In recent times, there has been a growing interest in Canada regarding the UK’s approach to net-zero emissions. A group of Canadians toured handpicked UK projects and initiatives, resulting in a favourable impression of the “Team UK” approach. However, a closer look at the situation in the UK reveals a different reality – “Battle UK.”
While the UK’s political elites fully support net-zero goals, the majority of the British population feels deceived by the promises made around the transition. The costs and challenges of electric vehicles, heat pumps and reliance on wind power have taken a toll on citizens’ quality of life and standard of living. For example, like Canadians, the British people were told it would be an easy thing to swap from a diesel car to an electric vehicle (EV) or to swap out natural gas heating for an electric heat pump or to shut down coal power plants and build wind projects to lower electrical bills. It turns out none of those things were easy and certainly did not lower costs.
Electric vehicles (EVs) have proven to be expensive and unreliable, leading to a decline in purchases. Heat pumps have turned out to be very expensive, loud, and not very effective when the temperature drops below 5°C, even in temperate England! Lastly, the unreliability of wind power in the UK, combined with the closing of coal power plants, has dramatically increased the cost of electricity in the country.
One of the UK’s key pillars, decarbonized industrial production guided by government planning, is facing scrutiny. Green steel projects like Tata Steel’s Port Talbot foundry and new companies backed by major investors may be more aspirational than practical. For example, BMW’s Mini EV plant was subsidized by the UK but when energy prices increased and there were additional net-zero uncertainties, BMW moved the plant to China. Next year, China will be exporting those Minis to the UK.
As for energy security, the UK has implemented a windfall profits tax on oil and gas companies – a 35 per cent surcharge on profits – that has been extended through March 2029. UK North Sea oil and gas production has been declining for a number of different reasons but there has been about a 30 per cent drop in both oil and gas production since 2019. Even with the war in Ukraine, exploration and development has not increased. There is great uncertainty because of net-zero, the disincentive of windfall taxes, the ban on fracking, among other reasons.
In light of these developments, it is crucial for Canada to learn from the UK’s mistakes rather than blindly following its net-zero path. Reliable, affordable and secure energy sources must be prioritized to ensure a successful transition without the economic turmoil faced by the UK. Canada must avoid the pitfalls of the UK’s net-zero approach and seek a proven, reliable path forward that truly serves the people.
