City leaders revolt against Sunak's 'net zero' reform

Rishi Sunak has sparked fury over his reneging on Britain's net zero pledge. Photo: Chris J. Ratcliffe/Shutterstock

City leaders have criticized Rishi Sunak for relaxing the government's net zero targets, saying the move risks hitting investment in the UK and undermining the country's position as a «world leader on climate».< /p>

Aviva, Jupiter Asset Management and the Universities Superannuation Scheme (USS) were among a group of investors who signed a letter warning the Prime Minister against abandoning the UK's climate policy. More than 30 organizations, which together manage combined assets worth more than £1.5 trillion, have written their names to the letter.

It said: “Weakening ambition at this critical moment undermines the UK’s position as a global leader climate action, undermines our international competitiveness and increases the risk that we will fail to capitalize on one of the greatest economic opportunities of the 21st century.»

“We urge the government to maintain ambition and avoid backsliding on key climate policies… Without strong policy incentives from the government, there is a significant risk of investment shifting to regions and countries that adopt more coherent policies. long-term approach.»

It comes after Mr Sunak last week delayed a ban on petrol and diesel cars from 2030 to 2035 and relaxed the installation deadline for new gas boilers. Development of the Rosebank oil field in the North Sea was also given the green light on Wednesday, further angering environmentalists.

The letter, which was sent by three umbrella groups representing major investors, calls on the Prime Minister to reconsider recent policy changes.

What are Rishi Sunak's changes to the net zero policy?

City leaders said: “Ultimately, delaying key goals and reducing the ambition of existing government policies would be a mistake.

«This reduces industry's ability to plan ahead and make investments that will reduce the cost of introducing low carbon technologies.

«The government's current approach will not only increase the UK's total emissions, but will also end up costing taxpayers more and hindering us lead efforts to implement climate solutions. future.»

The letter was sent by the heads of the Institutional Investors Group on Climate Change, the Principles for Responsible Investment and the British Sustainable Investment and Finance Association.

Earlier this week Lord Deben, a former government official, Most senior climate advisers said that Government is becoming «unconservative» by abandoning Britain's net zero pledge.

Mr Sunak said changing environmental targets would save the public the «unacceptable costs» of net zero.< /p>

Financial chiefs wrote in their letter to the Prime Minister: “Continuing to achieve the UK's long-term climate goals is fully compatible with addressing immediate challenges, including cost of living issues.”

p>“We urge the Government to maintain ambition and avoid retreats in key climate policies.

“In the absence of strong government policy incentives, there is a significant risk that investment will flow to regions and countries. who take a more consistent and long-term approach.»