Over half of business leaders back fossil fuel phase-out, campaigners say
A survey of leading entrepreneurs found 55% back efforts to phase out fossil fuels
More than half of business leaders support the UK Government's efforts to phase out fossil fuels, according to a new survey.
Campaigners say the findings show those calling for more oil and gas drilling are “increasingly out of step with the majority”.
The survey of 1,350 business leaders found 55% support the Government's position.
With Labour having pledged not to issue new licences for oil and gas, 62% said the Government's plan to phase out fossil fuels would either have a positive impact on businesses or make no difference.
The same proportion said phasing out oil and gas would either benefit the UK economy or have no impact, while 35% said they thought it could have a negative economic effect.
The figures have been released ahead of the Conservative Party conference, which gets underway on Sunday. The party has backed continued oil and gas development in the North Sea.
Uplift executive director Tessa Khan said dependence on oil and gas was leaving businesses and households being “squeezed by unaffordable energy bills”.
Her comments come after the average price of diesel in the UK went above £2 a litre for the first time.
The energy price cap also increased at the start of October, with another rise expected in January.
Ms Khan said: “business leaders want a clean energy system that cuts costs, strengthens the economy and benefits their customers”, adding that they also want “clear signals from government – including an end to new drilling – that show the UK is serious about the shift to renewables”.
She said: “Those demanding more drilling are increasingly out of step with the majority of businesses in this country.
“If this government is serious about energy security and economic growth, it must double down on a clean, electrified energy system and break our dependence on fossil fuels for good.”
James Alexander, chief executive of the UK Sustainable Investment and Finance Association (UKSIF), said: “Businesses clearly recognise that breaking the UK’s long-term reliance on fossil fuels makes financial sense.
“We’ve seen just this year how oil and gas dependency can leave companies exposed to sudden price shocks, driving up operating costs and squeezing profit margins.
“Countries that are shifting to clean energy now will be far better placed to convince global markets they are a stable destination for investment in the years ahead. Policymakers must ensure they fully recognise the business consensus on this issue.”
Rachel Solomon Williams, executive director of the Aldersgate Group, said: “Our business members are clear that clean power and greater electrification are a key route to investment, competitiveness and energy security in the UK.
“The closure of the Strait of Hormuz is yet another reminder of how exposed UK firms remain to volatile international fossil fuel prices.
“The best protection is to make clean electricity more competitive with gas, moving policy costs off electricity bills and onto general taxation, progressing grid development and connection reform, and accelerating economy-wide electrification.
“Above all, businesses need clear, stable, and long-term policy signals to commit the investment needed. With climate impacts already adding costs for businesses, delay is not a cheap option.”