Australian mining tycoon threatens to pull UK investment over oil rush

Hannah Walton-Hughes

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Australian Billionaire Andrew Forrest has condemned the new UK oil rush and threatened to pull his major investment in the UK if PM Rishi Sunak pursues ‘clickbait’ fossil fuel policies.

Who is Andrew Forrest?

Speaking to Bloomberg News, Forrest said that if the UK were to “steer itself over a cliff backing fossil fuels,” he would take his investment to countries with “proper leadership,” such as North America.

Forrest, an advocate for renewably-powered green hydrogen, runs the Minderoo Foundation philanthropic organisation and is involved in Fortescue Future Industries, a global green energy and resources company.  

"If I see this country steering itself over a cliff, backing fossil fuel, I'm going to start pulling out"

Mining billionaire Andrew Forrest threatens to pull investment from the UK over "clickbait" climate policies https://t.co/ZfGjJaE6K6 pic.twitter.com/VvjNKNXWPC

— Bloomberg UK (@BloombergUK) July 31, 2023

This comes after the Prime Minister confirmed plans to grant over one hundred new oil and gas drilling licences in the North Sea this autumn. 

Sunak believes that this will drive down energy costs. However, Forrest accused the Prime Minister of engaging in “clickbait” fossil fuel policies.  

International response to the UK oil rush

Forrest’s views are shared by international organisations such as the International Energy Agency (IEA). The IEA have stated that oil exploration must end in order to meet the 2050 pledge of net-zero.

Forrest’s calls for the UK’s oil exploitations to cease have been echoed by leading activists and strategists across the globe. Paul Bledsoe, strategic advisor at the Progressive Policy Institute in Washington DC and former Advisor on Climate Change to the Clinton government, said the UK government is “backsliding on climate commitments.”

Tom Rivett-Carnac, the political strategist for the United Nations Climate Chief at the time of the Paris Agreement, tweeted that the government had lost credibility on climate and environment.  

Rishi Sunak, "New licenses are consistent with transitioning to net zero."

Andrew Forrest (net worth $19 billion), "If the UK backs fossil fuels, I'll push my investments to North America. I invest where there is proper leadership, not leadership in a clickbait cycle." pic.twitter.com/UCQzFpydAP

— Farrukh (@implausibleblog) July 31, 2023

Meanwhile, Dr. Pa’olelei Luteru, Chair of the Alliance of Small Island States, commented on how “unprecedented climate events” are leading to “catastrophic consequences for small island developing states.” Small island states like Fiji have been some of the worst effected by global warming.

She said that they are grappling with a “climate crisis we did not cause,” and that they depend on the “stewardship of the bigger countries” to lead the way. 

What will the UK do?

Two years ago, the UK hosted the UN climate talks, and asked IEA experts to model a pathway for the energy sector so that warming could be limited to 1.5 degrees. The IEA advised that there was “no room” for new oil and gas exploration. 

David Tong, global industry campaign manager at Oil Change International said the UK have ignored this warning, and are “diving headfirst into a deadly hole.” 

The Labour Party have committed to not granting any further oil and gas licences, but said they will honour existing agreements. 

This move by Sunak diverges from action being taken by EU countries, such as Ireland, who have banned new licences. 

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Featured image courtesy of HM Treasury via Flickr. No changes were made to this image. Image licence found here.