Auto industry spurs green growth, says SMMT report.

Britain’s automotive sector is calling upon the new Labour government to leverage the industry’s success in decarbonisation for the economic benefit of the UK. A recent report reveals that direct carbon emissions from vehicle factories have halved over the past 25 years, positioning the country as an ideal hub for producing the next generation of zero-emission vehicles.

The 25th Society of Motor Manufacturers and Traders (SMMT) Sustainability Report, released today, highlights a remarkable achievement in reducing the amount of CO2 emitted during vehicle production by more than half compared to 1999 levels. This milestone was made possible through significant investments made by the industry. Additionally, the report indicates reductions of 18.0% in energy usage and 17.7% in water usage per vehicle last year, with current levels now standing at 33% and 42% below 1999 levels, respectively.

UK manufacturers are also driving reductions in on-road emissions, with a record number of electrified vehicles rolling off factory lines in 2023, marking a 48.0% increase in output. Independent analyses project that under the right investment conditions, the UK could be producing over a million zero-emission vehicles annually by 2035, supporting global exports and billions in domestic economic growth.

The new government’s commitment to an industrial strategy and its recently published Automotive Sector Plan align perfectly with SMMT’s report, showcasing the green growth potential of the UK with automotive at its forefront. Collaboration will be key to enhancing global competitiveness, attracting investments in vehicle manufacturing, supply chains, and related sectors. Ensuring sustainable and affordable energy sources, fair trade agreements promoting UK-made products, and a substantial domestic market for zero-emission vehicles are vital components of this transition.

Mike Hawes, SMMT Chief Executive, expressed optimism about the industry’s role in achieving net-zero targets, stating, “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.”

The automotive industry plays a crucial role in the UK’s economy, with auto-related manufacturing contributing £93 billion, adding £22 billion in value, and investing approximately £4 billion annually in research and development. With over 25 manufacturers producing 70+ vehicle models and 2,500 supply chain businesses, the sector employs more than 198,000 people directly in manufacturing and 813,000 across the automotive industry.

Several measures can be implemented to make sustainability a competitive advantage for the UK:

Publishing a green automotive transformation strategy to outline a comprehensive, integrated approach towards achieving ultimate sustainability goals
Introducing fiscal, tax, and regulatory support measures to attract new investments and enhance global competitiveness of domestic vehicle producers
Empowering a sustainable and transparent UK supply chain through support and guidance
Mobilising a skilled, diverse workforce for a sustainable future
Developing an ambitious and harmonised regulatory ecosystem in collaboration with businesses
Aligning UK sustainability data requirements with global market standards
Ensuring access to critical raw materials and facilitating cross-border trade to bolster supply chain resilience for zero-emission technologies

By implementing these measures, the UK can lead the way in sustainable automotive manufacturing, attracting investments, creating jobs, and driving economic growth, all while contributing to the global transition to a greener future. Image courtesy of SMMT.