London, UK: Rishi Sunak, the prime minister, in a speech from Downing Street, said he would put back a ban on new fossil fuel cars and vans by five years, in a major U-turn among a raft of measures.
Rishi Sunak said he is still committed to reaching net zero by 2020, but the transition can be done in a “fairer and better way”. Announcing a raft of U-turns, the prime minister confirmed he will delay a ban on the sale of new diesel and petrol cars by five years – trucks were not mentioned – and a weakening of targets to phase out gas boilers
The change in approach has been criticised by a raft of figures including those in industry arguing that firms need certainty to invest in Britain, particularly the car industry. Sunak justified the changes saying it would give businesses “more time to prepare”. He also said the UK far ahead of other countries in the world when it comes to cutting greenhouse gas emissions.
Despite the “new approach”, the prime minister insisted the UK would meet its international obligations on climate change – such as those made under the Paris Climate Accords. The UK’s commitment to reach net zero by 2050 was written into law in 2019.
Comment
Rishi Sunak’s speech was more of an electioneering gambit that a policy change – the speech was made while parliament was in recess and reflects a general election due before January 2025. Given the government’s poor position in the opinion polls, it is the Labour Party’s response that many in industry will be watching with more interest.
So far that response has been muted but Labour would keep 2030 deadline for ban on sale of new petrol and diesel cars, says Steve Reed, the shadow environment secretary, “We would keep that at 2030 because that’s what businesses had been investing for.
“What the prime minister announced today was selling out the biggest opportunity of the 21st century – and that is for Britain to lead the world in the transition to a new green economy,” he said.
Sunak statement was critically short of detail and at times confusing. He said he expects the “vast majority of cars” will be electric by 2030, but it should be “your choice” to do so – not governmentally enforced. “So, to give us more time to prepare, I’m announcing today that we’re going to ease the transition to electric vehicles,” he said. Equally confusing is his further justification that the proposed changes will bring the UK in line with much of Europe.
Sunak said he is still committed to that target but wants to make sure the measures to get there do not add extra costs to households. However, he faced criticism for disrupting the certainty needed for firms to invest in Britain, particularly the car industry. Ford’s UK chair Lisa Brankin criticised the move. She said the original 2030 target “is a vital catalyst to accelerate Ford into a cleaner future.” Ford has already invested £430m in upgrading its UK plants to produce electric cars. “Our business needs three things from the UK government, ambition, commitment, and consistency. A relaxation of 2030 would undermine all three,” she told the BBC.
Stellantis, which owns Vauxhall, Peugeot, Citroen and Fiat, said it was “committed to achieve 100% zero emission new car and van sales in the UK and Europe by 2030”, regardless of any delay to the ban. But it added “clarity is required from governments” over such issues.
Mike Hawes, chief executive of the Society of Motor Manufactures and Traders, said consumers would be sent an “incredibly confusing” message due to the delay. “The concern now is, does this cause consumers to delay their purchase [of an electric car]?,” he told the Today programme.“
Logistics UK said “pushing back the deadlines to decarbonise, rather than making progress on the investment and policies logistics businesses need to implement the route to Net Zero, is unhelpful and will discourage private investment in the UK and its industries. “There is still much to be done, from delivering a charging network to confirming plans for alternatively fuelled vehicles, but our industry remains committed to achieving Net Zero,” said David Wells, chief executive, Logistics UK.
“As a sector, logistics works hard to deliver on time for all sectors of the economy – if new decarbonisation deadlines are to be achieved, it is vital for the health of the UK’s supply chain, and therefore our economy, that the government does the same. At a time when industry needs detail and action, delay just creates more uncertainty.”
UK hydrogen innovator, Bramble Energy, said: “The UK’s potential to achieve Net Zero will be severely hampered by green policies being dictated by general elections every four years. The announcement from the Government to push back the ban on petrol and diesel car sales to 2035 is a clear example of this, and investment in green infrastructure and alternative fuels cannot stop on a four-year basis.
“If we are to ever have a positive effect on preventing climate change, investment and bold targets need to be upheld, and alternative fuels such as hydrogen are a hugely significant element of this. Beyond electric vehicles, the development and implementation of alternative fuels like hydrogen, which Bramble Energy has made ground-breaking steps towards, will be fundamental to achieving Net Zero, and this announcement from the Government is a disappointing step back on the path towards Net Zero.”
Neil Yates, chief executive, Watt Electric Vehicles, said: “The decision to scale back the 2030 ban on new petrol and diesel car and light van sales sends completely the wrong message to industry and customers. The UK can and should be a global leader in zero emission mobility. Government needs to be strategically consistent and introducing greater levels of incentivisation to bolster consumer confidence, further promoting a burgeoning industry, not creating uncertainty by moving the goalposts.
“It is especially disappointing given the crucial role UK Government has played in promoting the development of electrification technology through the superb innovation infrastructure and funding made available by Innovate UK and the Advanced Propulsion Centre.
“As a result of the support received from these forward-thinking organisations, Watt Electric Vehicle Company has been able to expand its business over the last three years, rapidly accelerating the development of our lightweight zero emission platform technologies.
“Since the 2030 ban was announced three years ago, vehicle manufacturers, electrification technology suppliers and fleet operators have been working towards the same targets, which has provided the direction and clarity needed to keep the UK on track for net zero.”
Environmental groups also warned achieving net zero requires deep emissions cuts this decade and that they cannot just be cut at the last minute.
