CBI calls for low-carbon R&D to be made a national priority

A report just published by the business lobbying group says that in order for the UK to meet its targets of 15 per cent of renewable energy by 2020 and 80 per cent CO2 reductions by 2050, public and private spending on R&D low-carbon technologies should match the levels spent on defence R&D. The UK is currently an average investor in cleantech R&D compared to other countries and lagging well behind that of the US.

The CBI is urging the Government to establish low-carbon R&D as a national priority.

Neil Bentley, CBI director Business Environment, said there was currently “ a general lack of ambition and vision” on how the UK could be a world leader in low-carbon technologies.

“The UK needs to act now if it is to be a low-carbon leader,” he said. “If not, we are in danger of being overtaken by other countries in low-carbon technology markets."

The CBI report, Low-Carbon Innovation: Developing Technology For the Future, proposes the Government increase expenditure on low-carbon technologies to around 30 per cent of its total R&D budget – roughly equivalent to £2.6 billion of purchasing power.  This would bring it in line with the proportion currently being spent on defence.

The report makes a number of further recommendations.

These include fast-tracking existing low-carbon technologies by receiving extra R&D funding. Offshore wind, biofuels, ICT, building lighting and cooling and increased-efficiency vehicles are all seen by the CBI as the best candidates for fast-tracking.

The report also proposes that long-term focus of low-carbon R&D investment should be on ‘technology families’, rather than individual projects, to minimise the risk of failure.

It also calls for technology innovation to be supported through the whole research and development lifecycle – from initial idea to market deployment – and for the Government to invest in the right skills base, such as science, technology, engineering and mathematics, to ensure the UK can capitalise on low-carbon opportunities.

“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 Bentley. “With increasing globalisation, the UK has an opportunity to enter and lead in new markets estimated at $1trillion.”