Business keen to join green revolution

Apr 29 2009 By Karen Dent, The Journal

Climate change and how British businesses respond to the opportunities it offers are hot topics after Chancellor Alistair Darling delivered last week's 'green-tinged' Budget. The Government may be throwing money at tackling climate change but business groups want to see more incentives for industry to take advantage of the new markets promised by the low-carbon economy. Karen Dent reports.

GREEN technology has the potential to create thousands of jobs and turn Britain into a world leader in this sector, according to Chancellor Alistair Darling.

He used last week’s Budget to commit the UK to a 34% reduction in greenhouse gases by 2020 and pledged to plough money into low-carbon industries.

At the forefront was a commitment to provide £525m for offshore wind projects in the next two years, as well as £405m to help low-carbon manufacturing.

Many of the green ideas contained in the Budget had already been suggested by the CBI, which has put together roadmaps of what policies need to be in place to give businesses the incentive to commit themselves to this new low-carbon economy in the run up to 2020.

Emma Wild, the CBI’s principal policy adviser on climate change, has been in Newcastle to talk about the proposals – called Going the Distance – and discuss how businesses can deliver on green commitments, while winning new markets.

"We put together the ideas on what needs to happen in terms of Government decisions and new policies with our members, to understand what would drive them to act on climate change," she said.

"The overall theme is that we need much more certainty in the regulatory environment, we need Government to make decisions, we need really swift implementation of existing policies. We need national policy statements on things like renewable energy and the nuclear power that will allow the industry to then invest in these sectors for the future."

The document looks at what levels of additional business can be expected if certain policies are introduced.

Ms Wild said: "For example, on low- carbon vehicles, the Government announced their package and we want them to work with industry on using the £250m very wisely.

"Then we say over the next period, you will see increased demand for fuel-efficient cars featuring certain technologies. So it is matching up the policies with what you can expect from the market.

"There’s still a lot more that Government can to do that isn’t about spending but is about providing businesses with certainty.

"Making decisions on regulation which is going to happen over the next five to 10 years, that is going to give businesses the certainty that they need to invest in low-carbon opportunities."