A wind turbine at the Seagreen Offshore Wind Farm, under construction around 27km from the coast of Montrose, Scotland, in the North Sea. AFP
A wind turbine at the Seagreen Offshore Wind Farm, under construction around 27km from the coast of Montrose, Scotland, in the North Sea. AFP
A wind turbine at the Seagreen Offshore Wind Farm, under construction around 27km from the coast of Montrose, Scotland, in the North Sea. AFP
A wind turbine at the Seagreen Offshore Wind Farm, under construction around 27km from the coast of Montrose, Scotland, in the North Sea. AFP

Britain all at sea over floundering renewable energy policy


Chris Blackhurst
  • English
  • Arabic

Cast your mind back three years. The UK's prime minister at the time, Boris Johnson, told his annual party conference that offshore wind farms would generate enough electricity to power every home in the country by 2030.

Mr Johnson announced plans to upgrade ports and factories for building wind turbines to help the UK “build back greener”.

Some 2,000 jobs in construction would be created, supporting 60,000 more. Britain, Mr Johnson declared, would become “the world leader in clean wind energy”.

“Your kettle, your washing machine, your cooker, your heating, your plug-in electric vehicle – the whole lot of them will get their juice cleanly and without guilt from the breezes that blow around these islands,” Mr Johnson proudly announced.

In a typical nod to Britain’s starry past, he promised a “green Industrial Revolution”, with this being the first phase. Further announcements would follow, to “accelerate our progress towards net zero emissions by 2050".

Last week, ministers announced a halt by the UK to new offshore wind farm building after no bids were received in the latest round of the government’s auction. Industry insiders said “disastrous” handling by the government had created a future shortfall in renewable energy.

Meanwhile, the UK’s largest wind farm developer ruled out building new onshore wind farms in England and Wales. Alistair Phillips-Davies, chief executive of SSE, said his company was “unlikely to build a single wind farm” in England or Wales. There were too many protests, making England and Wales “particularly awkward places to try to do business”. He also warned that future onshore projects in Scotland were likely to be limited.

Then, it was reported that Prime Minister Rishi Sunak would not be attending next week’s annual UN General Assembly of world leaders in New York.

The UN Secretary General, António Guterres, is holding a “climate ambition summit”, a day after the gathering. Mr Guterres decreed that only countries that could show they have ambitious policies to reduce their emissions in line with the goals of the Paris Agreement would be allowed to participate in the bolted-on climate section.

Letters were sent to governments by the UN last month emphasising that merely having net zero targets would not be sufficient to guarantee participation. Evidence of clear and ambitious policy measures and commitments was required. Without this, they could attend but not participate. Rather than risk embarrassment at being frozen out, Mr Sunak decided not to go to New York at all.

That’s not what he said, of course. The reason given for his non-appearance was his busy schedule. But the decision not to attend came after Mr Sunak’s move to “max out” the North Sea, and award new licences to develop oil and gasfields. It was a shift that provoked much raising of eyebrows in foreign capitals.

Prime Minister Rishi Sunak has promised to "max out" the UK's North Sea oil and gas fields. Getty
Prime Minister Rishi Sunak has promised to "max out" the UK's North Sea oil and gas fields. Getty

More fossil fuel extraction, a halt to offshore wind farms, doubts about onshore … suddenly the UK’s renewable energy policy and with it, the nation’s entire approach to climate change, looks, pardon the pun, all at sea.

Much has happened in British politics since Mr Johnson made that conference speech. He’s been and gone, so has Liz Truss. In their place has come Mr Sunak, a careful, pragmatic operator. To his core, Mr Sunak is a money person, dictated to by numbers.

The changes in Downing Street have also been accompanied by the war in Ukraine, which brought Britain’s energy security into focus, along with other factors such as inflation and soaring household bills.

Mr Sunak is struggling to exercise a firm grip on the nation’s finances, determined not to overspend. Hence, his effort to bolster power supply by turning back to fossil fuels. Thus, too, his refusal to raise the maximum price paid for electricity generated from offshore turbines.

For this year’s auction, ministers set the bar at £44 per megawatt hour. That was based on the price offered in the previous auction. But it took no account of the various inflationary pressures to have subsequently hit the industry and its suppliers. Wind farm builders complained it was uneconomic to be paid at that level and no one entered a bid.

The changes in Downing Street have also been accompanied by the war in Ukraine, which brought Britain’s energy security into sharp relief

Rising costs may even threaten the viability of existing offshore schemes. Work on the Norfolk Boreas wind farm, intended to provide enough electricity for 1.5 million homes, has been paused.

In theory, the UK remains committed to decarbonising the electricity supply system by 2035 and reaching net zero by 2050. For that to occur, there must be a virtual quadrupling by 2030 of offshore generation, from 14 gigawatts to 50 gigawatts. The industry is saying that based on current plans and thanks to the auction failure, the UK is looking at falling 24 gigawatts short of the 50 gigawatt target.

At its congress this week, the TUC warned hundreds of thousands of manufacturing and supply chain jobs in steel, automotive and other sectors could be a risk, unless the UK commits to a US-style climate plan. There, Joe Biden’s Inflation Reduction Act will see the investment of $369 billion into climate change measures right across the US economy, in the public and private arenas. Clean technology and infrastructure projects are in line to receive heavy subsidies.

No such equivalent exists in the UK, prompting the TUC to claim the lack of cash and joined-up thinking will result in significant job losses. Laurence Turner, head of research and policy for the GMB union, said: “Our members in manufacturing face real uncertainty, but ministers seem to be asleep at the wheel.” He called for an “urgent Biden-style response” from the UK.

Even allowing for the possibly apocalyptic trades union forecasts and their determination to link climate change grants with demands for higher pay for their members, there is no doubt that where renewable energy is concerned, the UK government is losing its mojo, if it hasn’t lost it already. That exciting vision mapped out by Mr Johnson has dissipated.

It’s obvious that as a first, vital step, Mr Sunak must raise the tariff so that future offshore auctions can proceed smoothly and successfully. He must, too, commit to a far-reaching capital boost that would give the UK something similar to the US approach. Then, too, he might be able to join Mr Biden and fellow leaders in climate discussions at the UN.

For Mr Sunak not to be there is telling and shameful. He has to understand that climate change is not about money, it’s about saving the planet and preserving the lives of future generations across the globe. Trying to treat it as just another item on the expense ledger simply will not wash.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
  • Drones
  • Animals
  • Fireworks/ flares
  • Radios or power banks
  • Laser pointers
  • Glass
  • Selfie sticks/ umbrellas
  • Sharp objects
  • Political flags or banners
  • Bikes, skateboards or scooters
Updated: September 13, 2023, 12:00 PM