Last month the Government announced a surprise cut to the grants available for buyers of new electric vehicles (EVs) and restricted eligibility to only the cheapest models.[1] The cut is the Government’s response to the growing popularity and falling prices of EVs, which threatens to blow the budget of the UK’s grant programme. The design of the grant programme sets up the Government to fail – to be seen as the climate Scrooge in the same year it hosts COP26, constantly intervening to cut support for EVs just as more drivers look to take the plunge.

Negative emissions are piquing the interest of the Government, as shown in its recent  announcement of innovation funding for new negative emission technologies (NETs). However, policies based on grants and innovation funding are short-term options – they act as the spark to get the kindling going, but the fire requires continuous government support until the flame catches.

The Government’s post-Brexit “Better Regulation Committee” is reportedly looking at ways to improve on EU regulations.[1],[2]­Policy Exchange’s recent report, Post-Brexit freedoms and opportunities for the UK, is one contribution to that debate.[3]Understandably, most of the focus has been on state aid, financial services and workers’ rights. One area that I think isn’t getting enough attention is energy markets.

New figures show that 2020 was the greenest year yet for the UK’s electricity supply, with nearly 60% of electricity produced by low-carbon sources. Offshore wind is now the driving force behind the UK’s greener grid, growing by around a quarter annually and already providing 17% of our electricity.

In 2021, the UK will host the G7 and COP26 and take a key part in other major summits, giving it a unique opportunity to lead the global diplomatic agenda. This report argues that he UK should use its position to drive a programme of green finance reforms that will enable a fundamental shift to a sustainable global economy.

The Energy & Environment Unit at Policy Exchange launched a paper warning that the installation of electric vehicle chargepoints would have to be five times faster during the 2020s to make the petrol and diesel vehicle ban workable. The report was authored by Ed Birkett, Senior Fellow and William Nicolle, Research Fellow at Policy Exchange. The release coincided with the Government’s announcement of £20m additional funding for EV charging infrastructure. Read coverage of the report in The Telegraph, Sky News, Bloomberg and BBC News. Read the report here.