Policy Exchange

Background

Policy Exchange is a UK-based right-wing think tank, founded in 2002 by Conservative Party politicians, that maintains close ties to the party.¹ The think tank has held more than 100 meetings with the government since 2012.²

Former Prime Minister Rishi Sunak (a Policy Exchange alumnus) credited the think tank with helping the government to draft tough new policing laws targeting climate protestors – namely the Police, Crime, Sentencing and Courts Act in 2022, which targeted groups such as Extinction Rebellion.³ This law, which has resulted in thousands of arrests and “draconian” prison sentences, was based on a Policy Exchange report authored in 2019 titled “Extremism Rebellion”.⁴

The think tank has been accused of acting like a “front for the oil and gas industry”, and it has given oil majors and energy companies the opportunity to influence its reports on North Sea oil and gas,⁵ hydrogen,⁶ carbon capture,⁷ and nuclear power,⁸ as well as carbon pricing.⁹ Since 2008, the think tank’s environment and energy unit has released reports advocating for technological, disputed solutions to climate change such as hydrogen,¹⁰ small modular nuclear reactors,¹¹ and carbon capture and storage.¹²

Policy Exchange has received funding from the U.S. oil giant ExxonMobil, while some of its reports have been funded by groups tied to the fossil fuel industry.¹³ It has also received funding from GB News co-owner Paul Marshall, whose hedge fund owns large stakes in fossil fuel companies.¹⁴

Until 2016, Policy Exchange was a partner organization of Atlas Network, a U.S.-based group which supports around 500 radical “free market” think tanks across the world and has been accused of spearheading global efforts to brand climate activists as “extremists”.¹⁵

In 2018, Policy Exchange led a high-level political influence campaign over the UK’s North Sea oil and gas policies. The think tank’s “Future of the North Sea” report echoed the fossil fuel lobby by emphasising the importance of hydrogen power and carbon capture utilisation and storage (CCUS) to the clean energy transition.¹⁶

The think tank has also been influenced by oil and gas companies in its campaigns for the UK to introduce carbon pricing. Its 2018 “Future of Carbon Pricing” report was commissioned by the Climate Leadership Council (CLC),¹⁷ a controversial U.S. non-profit whose “founding members” include BP, Shell and TotalEnergies.¹⁸ DeSmog’s reporting revealed that BP and Shell had been given the opportunity to influence the report,¹⁹ which was released the same year that ExxonMobil donated $30,000 to Policy Exchange.²⁰

The think tank, which has charity status, chooses not to disclose its donors and has been given the lowest possible rank by openDemocracy’s Who Funds You? project, which rates the funding transparency of think tanks.²¹

Since 2016, Policy Exchange reports on climate-related issues have credited input from the likes of BP, Cadent Gas, Hydrogen UK, Macquarie, National Gas, National Grid, the Offshore Renewable Energy Catapult, the Scottish Hydrogen and Fuel Cell Association, Scottish Power, SGN, SSE, and Storega.²²

The think tank was co-founded in 2002 by then-Conservative Party MPs Archie Norman, Francis Maude, Nicholas Boles, and Michael Gove,²³ who served as founding chairman from 2002 to 2006.²⁴

The think tank’s links to the Conservative Party are extensive. Policy Exchange alumni made up a greater number of special advisers in Rishi Sunak’s government than any other think tank, including former Secretary of State for Energy Security and Net Zero Claire Coutinho.²⁵

At the 2022 Conservative Party conference, Jacob Rees-Mogg, at the time serving as business, energy and industrial strategy secretary, said: “I believe that where Policy Exchange leads, governments have often followed.”²⁶

Policy Exchange also has ties to the Labour Party and Reform UK. It has held events at the Labour’s annual conferences each year since at least 2022.²⁷ At Reform’s annual conference in Birmingham in September 2024, Policy Exchange hosted its ‘Future of the Right’ project,²⁸ featuring the-then Reform MP Rupert Lowe and Lord Charles Moore – a former director of the Global Warming Policy Foundation, a climate science denial group, and the former chairman of Policy Exchange’s board.²⁹

Stance on Climate Change

Policy Exchange outputs recognise the existence of man-made climate change. However, at least one paper from the think tank has argued that there is “no evidence” of a climate emergency.³⁰ The think tank often emphasises and recommends technological solutions supported by the oil and gas industry, including small modular nuclear reactors, hydrogen, and carbon capture.³¹

“No evidence” of a climate “emergency”

In a Policy Exchange paper from August 2022, David Frost, who was a senior fellow at the think tank from 2022 to 2023,³² described wind turbines as “medieval technology” and said “the current evidence does not support the assertion that we are in a climate ‘emergency.’”³³

Frost has been a director of Net Zero Watch, the campaigning arm of the Global Warming Policy Foundation, since 1 January, 2025.³⁴ Before this he was a GWPF director from November 2022, joining the organisation during the COP27 climate summit.³⁵

Frost called for a shift away from renewables towards shale gas extraction and carbon capture and storage (CCS), writing:³⁶

“Instead of focusing on technological solutions that enable us to master our environment and get more energy in a more carbon-efficient way – nuclear, CCS, fracking, one-day fusion – we have focused on managing demand so we can use medieval technology like wind power.”

Stance on net zero

A report from March 2024 titled ‘Decarbonising the Grid’, written in collaboration with ‘independent energy research agency’ Aurora Energy Research, acknowledged the need for the UK to transition to net zero, but argued that “Labour’s plans to decarbonise the power sector by 2030 are ‘infeasible in the timeframe’,” because of a lack of skilled workers, supply chain challenges and a need to reform the planning system.”³⁷

The report went on to claim that the short time frame of the UK’s net zero targets would prevent the UK from developing climate technologies. It claimed that:³⁸

“The shorter time frame [of Labour’s 2030 clean energy target] risks precluding much additional generation from nuclear or bioenergy with carbon capture and storage (BECCS) from being brought online, putting more of an onus on accelerating renewable capacity and battery storage to unrealistic levels by 2030. A higher carbon price would also be required, in order to drive out unabated gas”.

Positions on technological solutions to climate change

In a 2020 Policy Exchange blog, then-senior fellow in energy and environment Benedict McAleenan listed the climate-related campaigns that Policy Exchange has “championed over more than a decade” as offshore wind, hydrogen, nuclear power, carbon capture and storage, public transport, green shipping, greener buildings, carbon pricing, green finance and innovation, “protecting our environment”, and shifting to electric vehicles.³⁹

Offshore wind

The think tank has supported the development of offshore wind since its 2018 Future of the North Sea report,⁴⁰ which advocated for “better coordination of offshore development to enable new wind capacity at the massive scale targeted by the PM.⁴¹ Later, in a 2024 report titled “Turning Wasted Wind into Hydrogen”, Policy Exchange expanded its support of offshore wind to argue that excess wind power should be converted into hydrogen for sectors such as sustainable aviation fuel development and the steel industry.⁴²

Hydrogen

Policy Exchange claims it is a “leading voice for hydrogen” that “made the case” for hydrogen in its 2018 report “Fueling the Future”, which was funded by German fossil energy company Uniper as well as the Energy and Utilities Alliance, a trade association for the energy sector.⁴³ It has “argued strongly” that the government should support “industrial hubs” and “pilot projects” to develop hydrogen technology.⁴⁴ It also argued in a 2024 report, which incorporated input from oil and gas and energy sector interests, that “wasted” wind power can be converted into hydrogen.⁴⁵

Nuclear power

In 2018, Policy Exchange was funded by Rolls-Royce, which is developing small modular nuclear reactor (SMR) technology in the UK, to produce a report in 2018 supporting the development of SMRs, which Rolls-Royce makes, titled “Small Modular Reactors: the next big thing in energy?”.⁴⁶

The think tank has supported the idea that for nuclear to be “affordable”, it must “achieve economies of scale”. It advocates for the UK to build “several” reactors, particularly SMRs, and learn to do things “more efficiently” in the process.⁴⁷ In June 2025, the think tank launched an international Nuclear Commission, with the intention (among others) of advocating for civil nuclear energy development.⁴⁸

Carbon capture and storage

Policy Exchange argued in 2008,⁴⁹ and echoed in 2011,⁵⁰ that carbon capture and storage “should become a central part of the UK’s strategy”.⁵¹ In a third report in 2018,⁵² which was funded by energy company Uniper and trade association Energy and Utilities Alliance, the think tank wove its position on carbon capture with its support for hydrogen – advocating for “industrial clusters” that would use both carbon capture and hydrogen technologies.⁵³

Carbon Pricing

A 2018 report released by the think tank, “The Future of Carbon Pricing”, argued that:⁵⁴

“A economy-wide carbon tax paid by both domestic and international producers would prevent carbon leakage [emissions that happen outside the country that aren’t accounted for in domestic emissions], level the playing field for Britain’s heavy industry [so international companies can’t charge less due to the tax], fund a dividend to be paid to taxpayers and tackle climate change”.

Carbon pricing is often supported by fossil fuel interests.⁵⁵

The report was commissioned by the Climate Leadership Council (CLC),⁵⁶ a controversial U.S. non-profit whose “founding members” include BP, Shell and TotalEnergies.⁵⁷

Electric vehicles

Policy Exchange has supported the transition from petrol and diesel cars to electric vehicles, releasing a 2021 report with policy recommendations for building a “comprehensive network of public EV chargepoints”.⁵⁸

Funding

According to its accounts, published by the Charity Commission, Policy Exchange received nearly £4 million of financial support in 2023.⁵⁹ Policy Exchange chooses not to disclose its donors.⁶⁰

The think tank, which is registered as an educational charity, has been given the lowest possible rank by openDemocracy’s Who Funds You? project, which rates the funding transparency of think tanks.⁶¹ Educational charities are required to “engage equally with all political parties”,⁶² but Democracy For Sale reported in June 2024 that the trustees and executives of Policy Exchange and the Institute for Economic Affairs have donated 500 times more to the Conservative Party than the Liberal Democrats, and have never donated to the Labour Party.⁶³

Policy Exchange has argued that the decision not to disclose the names of donors is out of respect for their privacy rights.⁶⁴

Known funders

However, investigations have revealed a few of the think tank’s funders.

Paul Marshall: Between 2020 and 2023, hedge fund manager Paul Marshall donated £890,000 via the Sequoia Trust to Policy Exchange.⁶⁵ Marshall is a right-wing media mogul and opponent of climate action, co-owning GB News and owning The Spectator. As of June 2023, Marshall’s hedge fund had £1.8 million invested in fossil fuel companies.⁶⁶

Leonard Blavatnik: Blavatnik, a dual U.S.-British citizen known in the UK for his sponsorship of the Tate Modern and the Blavatnik School of Government at the University of Oxford, has funded Policy Exchange.

A foundation controlled by Blavatnik has donated almost $100,000 to the UK think tank in 2020.⁶⁷ In 2021, the Blavatnik Family Foundation 2020 also gave $34,786 to the American arm of Policy Exchange to “support and advance the program of Policy Exchange between the UK and U.S.”⁶⁸

Lord Jon Moynihan: In 2019, the think tank received £17,000 from Lord Moynihan, an opponent of climate action.⁶⁹ The peer’s register of interests shows that he held shares worth more than £100,000 in the oil majors Shell and TotalEnergies until February 2025, and more than £100,000 in BP as of September 2024. Moynihan has also given £20,000 to the UK’s leading climate denial think tank, the Global Warming Policy Foundation.⁷⁰

ExxonMobil: In 2017, oil giant ExxonMobil donated $30,000 (roughly £23,700) to Policy Exchange’s American fundraising arm.⁷¹

National Philanthropic Trust: The trust, which has donated almost $2 million to the Institute of Economic Affairs, Policy Exchange, TaxPayers’ Alliance and the Legatum Institute’s U.S. fundraising arms,⁷² has also reportedly donated $22 million to climate denial organisations.⁷³

Lord Simon Wolfson: The CEO of clothing company Next and a Conservative peer, Lord Wolfson gave almost £700,000 to Policy Exchange and £100,000 to the Institute of Economic Affairs from 2019 to 2024.⁷⁴

Sir David Harding: The financier Sir David Harding, who has served on the board of nuclear fusion company Tokomak Energy since 2022,⁷⁵ donated £600,000 to Policy Exchange between 2019 and 2024.⁷⁶

Corporate sponsorships: Policy Exchange also takes money via sponsorships and corporate partnerships. Reporting from Vice in 2019 stated that: “Energy companies pay Policy Exchange to arrange meetings at Conservative Party conferences, typically with a government minister on the platform.”

Vice added that Drax, Energy UK, and E.On paid for Policy Exchange meetings in 2017. The previous year, energy companies E.On, Centrica, and Energy Networks Association also paid for meetings.⁷⁷

At the 2018 Conservative Party conference, corporate sponsors of Policy Exchange events included Energy UK, Drax, and Cadent Gas.⁷⁸

Firms are also able to provide financial support to help produce Policy Exchange reports.

From 2015 to 2025, the think tank has received financial support from the likes of: SGN, Octopus, National Grid, Uniper, Energy and Utilities Alliance, the Climate Leadership Council (whose founding members include BP, Shell, and TotalEnergies), Rolls-Royce, Centrica, Calor Gas, and Anglo American.

Role in crackdown of UK climate protestors

2019

Policy Exchange published a report called “Extremism Rebellion” which described the climate protest group Extinction Rebellion as “an extremist organisation seeking the breakdown of liberal democracy and the rule of law”.⁷⁹ Several politicians⁸⁰ and conservative media outlets then repeated that framing.⁸¹

2022

Rishi Sunak’s government passed the UK Police, Crime, Sentencing and Courts Act,⁸² which restricted protest rights, created new offences for protests causing “serious disruption”, and increased the punishments for those convicted.⁸³

2023

During a speech at Policy Exchange’s annual summer garden party, Sunak credited Policy Exchange with “helping us draft” the UK Police, Crime, Sentencing and Courts Act.⁸⁴

The law saw more than 2,000 people arrested from the climate activist group Just Stop Oil in the year to April 2023.⁸⁵ In the wake of the law’s passage and several arrests leading to years-long prison sentences, Extinction Rebellion announced it would no longer engage in disruptive protest.⁸⁶

Former Atlas Network Affiliation

Policy Exchange was formerly a partner organization of Atlas Network, a U.S. organisation that supports hundreds of radical anti-state, anti-tax groups around the world, several of which promote climate denial.

The Atlas Network has received funding from ExxonMobil, the Charles Koch Foundation, and the Sarah Scaife Foundation, according to its tax forms.⁸⁷

At least seven UK think tanks have been members of Atlas Network, including the Institute of Economic Affairs, the TaxPayers’ Alliance, the Legatum Institute, the Centre for Policy Studies (CPS), the Adam Smith Institute, and Civitas, according to its online directory, (scroll to ‘Atlas Network Members/Partners’ and see under ‘United Kingdom’).⁸⁸

Policy Exchange left the Atlas Network in 2016.⁸⁹

Key actions

June 2025

Policy Exchange announced the launch of a new “high level international nuclear commission” on both civil and military uses of nuclear technology,⁹⁰ in the same week the UK government announced significant new investments in nuclear energy projects including SMRs,⁹¹ and the Sizewell C nuclear plant.⁹²

September 2024, Reform UK Party Conference

Policy Exchange hosted its ‘Future of the Right’ project,⁹³ featuring Reform MP Rupert Lowe (who has since been suspended from the party) and Lord Charles Moore – former Global Warming Policy Foundation director and Policy Exchange chair.⁹⁴

March 2024

A Policy Exchange report titled “Decarbonising the Grid”, written in collaboration with “independent energy research agency” Aurora Energy Research, acknowledged the need for the UK to transition to net zero, but argued that “Labour’s plans to decarbonise the power sector by 2030 are ‘infeasible in the timeframe’, owing to the planning reform required, supply chain challenges and lack of skilled work force.”⁹⁵

January 16, 2024

The think tank published its “Turning Wasted Wind into Clean Hydrogen” report,⁹⁶ supported by SGN, a British Gas distribution company, with input from BP, Cadent, Hydrogen UK, Macquarie, National Gas, National Grid, the Offshore Renewable Energy Catapult, the Scottish Hydrogen and Fuel Cell Association, Scottish Power, SGN, SSE, and Storega.

June 28, 2023

During a speech at Policy Exchange’s annual summer party, UK Prime Minister Rishi Sunak credited Policy Exchange with “helping us draft” the UK Police, Crime, Sentencing and Courts Act of 2022, which was used in the UK government’s crackdown on climate protests.⁹⁷

August 5, 2022

In a Policy Exchange paper, David Frost described wind turbines as “medieval technology” and said there was “no evidence” that we are in a climate emergency.⁹⁸

Frost also called for a shift away from renewables towards shale gas extraction and carbon capture and storage (CCS), writing:

“Instead of focusing on technological solutions that enable us to master our environment and get more energy in a more carbon-efficient way – nuclear, CCS, fracking, one-day fusion – we have focused on managing demand so we can use medieval technology like wind power.”⁹⁹

2022, Labour and Conservative Party Conferences

Policy Exchange hosted events at both the 2022 Labour and Conservative conferences sponsored by the Hydrogen UK trade body, featuring ministers and MPs.

January 19, 2022

David Frost joined Policy Exchange as a senior fellow. Frost has been a director of Net Zero Watch, the campaigning arm of the Global Warming Policy Foundation (GWPF), the UK’s most prominent climate science denial group, since January 1, 2025.¹⁰⁰

Before this he was a GWPF director from November 2022, joining the organisation during the COP27 climate summit.¹⁰¹

November 5, 2021

Microsoft founder Bill Gates spoke about net zero at a Policy Exchange event.¹⁰²

December 1, 2020

In a Policy Exchange blog, then-senior fellow in energy and environment Benedict McAleenan listed the climate-related campaigns that Policy Exchange has “championed over more than a decade” as offshore wind; hydrogen; nuclear power; carbon capture and storage; public transport; green shipping; greener buildings; carbon pricing; green finance and innovation; “protecting our environment”; and shifting to electric vehicles.¹⁰³

November 30, 2020

Policy Exchange publishes a new report – “The Future of the North Sea: Maximising the contribution of the North Sea to Net Zero and Levelling Up”,¹⁰⁴ supported by National Grid and co-authored by energy lobbyist Benedict McAleenan.¹⁰⁵

May 2020

Policy Exchange merged with think tank Open Europe,¹⁰⁶ a Eurosceptic think tank.¹⁰⁷

July 16, 2019

Policy Exchange published a report called “Extremism Rebellion” which described climate activist group Extinction Rebellion as “an extremist organization seeking the breakdown of liberal democracy and the rule of law”.¹⁰⁸

2018 Conservative Party Conference

Sponsors at Policy Exchange events of the Conservative Party Conference included Energy UK, Drax, and gas distributor Cadent Gas.¹⁰⁹

July 17, 2018

Its new report – “The Future of Carbon Pricing: Implementing an independent carbon tax with dividends in the UK¹¹⁰ – is funded and supported by Climate Leadership Council, a U.S. non-profit whose “founding members” include oil majors BP, Shell and TotalEnergies.¹¹¹

January 25, 2018

Policy Exchange published a report titled “Small Modular Reactors: The next big thing in energy?”, supported by Rolls-Royce.¹¹²

2018

Alexander Downer was appointed chairman of the Policy Exchange board. Downer was Australia’s Foreign Minister from 1996 to 2007. He has expressed climate science scepticism in the past,¹¹³ claiming that we are “going through an era” of global warming and saying that Australian climate leadership would be expensive “virtue signalling”.¹¹⁴

2017 Conservative Party Conference