Confidence in UK cleantech policy ebbs

Confidence that the UK government will enable the growth of the UK’s cleantech sector over the next 12 months has fallen sharply after the electricity market reform and the Comprehensive Spending Review, according to new research.

A study by accountancy firm Ernst & Young (E&Y) of more than 500 UK-based corporates, financiers and cleantech companies found that just 13 per cent believe the coalition government will establish the conditions for success in the cleantech sector in 2011.

In comparison, this figure stood at a figure of 38 per cent from a similar survey carried out between August and October last year.

The survey also found that only 12 per cent think the right frameworks are already in place, compared to 36 per cent originally.

Steve Lang, cleantech leader at E&Y said the results were a wake-up call to a government that has its sights set on being the greenest ever.

‘Although the Comprehensive Spending Review left the clean technology sector relatively unscathed, the market is now less confident that it will deliver the economic growth and jobs that Britain so urgently requires,’ he said.

‘This is because the government has not yet established a clear and long-term policy framework for cleantech that will unlock the investment needed to establish infrastructure and create jobs in such an internationally competitive sector.’

Despite a study by the European Wind Energy Association, which came out today, showing that the UK leads the world in the amount of installed offshore wind capacity, just seven per cent expect there to be sufficiency investment in 2011 to give the UK a competitive advantage.

Lang said, ‘The global cleantech market is at a tipping point. With money drastically limited and as public sector job losses begin to bite, cleantech has unique potential to deliver long-term economic growth, create job, energy security and cutting edge competiveness to the UK economy as we transition to a low carbon more resource efficient world.’

This most recent study comes on the back of an earlier survey E&Y carried out between between August and October 2010 found that 76 per cent of UK businesses questioned believe urgent and decisive action is needed or the UK will fall behind other countries that are prioritising cleantech as a sector of national strategic importance.

Copyright © 2011 NewNet

Tags: cleantech, renewable energy, UK

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