CBI criticises government for lack of ambition in low carbon technologies

Britain will miss its climate change goals without tenfold investment in green technology, say business leaders
Alok Jha, green technology correspondent
guardian.co.uk, Wednesday November 12 2008 17.04 GMT

The government must increase by tenfold its investment in low-carbon technologies if it wants the UK to meet its climate change goals, according to business leaders.
In a report published today, the Confederation of British Industries (CBI) argues that there is a "lack of ambition in the UK" for the new technology and that an increased focus is crucial for the country to reduce carbon emissions by the target of 80% by 2050.
"It will take a coordinated effort from government and business to ensure the UK is ready to exploit the potential of a low-carbon economy," said Neil Bentley, business environment director at the CBI.
The government spends less than £250m annually on low-carbon energy research. The CBI argues that this figure should be closer to the defence budget of £2.6bn."With increasing globalisation, the UK has an opportunity to enter and lead in new markets estimated at $1 trillion. However, there is currently a general lack of ambition and vision on how to achieve this. The UK needs to act now if it is to be a low-carbon leader. If not, we are in danger of being overtaken by other countries in low-carbon technology markets."
The CBI's report recommends that government departments responsible for science and innovation should work closer together with those responsible for climate change and energy to establish green technologies as a national research priority. It adds that any known technologies that could substantial carbon emission cuts within the next 10 years should be fast-tracked to commercialisation.
In the longer term, research and development should focus on groups of technologies rather than picking on individual projects: these groups could include alternative fuels, energy storage, marine power and vehicle technology."The UK is currently an average investor in R&D with government and business contributing at relatively similar levels in comparison with other countries," said Bentley. "Our ambition should be to increase expenditure on low-carbon technologies to around 30%of the government's total R&D budget, roughly equivalent to £2.6bnof purchasing power. That would bring it in line with the proportion currently being spent on defence."
The report added: "The Stern review on climate change showed that investment to reduce carbon emissions now will be more cost efficient than delaying spending. Many of the key technologies are already known and priority should be given to bringing these into service."
The CBI said that another way to encourage green technologies was for the government to use more of it. This means that public agencies could try to stoke up the market for greener cars or energy by sourcing their needs this way. This is already happening to some extent: last month, the government announced that £20m will be available to provide electric and low-carbon and electric vans to public sector organisations, including Royal Mail, the Metropolitan police, the Environment Agency and the government Car and Despatch Agency as well as councils.
Friends of the Earth's climate campaigner, Robin Webster, agreed that spending on research and development for low-carbon technology must increase. "Boosting renewable energy and cutting energy waste will create exciting new business opportunities and new green-collar jobs — as well as helping tackle climate change. The economic and environmental potential is enormous. We could be a world leader in developing green energy — Britain is the windiest country in Europe and has the continent's best wave and tidal resource."
A spokesperson for the government's department of energy and climate change said: "We recognise the massive contribution low carbon innovation can make in helping us meet our climate change and energy security goals, as well as in creating jobs and business opportunities. That's why we're ploughing hundreds of millions of pounds into supporting energy R&D, and why the new Environmental Transformation Fund is up and running providing business with some £400 million of funding to demonstrate innovative and energy efficient technologies."