CBI urges Government to spend as much on green tech as defence

Business leaders have urged the Government to start spending the same amount of money on green technology that is currently spent on developing weapons of war.

By Louise Gray, Environment Correspondent Last Updated: 12:05AM GMT 13 Nov 2008
At the moment around £250 million is spent on researching new ways to generate electricity without harming the environment like wave, wind or solar power.
However with fossil fuels running out, the CBI wants ten times more money to be spent on green technology to bring it into line with the £2.6 billion currently spent on developing military equipment.
Dr Neil Bentley, CBI Director of Business Environment, said the UK will need energy from low carbon resources like biomass, clean coal and nuclear as well as renewables like wind and hydro in order to keep the lights on as the old power stations come off stream.
Industry will also need new technologies to improve energy efficiency as prices rise and the UK attempts to cut greenhouse gases by 80 per cent by 2050.
"Our ambition should be to increase expenditure on low-carbon technologies to around 30 per cent of the Government's total R&D budget, roughly equivalent to £2.6 billion of purchasing power. That would bring it in line with the proportion currently being spent on defence," he said.
In a report on low-carbon innovation, the CBI called on Government to develop low-carbon technology as a national priority. The leading business body also said the government needed to invest in training more people for green jobs and fast-track proven technologies.
Dr Bentley continued: "It will take a co-ordinated effort from government and business to ensure the UK is ready to exploit the potential of a low-carbon economy.
"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."
A spokesman from the Deparment 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."