Fund managers warn government over net zero target
investmentweek.co.uk'The problem is, as soon as the government starts making comments or noises suggesting that might not actually be the direction of travel after all, it saps the confidence of private investors.'
One point raised in the letter mentioned a ban on new petrol and diesel cars by the end 2030. Doubt has been cast on this policy by Prime Minister Rishi Sunak in recent weeks, while cabinet minister Michael Gove subsequently described it as «immovable».
Climate Change Committee warns UK has 'lost' its global net zero leadership position
Confusion around this and other green policies could stop the finance sector from investing the £50bn to £60bn a year needed to hit the emissions goal, the fund houses said in its report.
The letter, sent to the prime minister, has been signed by 36 financial institutions that are members of the UK Sustainable Investment and Finance Association (UKSIF) including Jupiter Asset Management, Royal London and Scottish Widows.
James Alexander, CEO of UKSIF, said: «The global competition to capture billions of pounds of private investment in the clean industries of the future is intense. Ministers' recent remarks are undermining investor confidence and putting the UK's net zero head start at risk.»
The group of investors wants the government to provide a more reliable stance on long-term policy areas such as building energy efficiency standards, carbon-pricing mechanisms and the transition to electric vehicles.
On electric vehicles, Kemi Badenoch, the secretary of state for business and trade, has previously poured cold water on incoming targets, telling cabinet colleagues they will harm investment in Britain, repeating a warning from car manufacturers.
From January, at least 22% of new car sales in the
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