The “reactionary” windfall tax is harming net zero, deals and production, warns Viaro Energy CEO Francesco Mazzagatti.
It is well recognised by economists that an intervention in a complex system tends to create unanticipated and often undesirable outcomes. This has become known as the law of unintended consequences. What we are seeing unfold in the UK energy market today with the windfall tax is a prime example of just this paradigm. In order to find a path towards a more sustainable future, we need to change the current conversation. But first, we must consider the far-reaching implications of reactionary policy implementation.