The Coalition Government is failing to deliver on its green ambitions, threatening to derail the UK low carbon economy, latest CBI research shows.
The
CBI’s third Climate Change Tracker, published today, shows progress on decarbonising the UK economy is at an all time low since the Climate Change Act was passed in December 2008. The business group said the backlog in
planning applications for energy infrastructure projects was an area of greatest concern. The CBI counts 37 energy infrastructure projects submitted for approval before the Coalition Government took power, which are still awaiting a decision. These include wind farms, nuclear and gas-fired power stations.
But the CBI said it was also concerned that planned changes to the
Carbon Reduction Commitment (CRC) Energy Efficiency Scheme were undermining investor confidence, while reform of the electricity market would have the same effect if Government plans were not finalised soon.
"We need action in the next six months," said Rhian Kelly, CBI head of Climate Change. "There are signs that things aren’t heading in the right direction.
"If we don’t deal with these 37 projects [still awaiting planning permission], investors will overlook the UK and put their money in the US, India and china," she warned.
And Kelly added proposed Government changes to the CRC were creating uncertainty within the business community. "We need to think seriously about simplifying it," she said.
CBI Climate Change Tracker
The CBI Climate Change Tracker charts progress in decarbonising four areas of the economy – power,
buildings, transport and industry. Of the 13 indicators, only one – nuclear – shows green, meaning progress is on track. Homes, buildings and
energy efficiency in industry all show red for little progress. Nine of the indicators are on amber, showing good ambition but insufficient delivery. They include
renewables, carbon capture and storage (CCS), planning, low carbon vehicles, biofuels, and
shipping and
aviation."
"When I look at this tracker what strikes me is that climate change is not a one policy box, it affects everything," said Kelly. "Getting everyone aligned on the low carbon agenda is difficult but action speaks louder than words."
Areas that need action
The CBI is calling for action in several key areas within the next six months to ensure the UK can meets its 2020
emissions reduction targets. They include clearing the backlog of delayed planning applications; finalising the Government’s electricity market reform plans; simplifying the CRC; approving the first CCS demonstration project; delivering clarity on the Green Deal; and introducing longer-term incentives for electric vehicles.
"This Government has great green ambition, but we need to see swift action if it is to fulfil its green promise," said John Cridland, CBI director-general designate.
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