Abstract

We discuss the nature of the economic reality of energy and climate policy in the UK and the EU. We will cover four issues. First, the implications of the ongoing fiscal and economic crisis for the viability of climate change mitigation investments. Second, the game theory of climate negotiations and the likelihood of reaching a global agreement on substantial global emissions cuts. Third, the economic confusion in the current mix of carbon and renewables targets. And finally, the economic implications of energy and climate policy for households in the UK. I will conclude that the inconvenient reality is that achieving the UK’s and the EU’s energy and climate targets for 2020 and beyond currently looks economically impossible.