Economic forces will drive clean energy
4 min read
As the economic case for clean energy grows ever stronger, former Energy Minister and Chair of the UK Net Zero Review, Chris Skidmore, maintains that the energy transition will ultimately overcome the vested interests seeking to delay it
Six years on since the UK became the first G7 country to sign its net-zero commitment into law, the global energy transition is in full swing – and its impact is perhaps greater than anyone, myself included, could have expected. When the UK committed to net-zero, it set off a worldwide revolution that has seen decarbonisation and the need to reduce emissions that now has unstoppable momentum.
Internationally, the world remains on track to meet a commitment to treble renewable energy generation by 2030, adding 11,000GW of renewable power. At the signing of the Paris Agreement ten years ago, there was 227GW of solar power, making up just over one per cent of global electricity. In 2025 alone, Bloomberg expects 700GW to be deployed: last year, the increase in solar power exceeded the total electricity demand of Spain, the UK and Italy combined. The cost of renewables and batteries has fallen exponentially since 2015: solar panel costs have halved since 2023, and in 2024 we installed as much battery storage as we did in the past 30 years. 77 per cent of all new global electricity came from clean power last year: in 2025, it will approach 100 per cent.1
We are witnessing a remarkable global shift, as countries are waking up to the fact that the energy transition can allow every country to be an electrostate, rather than rely dangerously on a small cartel of petrostates for their energy. The power of this energy democracy – the creation of homegrown, cheaper and more reliable energy – is also driving new financial markets and new forms of investment. Two-thirds of all new energy spending now goes toward technologies that support the growth of electricity, rather than fossil fuels – investment in which is now only half that of renewables.
“Net zero is not only essential to limit future temperature rises – it is also an economic imperative for building a better future”
Since leaving politics, I have sought to make the policies that I helped create a reality on the ground, and practise what I have preached. That means first and foremost helping to secure investment for those companies and projects that are helping to decarbonise industries and reduce emissions, as well as establish new markets across countries that recognise the economic value that these growth industries can bring. It is why I set up Desmos, an advisory investment firm that helps raise capital for companies working to make the world more sustainable.2 Already, Desmos, with hubs across Europe, Canada and the US, is delivering investment for exciting new technology companies such as Meatable.3
Working to deliver the energy transition must also be a cross-party endeavour. Under the new government, I have been asked to chair the working group on policy for the UK’s Transition Finance Council.4 This group is seeking to make the UK the leading hub for investment and financing of the energy transition. In the coming months, it will produce new transition finance roadmaps, and I am confident these will not only help shape the future investment pathway for the energy transition in the UK but also provide other countries with a template to guide investment in their own transitions.
After all, as I set out in the Net Zero Review, Mission Zero, that is the prize on offer: for the UK’s global leadership in net-zero to deliver global impact not only in reducing emissions, but increasing investment both in the UK and in the technologies and businesses that the UK is already showing leadership in.
Net-zero is not only essential to limit future temperature rises – it is also an economic imperative for building a better future. To continue with the status quo, or do nothing, will simply see the UK fall further behind. The energy transition is here to stay. Now, more than ever, it is time to stay the course and deliver the jobs and investment that can and will be ours.
References
1. Business Green; Politics cannot defeat economics - and the economics of clean power speak louder than vested interests. https://www.businessgreen.com/opinion/4412924/politics-defeat-economics-economics-clean-power-speak-louder-vested
2. Bloomberg; Former UK Minister Chris Skidmore Opens Clean-Energy Startup Bank. https://www.bloomberg.com/news/articles/2024-07-17/former-uk-minister-skidmore-opens-bank-for-clean-energy-startups
3. Sustainable Times; Meatable Secure Partnership to Raise €30M for Global Expansion of Cultivated Meat. https://www.sustainabletimes.co.uk/post/meatable-secures-30m-for-global-expansion-of-cultivated-meat
4. The Global City; The Transition Finance Council. https://www.theglobalcity.uk/sustainable-finance/opportunities/transition-finance/transition-finance-council
