UK Green Transition Industrial Strategy to unlock £57 billion for the economy
The UK could unlock £57 billion for the economy by 2030 through a green industrial strategy, according to the Confederation of British Industry (CBI).
The CBI has called for governments to be mandated to test policies against the UK’s climate commitments and forcing the Treasuring and Office for Budget Responsibility to provide an estimate from government tax and spending on the climate.
These actions, alongside a new green industrial strategy, could provide between £37 billion and £57 billion of additional economic output, say the CBI.
Rain Newton-Smith, Director General of the CBI believes that launching an industrial strategy can avoid the UK missing out on tens of billions in growth as “businesses believe that the US’ Inflation Reduction Act, the Net Zero Industry Act, and other nations’ ambitious incentive packages developed in their wake, have changed the game.”
“Other nations have recognised the prizes on offer and are rapidly ramping up their own plans and spending to attract the green industries of the future,” she added.
Responding to the news, Laimonas Noreika, CEO of HeavyFinance, commented: “Decarbonisation efforts across Europe need to ramp up, not only to unlock the billions claimed by the CBI but to hit global Net Zero goals. Carbon reduction should be a central focus of governments and businesses, promoting action and innovation to drive decarbonisation measures such as retrofitting or promoting sustainable investments such as Article 9 Funds in order to lead more organisations to make a positive climate impact.”
“Article 9 Funds, in particular, can play a significant role in decarbonisation efforts, supporting sectors including agriculture that can deliver sustainable food production through no-tillage farming, reducing emissions while supporting resilient food production. The cost of inaction will only see the UK and major players in Europe miss out on the billions on offer and further fall behind climate targets.”
The news comes off the back of a meeting between Energy Security and Net Zero Secretary Grant Shapps and US Special Presidential Envoy on Climate John Kerry where they called for increased support to developing countries and emerging markets in tackling the climate crisis.