Setting the new course for a low carbon economy
by Sarah Green, regional director, CBI
THERE is no denying that for many businesses the last 12 months have been tough. But when the going gets tough, the tough get going and the Fastest 50 demonstrates that changing markets create new opportunities for businesses that can move quickly.
And the North East is evolving quickly. With the announcement that we have secured the first Economic Area for Low Carbon Vehicles, significant investments in offshore wind linked to the New and Renewable Energy Centre (Narec) and an emerging printable electronics sector there are a number of regional innovations which will help to propel the region, its businesses and entrepreneurs into recovery. We are calling this the Great North Revolution - an opportunity to transform our region through exploiting technological change.
While many companies are looking to jettison non-core aspects of their business in this recession, low-carbon practices can't be among them.
With a global climate change agreement likely to be signed in Copenhagen in December, almost every country is looking to lower emissions to gain a competitive advantage.
The market for low-carbon products is estimated to be worth £3 trillion and is growing rapidly. Two new CBI reports set out how the Government can use a low-carbon industrial strategy to create the framework for British business to seize the opportunities of a low-carbon world.
Joining the dots: Making the UK the place to do low-carbon business flags the UK's strengths in manufacturing, research and natural environment that can be exploited to develop low-carbon technologies. These national strengths are in abundance in our region. The second report focuses on low-carbon innovation.
An effective low-carbon industrial strategy will combine joined-up government with existing industry strengths to develop low-carbon technologies that add value to the UK economy. The Government must work to commercialise these technologies fully through targeted support for research, development and deployment; focused use of public procurement to stimulate demand; skills development and improved regional capacity. If government does this it will stimulate the market to develop solutions utilising existing skills.
The North East's existing strengths in design and offshore engineering, for example, can be deployed in carbon capture and storage demonstration plants to develop expertise for export. We have world-leading scientific research capacity in business and university laboratories. And we have an ICT and service industry that can support the push to smart metering and energy efficiency.
Prospering in the low-carbon economy requires radical thinking across business and government. Business will need to recognise, measure and control the impact of carbon on its bottom line. Inquisitive innovators should be matched with entrepreneurs and freed up to develop solutions.
If we rise to these challenges the UK can be a prosperous and low-carbon economy fit for our time and equally importantly the North East will once again be an industrial leader.
The market opportunity is there, the North East needs to nurture a supportive environment to facilitate and support fast business growth and our universities and entrepreneurs need to partner to turn great ideas into great businesses. The challenge is on - how much of the £3 trillion market can the North East secure and how long until the Fastest 50 is dominated by new and existing businesses supplying products and services to the Green Economy?
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