In his speech on 20 September, Mr Sunak acknowledged that climate change is real, that we must reduce our emissions, and promised that the UK will still 'meet our international commitments and hit Net Zero by 2050'.
But he pushed back the deadline for ending the sale of new petrol and diesel cars from 2030 to 2035, scrapped a proposed ban on the installation of new fossil-fuel boilers, and removed a requirement for energy efficiency upgrades in rented homes.
The government has also subsequently scrapped its energy efficiency taskforce, which it set up in March this year to oversee an initiative to insulate homes and upgrade boilers.
Business leaders have criticised the shifting of the goalposts, emphasising the need for certainty and long-term planning if they are to invest in developing low-carbon products and improved infrastructure.
And speaking on 2 October at the Conservative Party Conference, former Prime Minister Theresa May told party activists that Net Zero shouldn't be seen as a cost to be minimised. She said: '[Net Zero] is the growth opportunity of the century. It isn't an act of economic harm, because we've already shown we can cut emissions and grow our economy at the same time.'
Why a new approach to Net Zero?
According to the PM, the changes are being made to reduce the costs of achieving Net Zero, especially the burden on 'working people… who are already struggling to make ends meet'.
In response to a question from the press, Mr Sunak suggested that some of the measures being proposed that he was getting rid of 'would have cost typical families upwards of £5,000, £10,000, £15,000'.
So will the changes really save you money?
The PM said that the current approach imposed 'unacceptable costs on hard-pressed British families'.
We’ve looked at each of Mr Sunak’s announcements in turn; here’s what they could mean for you and your wallet.
1. Ban on sales of new petrol and diesel cars
You’ll still be able to buy new petrol and diesel cars until 2035 – five years longer than previously planned – which brings the UK in line with most EU countries. This change will be subject to a vote in Parliament.
If you were hoping to buy a new petrol or diesel car after 2030, that might be good news; however, you’re in the minority.
In 2022, just 1.61m new cars were bought, of which less than half were pure petrol or diesel vehicles (765,454 or 47%). Most (53%) were battery electric or hybrid vehicles. These were not due to be phased out in 2030.
More than 80% of people buying cars buy them second-hand. In 2022, there were 6.89m used-car sales in the UK. There was, and still is, no suggested date to phase out the sales of second-hand petrol and diesel vehicles.
We know that the purchase price of electric cars is a significant barrier to people considering buying them, whether new or used.
But the faster the take-up of new electric vehicles (EVs) by those who can pay for them now, the sooner cheaper used models will become available. So it's possible that a slower uptake of EVs will delay the availability of cheaper electric cars on the future second-hand market.
2. Phase-out of fossil-fuel boilers
A 2026 ban on the sale of off-grid oil boilers, and plans to halt the installation of gas boilers in 2035, have both been replaced by an 80% phase-out target by 2035 instead.
At the same time, Mr Sunak announced a 50% increase in the heat pump grant – the Boiler Upgrade Scheme – which will now offer up to £7,500 for households to replace a fossil-fuel heating system.
The improved grant will certainly save money for those able to make use of it, although it’s not clear whether the total amount of grant funding has increased, or whether fewer households will be supported as a result of the higher grant per installation.
For the approximately 22 million households with gas boilers, the changes will have little effect, as consumers will still be able to choose a replacement gas boiler right up until 2035.
Even after 2035, no one would have been forced to rip out a working boiler by the old policy, as it was designed to apply within the natural replacement cycle – that is, when your boiler reaches the end of its useful life.
Delaying the phase-out of fossil-fuel boilers means households may be paying higher energy bills for many decades to come, rather than switching to cleaner, more efficient heating systems.
A correctly sized, professionally installed heat pump can reduce heating bills by as much as £557 a year, according to Octopus Energy.
As things stand, though, heat pumps are generally more expensive to install than fossil-fuel boilers and many consumers are unclear about the options. A recent Which? survey of more than 2,000 people found that 44% didn't know what a heat pump was.
Rather than prolonging our reliance on global gas supplies, which was a major contributing factor to the current cost-of-living crisis, the government must do more to raise awareness of low-carbon heating systems, and work with manufacturers and installers to offer better advice to consumers about choosing the best option for their home.
3. Energy efficiency upgrades
Plans to increase the minimum Energy Performance Certificate (EPC) rating to C by 2025 for new tenancies, and 2028 for all tenancies, have been scrapped. The current minimum E rating remains in place.
Mr Sunak stated that some property owners would have been 'forced to make expensive upgrades in just two years' time'. This had only applied, however, to private landlords. Removing the requirement means that private renters living in poorly insulated homes could be left continuing to pay incredibly high heating costs with little prospect of any improvements.
The government’s own data found that 2.52 million renters are currently living in homes with an EPC rating below C, meaning they would have benefitted from the new standards that have been scrapped.
Analysis by the Energy and Climate Intelligence Unit (ECIU) found that, from October, an average household with an EPC D rating will pay £274 more per year than someone living in a home with an EPC C rating, while those living in an E-rated home will be paying an average of £505 more.
4. Scrapping other proposed 'policies'
Mr Sunak also claimed to have scrapped other sustainability-related policies, but these had never been proposed by either a Labour or Conservative government in the first place.
A proposal for the government to interfere in how many passengers are allowed in your carOptional lift-sharing schemes have been proposed – and implemented – by some organisations and local authorities as a way to reduce traffic-related emissions, but it wasn’t a government policy and certainly not compulsory.
A proposal to have seven different bins in your homeLocal authorities are required to offer collections of seven types of waste – recyclable paper, plastic, metal and glass as well as non-recyclables, food waste and garden waste – but there is no suggestion a separate bin is needed for each one.
A proposal to make you change your diet by taxing meatAcademics may have suggested the idea, but taxing meat was not a government or Labour policy.
New taxes to discourage flyingLike taxing meat, this idea has been discussed by academics and civil servants, but not proposed by government.
Is the UK a leader in reaching Net Zero?
During his speech, the PM described the UK as 'a world leader in reaching Net Zero by 2050' and 'so far ahead of every other country in the world'.
He went on to describe our reduction in greenhouse gas emissions as the fastest in the G7, down almost 50% since 1990 (compared with France at 22%, the USA with no reduction at all, and China increasing by more than 300%).
The UK was the first country in the world to adopt legally binding greenhouse gas reduction targets in 2008. While the emissions reduction statistics quoted by the PM are accurate, this method of comparison does not tell the whole story.
For example, the UK has very successfully reduced emissions from its power sector by virtually eliminating coal-fired generation, which has accounted for a large proportion of our emissions reduction since 1990. In 1990, UK emissions were approximately 601.95mtCO2e (million tonnes of carbon dioxide equivalent); by 2021, that had reduced by 42% to around 346.77mt.
By contrast, France already generated much of its electricity from nuclear power stations, so it had fewer emissions to cut in this area. In 1990, France’s emissions were 393.42mt, which was significantly lower than the UK; by 2021, it was down 22% to 305.96mt, still lower than the UK.
Per capita, France’s emissions were 6.06 tonnes per person in 2021; the UK’s emissions were 6.26 tonnes per person, so by that measure we are not a leader in the G7 or the world.
Furthermore, our impressive-sounding emissions reduction relates to production-based emissions, largely from fossil fuels and industrial processes. We have effectively outsourced many of those emissions, by shrinking our 'dirty' industries and importing goods from overseas instead. The UK's consumption-based emissions, which do account for emissions from imported goods, have reduced by a more modest 30% since 1990.
Mr Sunak also questioned how it can be right that 'British citizens are now being told to sacrifice even more than others' when our share of global emissions is less than 1%.
But statistically, is 1% actually a small number? In a global list of annual emissions, the UK comes in at number 17 in the world – that’s 17th highest emissions out of 195 countries.
And looking at historical emissions – all cumulative emissions since 1750 – the UK is fifth highest, after only the USA, China, Russia and Germany. On that basis, we have a certain amount of responsibility to clean up after ourselves.
Will the UK still reach Net Zero by 2050?
Implementing policies to achieve Net Zero is a bit like deciding when to brake when approaching a red light.
Most drivers would look ahead, see where they want to stop, and brake smoothly to bring the car to a controlled halt.
The alternative is to continue speeding ahead until the last moment, then slam on the brakes and trust to luck that you can stop in time. Whether you’re a driver or not, you will understand that quite a lot can go wrong, with potentially catastrophic consequences.
Responding to the PM’s announcements, Chris Stark, the chief executive of the Climate Change Committee, suggested that Rishi Sunak was guilty of 'wishful thinking' when he said the UK was on course to meet it climate change targets.
Mr Stark added that the UK has 'not got a policy package to hit the legal targets that this country has set in law through the Climate Change Act'.
Delaying or scrapping these policies will not save most households money in the short term, but could see the UK crashing through the Net Zero red light, adding to both the economic and human costs in the long run.
source https://www.which.co.uk/news/article/what-the-changing-net-zero-policies-will-really-mean-for-consumers-aMGe13Z2cMEZ