Trump’s Climate Change Decision Poses Huge Problem For UK
The very wise decision by the US President to pull out of the totally flawed and pointless Paris Climate Change agreement, presents huge problems for the UK and the Government’s ongoing trade and industry strategy. It also raises big issues for an energy expensive area like Northern Ireland which has the most expensive electricity costs in the UK.
America is rebuilding its economy on cheap energy from shale gas and shale oil. Already it is attracting manufacturing jobs back to its shore from overseas because energy prices have plummeted due to the massive fall in prices as fracking of shale gas gathers pace. So cheap is its energy that it now pays to ship gas from America to Grangemouth Scotland rather than use gas from the North Sea. If we wish to remain competitive and increase trade with America we cannot ignore the actions of Donald Trump.
Currently our energy policy based on the Climate Change Act and the commitments we made under the Paris Agreement are costing consumers both industrial and domestic dearly. According to the Office of Budget Responsibility which independently measures the economic impact of Government policies our commitment to renewable energy targets means that consumers and Government are paying subsidies of £7.3bn per year rising to £14.7bn by 2025. This amounts to an increase of £292 per year on each household bill and will rise to £565 by 2025.
The result is massive fuel poverty 40% in Northern Ireland crippling bills for industry and the loss of industrial and other jobs to countries which have lower energy costs because they don’t engage in what the Prime Minister’s own Chief of Staff has describes as a “unilateral and monstrous act of self harm”.
The Paris Agreement itself is a delusion. India which signed up to it plans to build 400 coal fired power stations increasing CO2 emissions by 300% by 2030. China has promised to reduce CO2 per unit of GDP but given its growth rate will be producing 50% more CO2 by 2030. So pulling out of the agreement which was only a piece of window dressing for climate chancers who wished to pretend that they were doing something about an issue which they can’t affect anyhow is not the disaster which the green lefties are getting hysterical about.
What it might actually do is give us the opportunity to design a sensible energy policy which will help grow the economy, lift the burden of high energy costs off the shoulders of poor households and secure manufacturing and service jobs in energy intensive industries. The only losers will be those who are hoovering up billions of pounds of subsidies from hard pressed consumers.