UK's electric vehicle emission rules watered down

What happened: The UK government is set to weaken its 2030 target for new car sales to be electric vehicles (EVs), from the current 80% to a less ambitious figure. This follows intense lobbying by car manufacturers and trade unions. The change is expected to result in an extra 17 million tonnes of CO2 emissions by 2030, according to an analysis by campaigners.

Market impact: The automotive sector, particularly EV manufacturers and battery producers, will be affected. The weakened target could slow down EV adoption, impacting these companies' growth prospects. Traditional internal combustion engine (ICE) vehicle manufacturers may see a temporary boost in demand, but their long-term outlook remains challenged by stricter EU emission rules.

What to watch next: The government's consultation on revised EV sales targets, expected soon. Also, watch for responses from EV manufacturers and trade unions, which may influence the final decision. Lastly, monitor UK CO2 emissions data to assess the environmental impact of the policy change.