How decarbonising road transport can be a success story for UK industry

The automotive industry – whether in the UK, EU or USA –  faces the biggest challenge in its 120 year history with the switch to electric cars and the threat of increased competition from China. Public policy responses to this vary. The European Union and its member states are ramping up support for car, van and truck makers and their supply chains to meet these challenges. The USA offers massive subsidies through its Inflation Reduction Act. In the UK by contrast, even having an industrial strategy is contested and UK car makers struggle with post-Brexit realities.

This briefing sets out Transport and Environment UK’s thinking on how the UK should approach climate and industrial policies that can together deliver strong environmental, social and economic goals. It sets out why an industrial policy is important for the UK’s climate ambitions (and why industry needs an effective climate policy); the specific circumstances in the UK for the motor industry and climate change; and recommendations on what industrial policy in the transition to net zero should look like.

T&E UK recommends six areas where the UK Government can act. Government policy needs to: