CBI sets Government green policy on ‘amber’

Greenwise Staff

17th August 2010

CBI director-general Richard Lambert described Government policy on energy security and climate change as being on "amber", today, as he reviewed the Coalition administration’s first 100 days in office.

Drawing his conclusions from discussions with CBI members across the UK in recent weeks, the director-general placed planning on 'red light’ for major infrastructure projects, such as nuclear power plants, but said the judgment from business overall on Government policy was "positive".

"It has been impressed by the speed and direction of policy-making to date," he wrote in a letter to members. "This applies in particular to the Government’s determined efforts to get the public finances back into shape."

But while fiscal policy received a 'green light’ – meaning policies appeared to be heading in the right direction – energy security and climate change received an 'amber light’ due to business concerns about how things might work out.

"The Government has not yet shown a sufficient sense of urgency about the need to develop a diverse supply of low carbon energy at competitive prices over," he wrote, adding that its policy on tackling climate change still relied too heavily on wind and micro-generation at the expense of carbon capture and storage and nuclear.

Lambert also called for the establishment of a robust price for carbon to underpin the £150 billion investment needed to make the switch to a low carbon energy system.

Planning on 'red light'

The director-general said the biggest concern from business was around planning. Placing this area of Government policy on 'red light’, he said it was too soon to judge how the promised abolition of the Independent Planning Commission would affect approvals for major industrial projects in the UK, but he said "hackles" had already been raised over the decision to abolish the Regional Spatial Strategies, which had the authority to override local opposition to new housing.

Mr Lambert summarised his view at the end of the letter:"There are lots of stresses and strains to come, and the Government is going to have to work very hard to sustain business and consumer confidence in the difficult months ahead. But CBI members in general are taking a much more positive view of Westminster than was the case a few months ago."

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