Stephanie Pfeifer shares her view in response to the UK Prime Minister's decision to delay key net zero targets, including the phase out of petrol and diesel cars from 2030 to 2035.
"The transition of the UK economy to net zero represents a significant economic opportunity.
The UK’s long-term, legally binding net zero commitments are not enough to provide investors with confidence if they are not supported by credible short- and medium-term policies to deliver on them. The government’s mixed signals on issues like electric vehicles and gas boilers create uncertainty that makes it harder for investors to factor climate considerations into their long-term investment decisions.
Critically, investors are more willing and able to invest in climate solutions in the UK if the government can demonstrate supportive and stable policies, as the EU and US are doing. Simply put, the UK risks missing out on considerable investment if the government continues down its current path.
Ultimately, clear and consistent policymaking is a prerequisite for investors looking to make long-term investment and asset allocation decisions and for maintaining their confidence – something the latest moving of the goalposts fundamentally undermines."
Disclaimer: The statement represents the views of Stephanie Pfeifer and the IIGCC team. It does not necessarily represent the views of IIGCC members either individually or collectively.