The power to save Britain

How our island could be supplying Europe with green electricity. Plus Peter

It may not feel like it on a gusty grey day in Rhyl, but this country is blessed. Take a boat out into the choppy waters off the North Wales coast, and you can see why. Thirty bright white turbines spin continuously just five miles off the coast, producing enough electrical power to supply 40,000 homes with clean, green energy. The wind and waves seem limitless and powerful - and they are. If the UK had been more aggressive and far-sighted in developing renewable energy, we would already be exporting green electricity and wind turbines to Europe and further afield.

In renewable energy terms, we would be the Saudi Arabia of Europe. A full 40 per cent of the continent's wind blows across British shores, enough to meet all our energy needs and more. But instead of leading the world in renewable energy and at the same time cutting carbon emissions, the UK languishes close to the bottom of the European clean energy league. Just 2 per cent of our energy comes from renewable sources and the rest from dirty, climate-changing fossil fuels. This is the legacy of years of contradictory policies, conflicting priorities, ideological pig-headedness and government incompetence.

It's a story that shames Britain.

A good place to start is the government's Low Carbon Buildings Programme (LCBP). This was launched in 2006 to provide grants to householders wanting to instal renewable generation technologies - from solar panels to small hydro schemes - on their properties. Ministers acknowledge that micro-generation could play a big part in our clean energy future, and that turning homes into mini power stations is good for energy security, household income and the environment. But what actually happened? Instead of kick-starting a whole new market sector, the government starved it of funds. A measly £12.7m was allocated, with a monthly cap. On the first day of each month all the available grants were snapped up within hours.

This stop-start approach led to frustrated householders and cash-strapped solar installation companies, many of which began to go bust. The number of grants given for solar hot water systems fell by half last year, and the number for micro wind turbines by two-thirds. For ground-source heat pumps, while 100 grants were made in the last three months of 2006, the equivalent number for 2007 was zero. For electricity, we managed to put only 270 solar panels on British roofs last year, while Germany installed 130,000.

Gordon Brown, first as chancellor, and now as Prime Minister, has successfully ensured that it makes no financial sense whatsoever for householders to invest in generating their own energy renewably. If you put up a solar photovoltaic panel in this country, you do it for altruistic reasons only: at present, you are guaranteed to lose money hand over fist.

Germany's renewables sector has rocketed, thanks to a system that guarantees long-term paybacks at above-market rates for cleanly generated power. This is called the "feed-in tariff", which has also successfully catapulted Spain and Portugal to the top of the European clean energy league. Portugal gets 39 per cent of its electricity from renewables and is aiming for 60 per cent by 2020. In stark contrast, the UK government continues to rule out feed-in tariffs, insisting instead on retaining its outdated Renewables Obligation system, a support mechanism which is so complicated and cumbersome that only the biggest players can make any money from it (or, indeed, even understand it).

The RO system reveals another classic new Labour problem: an obsession with the market. Instead of simply guaranteeing a good return for solar or wind electricity over a long enough time period to make this an attractive investment, the government insists on making the Renewable Obligation Certificates tradable. If a company doesn't meet its obligation to generate power renewably, it must buy certificates from another company that has produced a surplus. The result is long-term price uncertainty, which makes investment much more costly, due to the "risk premium" that must be added to any lending. The ROC system has been fiddled with so many times that the British Wind Energy Association (BWEA) now opposes a feed-in tariff system, on the grounds that yet more policy uncertainty might scare off potential investors for good.

Lost business

This catalogue of failure has not only been bad for the climate, it has been bad for business. Britain might once have led the world in wind turbine development. But with no domestic market, production moved elsewhere, and today most turbines installed in this country are imported from Denmark. The leader in solar power is not Britain but Germany, which has pioneered a lucrative export industry in solar photovoltaic cells. In China, too, solar manufacturing is big business: the country's second-richest man leads a solar energy company. This is an energy sector which saw growth last year of roughly 40 per cent, and has attracted tens of billions in venture capital. None of that came to Britain. Instead of creating a brand new industry and thousands of jobs, British-based renewables companies have been going out of business.

Wind should already be our biggest single power source. The BWEA estimates that wind could generate 27 per cent of our electricity by 2020, which, combined with other renewables, could easily meet our EU-assigned target of 15 per cent renewable energy by 2020. Instead, wind accounts for just 1.5 per cent of UK electricity generation today (the equivalent figure in far less windy Denmark is 20 per cent, for Spain 8 per cent and Germany 5 per cent). That 1.5 per cent could be ramped up very quickly if the planning system worked in favour of renewables. According to the BWEA, 220 windpower projects are currently stuck in planning. If all received immediate consent, they could generate 9.3 gigawatts of electricity, enough for an estimated 5.25 million households. If the 39 projects that were refused planning permission last year had instead been allowed it, they could have provided power for 750,000 households, and prevented the emission of three million tonnes of CO2. (Anti-wind campaigners need to recognise their moral liability for these climate-changing emissions.)

While 39 projects were refused planning permission, just 26 projects went ahead. This year, we are level-pegging: seven wind applications have been approved and six refused. It can now take ten years for a windfarm project to get approved and built, and another five for it to get a grid connection (unlike in other countries, renewable generators here have to pay for their own grid connections). This does not look like a country on the fast track to a clean energy future. Indeed, power companies such as E.ON are pro posing to invest billions in hugely polluting coal power plants instead.

The government has proposed to reform the planning system to make it easier for windfarms to get the go-ahead. Environmentalists and conservationists are opposed to the reform, however, for the good reason that it would also make it easier for new motorways, power stations and airports to gain approval, and stifle local democracy in the process.

A greener government might have focused on reforming the planning system for renewable energy projects, gaining support from greens and electricity generators alike. Instead, in its enthusiasm for aviation and nuclear power, the government has bundled windfarms into a planning policy package that will be opposed by almost all. A missed opportunity.

There is some good news. The 1000MW London Array - which will generate enough power from wind for a quarter of London's households - has been given the go-ahead. Several other major projects are under way, and this year the UK will overtake Denmark as the largest offshore generator in the world. The UK also still leads in marine renewables (wave and tidal stream power). With 30 marine technology developers headquartered here, compared to only 15 in the rest of Europe, the UK is able to put its offshore operational skills learned from North Sea oil - now in long-term decline - to good use. At the end of last month the world's largest conference on wave and tidal stream energy, Marine 08, was held in Edinburgh. Tidal power would address the intermittency question: what to do when the wind doesn't blow and the sun doesn't shine. Tidal power is predictable. Wave power is also more dependable. The more sources of energy we can call on, the less vulnerable we will be to losing power in any one sector.

Yet in marine renewables, too, the government has risked Britain losing its competitive edge. The world's first commercial-scale wave-generating array, while built by a UK-based company, is being launched off the Portuguese, not the British, coast. And, mirroring the disaster of the Low Carbon Buildings Programme, the Marine Renewables Deployment Fund - supposed to support the fledgling sector with capital grants and other financial aid - has a tiny budget and a cap per project of £9m, far too little for any British design to make it past the prototype stage into commercial production. Once again, we are wasting a historic advantage.

With the right policy levers pulled, we could in the not-too-distant future be generating 20 per cent of all our electricity out at sea using wave and tidal power, and far more from onshore and offshore wind. We could lead the world in a new manufacturing sector and generate thousands of new jobs. We could have a zero-carbon electricity grid as early as 2030. We could also lead the world in reducing greenhouse-gas emissions.

But, for this to happen, the government will need to admit that its policies have been a cala mitous failure and put clean energy at the top of its long-term agenda, before it is too late.

Mark Lynas has is an environmental activist and a climate change specialist. His books on the subject include High Tide: News from a warming world and Six Degree: Our future on a hotter planet.

This article first appeared in the 10 March 2008 issue of the New Statesman, How Hillary did it

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Why Jeremy Corbyn is a new leader for the New Times

In an inspired election campaign, he confounded his detractors and showed that he was – more than any other leader – in tune with the times.

There have been two great political turning points in postwar Britain. The first was in 1945 with the election of the Attlee government. Driven by a popular wave of determination that peacetime Britain would look very different from the mass unemployment of the 1930s, and built on the foundations of the solidaristic spirit of the war, the Labour government ushered in full employment, the welfare state (including the NHS) and nationalisation of the basic industries, notably coal and the railways. It was a reforming government the like of which Britain had not previously experienced in the first half of the 20th century. The popular support enjoyed by the reforms was such that the ensuing social-democratic consensus was to last until the end of the 1970s, with Tory as well as Labour governments broadly operating within its framework.

During the 1970s, however, opposition to the social-democratic consensus grew steadily, led by the rise of the radical right, which culminated in 1979 in the election of Margaret Thatcher’s first government. In the process, the Thatcherites redefined the political debate, broadening it beyond the rather institutionalised and truncated forms that it had previously taken: they conducted a highly populist campaign that was for individualism and against collectivism; for the market and against the state; for liberty and against trade unionism; for law and order and against crime.

These ideas were dismissed by the left as just an extreme version of the same old Toryism, entirely failing to recognise their novelty and therefore the kind of threat they posed. The 1979 election, followed by Ronald Reagan’s US victory in 1980, began the neoliberal era, which remained hegemonic in Britain, and more widely in the West, for three decades. Tory and Labour governments alike operated within the terms and by the logic of neoliberalism. The only thing new about New Labour was its acquiescence in neoliberalism; even in this sense, it was not new but derivative of Thatcherism.

The financial crisis of 2007-2008 marked the beginning of the end of neoliberalism. Unlike the social-democratic consensus, which was undermined by the ideological challenge posed by Thatcherism, neoliberalism was brought to its knees not by any ideological alternative – such was the hegemonic sway of neoliberalism – but by the biggest financial crisis since 1931. This was the consequence of the fragility of a financial sector left to its own devices as a result of sweeping deregulation, and the corrupt and extreme practices that this encouraged.

The origin of the crisis lay not in the Labour government – complicit though it was in the neoliberal indulgence of the financial sector – but in the deregulation of the banking sector on both sides of the Atlantic in the 1980s. Neoliberalism limped on in the period after 2007-2008 but as real wages stagnated, recovery proved a mirage, and, with the behaviour of the bankers exposed, a deep disillusionment spread across society. During 2015-16, a populist wave of opposition to the establishment engulfed much of Europe and the United States.

Except at the extremes – Greece perhaps being the most notable example – the left was not a beneficiary: on the contrary it, too, was punished by the people in the same manner as the parties of the mainstream right were. The reason was straightforward enough. The left was tarnished with the same brush as the right: almost everywhere social-democratic parties, albeit to varying degrees, had pursued neoliberal policies. Bill Clinton and Tony Blair became – and presented themselves as – leaders of neoliberalism and as enthusiastic advocates of a strategy of hyper-globalisation, which resulted in growing inequality. In this fundamental respect these parties were more or less ­indistinguishable from the right.

***

The first signs of open revolt against New Labour – the representatives and evangelists of neoliberal ideas in the Labour Party – came in the aftermath of the 2015 ­election and the entirely unpredicted and overwhelming victory of Jeremy Corbyn in the leadership election. Something was happening. Yet much of the left, along with the media, summarily dismissed it as a revival of far-left entryism; that these were for the most part no more than a bunch of Trots. There is a powerful, often overwhelming, tendency to see new phenomena in terms of the past. The new and unfamiliar is much more difficult to understand than the old and familiar: it requires serious intellectual effort and an open and inquiring mind. The left is not alone in this syndrome. The right condemned the 2017 Labour Party manifesto as a replica of Labour’s 1983 manifesto. They couldn’t have been more wrong.

That Corbyn had been a veteran of the far left for so long lent credence to the idea that he was merely a retread of a failed past: there was nothing new about him. In a brilliant election campaign, Corbyn not only gave the lie to this but also demonstrated that he, far more than any of the other party leaders, was in tune with the times, the candidate of modernity.

Crises, great turning points, new conjunctures, new forms of consciousness are by definition incubators of the new. That is one of the great sources of their fascination. We can now see the line of linkage between the thousands of young people who gave Corbyn his overwhelming victory in the leadership election in 2015 and the millions of young people who were enthused by his general election campaign in 2017. It is no accident that it was the young rather than the middle-aged or the seniors who were in the vanguard: the young are the bearers and products of the new, they are the lightning conductors of change. Their elders, by contrast, are steeped in old ways of thinking and doing, having lived through and internalised the values and norms of neoliberalism for more than 30 years.

Yet there is another, rather more important aspect to how we identify the new, namely the way we see politics and how politics is conceived. Electoral politics is a highly institutionalised and tribal activity. There have been, as I argued earlier, two great turning points in postwar politics: the social-democratic era ushered in by the 1945 Labour government and the neoliberal era launched by the Tory government in 1979.

The average Tory MP or activist, no doubt, would interpret history primarily in terms of Tory and Labour governments; Labour MPs and activists would do similarly. But this is a superficial reading of politics based on party labels which ignores the deeper forces that shape different eras, generate crises and result in new paradigms.

Alas, most political journalists and columnists are afflicted with the same inability to distinguish the wood (an understanding of the deeper historical forces at work) from the trees (the day-to-day manoeuvring of parties and politicians). In normal times, this may not be so important, because life continues for the most part as before, but at moments of great paradigmatic change it is absolutely critical.

If the political journalists, and indeed the PLP, had understood the deeper forces and profound changes now at work, they would never have failed en masse to rise above the banal and predictable in their assessment of Corbyn. Something deep, indeed, is happening. A historical era – namely, that of neoliberalism – is in its death throes. All the old assumptions can no longer be assumed. We are in new territory: we haven’t been here before. The smart suits long preferred by New Labour wannabes are no longer a symbol of success and ambition but of alienation from, and rejection of, those who have been left behind; who, from being ignored and dismissed, are in the process of moving to the centre of the political stage.

Corbyn, you may recall, was instantly rejected and ridiculed for his sartorial style, and yet we can now see that, with a little smartening, it conveys an authenticity and affinity with the times that made his style of dress more or less immune from criticism during the general election campaign. Yet fashion is only a way to illustrate a much deeper point.

The end of neoliberalism, once so hegemonic, so commanding, is turning Britain on its head. That is why – extraordinary when you think about it – all the attempts by the right to dismiss Corbyn as a far-left extremist failed miserably, even proved counterproductive, because that was not how people saw him, not how they heard him. He was speaking a language and voicing concerns that a broad cross-section of the public could understand and identify with.

***

The reason a large majority of the PLP was opposed to Corbyn, desperate to be rid of him, was because they were still living in the neoliberal era, still slaves to its ideology, still in thrall to its logic. They knew no other way of thinking or political being. They accused Corbyn of being out of time when in fact it was most of the PLP – not to mention the likes of Mandelson and Blair – who were still imprisoned in an earlier historical era. The end of neoliberalism marks the death of New Labour. In contrast, Corbyn is aligned with the world as it is rather than as it was. What a wonderful irony.

Corbyn’s success in the general election requires us to revisit some of the assumptions that have underpinned much political commentary over the past several years. The turmoil in Labour ranks and the ridiculing of Corbyn persuaded many, including on the left, that Labour stood on the edge of the abyss and that the Tories would continue to dominate for long into the future. With Corbyn having seized the political initiative, the Tories are now cast in a new light. With Labour in the process of burying its New Labour legacy and addressing a very new conjuncture, then the end of neoliberalism poses a much more serious challenge to the Tories than it does the Labour Party.

The Cameron/Osborne leadership was still very much of a neoliberal frame of mind, not least in their emphasis on austerity. It would appear that, in the light of the new popular mood, the government will now be forced to abandon austerity. Theresa May, on taking office, talked about a return to One Nation Toryism and the need to help the worst-off, but that has never moved beyond rhetoric: now she is dead in the water.

Meanwhile, the Tories are in fast retreat over Brexit. They held a referendum over the EU for narrowly party reasons which, from a national point of view, was entirely unnecessary. As a result of the Brexit vote, the Cameron leadership was forced to resign and the Brexiteers took de facto command. But now, after the election, the Tories are in headlong retreat from anything like a “hard Brexit”. In short, they have utterly lost control of the political agenda and are being driven by events. Above all, they are frightened of another election from which Corbyn is likely to emerge as leader with a political agenda that will owe nothing to neoliberalism.

Apart from Corbyn’s extraordinary emergence as a leader who understands – and is entirely comfortable with – the imperatives of the new conjuncture and the need for a new political paradigm, the key to Labour’s transformed position in the eyes of the public was its 2017 manifesto, arguably its best and most important since 1945. You may recall that for three decades the dominant themes were marketisation, privatisation, trickle-down economics, the wastefulness and inefficiencies of the state, the incontrovertible case for hyper-globalisation, and bankers and financiers as the New Gods.

Labour’s manifesto offered a very different vision: a fairer society, bearing down on inequality, a more redistributive tax system, the centrality of the social, proper funding of public services, nationalisation of the railways and water industry, and people as the priority rather than business and the City. The title captured the spirit – For the Many Not the Few. Or, to put in another way, After Neoliberalism. The vision is not yet the answer to the latter question, but it represents the beginnings of an answer.

Ever since the late 1970s, Labour has been on the defensive, struggling to deal with a world where the right has been hegemonic. We can now begin to glimpse a different possibility, one in which the left can begin to take ownership – at least in some degree – of a new, post-neoliberal political settlement. But we should not underestimate the enormous problems that lie in wait. The relative economic prospects for the country are far worse than they have been at any time since 1945. As we saw in the Brexit vote, the forces of conservatism, nativism, racism and imperial nostalgia remain hugely powerful. Not only has the country rejected continued membership of the European Union, but, along with the rest of the West, it is far from reconciled with the new world that is in the process of being created before our very eyes, in which the developing world will be paramount and in which China will be the global leader.

Nonetheless, to be able to entertain a sense of optimism about our own country is a novel experience after 30 years of being out in the cold. No wonder so many are feeling energised again.

This article first appeared in the 15 June 2017 issue of the New Statesman, Corbyn: revenge of the rebel

Martin Jacques is the former editor of Marxism Today. 

This article first appeared in the 15 June 2017 issue of the New Statesman, Corbyn: revenge of the rebel

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