Britain plans to expand both wind power generation and oil and gas production offshore. AFP
Britain plans to expand both wind power generation and oil and gas production offshore. AFP
Britain plans to expand both wind power generation and oil and gas production offshore. AFP
Britain plans to expand both wind power generation and oil and gas production offshore. AFP

Britons would choose cheaper energy bills over climate action


Tim Stickings
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Britons would overwhelmingly choose lower energy costs over climate-friendly policies if the two come into conflict, a poll for The National has found.

The findings came as ministers put environmental concerns to one side to restart fracking and expand North Sea oil and gas production in response to the energy crisis enveloping Europe.

The Deltapoll survey for The National also revealed considerable discontent about global climate change policies, especially among the young people at the vanguard of the green movement.

But given a straight choice between lower bills and green initiatives, the cost of living crisis took priority: 71 per cent said cutting energy costs should be the focus, while 22 per cent chose climate change.

The two aims do not have to clash. Saving energy and using it more efficiently can cut both bills and carbon emissions. Experts would like to see better insulation of homes to meet both goals. Britain has plans for a. huge expansion of offshore wind energy by 2050, which should also serve both ends.

Politicians such as Alok Sharma, the president of the Cop26 climate summit, have sought to persuade voters that they should blame wholesale energy prices for their rising fuel bills — and not the pursuit of net-zero policies.

"The energy crisis should be an opportunity to scale up the production of renewables to guarantee a long-term, sustainable supply," said Joan Edwards, director of policy at British charity the Wildlife Trusts.

"In the long term, renewable energy production is better value for money, and has a critical role to play in helping us to reach net zero," she said.

However, the new government under Prime Minister Liz Truss has made clear that it will not be squeamish about exploiting Britain’s oil and gas reserves. Several new blocks of the UK's continental shelf are to be made available for drilling.

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Other findings in the wide-ranging exclusive poll are:

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The preference for lower energy bills was felt across Britain. This was the case in Scotland, Wales and even younger, more left-leaning London, where cheaper energy was favoured by a margin of 57 per cent to 30 per cent.

The poll was conducted shortly after Ms Truss announced a two-year freeze in energy bills, although attention was soon diverted by the death of Queen Elizabeth II that day.

It came amid darkening economic clouds after inflation rose to a 40-year high and economists raised fears of a recession in Britain.

“People overwhelmingly felt the top priority of the UK government should be lowering energy costs as opposed to tackling climate change,” Deltapoll’s polling report said.

Ministers appear to agree. More than 100 new North Sea drilling licences are expected to be handed out to oil and gas companies in a drive for more domestic production, it was announced this month, over activists’ objections.

Greenpeace threatened legal action against the North Sea expansion and accused the government of “pandering to outdated, fringe fossil fuel interests”.

But Business Secretary Jacob Rees-Mogg said: “The government remains committed to net zero by 2050, but we have to get there, and to get there we are going to need oil and gas.”

Mr Rees-Mogg also announced that a ban on shale gas fracking would be lifted after three years, despite the inconclusive findings of scientists on possible tremors caused by the drilling.

He combined his energy security argument with a climate-related one in a statement to MPs. He said fracking wells at home had "a lower climate impact than shipping liquefied natural gas by tankers halfway across the world”.

Chancellor of the Exchequer Kwasi Kwarteng said in March, when he was business secretary, that finding alternatives to imported fossil fuels was “no longer about tackling climate change or reaching net-zero targets”.

Fracking will be allowed to resume in Britain, despite the objections of protesters and opposition MPs. PA
Fracking will be allowed to resume in Britain, despite the objections of protesters and opposition MPs. PA

Asked about global climate change efforts, 48 per cent of Britons said the world was on the wrong track, while 29 per cent said it was on the right track and almost a quarter were unsure.

The generational gap was noticeable on this point. Some 62 per cent of under-25s said things were going wrong with global climate change efforts, with only 18 per cent satisfied. This reflected global concern from young people about the fate of the world they will inherit.

Over-65s were more evenly divided, with 34 per cent believing the world was on the right track and 41 per cent thinking things were awry.

Britain hosted the Cop26 summit last year and put considerable efforts into rallying other countries into taking action on climate change. However, watchdogs have faulted Britain’s own efforts at home.

Unlike EU countries such as Germany and France, Britain has not made major efforts to encourage the public to save energy this winter.

Asked how she would make the case for environmental protection to people who support more fossil fuel extraction, Ms Edwards said oil and gas markets were beyond the control of UK ministers.

The UK's moves to increase fossil fuel production and nuclear power generation are designed less with this winter’s bills in mind, and more to prevent Britain from being blackmailed by the likes of Russian President Vladimir Putin in future.

"None of these solutions can be delivered quickly ― even if processes are sped up, it will still take years for these developments to be built and begin producing energy," Ms Edwards said.

"We need to focus on a comprehensive 20-year national energy efficiency plan to help businesses and individuals reduce their energy use and improve energy efficiency.

"This summer we witnessed first-hand the impacts of climate change, with heatwaves and drought affecting the availability of water and devastating wild places and agricultural land. If we don’t adopt greener renewable energy now, the situation will worsen in decades to come."

Deltapoll interviewed 2,096 adults in Britain between September 9 and 12.

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

First Person
Richard Flanagan
Chatto & Windus 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: September 26, 2022, 10:32 AM