Factcheck: 10 flaws in the Conservative report on ‘cheap power’

Nature & Climate Perspective

**Grid decarbonization delays undermine national emissions reduction pathways, threatening terrestrial and marine ecological resilience through sustained reliance on fossil infrastructure. **

• Prolonged fossil fuel reliance exacerbates atmospheric acidification and localized thermal pollution, directly degrading baseline habitats necessary for LULUCF stability.
• A slowed renewable rollout curtails incentives for co-located restoration projects, limiting the expansion of ecosystem-based buffer zones and nature-based removals.
• Fossil lock-in contradicts the permanence and robust mitigation baselines championed under the ICVCM Core Carbon Principles (CCPs).

Market & Policy Outlook

**Flawed power pricing narratives distort clean energy investment signals, increasing Scope 2 compliance risks and market volatility for institutional off-takers. **

• Policy ambiguity undermines long-term clean capacity mechanisms and Contracts for Difference (CfD), disrupting the foundation required for sovereign emissions trading and Article 6.2/6.4 alignment.
• Mischaracterized power market economics inflate risk premiums for renewable infrastructure financing, depressing trading volumes and liquidity in the I-RECs and REGO markets.
• Corporate entities leveraging SBTi-validated science-based targets face heightened Scope 2 market-based accounting risks if grid carbon-intensity reductions stall.