The Roadblocks to Going Green: Struggling Consumers are Resisting
Public resistance grows against climate policies due to perceived high costs However, delaying net-zero measures will prove even more costly for consumers and have severe environmental consequences
An elderly British woman criticized the expansion of a toll on older, polluting vehicles to outer suburbs of London, stating that only the wealthy can afford a new car. She emphasized that the measure affects many poor people and highlighted the conflict between the desire for clean air and the financial burden it imposes. This sentiment reflects the increasing resistance to pro-climate measures due to their impact on household budgets and daily routines.
Income erosion due to rising food and energy costs, as well as high borrowing expenses, has affected many individuals over the last 18 months. Even those who acknowledge the necessity of climate action are finding it difficult or impossible to absorb added costs in such circumstances. According to Brett Meyer and Tone Langengen at the Tony Blair Institute for Global Change, a think tank, there is currently a growing opposition to net-zero policy across Europe.
The net-zero policy aims to reduce pollution that contributes to global warming. Scientists have set a target for greenhouse gas emissions to reach zero by 2050, taking into account both emissions released into and removed from the atmosphere, in order to prevent devastating climate change.
Langengen and Meyer noted that although most people believe climate change is a problem and support policies to combat it, this support tends to wane once the costs of green policies are felt.
Why public attitudes matter
Consider two recent opinion polls. According to a 2022 Pew survey spanning 19 countries in North America, Europe, and the Asia-Pacific region, climate change emerged as the primary global concern. Within Europe, a greater number of respondents expressed concern about its impact on their country compared to any other time in the last twenty years.
"The Pew researchers wrote in August last year that the results come as wildfires and extreme heat across Europe cause massive disruption to life, before another bout of deadly wildfires ravaged Greece this summer.
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In February 2023, wind turbines near Whitewater, California are a clear indication of the urgent need to reduce planet-heating emissions. However, climate policies have become a contentious issue in the culture wars.
Title: The Push and Pull of Climate Solutions in a Divided Society
However, a recent survey conducted by Ipsos in 29 countries earlier this year revealed that only 30% of respondents were open to paying higher taxes in order to combat climate change.
According to Anna Valero, a distinguished policy fellow at the London School of Economics and Political Science (LSE), public attitudes play a crucial role in achieving net-zero emissions due to the significant changes that are needed for the transition. She emphasized that this transition will impact people's lives on a large scale, from how they heat their homes and the vehicles they use, to the skills required for the necessary jobs during the transition.
"Since citizens play the roles of voters, consumers, and workers, they have the power to 'influence the practicality of various initiatives,' she stated. 'Policymakers are constrained by the level of public support for their programs, and businesses are constrained by consumer demand for more environmentally sustainable options.'"
Carmakers in the United Kingdom and the United States are being forced to provide discounts and low-cost financing in response to lower-than-anticipated demand for electric vehicles, as reported by HSBC.
One popular option is to transition to an electric car, however, there is already a decrease in consumer demand. The CEO of Volkswagen, Oliver Blume, pointed to a slow growth in the electric vehicle market in Europe as the reason for the company's decision not to build more battery factories at this time, beyond the three plants already in the plans. He stated, "For now, there is no business justification for expanding to other locations."
Sales data compiled by HSBC reveals that car manufacturers in the United Kingdom, Germany, and the United States are being forced to provide discounts and affordable financing to offset lower-than-anticipated demand for electric vehicles.
The Duna oil refinery in Szazhalombatta, Hungary, is a key site for MOL Hungarian Oil & Gas Plc, a multinational company based in Budapest. As one of the largest refineries in Eastern-Central Europe, it receives Russian oil via the Friendship oil pipeline. The facility features oil transportation pipes, cracking towers, and storage tanks. (Photo by Janos Kummer/Getty Images)
"The discounts in the UK are increasing, and it appears that more brands are beginning to offer them," wrote the auto analysts from the banks in a note last month.
Policymakers' backpedaling is not beneficial. In September, UK Prime Minister Rishi Sunak weakened the government's climate strategy by postponing the ban on the sale of new gas and diesel cars by five years, among other changes.
Ford (F), who had anticipated an increase in demand for EVs with the earlier timeline, strongly criticized Sunak's decision to delay it until 2035.
There is no trade-off
Sustained discounting may be necessary to incentivize a greater number of drivers worldwide to make the switch to EVs. For instance, in the United States, transitioning to electric vehicles still entails paying a premium compared to the average gas-powered model: as of October, the average price of a new EV was $51,762, as opposed to $47,936 for all vehicles, according to auto research firm Kelley Blue Book.
The initial investment in climate-friendly products like EVs and heat pumps may seem high, but they are likely to save consumers money in the long run. The Climate Change Committee, an independent adviser to the UK government on climate strategy, stated that postponing the ban on gas-guzzling cars is expected to raise household motoring costs.
Last month, the committee reported that electric vehicles will have significantly lower lifetime ownership and operating costs compared to petrol and diesel vehicles. Any obstacles to their widespread adoption will ultimately lead to increased costs.
The same applies to heat pumps, which use electricity to transfer heat from sources like air or ground. These pumps are commonly used in Scandinavian countries like Norway and Sweden, which experience harsh winters.
According to Aira, a Swedish heat pump firm, heat pumps could potentially lower the average UK household's heating bill by 25% and decrease the average home's carbon emissions by 75%.
Aira's "clean energy experts" installing a heat pump at a house in Essex, UK. The Swedish firm wants to get 1 million British homes off natural gas.
Aira UK
CEO Martin Lewerth told CNN that there is no compromise between installing a heat pump, protecting the environment, and saving consumers' money. However, the cost of a heat pump, including installation, is significantly higher compared to a traditional natural gas-powered boiler, making it a less affordable option for many despite government grants.
There is a scarcity of engineers with the ability to install and maintain heat pumps, which contributes to increased costs and serves as a hindrance. Acknowledging this issue, Lewerth stated that obtaining a heat pump is not a straightforward process for those living outside Scandinavia. In an effort to overcome these obstacles, Aira, which recently debuted in the UK, is introducing monthly payment options. Additionally, the company plans to establish "Aira Academies" throughout Europe to retrain gas boiler installers and transform them into proficient "clean energy experts."
The cost of delay
According to Lewerth, swapping out a gas boiler for an electric heat pump is equivalent to removing two combustion engine cars from the street. Once individuals grasp that this option is not only more affordable but also a superior solution, it will gain momentum on its own.
Delaying the implementation of net-zero measures while scientists are pushing for accelerated climate action will ultimately be more costly for consumers and have devastating consequences for the planet. "There is no situation in which postponing action on climate change is the more affordable choice," explained Bob Ward, director of policy and communications at the Grantham Research Institute on Climate Change and the Environment at the LSE.
The cost of transitioning to address climate change, although substantial, pales in comparison to the economic consequences of not taking action. In the first half of 2023, the financial losses from natural disasters, attributed to the increasing frequency and severity linked to climate change, totaled $120 billion. This figure represents a 46% increase from the average losses recorded in the first half of the previous 10 years.
The aftermath of Hurricane Otis is evident in this aerial view of the destruction in Puerto Marques, Guerrero State, Mexico, on October 28, 2023. The death toll from the devastating hurricane that struck the popular tourist destination of Acapulco has tragically risen to 39, according to the Mexican government.
Rodrigo Oropeza/AFP/Getty Images
World isnt spending nearly enough money to prepare the most vulnerable countries for climate extremes, UN says
Extreme weather events in the United States cost the economy nearly $150 billion annually, with a disproportionate impact on poor and disadvantaged communities, according to government sources. This estimate does not include the loss of life or healthcare expenses. Additionally, the continued reliance on fossil fuels, such as natural gas, has a significant financial burden, as evidenced by the surge in European energy costs following the conflict in Ukraine.
"If we had increased our investment in renewable energy, energy bills for poor households would not have increased so much," Valero at the LSE told CNN.
Similarly, cleaner air can lead to economic benefits. According to a 2020 study by the Confederation of British Industry, expanding London's Ultra Low Emission Zone, which was the target of a recent protest in London, would significantly improve workforce participation and productivity by enhancing people's health.
It is evident that transitioning economies away from fossil fuels will be expensive and disruptive initially, but the long-term benefits will be significant. Governments must ensure that the burden of achieving net zero does not disproportionately impact the poor, even if it requires wealthier individuals to contribute more financially, as stated by Tim Jackson, the director of the Centre for the Understanding of Sustainable Prosperity at the University of Surrey in the UK.
"We need to consider who will bear the burden of these costs," he explained to CNN. "It's evident that it should not be the poorest. This means that if there are costs, even if they are initial investments with future returns, they should be borne to some extent by those who can afford to pay for them."
