Investors demand clarity from government on net zero



Investors managing £1.5 trillion in assets have warned the government that a lack of clarity on green policies risks stalling investments needed to reach the 2050 net zero target.

Ministers have been told that recent signals around key policy areas, including a ban on the sale of new petrol and diesel cars by the end of the decade, could stop the finance sector from investing the £50 billion to £60 billion a year needed to hit the emissions goal.

The warning comes in a letter sent to the prime minister and signed by 36 financial institutions that are members of the UK Sustainable Investment and Finance Association (UKSIF) including Jupiter Asset Management, Royal London and Scottish Widows.

James Alexander, UKSIF chief executive, said: “The global competition to capture billions of pounds of private investment in the clean industries of the future is intense. Ministers’ recent remarks are undermining investor confidence and putting the UK’s net zero head start at risk.”

Investors have asked for more certainty over long-term policy in areas including the transition to electric vehicles, improved energy efficiency standards for housing and more predictable carbon-pricing mechanisms.

Kemi Badenoch, the secretary of state for business and trade, has previously told cabinet colleagues that electric vehicle targets being imposed on the industry could damage investment in Britain, discussing concerns raised by the car manufacturing industry.

Under a rule to be introduced in January, carmakers will be required to ensure that at least 22 per cent of their new sales in the UK are of emission-free models, rising each year to reach 80 per cent by 2030. Companies that break the rule will have to pay £15,000 for every non zero-emission car sold.

Alexander said that in recent years there has been a degree of positive policy signals, allowing the finance sector to invest with confidence in the infrastructure for the green transition.

“The problem is, as soon as the government starts making comments or noises suggesting that might not actually be the direction of travel after all, it saps the confidence of private investors and we need that money to make this transition possible,” he said.

In July, changes to the UK’s carbon-trading scheme included offering more allowances for CO2 emissions from polluting industries such as steel production. This pushed carbon prices to trade at a steep discount compared with those in Europe, sparking warnings that it would increase fossil fuel use.

In the same month, Rishi Sunak said that the government would press ahead with awarding more than 100 new licences for North Sea oil and gas exploration before the next election. The government has said that these new licences will slow the decline in UK production levels rather than see them increase above current levels.

A spokesman for the Department for Energy Security and Net Zero, said: “We are fully committed to our legally-binding target of achieving net zero by 2050. In fact, between 1990 and 2021 we cut emissions by 48 per cent while growing our economy by 65 per cent – decarbonising faster than any other G7 country.

“Our determination to reach net zero – while we strengthen energy security and grow the economy – is unwavering and we will continue leading efforts at home and abroad on climate change.”





Source link


Like it? Share with your friends!

What's Your Reaction?

hate hate
0
hate
confused confused
0
confused
fail fail
0
fail
fun fun
0
fun
geeky geeky
0
geeky
love love
0
love
lol lol
0
lol
omg omg
0
omg
win win
0
win
Administrator

0 Comments

Your email address will not be published.

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format