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UK Auto Makers Spearhead Green Growth With Halved Carbon Emissions Since 1999
Britain's automotive sector is urging the new Labour government to leverage its decarbonisation achievements for economic gain. A recent report reveals that direct carbon emissions from vehicle factories have halved over the past 25 years, positioning the UK as a prime location for producing zero-emission vehicles.
The Society of Motor Manufacturers and Traders (SMMT) published its 25th Sustainability Report, highlighting a significant reduction in CO2 emissions from vehicle production. Since 1999, emissions have decreased by 54%, thanks to substantial industry investments. Additionally, energy and water usage per vehicle dropped by 18% and 17.7% respectively last year, now standing at 33% and 42% below 1999 levels.
The automotive sector is crucial to the UK's economy, generating £93 billion in turnover and £22 billion in value added. The industry typically invests around £4 billion annually in research and development. It employs over 198,000 people directly in manufacturing and supports a total of 813,000 jobs across the wider industry.
Mike Hawes, SMMT Chief Executive, stated, "Britain’s automotive sector has been cutting carbon for decades and this new milestone is significant, not just for industry but for the nation’s move to net zero. We look forward to working with the new government to deliver its green growth agenda that puts Britain at the front of the queue for global investment and sustainability leadership."
Independent analysis suggests that with favourable investment conditions, by 2035, over a million ZEVs could be produced annually in the UK. These vehicles would be exported globally, contributing significantly to domestic economic growth. The new government's commitment to an industrial strategy and its Automotive Sector Plan highlights the potential for green growth driven by the automotive industry.
Collaboration will be essential to enhance global competitiveness and attract investment in vehicle manufacturing and supply chains. Providing sustainable and affordable energy is crucial, along with fair trade agreements that promote UK-made products while ensuring access to essential raw materials.
Measures to Enhance Competitiveness
The SMMT outlines seven measures to make sustainability a competitive advantage in the UK:
- Publishing a comprehensive green automotive transformation strategy.
- Introducing fiscal, tax, and regulatory support measures to attract investment.
- Empowering a sustainable UK supply chain through support and guidance.
- Mobilising a skilled and diverse workforce.
- Developing an ambitious regulatory ecosystem aligned with global standards.
- Ensuring high sustainability data requirements match automotive companies' ambitions.
- Maintaining access to critical raw materials and supporting cross-border trade.
Sustainability Achievements
The report also notes record volumes of electrified vehicles produced in 2023, with output increasing by nearly half (48%). This achievement underscores the industry's role in reducing on-road emissions. The sector includes more than 25 manufacturers producing over 70 vehicle models, supported by approximately 2,500 supply chain businesses.
A diverse workforce capable of designing, building, maintaining, and repairing ZEVs is fundamental for a successful transition. Many automotive jobs are located outside London and the Southeast, offering wages about 13% higher than the national average. The industry also supports employment in sectors like steel, chemicals, plastics, rubber, advertising, finance, and logistics.
The SMMT emphasises that providing more sustainable energy sources is vital for maintaining competitiveness. Free trade agreements promoting UK-made products globally are equally important. A robust domestic market for ZEVs is necessary as manufacturers prefer proximity to their sales markets.
The UK manufactures almost every type of vehicle including cars, vans, taxis, trucks, buses, coaches as well as specialist vehicles. This diversity is supported by over 2,500 component providers and some of the world's most skilled engineers. The sector also boasts vibrant aftermarket and remanufacturing industries.
The SMMT remains committed to working with the government on delivering its green growth agenda. This collaboration aims to position Britain at the forefront of global investment while enhancing sustainability leadership within the automotive sector.
The automotive industry's contribution extends beyond manufacturing; it supports key sectors such as advertising chemicals finance logistics steel among others. This interconnectedness underscores its importance within the broader UK economy.
The SMMT continues advocating for policies that bolster sustainability while ensuring competitiveness on a global scale. Their efforts aim at fostering an environment conducive to innovation investment job creation within Britain's automotive landscape.
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