UK’s new approach to net zero but commitments remain

It was inevitable that a backlash of some sort against green measures, net zero, and the like would be seen, especially given the current economic climate. In the US it seems to have bizarrely become part of a war on ‘woke’, but in Europe at any rate, the rules and regulations keep coming, and consumers and business are, on the whole, trying to do the right thing. But the cost-of-living crisis, inflation, interest rate increases, and the energy crisis have conspired to make this much harder for ordinary people. And so it was perhaps no surprise that with an election coming up next year in the UK, and the Conservative Party way behind in the polls, that Rishi Sunak should announce a rolling back of the UK’s commitments around net zero. Or as he put it in his speech, “adopting a more pragmatic, proportionate, and realistic approach to meeting net zero that eases the burdens on working people”. Sunak’s new stance wasn’t helped by the fact that a number of the things he said he was scrapping, such as proposals for taxes on eating meat, compulsory car sharing if you drive to work and a government diktat to sort domestic rubbish into seven different bins, have never been government policies, or even discussed as policies. Nevertheless, his speech seemed to be suggesting that green policies and net-zero targets were not wholly appropriate when people are struggling with a cost-of-living crisis. Whether this is a desperate throw of the dice by the Conservatives, or is based on real evidence and polling, is yet to be seen. The UK currently seems to want to take a short-term approach to a long-term problem. But there is some evidence that sustainability attitudes and behaviours may be slightly changing as a result of economic circumstances. Back in July, Deloitte’s Global Sustainability Survey across more than 20 countries showed “some overall softening of support for climate action and fewer people saying they are making sustainable choices”. Deloitte said: “The pullback is not confined to respondents’ willingness to pay a ‘green premium’ for sustainable goods and services. We also see respondents noting less backing for government climate action and lower participation in advocacy activities like attending climate rallies or donating to environmental groups. Fewer respondents report advocating for sustainability in their workplaces, or say they’d be willing to switch jobs to work for a more sustainable employer as well.” It went on to note differences based on economic circumstances, with data suggesting that those who perceive themselves to be ‘high income’ are more likely to engage in a variety of sustainable behaviours, while those who self-identify as lower- or middle-income and those who say their personal financial situation has worsened in the last year are less likely to buy sustainable goods, look for a job with a more sustainable employer, or communicate with government officials about climate change, among other actions. As Deloitte noted: “It could be a worrying dynamic if we’re to realise a rapid and durable transition to a low-carbon economy. Broad-based consumer demand can be an important factor to bring sustainable goods and services along the learning curve and drive down costs.” But set against that, other recent surveys suggest that green issues are important to consumers when making purchases and using services. Perhaps more importantly, consumers want to trust businesses when they make claims about their products, and there is evidence of a hardening of attitudes against companies perceived to be ‘greenwashing’. A recent survey by KPMG UK found more than half of UK consumers would stop buying products and services from companies found to have greenwashed, and almost a fifth (18%) have changed their mind about a company due to misleading green claims. The survey revealed that 54% of consumers would stop buying from a company if it was found to have been misleading in its sustainability claims, while 38% would stop investing in it. It also found that two-thirds of consumers (67%) try to seek out green or sustainable options for some of the products and services they buy, although a third said they were sceptical of green labels and sustainability claims. So as the UK experience appears to show, there are risks on all sides. Risk of inaction, risks of too much action, and risks of apparent action without the evidence to back it up. But it seems unlikely that the march towards net zero will be derailed or significantly slowed by the sort of political manoeuvring seen in the UK. Even Sunak reiterated that he was not abandoning any of the UK’s targets or commitments, and said he was “unequivocal that we’ll meet our international agreements including the critical promises in Paris and Glasgow to limit global warming to 1.5 degrees.” Perhaps the upcoming COP28 in Dubai will shed more light on the UK’s position, and others, but the EU certainly shows no signs of any let up in commitments and regulations.

UK’s new approach to net zero but commitments remain

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