A “Net Zero Leviathan” of central government diktats would crush the UK’s enterprise economy, the energy secretary has warned.
Claire Coutinho told audience members at the Innovation Zero conference in London on Tuesday that centralised directives would result in an “ever-increasing and narrowing sets of targets, where government dictates outputs and prices.”
“We face a fork in the road and the first path is one that I don’t want to take us down,” the minister said, describing a “Net Zero Leviathan of central planning” which “crushes our brilliant enterprise economy.”
She said that even if the alternative market-driven path could mean living with “some uncertainty,” it would allow the UK to “tackle emissions whilst also making sure we can keep the lights on and costs low for British families and businesses.”
“The government has a role to play in making sure our industries and citizens are ready for the future, but we shouldn’t forget that our main role is to remove barriers and create the right market conditions for capital to flow,” she said.
Key Net Zero Targets Pushed Back
In March, the Department for Energy Security and Net Zero (DESNZ) proposed pushing back the introduction of quotas for the sale of heat pumps under the Clean Heat Market Mechanism from April 1, 2024, to April 1, 2025.
DESNZ had said the decision was in line with the government’s “proportionate and pragmatic approach to net zero” and would give industry “further time to prepare their businesses” and time “for more consumers to take up heat pumps.”
One significant change related to the new-sale ban on petrol and diesel-powered vehicles being pushed back from 2030 to 2035.
Zero Emission Vehicle Mandate
However, the government has used legislation to induce industry to meet green targets. The government’s Zero Emission Vehicle Mandate came into effect on Jan. 3, requiring car manufacturers to sell a certain percentage of electric vehicles each year or face penalties.Under the mandate, electric vehicle car sales are required to reach 100 percent in 2035. Manufacturers who cannot meet the target will be fined £15,000 for every diesel or petrol car they sell above the 78 percent limit.
The Society of Motor Manufacturers and Traders said the trend was indicative of the “challenge ahead” and called for more government support for consumers.
The Office for Budget Responsibility in November downgraded its forecast for electric vehicles’ share of new car sales in 2027 to 38 percent, down from 67 percent.
Net Zero Watch, which campaigns for rational energy policies, welcomed Ms. Coutinho’s statement, but said that the energy minister must “translate words into action.”
The campaign said it was good news if the government was going to move away from “irrational” climate policies, but warned of the “parlous state in which decarbonisation policy had left the motor sector.”
Andrew Montford, Net Zero Watch’s director, said, “If we are to save UK car manufacturing, Claire Coutinho has to cancel the Zero Emissions Vehicle Mandate for good, and soon.”
