Businesses and trade bodies have said they “need certainty” to plan for the future and urged the Prime Minister to “think again”, as the Government reportedly prepares to water down some environmental targets.
Groups said uncertainty can put off potential investors, and some warned that rule changes could condemn people to live in colder homes and dirtier cities.
“Right across the UK, businesses of all sizes across all sectors are wondering what to make of the Prime Minister’s statement on net zero ambitions,” said British Chambers of Commerce director general Shevaun Haviland.
She said that the move towards a sustainable economy holds opportunities for businesses, but they need certainty to plan for it.
“Our message is simple – businesses need certainty in order to plan and prosper in what is already an extremely challenging climate.
“We must attract and maintain business investment if we are to seize the economic opportunities presented by net zero.”
Chris Norbury, the UK boss of German energy giant E.On, said that Rishi Sunak would be taking a “mis-step” if he went ahead with plans.
Measures being considered include weakening the plan to phase out gas boilers from 2035 and delaying the ban on the sale of new petrol and diesel cars – currently due in 2030 – by five years, the BBC reported.
Home Secretary Suella Braverman told Times Radio on Wednesday: “We’re not going to save the planet by bankrupting the British people.”
But Mr Norbury said: “There is no ‘green vs cheap’ debate, it’s a false argument that only serves to delay the vital work of transforming our economy – work that creates more affordable and secure energy while also boosting jobs and skills, often in the areas of the country most at risk of being left behind.
“This is a mis-step on many levels. From a business perspective, companies wanting to invest in the UK need long-term certainty to create the jobs and economic prosperity the country needs.
“Equally, in our homes and communities we risk condemning people to many more years of living in cold and draughty homes that are expensive to heat, in cities clogged with dirty air from fossil fuels, missing out on the economic regeneration this ambition brings.
“Net zero is an opportunity to transform our economy and the lives of people across the country and the Government needs to think again before abandoning our climate commitments for this decade.”
Weakening its targets sends the wrong signals, deters investment and turns heads towards countries with more stable regulatory environments. It places the UK’s prospects as a clean tech leader at serious risk
Julian David, chief executive of techUK
Emma Pinchbeck, the boss of Energy UK, the trade body for energy firms, said that it was a “fallacy” to say that “‘ordinary people’ don’t benefit”.
She said that giving businesses clarity helps them create cheaper products for customers, that energy efficiency reduces customer bills, and that recent sky-high energy bills were caused by gas prices, not by green energy.
“As briefed, I can see nothing in this speech that helps people, or which truly engages with the challenges of the transition (grid, planning, skills), as opposed to policies which would help reduce costs for households,” she said.
She added: “This was a leak, and let us hope the wider speech is better considered and positive.
“But the politics is the thing for me – playing politics with net zero isn’t prudent: The future British economy, household prosperity, rest on clarity and ambition.”
Like others, Julian David, chief executive of techUK – a trade body whose members include Amazon, Apple and BAE Systems – said that businesses need stable policies.
“To make the long-term investments necessary to achieve net zero, businesses need a clear and stable policy environment.
“Weakening its targets sends the wrong signals, deters investment and turns heads towards countries with more stable regulatory environments. It places the UK’s prospects as a clean tech leader at serious risk.”
