Focus efforts on select low-carbon sectors, says CBI

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The UK should focus on a few key low-carbon technologies where it has a chance of becoming a world leader rather than wasting effort on a wide range of new industries, the CBI urges in a report published today.

The employers’ organisation identifies the aerospace, automotive, electronic, ICT and construction and design sectors as crucial. It says more use should be made of natural resources, such as the coast, which is suitable for offshore wind farms and marine energy generation, and depleted oil and gas fields in the North Sea, where carbon could be stored.

“It will not be possible for the UK to compete in every low-carbon solution,” the CBI concludes in its report, entitled Pulling Ahead: innovating for low-carbon leadership. “We have neither the financial nor human resources to do so. To ensure we gain econ-omic advantage, we should focus on technology and innovation in sectors with the greatest potential to create wealth for the UK.”

The government must select a small number of sectors and “technology families” that would qualify for assistance, by carrying out an assessment within the next year of the UK’s strengths and how they can be built on, the report says.

The UK market for low-carbon goods and services is already worth £106bn a year, according to the CBI, and is expected to grow rapidly in the next 10 years.

Building on strengths in key sectors could open up export opportunities in a market for low-carbon goods and services estimated at £3,000bn globally, the CBI says. “This is not a pipe dream – the opportunity is here and now,” said Richard Lambert, the CBI’s director-general.

The CBI also recommends the research and development tax credit system should be improved, planning permission rules should be streamlined and the electricity grid upgraded, and that more children should be encouraged to take up scientific subjects to lift skill levels.

Another government role would be to buy low-carbon goods and services, the CBI says. It praises Transport for London for spurring the low-carbon vehicles sector by investing in hybrid buses. Low-carbon vehicles were cited as one of the clearest ways for the UK to benefit from the move to a low-carbon economy. Ford is working on the technology at its research centre in Dunton, in Essex, as is Nissan on Tyneside.

The report singles out several companies for their R&D and manufacturing efforts, including BP, Qinetiq, RWE Npower, Corus, Rolls-Royce, Cisco and Sun Microsystems.

However, the UK will face competition. John Cridland, CBI deputy director-general, said: “It is encouraging that the UK is already home to the R&D centres of many international companies. What is more open to question is whether this can be sustained in the face of increased investment by our competitors.” He urged the government to establish detailed policies on climate to give the private sector the clarity needed for investment.

Posted on September 9, 2009 · in UK

Tagged as: low carbon solution • low-carbon economy • U. K. Carbon