INEOS criticizes UK net-zero strategy after IEA flags trillion-pound cost

INEOS has criticized the UK’s net-zero strategy following the release of a new report by the Institute of Economic Affairs that estimates the true cost of the country’s decarbonization commitments could reach £7.6 trillion—far higher than official projections.

Reacting to the findings, INEOS Group Director Tom Crotty said the report highlights what he described as “fantasy economics” underpinning current net-zero policies, arguing that carbon taxes and regulatory costs are undermining the competitiveness of European industry. Crotty said such policies risk accelerating industrial shutdowns in Europe while shifting production to regions with higher carbon intensity, including China.

INEOS Chairman and Founder Sir Jim Ratcliffe echoed those concerns, warning that decarbonization driven by deindustrialization would erode jobs, energy security and emissions performance. Ratcliffe called for the removal of carbon taxes, lower energy costs for industry and stronger incentives for growth and clean technology, pointing to the US approach as a more competitive alternative.

The IEA report adds to a growing debate over how Europe balances climate goals with industrial competitiveness, energy security and long-term economic growth.