Verity Davidge
Director of Policy, Make UK
The Prime Minister’s net zero announcement in September made a big splash in an already agitated green policy pond. While it might have been more nuanced than some of the initial media speculation, it was deeply concerning that in a mere matter of minutes, the direction of travel on net zero could be quite fundamentally changed.
Implications for the manufacturing sector
What industry needs right now is certainty, stability and the confidence to invest. They received the opposite. Manufacturing businesses, particularly the automotive and domestic and commercial heating subsectors, will be acutely aware of how the sands have shifted under their feet once again.
Sectors committed to tech transition
In recent years, manufacturers in the automotive sector have ramped up investments in the future of electronic and alternatively powered vehicle technology to take advantage of the anticipated seismic shift in the vehicle market come 2030. Instead, they will feel like they’ve been left holding the baby and that their accelerated commitment to investing in the next generation of vehicle technology is wasted.
It’s not just the automotive sector that has taken great strides to transition to net zero. Manufacturers of all shapes and sizes have put net zero at the top of their agendas and business priorities. The vast majority either already have a net zero strategy in place or are in the process of implementing one.
Manufacturers of all shapes and sizes
have put net zero at the top of their
agendas and business priorities.
Why we need to optimise business efforts
Manufacturers have sought to decarbonise their processes and production lines, reducing their carbon emissions and increasing their energy efficiency. We have seen some piecemeal incentives. The business rates relief for building improvements and relief for green technologies for onsite generation are welcomed. However, these incentives (or removal of disincentives) often lack one thing in common: certainty. This means short time frames that don’t relate to the average business investment cycle.
We only have to look overseas to see the big, bold and ambitious plans other nations have put in place. We run the risk of falling behind our international counterparts as a home for green technologies if we persist in frequently altering policies that impact businesses directly. Instead, we should be doubling down on our commitment to net zero.