Confidence in UK’s net-zero goals drops amid policy, investment barriers, EIC says

Energy industry confidence in reaching global net-zero targets is fading as policy instability, financial uncertainty and slow project approvals continue to hinder progress, according to Net Zero Jeopardy Report II by the Energy Industries Council’s (EIC).

Only 16% of senior energy executives interviewed now believe the world can achieve net zero by 2050, down from 45% last year. The report, based on interviews with EIC member companies mostly based in the UK, points to growing concerns over the lack of clear regulatory frameworks, underinvestment in clean technologies and delays in bringing projects to the final investment decision (FID) stage.

“The energy industry is facing real challenges in turning pledges into projects,” said Stuart Broadley, EIC CEO. “Business leaders are not seeing the level of policy certainty or investment required to deliver net-zero ambitions.”

“In the UK, if the government is serious about achieving its interim targets, it needs to listen closely to what the supply chain is saying. The message isn’t a very happy one. We need a lot of immediate reforms that speed up licensing processing and cut other red tape, ensure consistent policy and regulation, have the right financial incentives.”

Confidence in interim net-zero targets is even lower. Only 14% of respondents believe their country will meet 2030 climate goals, down from 16% in last year’s report. Globally, 5% believe interim targets will be met, compared to 11% a year ago.

“The data leaves no room for optimism—confidence in net-zero targets is collapsing across the energy sector,” said Mahmoud Habboush, author of the Net Zero Jeopardy II report. “Industry leaders are not merely expressing frustration, they are passionately warning about fundamental barriers, including unstable policy, weak investment appetite, and slow project approvals. And these barriers, if left without tackling, will no doubt derail the energy transition.”