June 14th 2023
Economic output needs net zero and nature
The UK must introduce its own ‘green deal’ to tackle environmental challenges through growth and productivity.
A new report by the Climate Change Committee’s (CCC) Advisory Business Group has outlined how vital net zero and the green economy are to the future prosperity of Britain, and pointed to public-private partnerships as an essential tool in achieving current goals.
The assessment urges the Government not to ‘fall behind’ on the transition by embracing collaborative approaches, and identifies the need to promote advantages of a low carbon economy. Organisations including the British Chambers of Commerce have voiced their support.
The document also raises concerns about the urgency of changes to transport systems, home and commercial property development and maintenance, and land use. A stress test to ensure all policy decisions contribute to the UK’s net zero ambitions has now been recommended, along with a ‘step change’ in how activities such as travel, heating, and deliveries take place.
In order to retain a competitive position globally, Westminster must take action now to secure the necessary investment to continue expanding the nation’s already significant green economy, the report states. This is especially true in light of recent legislative changes in the EU and US aimed at supercharging the sector within each region.
Previous research by the World Economic Forum emphasises the devastating impact on the business world, trade and employment if steps to decarbonise and protect the environment are not effective. An estimated $44trillion – just over half the entire global economic output – is ‘highly dependent’ on nature.
‘We need to know how businesses will be supported to switch from industrial scale heating systems; plans for electric vehicle charging networks; how our freight systems will be decarbonised, and our energy sources diversified and stabilised,’ said Shevaun Haviland, Director General of the British Chambers of Commerce. ‘Once we have the full picture it will then become much easier for firms to make their plans with confidence and work out how they can finance them.
‘With the right framework in place, UK firms can lead on creating and manufacturing the technology to allow us all to live greener lives. Which is vital for supporting the consumer behaviour required to reach Net Zero,’ they continued. ‘Everyone understands the imperative, but research also shows that many firms, especially smaller ones, do not fully understand how to capture those benefits. There is a real danger that these businesses will get left behind unless politicians and business leaders come together to galvanise action.’
The Advisory Business Group, which was formed last year by the CCC in order to provide direct net zero solutions to the corporate community, has now submitted its report to the CCC for consideration. Once evaluated, recommendations will be made to Government. You can read the analysis, The Power of Partnerships, in full here.
‘I’m grateful to our Advisory Group on Business for this report, which offers important ideas to realise the potential of business to support the UK’s journey to Net Zero, ‘said Chris Stark, CCC Chief Executive. Our own analysis emphasises the integral role that the private sector must play in the transition.
‘It is businesses that will develop and deploy low carbon technologies, their capital investment is the majority needed for Net Zero, their offering to consumers will drive the change in Net Zero lifestyles,’ they continued. ‘The Advisory Group’s recommendations and insights will now feed into a new report we are preparing on the potential for business action on climate change later this year.’
More on decarbonising the economy:
EU Sustainability Directive: What UK and global businesses need to know
Image: Rafał Malinowski