Net-zero 2050: Sunak’s wavering commitment to environmental policy

Despite Rishi Sunak amongst polls, proving undeniably unpopular to the ordinary person, Sunak does not seem to be acting in a way that would fix this opinion of himself. The PM has implemented heavier tax burdens on the average person but not made any policy amendments to the big corporations or buildings to decarbonise them (Halpin, 2023).

The Prime Minister has stated that the sale of new petrol and diesel cars will no longer end in 2030 and will be extended to 2035 whereas the plan to make landlords across the UK make more efficient energy choices within their properties, was scrapped. The Climate Change Committee (CCC) have stated that this has not been proven by the current government as being compatible with the ‘net-zero’ by 2050 pledge.

The CCC made an assessment on Sunak’s speech in September and expressed their concern for the optimism around reaching the 2050 net-zero budget, specifically their goals in the 2030’s.

Investment needs security. With changing policies and waning trust in the strength of the policies, investment is decreasing. Investors cannot trust that these policies will remain in place or if they will be further pushed back and cause a huge cost for them, therefore halting decarbonising plans.

(Hu et al., 2023) looks into policy change in environmentalism and how this may effect investment into decarbonising countries. In this work, the study was specifically based on China however, the principle is applicable to all countries. As stated in the work “government policies and regulations are the most important factors driving firms’ green investments“. For this reason, it matters greatly that Sunak would curb these goals, lowering investment from businesses and landlords.

The Independent Review of Net Zero disclaimed that sudden policy changes “reduce investor and developer confidence, increasing the cost of capital and overall cost of decarbonisation.” Manufacturers too, came forward promptly after Sunak’s speech to say they were extremely frustrated by these decisions because there would be a mass loss to profits for these manufacturers due to the insecurity into investment, as a result of Sunak’s vague stance (Serin, 2023).

Not only this but the effect on households and families is set to be an even higher burden than before. A recent analysis from the Energy and Climate Intelligence Unit found that some households may be paying around £2150 more per year due to the new policy changes on net-zero targets. Food is expected to be £400 more expensive for some households due to ‘the impact of climate change and oil and gas prices on the farming and food system‘, and household bills are set to be £1750 more because of the delays by the UK government to implement solar panels, insulation and electric vehicles etc (Energy & Climate Intelligence Unit, 2023).

(S2S Group, 2024)

A policy gap is when a government have different expectations for policies than what the outcome is. However in a more specific context, this is about the gap between the experts (the CCC) and the policy-makers. There is a long-standing dichotomy between researchers and policy-makers – in this case, the CCC are predicting that Sunak’s administration will face a policy gap for the 2030s net-zero targets because their policies lack any evidence to prove they will meet the 2050 net-zero goal. The Chair of the CCC, Professor Piers Forster stated that “around a fifth of the required emissions reductions to 2030 are covered by plans that we assess as insufficient“. Professor Forster finishes the assessment with an urgent call for the Prime Minister to increase transparency in updating its analysis of changing policies, like the net-zero pledges.

To conclude, Prime Minister Sunak may believe that it is a pragmatic approach to delay net-zero targets and leave policy gaps for the 2030 targets on net-zero, however, his popularity is declining and it has been seen to continue to do so when there are direct effects on the burden to the individuals and households. Even if the majority of voters seem indifferent to climate change, they are vehemently against added burdens in this cost of living crisis.

BBC News (2023). Net zero sceptics warm to Rishi Sunak’s climate shift. BBC News. [online] 3 Aug. Available at: https://www.bbc.co.uk/news/uk-politics-66388718 [Accessed 12 Feb. 2024].

Dooks, T. (2023). CCC Assessment of Recent Announcements and Developments on Net Zero. [online] Climate Change Committee. Available at: https://www.theccc.org.uk/2023/10/12/ccc-assessment-of-recent-announcements-and-developments-on-net-zero/.

Energy & Climate Intelligence Unit. (2023). Cost of NOT Zero in 2022. [online] Available at: https://eciu.net/analysis/reports/2022/cost-of-not-zero-in-2022.

GOV.UK. (2022). Review of Net Zero. [online] Available at: https://www.gov.uk/government/publications/review-of-net-zero.

Halpin, D. (2023). Net Zero Policy Changes to Cost Drivers and Renters More money, Say Advisers. [online] The Independent. Available at: https://www.independent.co.uk/climate-change/news/rishi-sunak-government-government-policy-cop28-tata-steel-b2428520.html [Accessed 28 Jan. 2024].

Hu, Y., Bai, W., Farrukh, M. and Koo, C.K. (2023). How Does Environmental Policy Uncertainty Influence Corporate Green investments? Technological Forecasting and Social Change, 189, p.122330. doi:https://doi.org/10.1016/j.techfore.2023.122330.

Serin, E. (2023). Rishi Sunak’s Net Zero U-turn Puts UK Business Investment at Risk. [online] Grantham Research Institute on climate change and the environment. Available at: https://www.lse.ac.uk/granthaminstitute/news/rishi-sunaks-net-zero-u-turn-puts-uk-business-investment-at-risk/.

S2S Group (2024). Available at: https://s2s.uk.com/environmental-sustainability/carbon-net-zero/.