UK Manufacturing Groups Criticize Rishi Sunak’s Reversals on Net Zero Commitments

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Manufacturing groups have strongly criticized Rishi Sunak’s decision to relax Britain’s net zero emission targets, calling it a “significant setback” for the sector. 

In a letter to the Financial Times, the leaders of 15 manufacturers’ trade bodies, including Make UK, the Construction Equipment Association, and the Chemical Industries Association, stated that the Prime Minister’s move sends “completely the wrong message” and implies that “we are simply regressing”.

Announced last week, Sunak’s decision to ease some of the government’s climate change targets, including postponing the ban on the sale of new petrol and diesel cars from 2030 to 2035, and diluting the phaseout of fossil fuel boilers, has faced criticism from his own Conservative party members and environmental campaigners.

Sunak defended the changes, stating that they were part of a “pragmatic” approach to ensure that the UK reaches its goal of net zero greenhouse gas emissions by 2050 without burdening households with high costs. However, the manufacturing groups, which also included Adelan, Silverstone Technology Cluster, and the Confederation of British Metalforming, warned that the government’s decision to “weaken” its net zero policies is a major setback for manufacturers who have made transitioning to net zero a top priority.

The groups highlighted that small- and medium-sized enterprises in the automotive supply chain will be particularly affected by the changes, jeopardizing the UK’s international competitiveness.

The International Energy Agency (IEA) also criticized the government’s decision, with Fatih Birol, the IEA’s executive director, urging advanced economies to lead the way in climate action. The IEA’s recent report emphasizes the need to invest $4.5tn annually in clean energy worldwide by the early 2030s to achieve global net zero emissions by 2050.

A survey conducted by Make UK after Sunak’s announcement revealed that 68% of manufacturers had already invested in efforts to achieve net zero emissions, and an additional 22% planned to do so within the next year. The majority of respondents stated that transitioning to net zero was important for their business, with many viewing it as a commercial opportunity.

While some businesses, such as Toyota and Jaguar Land Rover (JLR), welcomed the government’s changes, others, including Ford and Nissan, expressed concerns about the delay in banning the sale of petrol and diesel cars, risking the country’s electric vehicle transition.

Despite the controversy, other targets to encourage a shift towards net zero, such as the mandate for 80% of new vehicles to be electric by 2030, remain in place. The government emphasized its commitment to a fair and pragmatic approach towards achieving net zero while supporting UK businesses and fostering global supply chains.

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