(Image Credit: Number 10 Credit: Simon Walker/No.10 Downing Street)
Prime Minister Rishi Sunak has announced a major U-turn on the agreement of green policies.
Whilst the Prime Minister has said he was “absolutely unequivocal” about sticking to 2050 net zero targets, the U-turn was decided because the Conservative party wants to “adopt a more pragmatic, proportional and realistic approach to net zero.”
Sunak explained this approach is “a middle road between those who want tougher actions and those who do not believe humans are the cause of climate breakdown.” Sunak believes this ‘middle road’ will keep ‘the consent of the British people’ on the side of the government.
One of the Conservative party’s ideas that will ‘keep the consent of the people’ is to delay the ban of new internal combustion engine (ICE) cars from 2030 to 2035.
The motor industry, of course, expressed mass disapproval to the change in policy because it will ultimately decrease the likelihood of the UK reaching its 2050 net-zero target.
Many environmental and business experts have said the push back could end up costing the public and businesses more money in the long run.
Middle road indeed…
In an interview with myself and Solar&StorageXtra, Tom Callow, Head of Coorporate Communications for myenergi, explained that the 2035 push back could delay the use of the used Electric Vehicle (EV) market. Subsequently, car buyers who predominantly use the used car market will end up waiting longer for a cheaper, second-hand EV.
The used EV market, as with any market, is driven by new and increased supply. With increased supply, price tends to decrease.
The Prime Minsiter’s push back will continue the use of the used ICE vehicle market, as opposed to the used EV market, because overall cost of ICE vehicles will remain low.
“The government’s argument is that this five-year delay will allow more time for electrification to take place and reduce private motorists; but that shows a fundamental misunderstanding of how the motor industry works.” – Philip Northard, Chair, Vehicle Remarketing Association (VRA)
Philip Nothard, Chair of the VRA, has explained that this change in policy could disrupt the value of the EV market because of the confusion it creates with potential buyers… “Many or most of the decisions about cars or vans on sale in the UK in 2030 have already been finalised and have been based off global factors.”
The Governments change in policy hasn’t changed anything regarding business, all the decisions have already been made.
What this change in policy will ultimately do is increase the number of sceptics around the current viability of the used EV market and generate confusion about where the EV market is headed.
Therefore, not only is the used EV market affected but companies could lose out on potential business because buyers are still prioritising ICE vehicles and not EVs. To avoid this being made by consumers, manufacturers will need “more encouragement than ever” to purchase EVs says Mike Hawes, Chief Executive of Society of Motor Manufacturers and Traders (SMMT).
Ultimately, Hawes continued, the automotive industries commitment to a zero-emission new car market has remained unchanged.
What is needed is the widespread education of the importance of a decarbonised new motor industry to remain on course for 2030. Not only at a consumer level but at a local authority where investment and infrastructure installation must remain on course.
The business decisions mentioned will mean the majority of cars on the road will be EVs anyway, a continuation of current projects and practises will allow for better preparation for mass EV uptake.
The Prime Minister’s 2035 push back hasn’t changed much from the perspective of business in the motor industry.
For many, the push back will only create confusion and delay widespread engagement in new and used EV markets. Delaying mass consumer uptake in EVs and decreasing the likelihood of the UK reaching its 2050 net zero target.
The Prime Minister describing the governments new green policies as a ‘middle road’ approach isn’t far off… but I was always told to avoid playing in the middle of traffic.
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