The U.K. Labour government, grappling with the challenge of balancing economic growth and environmental targets, is signaling a shift in priorities.
As the nation faces economic pressures, Prime Minister Keir Starmer’s administration is set to relax certain green policies, particularly those regarding the sale of electric vehicles (EVs), a cornerstone of the country’s climate strategy.
Amid significant lobbying from the car industry, the government is considering revising its targets for EV sales, which have been criticized for potentially harming the car market and diminishing the U.K.’s appeal to investors. The Society of Motor Manufacturers (SMMT) warned last week that the rapid transition to climate-friendly EVs is creating “negative effects” on the market.
“I’ve got no interest in the country hitting its climate targets by shutting down jobs and industry,” Business Secretary Jonathan Reynolds stated in a parliamentary committee on Tuesday, addressing pressures on car manufacturers.
Although the government will retain a 2030 target to ban the sale of new petrol and diesel vehicles, Reynolds has committed to fast-tracking a consultation on changing the zero-emission vehicle (ZEV) mandate, which sets annual sales quotas for EVs, with hefty fines for those who fall short. While the specifics are not yet clear, Reynolds reassured industry leaders, saying that he and Transport Secretary Louise Haigh had “heard you loud and clear on the need for support to make this transition a success.”
However, easing the ZEV targets could undermine the government’s climate objectives, according to Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU). He argued that the ZEV mandate is one of the most effective tools the government has for reducing CO2 emissions in the transport sector. “The green agenda and the growth agenda are not mutually exclusive,” he emphasized.
The debate extends beyond cars. The aviation industry is also pushing for airport expansion, with Gatwick Airport lobbying for a second runway. A decision on this issue is expected in the new year, and Gatwick officials hope that ministers, eager to stimulate growth, will approve the expansion, potentially overruling official climate advisers who recommend “no net airport expansion” across the U.K.
