E3G briefing note argues EU is essential to the growth prospects of those UK low carbon industries with high export potential
The growing British electric vehicle industry is given a competitive advantage by being part of the EU, according to a new report.
Access to the European Single Market is vital to help the nascent UK electric car industry become a world leader in manufacturing of low emission vehicles, environmental think think E3G argued in a new briefing note published today.
The report comes just days after Prime Minister David Cameron argued the UK’s nascent electric vehicle sector would benefit from continued membership of the EU. Speaking during an ITV debate on the EU referendum he said “I want to make sure we are round that [EU negotiating] table, writing the rules for electric cars. I want us to be the leader, I want us to be the winners in Europe and in the world, when it comes to technologies like this”.
The E3G report argues the UK’s low carbon industries benefit in multiple ways from EU membership due to policies such as EU vehicle emissions standards, funding for low carbon infrastructure, and the provision of a stable policy environment in support of renewable energy.
The note claims if trade tariffs were imposed following a ‘leave’ vote, there would be a “substantial risk” that this would make UK proeduced clean tech less attractive to the EU market, by increasing both the direct costs of export and the cost of manufacturers’ supply chains, which are currently integrated throughout the EU.
“The UK is poised to become a global leader in the exploding electric vehicles market, which would boost exports and rebalance the economy towards advanced manufacturing and the North,” said Pete Clutton-Brock, policy advisor at E3G, in a statement. “Access to the single market and the ability to influence EU standards hold the key to achieving global leadership in this sector.”
The report noted a third of the cars made by Nissan at its Sunderland plant are currently exported to the EU, with its high sales one of the factors which led Nissan to invest £420m at the site in manufacturing capacity for the electric Leaf – now the highest selling electric vehicle in the world. In January, the firm confirmed sales growth of 29 per cent for the model in 2015 – a fact that underlines how the UK is well placed to expand its EV export market from its current value of £3bn, the report said.
While it is not yet clear whether the UK may be able to negotiate access to the Single Market in the case of Brexit, the report argued the emerging EV industry would be severely affected by being outside the world’s the largest trading bloc and would also be impacted whilst renegotiations occurred.
The report also argued access to inward public and private investment from the EU and the ability to influence EU standards in low carbon sectors with high export potential such as the EV market and the offshore wind industry are also key to the UK’s long term growth prospects. The UK is well placed to increase offshore wind exports to capture the £50bn of European (non-UK) contracts available up to 2020, the report said.
Other advantages of EU membership for both the EV market and offshore wind industry include the creation of market opportunities through mandatory vehicle emission standards, standardised charging points throughout Europe, stable policy environment, and funding from the European Investment Bank and European Fund for Strategic Investment, the report said.
