| Updated:
Labour-linked researchers have slammed Ed Miliband’s net zero drive as the UK’s sky-high energy costs have come under intense scrutiny due to oil trade disruptions from the war in Iran and OpenAI’s decision to put a landmark data centre project in the UK on.
Researchers at the Tony Blair Institute blamed the UK government’s dithering over two key projects in the North Sea that are subject to approval from Miliband.
Tone Langengen, the TBI’s energy policy expert, said the crisis in the Middle East “how vulnerable the UK remains” without approving the two projects in the North Sea.
It has been reported that Miliband is poised to approve the Jackdaw gas field to be run by the energy giant Shell. A government spokesman said reports were “incorrect” and that a decision had not yet been reached.
It has also been reported that Miliband remains opposed to the Equinor-led oil and gas field project at Rosebank.
Both projects were blocked by courts in Scotland, leaving the government with a decision to make on whether to give them the go-ahead.
Campaigners have argued that their opening will not impact energy prices but economists have said that it would boost tax receipts, improve the UK’s balance of payments in trading terms and support jobs in the region.
Miliband is facing a rebellion within Labour on his stance towards the North Sea after Scottish Labour leader Anas Sarwar called on the government to allow more drilling in the region.
Labour MPs and net zero campaigners have also expressed their support for more drilling in order to reduce the dependence on imports.
Chancellor Rachel Reeves also expressed her support for the two projects to be given the green light.
Net zero sprint jars with AI potential
A new report by the TBI’s Langengen said the projects presented “an opportunity to reset” and that further delays would leave the UK economy more exposed to volatile international markets.
Sir Keir Starmer and Miliband have pitched their net zero “sprint”, namely a target to make the national grid almost entirely carbon-free by 2030, as key to freeing the UK economy from the roller coaster of international oil and gas markets”.
A separate survey of 1,000 business leaders, commissioned by the British Standards Institution, found that a third of businesses believed high costs were a barrier to driving net zero while nearly half viewed political uncertainty over net zero as a threat to the UK economy.
The survey suggested that most remained committed to achieving net zero.
The government was dealt a blow on Thursday after OpenAI paused its Stargate infrastructure project in the UK due to the high cost of energy.
The Stargate data centre project was key to the ‘Prosperity Deal’ signed by Starmer and President Trump last year.
“We see huge potential for the UK‘s AI future,” the company said in a statement.
“AI compute is foundational to that goal — we continue to explore Stargate UK and will move forward when the right conditions such as regulation and the cost of energy enable long-term infrastructure investment.”