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MORE ENERGY SAVING GRANTS IN THE UK

GOVERNMENT SUPPORT NEEDED TO UNLOCK BILLIONS IN GREEN BUSINESS, SAYS INDUSTRY

March 30, 2017

The UK could be a green business powerhouse in the next three decades, but only if given proper support by government, a group representing more than 30 low-carbon companies has said.

 

The low-carbon economy in the UK employs at least 432,000 people, with a turnover of more than £77bn in 2015. This is larger than industries such as car-making and steelmaking, which are frequently given the spotlight when politicians discuss industry and jobs.

 

Growth in green business is also expected to outstrip other sectors of the economy, as international opportunities open up for low-carbon goods and services. Investments by major developing countries alone are projected to be $23tn by the end of the next decade, with green business’s supporters arguing that the UK is well placed to take a share of the burgeoning market.

 

An employee performs quality control checks on a wind turbine blade at the Siemens AG plant in Hull, UK.

 

Green business needs strong and stable support from the next UK government

 

In a letter to the Guardian, a group representing more than 30 of the UK’s green and low-carbon companies forecast that the low-carbon economy would rocket from 2% of the UK’s GDP today to 13% in the next three decades, boosting both manufacturing and services, but only with government support.

 

The business leaders urged politicians across the spectrum to respond, as the policies of the next government will play a major role in determining how the sector develops and whether job opportunities are realised. They wrote: “Stable policies to grow the UK’s low-carbon market will be essential to turn this potential into reality and ensure our economy remains competitive on the global stage.”

 

Green businesses have been disappointed by the apparent lack of interest in the sector during the general election campaign, and by the absence of strong public commitments in the manifestos.

The signatories to the letter concluded: “We call on the new government to put in place ambitious and long-term policies to tackle climate change and improve the state of the environment at the heart of its industrial strategy and vision for the UK.”

 

The letter was coordinated by the Aldersgate Group and also signed by 11 companies including Kingfisher, Aviva Investors, Anglian Water, Siemens, and Scottish and Southern Energy.

 

Nick Molho, executive director of the Aldersgate Group, said the decision by US president Donald Trump to withdraw from the Paris agreement on climate change would not make a major dent in the prospects for growth.

 

He noted that the shift to a more efficient and lower carbon economy is well under way across the globe, with the cost of clean technologies, such as renewable energy and electric vehicles, falling rapidly, and investment growing strongly. “Following the commitments made by six world leaders at the recent G7 summit, and the news of greater cooperation between China and the EU on climate change, major global players like the UK must continue to build competitive, low-carbon economies and honour their commitments under the Paris agreement.”

 

Environmental businesses in the UK have been hit in recent years by swings in government policy that have led to job losses and uncertainty among potential investors. These swings include the scrapping of subsidies and harder planning requirements for onshore wind farms; the slashing of support for solar panels and restrictions on solar farms; the abandonment of the “green deal”, which was intended to boost home insulation; the removal of the promised £1bn funding for carbon capture and storage facilities; and the scrapping of the target to make new homes zero-carbon.

Last week, Labour accused the Conservative government of failing to come up with plans on how to achieve the statutory targets on reducing carbon dioxide emissions, set out under the Climate Change Act. Green groups fear that a new Conservative government under Theresa May could scrap the Climate Change Act, leaving the UK without firm targets on cutting greenhouse gases.

 

However, the government has pointed to increased investment for electric vehicles, support for new nuclear power stations, and a boost to offshore wind as evidence of its commitment to low-carbon infrastructure.

 

Since May 2010, the UK has installed more than 11GW of wind power, generating enough electricity for more than 7.8m homes.

 

https://www.theguardian.com/environment/2017/jun/04/uk-needs-government-backing-to-unlock-billions-in-green-business-says-industry#img-1

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