UK needs step up to develop low carbon industries, according to report

17 November 2009

Whilst the low carbon industrial strategy announced earlier this year has laid the ground, the UK risks falling behind other countries around the world who are setting out ambitious plans to develop their own low carbon industries, according to a new report by manufacturer’s organisation EEF.

EEF energy adviser Roger Salomone said, ‘The last two years has seen more progress towards a low carbon economy than in the previous ten, but we cannot afford to rest on our laurels. Whilst the UK now has a low carbon industrial strategy that has laid the foundations, we cannot ignore the fact the UK is behind the curve and playing catch up in this area.

‘Locating in the UK offers cleantech companies some real advantages, but major weaknesses remain. To position the country as a premier location for the low carbon industrial revolution we urgently need more strategic and joined up thinking from government together with active engagement from industry,’ he added.

According to the report, the market for climate-friendly goods and services was already worth £3tn in 2008 and is projected to reach £4.5tn by 2015, driven by long-term trends such as accelerating resource depletion. However, the EEF warns that the UK needs a major step up in efforts to become a premier location for low carbon industries if it is not to risk losing out on a slice of a £4.5tn business opportunity.

The report highlights disadvantages to the UK as a location for low-carbon manufacturing, most notably question marks over the long-term supply of core skills, a tax system that discourages capital investment on which manufacturing depends, and a low-carbon industrial strategy which lacks sufficient focus. The EEF also points out that the UK also has the lowest level of government funded energy related R&D in the OECD.

It also makes a number of recommendations for government to improve the policy framework for low carbon technologies such as enhancing the effectiveness of low-carbon industrial policy by focusing on a smaller number of industries and making a long-term commitment to support them. The EEF suggests introducing a green bond scheme that allows manufacturers to use future tax benefits to finance low-carbon technologies at the critical stage of their development, and warns against avoid attempting to micromanage the supply of skills for a low-carbon economy.

The group notes South Korea as a striking example, as Seoul has sent out a five-year plan to invest two per cent of GDP a year on developing low carbon industries.

Copyright © 2009 NewNet

Tags: energy efficiency

This story was published on Tuesday, November 17th, 2009 at 10:21 am and is filed under Europe, energy efficiency, knowledge, policy. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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