Blair goes from “greenwash” to landing green job

Former PM lands green energy advisory role.

The decision by the Silicon Valley-based Khosla Venture to hire Tony Blair as strategy adviser on green energy will surprise some environmental campaigners. You need only go as far back as 2003 to find the former prime minster being slammed from all sides for attempting to "greenwash" the then government's environmental record, publishing a white paper on energy provision that many felt was full of hollow promises and light on hard targets.

Published on what the government at the time called "Green Monday", the white paper on energy provision was met with derision from environmentalists, including the Green Party. The Greens' principal speaker, Margaret Wright, described Blair's white paper and the environment secretary Margaret Beckett's annual report on sustainable development as "green spin and greenwash".

Wright pointed out back then that the £350m set aside for renewable energies in the energy white paper was just over half the taxpayer bailout of the privatised nuclear power industry that had recently been announced.

Even the prime minister's environmental adviser, Sir Jonathon Porritt, warned that the UK would fall "well short" of its goal of cutting carbon-dioxide emissions by 20 per cent by 2010 unless major policy changes were made, particularly on reducing car use.

The Institute for Public Policy Research (IPPR) -- which was considered Blairite at the time -- warned that the energy white paper could put investment in renewable energy projects at risk, saying that by failing to commit to firm targets for renewable energy, the government had jeopardised new investment.

The IPPR research fellow Alex Evans said: "The white paper is chronically short on detail. It is frustrating that the government doesn't have the nerve to commit to formal 2020 targets for renewable energy and energy efficiency."

Back then, the government said it did support renewable energy, and that the white paper set out how it would spend £30m more per year in the sector.

But the Liberal Democrats' environment spokesman, Norman Baker, said: "Tony Blair's speech is just more warm words about greenhouse gases. Every few years the prime minister feels the need to give a speech on the environment which is followed by inaction."

Yet Khosla Ventures, launched in 2004 by Vinod Khosla, a co-founder of the former technology giant Sun Microsystems, has chosen Tony Blair Associates as its part-time adviser on green energy. Khosla Ventures is an investment group that says it specialises in environment-friendly technologies, including solar, wind and -- ahem -- nuclear energy start-ups.

Khosla insisted that Blair will be of enormous value to his venture capital firm. "Understanding local and global politics is now important for us, techie nerds," he said. "This is where our relationship with Tony Blair can really help us. Tony understands far better than I ever will the political and geopolitical forces, as well as organisational behaviour and social behaviour and change."

The company said in a statement that Blair has led on climate change: "He was the first major head of government to bring climate change to the top of the international political agenda at the 2005 Gleneagles G8 summit. He is a proponent of pursuing practical solutions to tackle climate change through technology and energy efficiency.

"Tony Blair now leads the Breaking the Climate Deadlock initiative, a strategic partnership with the Climate Group, working with world leaders to build consensus on a new, comprehensive international climate policy framework."

As for Khosla, although he is heavily into investing in renewable energy, he is clearly not wholeheartedly against nuclear power. He once said:

I suspect environmentalists, through their opposition [to] nuclear power, have caused more coal plants to be built than anybody. And those coal plants have emitted more radioactive material from the coal than any nuclear accident would have.

Jason Stamper is NS technology correspondent and editor of Computer Business Review.

 

Jason Stamper is editor of Computer Business Review

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Debunking Boris Johnson's claim that energy bills will be lower if we leave the EU

Why the Brexiteers' energy policy is less power to the people and more electric shock.

Boris Johnson and Michael Gove have promised that they will end VAT on domestic energy bills if the country votes to leave in the EU referendum. This would save Britain £2bn, or "over £60" per household, they claimed in The Sun this morning.

They are right that this is not something that could be done without leaving the Union. But is such a promise responsible? Might Brexit in fact cost us much more in increased energy bills than an end to VAT could ever hope to save? Quite probably.

Let’s do the maths...

In 2014, the latest year for which figures are available, the UK imported 46 per cent of our total energy supply. Over 20 other countries helped us keep our lights on, from Russian coal to Norwegian gas. And according to Energy Secretary Amber Rudd, this trend is only set to continue (regardless of the potential for domestic fracking), thanks to our declining reserves of North Sea gas and oil.


Click to enlarge.

The reliance on imports makes the UK highly vulnerable to fluctuations in the value of the pound: the lower its value, the more we have to pay for anything we import. This is a situation that could spell disaster in the case of a Brexit, with the Treasury estimating that a vote to leave could cause the pound to fall by 12 per cent.

So what does this mean for our energy bills? According to December’s figures from the Office of National Statistics, the average UK household spends £25.80 a week on gas, electricity and other fuels, which adds up to £35.7bn a year across the UK. And if roughly 45 per cent (£16.4bn) of that amount is based on imports, then a devaluation of the pound could cause their cost to rise 12 per cent – to £18.4bn.

This would represent a 5.6 per cent increase in our total spending on domestic energy, bringing the annual cost up to £37.7bn, and resulting in a £75 a year rise per average household. That’s £11 more than the Brexiteers have promised removing VAT would reduce bills by. 

This is a rough estimate – and adjustments would have to be made to account for the varying exchange rates of the countries we trade with, as well as the proportion of the energy imports that are allocated to domestic use – but it makes a start at holding Johnson and Gove’s latest figures to account.

Here are five other ways in which leaving the EU could risk soaring energy prices:

We would have less control over EU energy policy

A new report from Chatham House argues that the deeply integrated nature of the UK’s energy system means that we couldn’t simply switch-off the  relationship with the EU. “It would be neither possible nor desirable to ‘unplug’ the UK from Europe’s energy networks,” they argue. “A degree of continued adherence to EU market, environmental and governance rules would be inevitable.”

Exclusion from Europe’s Internal Energy Market could have a long-term negative impact

Secretary of State for Energy and Climate Change Amber Rudd said that a Brexit was likely to produce an “electric shock” for UK energy customers – with costs spiralling upwards “by at least half a billion pounds a year”. This claim was based on Vivid Economic’s report for the National Grid, which warned that if Britain was excluded from the IEM, the potential impact “could be up to £500m per year by the early 2020s”.

Brexit could make our energy supply less secure

Rudd has also stressed  the risks to energy security that a vote to Leave could entail. In a speech made last Thursday, she pointed her finger particularly in the direction of Vladamir Putin and his ability to bloc gas supplies to the UK: “As a bloc of 500 million people we have the power to force Putin’s hand. We can coordinate our response to a crisis.”

It could also choke investment into British energy infrastructure

£45bn was invested in Britain’s energy system from elsewhere in the EU in 2014. But the German industrial conglomerate Siemens, who makes hundreds of the turbines used the UK’s offshore windfarms, has warned that Brexit “could make the UK a less attractive place to do business”.

Petrol costs would also rise

The AA has warned that leaving the EU could cause petrol prices to rise by as much 19p a litre. That’s an extra £10 every time you fill up the family car. More cautious estimates, such as that from the RAC, still see pump prices rising by £2 per tank.

The EU is an invaluable ally in the fight against Climate Change

At a speech at a solar farm in Lincolnshire last Friday, Jeremy Corbyn argued that the need for co-orinated energy policy is now greater than ever “Climate change is one of the greatest fights of our generation and, at a time when the Government has scrapped funding for green projects, it is vital that we remain in the EU so we can keep accessing valuable funding streams to protect our environment.”

Corbyn’s statement builds upon those made by Green Party MEP, Keith Taylor, whose consultations with research groups have stressed the importance of maintaining the EU’s energy efficiency directive: “Outside the EU, the government’s zeal for deregulation will put a kibosh on the progress made on energy efficiency in Britain.”

India Bourke is the New Statesman's editorial assistant.