Rishi Sunak has delayed a ban on new petrol and diesel cars in a major change to the government's approach to achieving net zero by 2050.
The prime minister announced exemptions and delays to several key green policies, alongside a 50% increase in cash incentives to replace gas boilers.
The UK government could not impose "unacceptable costs" linked to reducing emissions on British families, he said.
It's prompted fierce criticism from the opposition and some industry bosses.
Mr Sunak also faced attacks from his own party, but many Conservative MPs came out in favour of the new direction, alongside some in the car industry.
The changes come as Mr Sunak seeks to create dividing lines with opposition parties ahead of a general election, expected next year.
Framing the changes as "pragmatic and proportionate", the prime minister has unpicked several of Boris Johnson's key policies, many of them launched when Mr Sunak was serving as chancellor.
What's changing?
Among the key changes announced were:
- A five-year delay in the ban on the sale of new petrol and diesel cars, meaning a requirement for all new cars to be "zero emission" will not come into force until 2035
- A nine-year delay in the ban on new fossil fuel heating for off-gas-grid homes to 2035
- Raising the Boiler Upgrade Grant by 50% to £7,500 to help households who want to replace their gas boilers
- The ban on the sale of new gas boilers in 2035 remains, but the government will introduce new exemption for poorer households
- Scrapping the requirement on landlords to ensure all rental properties had a Energy Performance Certificate (EPC) of grade C or higher, from 2025.
Reaction
Chris Stark, the chief executive of the UK's Climate Change Committee, has this morning been on Radio 4's Today programme where he said net zero goals will be harder to achieve under Sunak's new "softer package" of green policies.
Stark leads the independent authority on tackling climate change and said it's now "difficult to escape the idea we're not moving backwards" on the green agenda.
He added Sunak was guilty of "wishful thinking" if the PM thought key net zero goals could be achieved with the revised measures.
Stark added: "I think the government needs to look again at the policies, we need to do more, there's no real question of that.
"So yesterday was not about doing more it was about doing less."
First Minister Humza Yousaf has said it would be "unforgivable" for the UK to row back on its climate commitments.
The first minister told BBC Scotland News Mr Sunak was "pandering to short term populism".
"For me Rishi Sunak's actions, the UK government's actions, in the face of that climate catastrophe are simply unforgivable," he said.
"If you do not tackle the effects of climate change not only is that morally wrong but it actually costs more in the long run."