The Society of Motor Manufacturers and Traders (SMMT) calls for halving VAT on new electric vehicle purchases to drive 2.3 million zero-emission car registrations by 2035, aiming to replace over 17 million fossil-fuel vehicles. Meanwhile, The Nature Conservancy study shows Florida’s economy can prosper through decarbonization, backed by experts advocating for strategic investments.
The Society of Motor Manufacturers and Traders (SMMT) has published its Vision 2035: Ready to Grow at the International Automotive Summit, urging the next UK government to collaborate with the automotive industry to generate an estimated £50 billion over the next decade. Key proposals include halving VAT on new electric vehicle (EV) purchases, which could result in 2.3 million additional zero-emission car registrations within three years and seeing more than 17 million fossil-fuel cars replaced by zero-emission vehicles by the end of 2035.
The plan also emphasizes low-cost, low-carbon electricity and an industrial transformation strategy, potentially increasing the value of the new car market from £70 billion to nearly £80 billion annually and boosting light vehicle production with over nine million zero-emission cars and vans produced by 2035.
In parallel, a study by The Nature Conservancy concluded that Florida’s economy could grow even if the state eliminates carbon emissions by 2050. Utilizing an economic model based on a greenhouse gas inventory by the Florida Climate Institute, the study estimates that decarbonization could increase the state’s economy by 2%, requiring an investment of just over $195 billion. This would primarily involve renewable energy deployment and transportation electrification.
Experts, including Janet Bowman from The Nature Conservancy and Michael Snipes from the University of South Florida, support the findings, suggesting that the economic and environmental benefits are achievable with the appropriate investments.