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Keir Starmer must smash one dogma that is economic masochism for UKOPINION

Keir Starmer must smash one dogma that is economic masochism for UK (Image: Jack Taylor/PA Wire)

Prime Minister Sir Keir Starmer’s decision to relax electric vehicle mandates is a very rare nod to economic pragmatism in a British climate agenda gone rogue. While the move acknowledges the immediate pressures of tariffs and faltering consumer demand for EVs, it fails to address the root problem: Britain’s Net Zero obsession is strangling industry, inflating costs, and alienating voters. This half-measure underscores a painful truth—green dogma is incompatible with economic survival.

Donald Trump’s 25% tariff on UK car exports has seen Jaguar Land Rover halt U.S. shipments, impacting a market worth £8 billion annually. This exposes the fragility of an automotive sector shackled by Labour’s Zero Emission Vehicle (ZEV) mandate. Starmer’s response—cutting fines for missed EV targets to £12,000 per vehicle and allowing hybrids until 2035—is a tacit admission that rigid green mandates are economically suicidal. Yet retaining the 2030 petrol-car ban and annual EV quotas (28% in 2024, rising to 80% by 2030) ensures the industry still remains in a hostage drama to ideological targets divorced from market realities.

This isn’t leadership; it’s damage control.

The government’s £2.3 billion “investment” in EV infrastructure, recycled from 2023 budgets, offers no fresh relief. Meanwhile, the National Grid warns that mass EV adoption by 2030 demands £16.7 billion in upgrades—costs dumped on households and businesses already reeling from energy price hikes.

Proponents tout the UK’s “£83.1 billion net zero economy” as proof of green success. But this figure masks critical truths:

  • Consumer Resistance: EVs remain 42% pricier than petrol cars, with charging infrastructure lagging demand. Only 19% of new cars sold last month were electric, far below the 28% mandate.
  • Hidden Costs: The Climate Change Committee estimates Net Zero could cost £1.4 trillion by 2050—equivalent to 1-2% of GDP annually.
  • Productivity Myths: While net zero jobs technically pay 15% above average, abrupt transitions risk hollowing out high-productivity sectors like manufacturing.

The ZEV mandate’s annual targets—a bureaucratic fantasy—have created a “hope over reality” market. Manufacturers face billions in fines for missing quotas consumers never asked for.

This isn’t policy; it’s masochism.

While Trump’s tariffs dominate headlines, the EU’s Corporate Sustainability Due Diligence Directive (CSDDD)—effective July 2026—threatens to bury British businesses under ESG red tape.

Let's take a quick look at it.

  • 5% Global Turnover Fines: Non-compliance penalties could bankrupt SMEs.
  • Supply-Chain Totalitarianism: Companies must audit every supplier for “human rights risks,” from Congolese cobalt mines to factory floors.
  • Legal Quicksand: Victims of alleged violations can sue for damages, inviting activist litigation.

For Jaguar Land Rover (£22.8 billion revenue), a 5% fine equals £1.14 billion—a death knell for smaller suppliers. The CSDDD isn’t climate policy; it’s regulatory warfare masquerading as virtue.

The net zero sector claims 951,000 UK jobs, but most are subsidised roles in wind and solar—industries wholly dependent on taxpayer largesse. For every “green job” created, 1.89 are lost in high-productivity sectors like manufacturing.

Take the proposed £20 billion gigafactory in Somerset: even if built, it would employ just 4,000 workers—a drop in the ocean compared to the 200,000 jobs at risk from EV mandates.

Meanwhile, China dominates battery production with coal-powered plants, while India builds 50GW of new coal capacity yearly. Britain’s unilateral Net Zero sacrifices competitiveness for symbolism.

A Tesla Model 3’s lifecycle emits more CO₂ than a diesel Mercedes C220D due to battery production’s carbon intensity. Mandating EVs doesn’t save the planet—it offshores pollution to Chinese factories.

The lithium-ion battery in a typical EV requires mining 500,000 pounds of earth for raw materials. Over 70% of cobalt, a key component, comes from the Democratic Republic of Congo, where child labour and environmental degradation are rampant. Green policies aren’t saving the planet; they’re outsourcing exploitation.

The CSDDD’s €450 million compliance threshold will trap mid-sized UK firms in audit hell. For a £500 million turnover manufacturer, tracking every mineral in its supply chain could cost £10 million annually—a 2% profit margin erased.

Smaller firms lack the resources to navigate this bureaucratic labyrinth. A Midlands-based auto supplier told a national newspaper: “We’re already drowning in ESG paperwork. The CSDDD will finish us.”

While Britain cripples its industry with Net Zero, competitors are doubling down on realism:

  • U.S.: Trump’s tariffs and Biden’s $369 billion Inflation Reduction Act prioritize domestic energy dominance.
  • China: Controls 80% of rare earth minerals and 70% of battery production, powered by coal.
  • India: Plans to build 50GW of new coal plants annually until 2030.
  • Britain’s unilateral green crusade isn’t leadership—it’s economic suicide.

To survive, Britain must:

  • Scrap the 2030 Petrol-Car Ban: Let consumers—not bureaucrats—drive adoption. Norway’s EV boom succeeded through incentives, not coercion.
  • Immediately abolish the ZEV Mandate: Annual sales quotas distort markets and punish innovation.
  • Reject EU Green Overreach: The CSDDD’s Meta-ESG rules will paralyse SMEs. Post-Brexit Britain must chart its own course.
  • Invest in Nuclear and Gas: Stable energy sources can power industry without blackout risks.

The EV retreat is a necessary correction, but tinkering at the edges won’t save British industry. Net Zero’s costs—soaring energy prices, deindustrialisation, and regulatory capture—far outweigh its nebulous benefits.

With the CSDDD poised to ensnare supply chains, Britain faces a choice: cling to green fantasies or embrace energy realism. The mandates must die—before they take the economy with them.

Britain must choose: lead with pragmatism or fade into green irrelevance. The clock is ticking.


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