Former US President Donald Trump has launched a scathing critique of the United Kingdom's net zero policies during a lengthy address at the World Economic Forum in Davos. In his speech, which covered multiple economic topics, Trump specifically highlighted the UK's approach to energy as a central example of what he described as misguided environmental commitments leading to economic struggles.
North Sea Resources in the Spotlight
Trump focused particularly on the UK's North Sea energy reserves, suggesting the Labour government was overlooking significant untapped potential. "The UK produces one third of the total energy from all sources that it did in 1999," Trump stated, before adding: "They are sitting on top of North Sea oil, one of the greatest reserves anywhere in the world."
The former president challenged claims that North Sea resources were depleted, describing the area as "incredible" and suggesting substantial undiscovered reserves remained. He argued that current policies made it "impossible" for companies to invest in further exploration and extraction.
Taxation and Renewable Energy Criticisms
Trump also targeted the UK's taxation regime for energy companies, claiming the government took "92 per cent" of revenue through net zero taxes. While government analysis and industry sources estimate the actual tax rate at approximately 78 per cent, this figure remains notably high by international standards.
The speech included strong criticism of wind energy expansion, with Trump asserting that wind farms damaged landscapes and represented poor economic investments. "One thing I have noticed is the more wind mills a country has, the more the country loses and the worse that country is doing," he claimed.
Trump contrasted the UK's approach with China's strategy, praising China for selling net zero technology while avoiding substantial domestic wind farm construction. This comment referenced a BloombergNEF report indicating China accounted for 70 per cent of global wind farm installations in 2024.
Historical Context and Broader Economic Comments
This represents not the first occasion Trump has criticised Labour's net zero policies. As early as May last year, he suggested the North Sea contained "a century of drilling left" that could help reduce energy costs if properly utilised.
Beyond UK-specific comments, Trump's Davos address covered wide-ranging economic topics including:
- Drug pricing policies in the United States
- Concerns about Europe becoming "unrecognisable"
- Repeated criticism of outgoing Federal Reserve chair Jerome Powell
Regarding monetary policy, Trump revealed he had interviewed candidates for the next Federal Reserve chair position, seeking someone he described as "great". His comments raised concerns about potential interference with central bank independence, particularly when he described rate-setters who supported interest rate increases as engaging in acts of "disloyalty".
"We should be paying the lowest interest rate of anybody," Trump asserted, connecting monetary policy to broader geopolitical influence. "Without us, most of the countries don't even work. Without our military, you would have threats you wouldn't believe."
The former president concluded that central banks had become excessively concerned about high inflation, comments that contributed to stock market jitters amid growing fears about potential interest rate increases.