Industry NewsUncertainty over Government policy is frustrating its plans for a low carbon economy, the CBI has warned. The group has underlined that it is "make or break time" for the coalition if it is to make changes and bring vital investment into the industry. The implication is that the current climate is leading to higher energy prices as it impacts on security of supply.
The CBI has launched a new Climate Change Tracker to measure the progress on environmental policies, as well as investor confidence. It has indicated that there is uncertainty and confusion over how the Government intends to achieve its environmental objectives. Furthermore, recent actions such as the modifications of to the Climate Change Agreements (CCAs) and the changes in offshore taxation are seen by many businesses to be counterproductive.
The nature of the Green Investment Bank is also seen as an issue, along with the scale and origin of funding for Carbon Capture and Storage (CCS). In general, it is felt that current policies are more to a method of raising revenue than cutting carbon. As such, it threatens the 200 billion pound of estimated funding that is needed to transform the UK's energy market.
Commenting on the issue, Katja Hall, CBI Chief Policy Director, said, "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." She added, "Decisions being taken now will make or break the UK's low-carbon economy."