First GIUK Online Meeting of 2025

Policy & Incentives to drive UK Businesses towards a Net Zero future

Thursday 27th February, 2025

GIUK ONLINE MEETING VIA `TEAMS`

Description

Following on from our research into the current challenges facing German business in the UK, another issue raised by a number of members was the current absence of a cohesive plan to support UK businesses in their transition towards Zero Emissions.

On Thursday, 27th February, some 20 members and guests joined our online Teams meeting One/25 to discuss the current challenges faced by business in the UK as a result the Government’s plans to transition to Zero Emissions, and how they could be enhanced to better engage businesses to achieve the objective.  Speakers were our members Chris Adcock, Managing Director of ZF UK and Darren Turrell, Managing Director of Efaflex UK and the meeting was chaired by our Chief Executive, Phil McClennon.

A number of members contributed to the discussion with parallel insights across diverse industries, highlighting that different Government departments had a variety of Net Zero related agendas but the alignment across them was not clear. 

Members felt that the current policy emphasis on EV proliferation was both too narrow and fast paced and that widening the scope of incentives beyond EVs should be a top priority.  Even within the mobility topic, members felt that a more appropriate transition pace would open the door for commercialisation of other routes to Zero Emissions, such as efuels and hydrogen, which could also relieve some of the strategic and economic challenges faced by the automotive sector. 

A number of members from larger corporate entities, gave specific examples of how the Zero Emissions agenda of different Governmental departments didn't align or interconnect and felt the need for that to be the case to embolden their transition investment plans.  They also cited how they had engaged in discussions with ministers in industry sector groups, to give specific input to policy creators but that they had yet to see the fruit from those interactions. 

Members from SME businesses highlighted how they felt overlooked in current Zero Emissions transition policy and could really contribute much to the Governments objectives where the right framework and clarity was in place.  For SMEs the alignment of regional and mayoral authorities is key.  Many of these members felt that even with the expected concentration and empowerment of regional and mayoral authorities, until SMEs are prioritised and the clarity and structure provided, many opportunities would be left on the table.

Specific effective policy options were also shared by members, such as applying a similar scheme to 'super-deductions' for Zero Emissions based investments for businesses across sectors. 

Overall, members are hoping that Government define a comprehensive scheme to align initiatives across departments and effectively promote Zero Emissions based investment through policy.

A follow-up meeting was suggested to expand upon the matter across the wider scope of GIUK members` sustainability efforts and investments.

In conclusion, our Executive President, Dr Bernd Atenstaedt, said that he will send this report to the Rt Hon Lord Hunt of Kings Heath OBE, Minister of State (Minister for Energy, Security and Net Zero) at the Department for Energy, Security and Net Zero asking for a meeting with us, hopefully online, to discuss this further.  He also mentioned his recent correspondence with The Rt Hon Baroness Jacqui Smith Minister for Skills at the Department for Education who set out the new Government Education and Skills Agenda. 

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