Minister Warns Businesses of Potential Crushing Impact of ‘Net Zero Leviathan’
Claire Coutinho emphasized that while the government will ensure that the UK is prepared for Net Zero, she believes that it is crucial for the free market to be the driving force behind progress.
At the Innovation Zero conference in London, Coutinho warned against the implications of a central government imposing directives on achieving Net Zero. She cautioned that such central planning would restrict innovation and lead to government control over outputs and prices.
She advocated for a market-driven approach, acknowledging the uncertainties it may bring but emphasizing the importance of balancing emissions reduction with affordable energy for British families and businesses.
While Coutinho acknowledged the government’s role in preparing industries and citizens for the future, she stressed that creating the right market conditions for investment to flow is paramount.
Regarding the delay in key Net Zero targets, the Department for Energy Security and Net Zero proposed postponing quotas for the sale of heat pumps to enable industry and consumers more time to adapt.
Prime Minister Rishi Sunak also adjusted interim Net Zero targets to alleviate the potential financial burden on Britons, including extending the deadline for the ban on petrol and diesel vehicles and the transition to heat pumps.
Despite the government’s efforts, reports indicate challenges in the transition to electric vehicles, with a decline in their share of new registrations. This highlights the need for continued government support to meet Net Zero milestones.
Net Zero Watch praised Coutinho’s stance on rational energy policies but urged her to take concrete action to support the motor sector. The campaign called for the cancellation of the Zero Emissions Vehicle Mandate to safeguard UK car manufacturing.
