Scrapping the Climate Change Act: what ‘cheap, reliable power’ means to the Conservatives

Once a magnet for businesses and policy influencers, the 2025 Conservative Party Conference in Manchester was noticeably quieter.

That said, it was still full of lively debate, introducing a series of bold proposals that could fundamentally reshape the UK’s infrastructure policy landscape.

Tearing up the climate consensus

One of the most important shifts was Conservative leader Kemi Badenoch’s pledge to repeal the Climate Change Act 2008. This landmark piece of legislation underpins the UK’s legally-binding net zero targets.

Badenoch argued that the act had become a constraint, forcing ministers to make economically damaging decisions to meet climate goals.

Instead, she promised a new strategy focused on ‘cheap, reliable power’ and economic growth, without statutory emissions targets. This includes maximising oil and gas extraction in the North Sea.

The announcement has drawn sharp criticism from across the political spectrum, including former Conservative Prime Minister Theresa May. She called it a ‘catastrophic mistake’ that undermines nearly two decades of cross-party consensus on climate action.

Why the Climate Change Act was developed

At least 70% of UK emissions are linked to infrastructure systems - energy, transport, buildings, water, waste and more. These systems must be transformed to reduce emissions, lower bills, and protect communities from climate impacts.

The Climate Change Act was developed and strengthened based on scientific evidence and cross-party support. It’s vital to guide and assure investors, policymakers, infrastructure leaders, and the public.

Meeting carbon reduction targets, improving climate adaptation, and recovering nature aren’t easy or cheap. But evidence shows that the cost of doing nothing is far, far higher.

And despite the party’s pledge, many fringe events focused on the growing market for renewable energy and other low-carbon technologies, which have seen billions of pounds of investment and created thousands of jobs.

Energy security and transport high up on the agenda

Shadow Energy Secretary Claire Coutinho reinforced the party’s new focus on energy.

She warned that high industrial electricity prices were limiting business investment and argued that Britain’s future competitiveness depends on abundant, affordable energy.

Her remarks suggest a shift toward a more hands-on approach to energy, albeit one that prioritises fossil fuels over decarbonisation.

Shadow Transport Secretary Richard Holden confirmed that the Conservatives are against the Labour government's plan to ban the sale of all new petrol and diesel cars by the end of the decade. This sees a further divide on decarbonisation policies outside of energy.

The lingering legacy of HS2

Transport debates were also shaped by lingering frustrations over the cost and legacy of High Speed 2 (HS2).

The project’s northern leg was cancelled two years ago at the Conservatives’ conference in Manchester. Shadow Rail Minister Jerome Mayhew admitted that the city was a 'very odd' place to make such an announcement – though he defended the decision on economic grounds.

The cancellation has become a cautionary tale about the risks of taking on long-term projects in a volatile political environment.

Even with the current government’s 10-year infrastructure strategy and pipeline, there are worries that ministers will abandon proposals – particularly those requiring cross-party support and sustained investment – as political winds shift.

The ICE’s latest policy paper explores how policymakers can keep a better grip on cost and time to improve public trust in delivery.

A response to Reform

This year’s conference signals a full realignment of the Conservatives’ priorities.

The party has also pledged to cut public spending by £47 billion.

While this primarily focuses on welfare and foreign aid, it’s unclear whether infrastructure investment plans from the current government would be at risk of being overturned.

Looming over the entire conference was the growing threat of Reform UK, which has outflanked the Conservatives in the polls on issues like immigration and net zero.

The conference saw a wave of defections to Reform from Conservative councillors, and the party’s presence was keenly felt in Manchester, even if they weren’t on the guest list.

The Conservative Party may be out of government, but their policy platform in reaction to Reform will continue to shape the national conversation – and potentially the next election.