In a context of more sluggish economic growth forecasts but growing international momentum to tackle environmental challenges such as climate change, this Budget must be one that supports the continued growth of the UK’s low carbon goods and services sector in a way that is cost effective and economically beneficial, recognising the £122bn contribution the low carbon sector already makes to the British economy.
Following the government’s consultation on business energy efficiency policies, we urge the government to confirm on Budget Day that it will keep the UK’s carbon reporting requirements for listed companies in place. As made clear in an open letter from several businesses last week, these requirements have been essential in driving greater business productivity and providing material information to institutional investors to guide their fund management decisions. Removing or weakening them would make no economic or environmental sense and would go against the growing international trend towards greater corporate disclosure of greenhouse gas emissions.
The Budget is also an important opportunity to provide much awaited clarity on the size of the levy control framework to allow the continued deployment, cost reductions and supply chain growth of low carbon technologies such as offshore wind. At a time when the government is reviewing the advice from the Committee on Climate Change on the fifth carbon budget and developing its emissions reduction plan, we hope to see greater clarity on the support that will be made available to improve the energy efficiency of the UK’s building stock and demonstrate the commercial viability of carbon capture and storage technology in the UK.