The battle for the UK's green future

Members of Parliament are calling upon the Prime Minister to reinforce the UK's image as an innovator in green policies, rather than succumb to forces within the Conservative Party aiming to dilute climate commitments.

The All-Party Parliamentary Group (APPG) on climate change has issued a reminder to Rishi Sunak this week, asserting that tackling climate change requires persistent attention, irrespective of transient pressures.

This appeal arises in the wake of an unsettling analysis by the UK Government’s climate advisors, who expressed diminished confidence in the nation's ability to achieve its legal emission targets compared to a year ago. Findings from the Climate Change Committee (CCC) indicate a potential decline in the UK's leadership role in the race towards clean energy solutions and a tarnished image in global climate diplomacy.

A repercussion of the CCC report was the resignation of Zac Goldsmith, the UK Government’s minister responsible for global climate and nature matters. Goldsmith attributed his resignation to the government’s lacklusterness towards environmental sustainability, rendering his position unviable.

The latest letter from the APPG on climate beseeches Sunak to mark his presence at the forthcoming COP28 UN climate summit in Dubai, accompanied by a newly designated state-level climate envoy for the UK. Sunak had initially declined to attend COP27 last year, only to later commit upon Boris Johnson’s confirmation of attendance.

Attendance at COP28, the letter elaborates, could bolster the UK's leadership role in the worldwide energy transition. Despite advocating for a complete transition away from fossil fuels, the UK has yet to set a termination date. Energy Minister Grant Shapps is of personal belief that the UK's North Sea oil and gas reserves should be utilized, however, the letter points out the potential global misinterpretation of such a move.

In a move to align the energy transition with the UK Government’s levelling up commitments, the letter underscores how the UK could become a global model for a seamless energy transition by keeping "fairness and justice" at the forefront.

The letter concludes by emphasizing the economic advantages of a successful COP28, "It is not just essential for the health of people and the planet, but economically the right thing to do".

The letter underscores the Office for Budget Responsibility’s recent verdict that neglecting net-zero initiatives will result in a cost at least twice that of proactive action, especially with gas prices on the rise and climate risks materialising. The CCC estimates that the transition will cost between 0.5% to 1% of GDP.

Turmoil within the Tories

The APPG’s letter also addresses the correspondence from over 100 businesses last week, pointing out to Sunak that any backtracking on domestic climate policies would impede the private sector’s capability to invest promptly and significantly in emerging green assets.

Currently, Sunak is under pressure from a vocal minority within his party to roll back green policies. These proponents of “cutting the green crap” argue that voters do not wish to see public funds being allocated to the energy transition during the cost-of-living crisis, nor are they willing to pay for their own heat pumps or electric vehicles this decade. This viewpoint contrasts with the persistently high levels of climate change concern among the UK voter base.

The pledge to ban new petrol and diesel cars by 2030 will remain, as stated by Levelling Up Secretary Michael Gove on multiple national news outlets this week. Without this commitment, Gove asserts, the UK will not be able to meet its legal targets. This decisive message has already been communicated to automotive manufacturers.

Prominent organizations like the Green Finance Institute and UK Sustainable Investment and Finance Association (UKSIF) are pressing the Prime Minister to maintain the 2030 deadline while considering new strategies to make EVs more affordable for low-income families and SMEs.

James Alexander, the CEO of UKSIF, warns, "If we do not consider the needs of people across society, then the politics of the net-zero transition become almost impossible."

Earlier this week, Sunak communicated to journalists that he will not abandon net-zero but seeks to pursue a “proportionate and pragmatic” pathway that does not impose “hassle and costs” on the general public.

This reasoning was a primary driver for Liz Truss, Sunak's predecessor, to commission Chris Skidmore MP’s Net-Zero Review - to delineate a path to net-zero that not only promotes opportunity for British businesses but also contributes to levelling up.

While some of the Review recommendations have been accepted by ministers, others have been dismissed. In a tongue-in-cheek gesture this week, Skidmore shared the Review on Twitter, subtly criticising fellow MPs, suggesting it as “summer reading for anyone thinking that further delaying action on net-zero might be a good idea”.

Skidmore holds the view that "investing in a transition that is going to happen" globally, regardless of whether the UK leads or trails, "has always been proportionate and pragmatic". He added: “The UK has the choice of leading the change, or following [and] missing out… on the investment and jobs that could have been ours for the taking.”

Skidmore is a member of the APPG along with fellow MPs from a wide spectrum of parties, as are Baroness Willis and Baroness Boycott, both crossbench peers in the House of Lords.