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Green and Growth possible say CBI

The Government does not need to choose between green or growth if it is to optimise the potential of green businesses in the UK, according to the director-general of the CBI.

Speaking at the launch of a CBI report entitled The colour of growth: maximising the potential of Green Business, John Cridland encouraged politicians to take a more intelligent and consistent approach to energy and climate policy.

Research by the CBI indicated that the UK has the ability to be a global leader in the low carbon industry, which has the potential to add an additional £20 billion to UK GDP by 2012.

However, the business group is concerned that the Government may not take the right action to grasp this potential and ensure that they avoid damaging the competitiveness of key industries.

Mr Cridland said: “The so-called “choice” between going green or going for growth is a false one.

“We are increasingly hearing that politicians are for one or the other, when in reality, with the right policies in place, green business will be a major pillar of our future growth.

One third of UK growth in 2011 was accounted for by green businesses, and by ensuring that energy and climate policies are correct, £0.8 billion could be knocked off the UK trade gap within the lifetime of the Parliament.

In 2010/11, the UK grew its share of the global green market by 2.3%, reaching £122 billion and accounting for around 8% of UK GDP.

around 940,000 poeple in the UK are employed in green businesses, of which two thirds are located outside of London and the South East.

The green goods and services market also makes a strong contribution to the UK exports industry, and has helped to foster strong links with growing economies including China, who purchases 7% of UK green exports.

The CBI have estimated that the contribution from green businesses has the potential to cut the Uk trade deficit by half.

Mr Cridland continued: “The UK has made a great start tapping into green economic opportunities but mixed signals from the Government are setting the UK back.

“If we can’t be sure that the policies of today will still be the policies of tomorrow, we simply won’t build business and consumer confidence or secure the investment we need.”

The CBI are now calling on the Government to offer strong political leadership and a more coherent strategic policy framework focussing on building confidence, reducing complexity and strengthening competitiveness.

“Good green policy has to be good industrial policy too. We should work out where we can be world leaders, and focus on building our competitiveness and getting into those supply chains.” Mr Cridland concluded.

“There is a role for the Government to directly leverage investment in priority areas.

“The Green Investment Bank is a great idea, and we should get it borrowing as soon as public finances allow. But it’s not the only show in town, and green investments should also be good candidates for Treasury tools, such as credit enhancement.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .