UK risks falling behind in the global race for green investment

Simon Virley CB, Vice Chair and Head of Energy and Natural Resources for KPMG in the UK, said:

“Large-scale business investments in the industries of the future, like electric vehicles and low-carbon heating technologies, and their accompanying supply chains, are only possible if there are stable, long-term policies in place.  The constant uncertainty that comes with changes in target dates and commitments, simply makes it harder to attract the investment we need to boost the UK economy and reach our legally binding Net Zero goals.  The risk now is that the UK will continue to fall behind in the global race for green investment, and our homegrown businesses will lose out.” 

Adding more regarding the change to the automotive net zero target:

Richard Peberdy, Head of Automotive for KPMG in the UK, said: “The 2030 deadline set a ban on the sale of new petrol and diesel vehicles but not a ban on the ownership or use of them, or the buying and selling of them in the used car market.  The deadline gave the industry certainty on which to invest, which was supported by consumer and industrial strategy.  Car manufacturers subsequently invested billions of pounds in new electric vehicles, their control systems and the battery technology and production required to support them.  At the same time, they are having to support and fund a declining supply chain for internal combustion engine vehicles, which will become more costly and complex to secure over time.

“Whilst delaying this deadline allows for more time for transition to electric vehicles and investment to be made in related infrastructure, we have already seen that big concerns are being raised by some of the automotive industry about the impact of this decision on investment plans, the consumer desire to transition to EVs, and the certainty that business can have in the new deadline.” 

ENDS

Media contact:

For ESG/Energy: Claire Barratt, +44 (0)7923 439264, claire.barratt@kpmg.co.uk

For Automotive: Steven Reilly-Hii, +44 (0)7510 376635, steven.reilly-hii@kpmg.co.uk

About KPMG UK: 

KPMG LLP, a UK limited liability partnership, operates from 20 offices across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.72 billion in the year ended 30 September 2022.  

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 265,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.