| UK could lead on low-carbon industry |
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| Written by Adrie van der Luijt | |
| Thursday, 26 June 2008 | |
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UK manufacturing has the potential to lead the way in the low-carbon revolution.
British industry has urged the government to recognise the vital role that business has to play in moving to a low-carbon economy. Manufacturers want the government to set out the key policies needed to break down the current barriers to investment in key technologies where the UK can become a world leader. UK extremely well-placed The call was made by EEF, the manufacturers’ organisation ahead of the publication of the renewables consultation/strategy by the Department for Business, Enterprise and Regulatory Reform (BERR) and following the publication of a report, Delivering the Low Carbon Economy – Business Opportunities for UK Manufacturers, produced by EEF in collaboration with Deloitte’s UK manufacturing industry group. A wealth of transferable industrial capabilities, a generous endowment of relevant natural resources and market-leading technologies leave the UK extremely well-placed to profit from the expansion in clean energy technologies such as offshore wind, wave and tidal, and carbon capture and storage. According to estimates, this could bring potential revenues of £2bn per annum from offshore wind and £300m-900m from marine renewables where the UK has more businesses engaged in developing marine energy devices than any other country. Furthermore, carbon capture and storage could be a $40bn a year industry by 2030 and the UK has market leaders in each of the major capture technologies. Much work to be done Martin Temple, EEF chairman, said that moving to a low-carbon economy will create significant business opportunities for the UK. “We will, however, need to move quickly and decisively. Businesses around the world are alive to the massive opportunities and a number of governments are making their exploitation a national priority,” he added. Jane Lodge, UK manufacturing industry leader at Deloitte, said that a range of opportunities exist for manufacturers to develop new climate friendly technologies and many UK businesses are already world class in their sectors. “There is still much work to be done both by manufacturers themselves, however, and also by government to create the right environment to allow these opportunities to be maximised,” she noted. Barriers to investment Despite these opportunities, the manufacturing industry faces a number of barriers before it can realise the potential of the low-carbon economy. Overcoming these barriers should be a key consideration for government’s climate change strategy. Temple warned that a strategy is needed that provides leadership, overcomes the barriers to investment and helps develop the capabilities needed to deliver a low-carbon economy. He emphasised that the UK must be an attractive location for low-carbon businesses. “The existing emphasis on negative incentives, such as carbon pricing and energy taxation, must be balanced with positive incentives for companies. In particular, support for R&D should be increased, better targeted and made more accessible,” Temple concluded. Related articles
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