Business needs to see clear commitment to going green
As the challenge to the government’s decision to effectively dismantle the subsidies for solar PV heads into the high court this week, it’s worth reflecting on the scale of the problem we face in reducing carbon emissions globally.
20th December 2011 | Peter Rolton: Chairman, Rolton Group
To put things in context, despite the cramping effects of the deepest global recession since the 1920’s, 2010 was the worst year on record for carbon emissions. More than 30 gigatonnes of carbon dioxide poured into the atmosphere – mainly as a result of burning fossil fuels.
The recently published Climate Change Performance Index 2012 says that the UK has shown strong elements of environmental leadership. However, it also says that there are signs that the UK is stepping back from its efforts, particularly by ignoring the recommendations of the Committee on Climate Change. No country, says the Index, is doing enough to prevent climate change.
At a time of recession there is always the temptation to cut back on subsidies. This approach is akin to the old idea of marketing: that when things are going well you don’t need it, and when they are going badly, - you can’t afford it.
It’s all about mindset. Chancellor George Osborne has shown a worrying tendency to voice the idea that going green is a burden that will make businesses uncompetitive. Environmental regulation need not be a barrier to business growth
At the moment though, businesses that want to lead the development of a low carbon economy are uncertain about domestic environmental regulations, such as the government's electricity market reforms and the Green Deal scheme.
Neil Bentley, deputy director of the CBI says that introduction of "complex measures" to encourage investment in low-carbon power confused investors and left the country "not ahead of the pack, but out on a limb".
"We've got no international deal, no global carbon price, no meaningful EU price and the UK tying itself in costly green policy knots," Bentley said. "The UK is in danger of straining to hit its targets but missing the point: that we need an economy that's low carbon and competitive.
"Environmental regulation doesn't have to be a burden for business. It is not some sort of binary choice - go green or go for growth."
In fact it’s quite the reverse. Going Green should be the opportunity to build a whole new industry based on high quality intellectual property and services that can be sold both at home and abroad. Instead, we are stuck in the Green equivalent of the slow lane whilst the people running the motorway randomly erect road-works for no apparent reason.
We need an approach that recognises the importance of seeing the bigger picture and taking the long-term view. We should be investing in renewables and low carbon as an industry sector not just generation technology and not cutting back. The government should be sending out clear and unmistakeable signals about its commitment to a low-carbon economy and building an industry to service it.
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