private investments.
“Britain is ensnared in a deep growth trap, exacerbated by the relentless pursuit of net zero targets,” he concluded.
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