Government off-track on emissions, CBI says

In its analysis of key areas where emissions reduction is essential, such as power generation, buildings, transport and industry, the tracker, released today, finds that progress is lacking in decarbonising buildings, transport and industry. The CBI Climate Change Tracker charts Government progress in decarbonisingthe economy, based on priorities set out in the CBI’s 2007 climate change report, 'Climate Change: Everyone’s Business'.

Only one-thirteenth of the indicators observed by the tracker showed that Government efforts were on track.

"One year on from pledging to be the 'greenest Government ever,’ the Coalition has still not delivered the policy landscape needed to ensure we meet tough emissions targets," Katja Hall, CBI Chief Policy director, said. "Decisions being taken now will make or break the UK’s low carbon economy. Our latest Climate Change Tracker shows that progress is failing to match the Government’s ambition."

The Government agreed to tough new emissions reductions targets by 2030 in its fourth Carbon Budget last month.

Low Confidence
The CBI highlights low business confidence resulting from inconsistent policy decisions such as abrupt changes to the Carbon Reduction Commitment (CRC) Energy Efficiency scheme, Feed-in Tariffs and the North Sea oil and gas tax.

"The carbon floor price and CRC have been dressed up as helping achieve carbon targets but they risk becoming little more than revenue raisers for the Treasury," Hall said. "Meanwhile, there is also genuine concern about how the Green Deal and Electricity Market Reform will work."

Confidence in low carbon investment is also lacking, the release said. According to a global ranking compiled by Pew Environment Group, the UK fell from the 5th to the 13th spot in low carbon investment.

Additionally, major policies such as funding for Carbon Capture and Storage (CCS), the Renewable Heat Initiative and consumer grants for low carbon vehicles are also being met with uncertainty, the CBI said.

The results
The tracker identifies efforts to decarbonise buildings, including new buildings, existing business premises and existing homes, as the area in which the least progress has been made. Energy efficiency in industry came in at a close second.

Efforts in renewable power was the most successful of the four categories measured, with progress in areas such as nuclear power and EU emissions trading schemes consistently falling on track.

Transportation sub-categories, which include low carbon vehicles, biofuels and aviation and shipping have achieved average progress, according to the tracker.

According to CBI’s release, £150 billion of investment is needed to decarbonise the energy sector alone. As this is the case, the organisation calls on the Government to take actions such as publishing the Electricity Market Reform White Paper by July; using the Energy-Intensive Industries Strategy to create plans to protect vulnerable industries from carbon leakage; finalising the nuclear Generic Design Assessment and designating the energy National Policy Statements; and giving businesses incentive to invest in energy efficiency measures by simplifying the CRC and other policies, to name a few.