Miatta Fahnbulleh, a recent Member of Parliament, has been appointed as the new Secretary of State for Energy and Net Zero, a move that has raised concerns among industry figures and political opponents. As the only MP from the 2024 intake to secure a full Cabinet position, Fahnbulleh's rapid ascent has been notable. She previously served as deputy to Ed Miliband in the Department of Energy Security and Net Zero (DESNZ) and worked as an advisor for Miliband and as a policy wonk for the New Economics Foundation.
The appointment comes as the energy industry expresses apprehension about whether Fahnbulleh will continue the direction set by her predecessor, Ed Miliband. Miliband's tenure was characterized by a strong focus on Net Zero policies, which critics attribute to Britain's high electricity bills. His promotion to Foreign Secretary was met with relief by some in the industry, but Fahnbulleh's selection has put opponents of Net Zero policies on edge.
Fahnbulleh's past policy proposals have drawn particular scrutiny. In 2019, she advocated for spending 5 percent of GDP on green infrastructure, a figure equivalent to £140 billion annually. In November 2021, she called for £30 billion per year in spending on Net Zero initiatives and urged Britain to fulfill its commitment to mobilize £74 billion in climate finance for developing nations. Two months later, she demanded a £28 billion subsidy for green infrastructure jobs. In 2023, she proposed a "free basic energy" policy, which would eliminate bills for initial energy usage, with charges increasing for higher consumption.
Her alignment with Green Party politics has also been highlighted. Following her resignation from Keir Starmer's government, Fahnbulleh appeared on a podcast, expressing admiration for the Green Party's economic analysis and suggesting it was a space the Labour Party should occupy. This has led some to question her approach to the oil and gas industry, with observations that she has rarely mentioned it during her tenure as an MP.
The potential for tension within the government has been noted, particularly between Fahnbulleh and Business Secretary Jonny Reynolds, who has been perceived as more supportive of the energy industry. This dynamic has been compared to the past relationship between Ed Miliband and Rachel Reeves.
Concerns have also been raised about Fahnbulleh's role in preparing Prime Minister Andy Burnham for government, where she was reputedly a key strategist. Her past advocacy for policies such as wealth taxes, windfall taxes on oil and gas, mass nationalization, and increased taxes on capital gains and second homes has been noted. While she was ultimately given a more defined role in energy rather than a broader Treasury portfolio, her conservative opposite number, Claire Coutinho, has warned of her potential impact on Britain's economy.
The question of Fahnbulleh's stance on North Sea oil drilling remains a central point of debate, especially given recent political gains by the Conservative Party using a "drill, baby, drill" message. While some within the Labour Party describe her as a pragmatist concerned with the cost of living, speculation persists about her ultimate position on energy extraction. The Aberdeen Chamber of Commerce has expressed that her appointment signals "more of the same" and called for an end to overregulation and punitive taxation.
Further complicating the outlook is Fahnbulleh's past political actions, including being the first minister to resign under Keir Starmer's leadership following poor local election results. Some close to Burnham's operation suggest Fahnbulleh's primary allegiance is to Miliband, potentially leading to future political maneuvering.