Weakening Net Zero Policy Risks Deterring Investment, Warns UK Climate Adviser

With mounting environmental and climate pressures facing our planet, the Climate Change Committee (CCC) is urging the government to maintain course towards a green transition, citing the benefits of economic and investor confidence. The UK’s newly appointed climate adviser, Nigel Topping, issued a stark warning to ministers: weakening or wavering on net zero commitments could deter investment and shake financial markets.

Topping, now chair of the Climate Change Committee (CCC), emphasised that consistent and stable climate policy is vital for the environment and for the health of the UK economy. In a recent interview, he explained that overall, the business community wants strong, stable policy signals. Drawing a parallel with the United States, Topping pointed to current trends of capital and talent leaving sectors hit by policy uncertainty. The US is witnessing a major impact on talent and capacity as entire sectors are experiencing significant deinvestment and a reduction in available talent.

According to Topping, the UK’s long-standing political consensus on climate action, maintained by recent governments over the past two decades, has been a key strength. However, recent shifts in tone and direction could risk undermining that legacy. Topping believes the political focus towards climate action has proven to be a real strength for the UK, but a fragmentation of political consensus is concerning, suggesting to other nations that climate plans may be wavering.

Green Policy as Economic Policy

Topping argued that strong climate policy doesn’t just benefit the planet, it also makes economic sense. High gas prices have driven up costs for households and businesses alike, with the government forced to step in to protect customers. Reforming the energy market, he said, would deliver both savings and security.

Very high gas prices right now have added to borrowing because the government’s had to support businesses and citizens. Topping is confident there are big economic savings, especially associated with electrification, providing a major efficiency advantage. There’s also a significant energy security benefit, with energy imports expected to reduce by more than 75%. Proposals suggest moving green levies from electricity bills into general taxation and reforming the privatised electricity market, where the cost of power is largely set by volatile gas prices, to bring long-term price stability.

Topping also reiterated that increasing North Sea gas extraction wasn’t a viable solution, referring to it as a declining resource, anticipated to decrease by 85% by 2050. Expanding fossil fuel production would damage the nation’s credibility in worldwide climate leadership.

Net Zero is Achievable and Beneficial

Topping, who previously served as the UN High-Level Climate Action Champion for COP26, believes the UK can realistically achieve net zero emissions ahead of the 2050 target. While this is not the CCC’s official position, he suggested carbon dioxide emissions could reach net zero by 2045, with other greenhouse gases following by mid-century. There’s good evidence to suggest we can achieve net zero, and through this, it will significantly benefit the economy, on a local scale and nationally. As with any investment, there’s an initial cost, but studies suggest that it equates to about 0.2% of GDP, most of which will derive from the public sector. By the end of the next decade, we will start to reap the benefits.

A warning against politicising climate

Despite progress under the existing government, with the CCC noting the UK is getting back on track in several key areas, Topping expressed concern over political efforts to water down net-zero commitments. Some voices within Labour echo positions previously taken by other political parties. Reports suggest an attempted cabinet reshuffling, sidelining the Energy Security Secretary’s position in national politics. 

We must focus on policies that are backed up by evidence, rather than ideology. The majority of people nationwide strongly support climate action and want it explained and want it to be equitable. The concerns are that political plans or decisions are being made without the backing of robust evidence that enables people to make informed decisions. In response by the Government, a spokesperson for the Department for Energy Security and Net Zero defended the government’s climate agenda, stating that the only way to bring down energy bills for good is with the government’s clean energy mission, which will get the UK off the volatile rollercoaster of fossil fuel prices and on to domestic power that we control. Under existing plans, we have seen the most significant backing for clean energy in history, with over £50bn in private sector investment announced since July 2024.