Changes to the UK’s Net-Zero Strategy risk creating uncertainty and shaking confidence in the development of clean energy supply chains, industry bodies have warned.
UK Prime Minister Rishi Sunak has said that he will extend deadlines to transition to green technologies, such as heat pumps and electric vehicles.
“I’m absolutely committed to reaching Net Zero by 2050,” he said, but added that the UK Government will abandon or weaken certain policies and proposals so that its approach to meeting its targets to “ease the burden on working people”.
Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG, said: “Large-scale business investments in the industries of the future, like electric vehicles and low-carbon heating technologies, and their accompanying supply chains, are only possible if there are stable, long-term policies in place.
“The constant uncertainty that comes with changes in target dates and commitments, simply makes it harder to attract the investment we need to boost the UK economy and reach our legally binding Net Zero goals. The risk now is that the UK will continue to fall behind in the global race for green investment, and our homegrown businesses will lose out.”
Friends of the Earth’s head of policy, Mike Childs, added: “Rishi Sunak is being environmentally reckless and economically inept.
“Building a green economy is the best way to tackle the cost-of-living crisis, boost energy security and strengthen the economy. Weakening these green policies will simply undermine business confidence and put British jobs at risk.”
Friends of the Earth warned that rolling-back green policies means that legally-binding targets are highly unlikely to be met, despite Sunak’s stating he is still committed to them.
“With the world in the midst of a climate crisis we need bold political leadership – not another Prime Minister posturing to a narrow section of his own party for perceived short-term electoral gains. The consequences won’t just fall on people in the UK – they will reverberate globally.”
In addition, Ed Miliband MP, Labour’s Shadow Energy Security and Net Zero Secretary, said: “Delaying the phase out of petrol and diesel cars will add billions in costs to families and damage investor confidence in the UK, as we have seen from the furious business reaction today.”