Reacting to the publication of Industrial Strategy: Building a Britain fit for the future today, Nick Molho, Executive Director at the Aldersgate Group said: “The Industrial Strategy can have a transformative impact on the UK’s economy, driving low carbon innovation and the continued growth of jobs, skills and supply chains. It is positive to see that clean growth is now a core objective for the strategy and there is increased focus on energy and resource productivity, and strengthening the synergies between power, heat and transport systems.
Annual global investment into climate-related projects is already more than $1 trillion and accelerating. Given UK strengths in industries such as offshore wind, ultra low emission vehicles and low carbon services, UK businesses are among the best placed to capitalise on the growth of low carbon opportunities and export markets.”
Nick Molho added: “Government can grow market demand for low carbon goods and services and help maximise the benefits of clean growth for UK plc through clear incentive policies, environmental standards, supportive policies on skills and a public procurement policy that rewards resource and energy efficient business. Going forward, the Industrial Strategy must also ensure that energy intensive industries are supported in a way that is consistent with the UK’s emissions targets and helps grow the role of these high value businesses in the UK’s low carbon supply chains.”
Reacting to today’s Autumn Budget, Nick Molho, Executive Director of the Aldersgate Group said: “The Chancellor is right that we cannot build an economy fit for the future unless we ensure our planet has a future. As well as aiming to be a world leader in tackling plastic pollution, it was good to hear further support for electric vehicles and charging infrastructure, and in ensuring the UK has the skills required to benefit from the job opportunities of the future.
However, the lack of clarity and progress on the future of low carbon power investments and energy efficiency standards in new buildings is disappointing. To reduce power sector emissions cost-effectively and continue to grow renewable energy supply chains, the UK needs a policy environment that allows it to deploy mature low carbon technologies such as onshore wind without subsidy, increase its ambition on offshore wind in the 2020s and keep the door open to improvements in new technologies. The announcement that there will be no new low carbon electricity levies until 2025 mustn’t get in the way of that.”
Today the Aldersgate Group publishes two briefings: Key asks for the 25 Year Environment Plan, which sets out business priorities for the upcoming plan, and Increasing investment in natural capital, which recommends actions by businesses and government to overcome the barriers currently restricting flows of finance towards natural capital projects.
Nick Molho, Executive Director of the Aldersgate Group said: “Our economy and society are hugely reliant on the goods and services provided by nature and are also vulnerable to the impacts of a changing climate. Investing in our natural environment will help improve both the productivity and resilience of businesses, supply chains and communities. The forthcoming 25 Year Environment Plan is an opportunity to show cross-government leadership and set clear legally binding targets that help support the growth of innovative natural capital enhancement projects.”
Nick Molho added: “Significant investment will be needed from the private sector to improve the state of the UK’s natural environment and meet the goals of the 25 Year Environment Plan. Whilst the natural capital finance market is currently nascent, innovation from business, investors and communities as well as targeted government intervention can work in tandem to develop its maturity by identifying new revenue models.
Opportunities include the reform of agricultural subsidy payments to increase focus on sustainable land management following the UK’s exit from the European Union, setting up an innovation fund that provides resources for the private sector to develop new financing models, and creating a Natural Capital Investment Fund that provides seed funding for priority natural capital projects across the country.”