Rishi Sunak has announced delays to climate targets. But what does this mean for today’s businesses?
The PM, Rishi Sunak, recently announced that many of the UK’s net zero policies will be deferred, delayed or watered down, despite stating that the government still aims to meet the legally binding 2050 target and, importantly, the interim target to reduce emissions by 68% by 2030.
The move, said the PM, is intended to help British households save money, but experts have expressed concern and alarm at the move, especially following the hottest September on record.
But what has changed, and what impact will it have on the climate crisis?
What do the PM’s latest announcements mean?
Sunak plans to push back sustainability goals across several key areas, including:
- Delaying bans on petrol and diesel vehicles
- Restructuring plans to phase out gas boilers – whilst increasing grants to help those looking to transition to heat pumps
- Scrapping policies that would force landlords to upgrade energy efficiency in their homes from 2025
The Prime Minister also announced there will be no restrictions on eating meat or flying, though these restrictions have never been proposed by either a Conservative or Labour government.
Boilers
Sunak plans to significantly weaken plans to phase our gas boiler installation by 2035, extending the UK’s reliance on imported gas. Sunak wants to “give people far more time to make the necessary transition to heat pumps” in an effort to save people money.
Experts are dubious of the move, with policy and communications director at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, Bob Ward, saying: “The prime minister appears to have forgotten that the current cost of living crisis has been triggers by a huge increase in the price of natural gas following Russia’s invasion of Ukraine.”
Insulation
Sunak has announced that homeowners and landlords will no longer have to meet energy efficient targets, promising that they will not be forced into “expensive insulation upgrades.” This is in response to previous plans to fine landlords who failed to upgrade their properties to meet certain energy efficiency standards.
These changes will save landlords money, but mean renters will face further costs. Recent research from the Energy and Climate Intelligence Unit (ECIU) shows that people living in more poorly insulated homes end up spending around £1,000 more on gas during winter.
Vehicles
New cars with combustion engines were set to be banned from sale by 2030, but Sunak has pushed this back to 2035. The PM states that although “the vast majority” of cars being bought and sold by 2030 are likely to be electric, this should be a decision made by people, rather than the government.
However, experts have expressed concern about the changes, stating that weakening targets will undermine investments, and mean that UK drivers remain exposed to fluctuating oil prices.
Director of the ECIU, Peter Chalkley, said the changes will likely cost UK consumers more in the long run: “The vast majority, 80%, of drivers buy second-hand petrol cars that would be on the market for literally decades to come. Delaying this policy will push up the cost of motoring as cheaper second-hand EVs that are much cheaper to run than petrol cars will be less available.”
What does this mean for net zero?
The outcry following Sunak’s announcement is rooted in fears about the UK’s ability to reduce emissions by 68% by 2030, and to reach net zero by 2050 without tough measures. Experts have expressed great concern about how the UK intends to still meet the decarbonisation targets in light of the changes being made to key climate measures.
The PM’s justification that the changes will save consumers money has also been thrown under the microscope. Ward states that the changes could have “a disproportionately negative long-term impact on the UK economy.”
Meanwhile, the Office for Budget Responsibility recently found that the costs of continuing gas reliance were more than double those of reaching net zero.
What should organisations do?
Despite changes in the government’s route to net zero, the goal still remains intact. Businesses are still able to maintain their sustainability measures regardless of the government’s position, and the results of net zero efforts so far have been positive.
A third of the UK’s biggest companies have committed to net zero, including BT Group, Sainsbury’s, and Unilever. Organisations across all industries have taken great strides to improve their sustainability, introducing key initiatives from remote working to waste management to tech-led green solutions.
By continuing to prioritise sustainability, businesses can do their bit for the planet. Professor of climate science at the University of Reading, Ed Hawkins, highlighted why net zero is so important to households and businesses alike, stating: “Climate change will continue until we reach net zero globally […] delaying action means more emissions which means more severe consequences.”