Britain to water down green targets as economic reality bites

By Charlie Cooper | 11/27/2024 01:03 PM EST

The U.K.’s Labour government has made a big bet on environmental policies — but what happens when green goals clash with ambitions for growth?

Britain's Prime Minster Keir Starmer departs 10 Downing St.

Britain's Prime Minster Keir Starmer departs 10 Downing St. to go to the House of Commons for his weekly prime minister's questions in London on Wednesday. Kin Cheung/AP

LONDON — Faced with a clash between driving growth and going green, the new U.K. Labour government has sent a signal about its priorities: staying in power trumps all.

Prime Minister Keir Starmer’s government is poised to relax rules on U.K. electric vehicle (EV) sales, which are central to his government’s climate ambitions but have faced intensive lobbying from the car industry.

The pace of the switch to climate-friendly EVs is having “negative effects” on the car market and on the U.K.’s “attractiveness” to investors, the Society of Motor Manufacturers (SMMT) warned last week.

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And with growth central to Labour’s hopes of staying in office by turning around a stagnant U.K. economy, Starmer’s top team is clearly listening.

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