UKSIF, PRI and IIGCC CEOs warn UK PM about backtracking on net-zero policies

Written by Adam Cadle

28/09/2023

The CEOs of UKSIF, Principles for Responsible Investment and the Institutional Investors Group on Climate Change (IIGCC) have written to UK Prime Minister Rishi Sunak signalling deep concern with recent proposals to “backtrack on vital policy measures that support the UK’s transition to net-zero”.

Last week, Sunak said he would delay a ban on the sale of new diesel and petrol cars by five years to 2035 and confirmed a weakening of targets to phase out gas boilers.

“Diluting ambition at this critical juncture erodes the UK’s position as a global leader on climate, undermines our international competitiveness, and increases the risk that we fail to capitalise on one of the greatest economic opportunities of the 21st century,” the leaders argued.

“Long-term ambitions to reach net-zero are a necessary starting point. But without a coherent, whole-of-government approach to the economic transition, underpinned by detailed policies to deliver on these ambitions, they are simply not achievable. This is as much true of policymaking as it is of the transition plans that a growing number of investors, and the companies they own, are implementing. To meet the UK’s legally binding climate commitments, we need to catalyse an additional £50-60bn of capital each year. Private finance will make up the bulk of this capital, and investors stand ready to support. But to create the conditions to accelerate net-zero investment, we need government to uphold the ‘four Cs’ that underpin effectively policymaking – certainty, consistency, clarity, and continuity.”

Furthermore, the CEOs warned that delaying key targets and lowering the ambition of existing government policies would be “misguided”.

“It reduces the capacity of industry to plan ahead and make investments that will drive down the costs of adopting low-carbon technologies.”

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