Call for clarity on low carbon vision
19 Feb 2013
The government is being urged to set out a low carbon vision for industry by the end of 2013
UK industry has called on the government to provide the clarity it needs to invest in the low carbon economy by setting out a clear vision for industry by the end of 2013.
The call was made on the back of a new report launched today by EEF, the manufacturers’ organisation called ‘Tech for Growth’ delivering green growth through technology.
The report looks at how government can unlock investments in breakthrough technologies to reduce carbon emissions.
Over half of large companies are developing new low carbon products and internal processes
According to EEF, this would help industry take advantage of significant opportunities to export these solutions to the rest of the world.
The report highlights estimates that the potential prize could provide a boost to the UK economy worth up to £880 billion between now and 2050.
However, EEF also published analysis which showed that the UK is placed towards the bottom of the OECD countries in government research spending on climate & energy related R&D.
The findings come as Ofgem’s chief executive, Alistair Buchanan, warns businesses to prepare for higher energy prices as a result of power plants closures and a reduction in foreign gas supplies.
According to the energy regulator, power station closures could mean a 10% fall in capacity by April. Buchanan claims that more gas supplies are needed to boost energy supplies.
The EEF highlights that industry is already investing in green growth to combat energy hikes with six in ten companies developing new processes to improve their own environmental performance.
Over half of large companies are developing new products and internal processes to help them and their customers manage climate and environment issues.
However, the government has yet to give the go-ahead on a number of longer term solutions, such as exploring shale gas reserves and nuclear new build plans.
EEF’s recommendations include:
- Complementing the 2030 decarbonisation target with a goal to match the OECD average for government expenditure on energy and environment R&D.
- Outlining the portfolio of low carbon technologies on which the UK’s innovation effort will be focused by summer 2013.
- Developing the Low Carbon Funding Navigator which brings together private and public funding opportunities in low carbon energy projects.
- Undertaking a review of Enhanced Capital Allowances to ensure they are targeting low carbon technology investment.
- Ensuring the Green Investment Bank (GIB) becomes a one stop shop for all sources of low carbon project finance.
- Government setting out its future procurement needs to create a clear market demand.
- Setting out a policy roadmap by 2015 for how sectors such as steel, glass, and cement which have unique issues in decarbonising will be helped to cut emissions.
