UK faces major obstacles in bid to be a low-carbon leader

The UK risks missing out on its slice of the £4.5 trillion low-carbon industry, the manufacturers' trade body has warned.

By Josephine MouldsPublished: 6:10PM GMT 15 Nov 2009
The EEF said the country faces major obstacles to becoming a leading centre for so-called "cleantech" products and services, "most notably question marks over the long-term supply of core skills".
The manufacturing lobby group criticised the UK's tax system, claiming that it "discourages the capital investment that manufacturing depends on". It said the Government's low-carbon industrial strategy also lacks sufficient focus.
Roger Salomone, the EEF's energy adviser, said: "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."
On the positive side, the EEF cited the UK's good pool of science, technology, engineering and maths graduates, and clusters of essential skills, such as offshore and automotive engineering.
The EEF estimates that the low-carbon economy will be worth £4.5 trillion globally by 2015, from £3 trillion in 2008.
It recommended that the Government focus on a small number of industries – nuclear, offshore renewables, carbon capture and storage, and low-carbon vehicles – in order to make its green policies more effective.
The Government should make greater use of public procurement to stimulate the development of low-carbon technologies. The EEF also suggested a "green bond" scheme that would allow manufacturers to use future tax benefits to finance low-carbon technologies.