Planning policy uncertainty barrier to low carbon future
Peta Hodge
1st July 2009
The CBI has warned that investment in new wind, nuclear and clean coal power stations is falling short of the level necessary to combat the threat of climate change because of on-going uncertainty about the future direction of planning policy in the UK.
Its second Climate Change Tracker, launched today, shows little progress has been made in speeding up the planning process over the last six months.
“Massive private sector investment will be required to get our energy system up to scratch and cut carbon emissions, but delays in implementing the Planning Act are threatening the future of these critical energy projects,” said director general of the CBI, Richard Lambert.
“Businesses are not going to commit to building the new wind, nuclear and clean coal power stations that will be needed to keep the lights on if they think the goal posts are going to get shifted further down the line.”
But planning is not the only barrier. The six-monthly Climate Change Tracker, which measures the progress of the Government, businesses and consumers towards a low carbon economy, shows the UK is currently on track for just four of the CBI's 24 key indicators.
“Progress on meeting our climate change goals has been patchy so far, but we can still get back on track if we take decisive action in the next six months,” said Lambert.
The decisive action the CBI wants to see from Government includes the publication of national policy statements on nuclear and renewables to boost investor confidence and speed up decision making.
It says new loans and incentive schemes should be made available to encourage energy efficiency improvements in homes and offices and calls for Government action to get a replacement for the Kyoto protocol and progress towards a global price for carbon.
But the CBI is clear that action is needed from businesses too. By the end of the year it want to see companies measuring and reporting their emissions under new voluntary reporting guidelines.
It says they should continue reducing emissions in buildings and transport and help consumers to buy low carbon by providing more widespread information about the products and services on offer.
While acknowledging that businesses in the UK are facing almost unprecedented financial pressures, the CBI maintains that going low carbon makes good business sense, reducing pressure on the bottom line and exploiting new business opportunities.