Labour’s Net Zero drive puts British Jobs at risk as China and Middle East expand fossil fuel industries

Labour is facing fierce criticism as it sacrifices the British economy on the altar of Net Zero as thousands of jobs face the axe of their Net Zero Drive.

As the Keir Starmer’s government prioritises its environmental agenda, thousands of British jobs in steel and oil refining are set to be cut.

Up to 2,800 jobs are expected to go at Port Talbot steelworks in Wales, while British Steel in Scunthorpe is poised to axe as many as 3,000 jobs. In Scotland, the Grangemouth oil refinery is facing 400 job losses as part of the industry’s shift away from fossil fuels.

These cuts come as countries like China and those in the Middle East continue to expand their fossil fuel industries. China, which already leads the world in refinery capacity, is projected to account for around 71% of Asia’s refinery growth by 2024. At the same time, nations like Saudi Arabia, Kuwait, and Oman are significantly increasing their refining capacity to meet growing global energy demands​.

This stark contrast highlights the divergent strategies at play globally. While the UK’s decarbonisation efforts are resulting in job cuts in traditional industries, other countries are still heavily investing in oil and coal production. China is not only expanding its refining capacities but also continues to build coal-fired power stations to fuel its economic growth, despite global calls to reduce fossil fuel dependency​.

Critics argue that the UK’s aggressive Net Zero strategy risks hollowing out vital industrial sectors, especially in steel and energy, while countries like China and Germany maintain their coal and oil capacities for the sake of energy security. They warn that unless the UK carefully balances its green ambitions with industrial resilience, it could face long-term economic challenges, leaving communities dependent on these sectors to suffer most.

As the UK pushes forward with its plans to decarbonise, the job losses at Port Talbot, Scunthorpe, and Grangemouth are becoming emblematic of the tension between environmental goals and economic stability. The Labour government has said that new green jobs will emerge, but for many affected workers, the immediate future remains uncertain.

The push towards a Net Zero future, a central plank of the Labour government’s environmental strategy, is coming at a steep cost to the British economy while other major economies such as China and even European countries such as Germany continue to expand their coal power capabilities.

For workers at Port Talbot and British Steel, the Labour government’s lofty environmental ambitions seem detached from the harsh economic realities they face. “Net Zero is important, but not at the cost of our livelihoods,” said one worker at the Scunthorpe site. The situation is particularly dire in Wales, where the steel industry has long been the backbone of local communities. The impending job cuts have ignited fears of economic stagnation in an area already grappling with high unemployment.

The steel sector, vital for national infrastructure and economic growth, has been caught in the crosshairs of Net Zero. The Labour government’s plan to decarbonise the industry by transitioning to electric arc furnaces—seen as a greener alternative—has been met with skepticism due to the high upfront costs and the need for substantial government support. While the government claims these changes will modernise the industry, the immediate consequence appears to be mass layoffs and uncertainty for thousands of British workers.

Meanwhile, oil refineries like Grangemouth face similar challenges, as Labour seeks to move away from fossil fuels. However, in contrast to the UK’s rapid shift, nations like Germany have been more measured in their approach, keeping coal plants online to safeguard energy security while they transition to cleaner energy sources​.

The coming months will be critical as the Labour government balances its green ambitions with the pressing need to protect British jobs and industries. But for the thousands of workers at Port Talbot, Scunthorpe, and Grangemouth, the future already looks uncertain.