Business groups set out plans for green growth
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The EEF and the Aldersgate Group have both launched reports setting out how the UK can successfully generate low-carbon growth.
Both organisations believe public sector procurement can help drive innovation in green technologies and services. They also highlight the important role that the proposed Green Investment Bank GIB) can play in greening the economy. The Aldersgate Group wants the GIB to be able to borrow from capital markets from the start, while the EEF says the bank’s role must be expanded to include support for a wider range of projects including environmental technologies, not just infrastructure.
The 10-point plan from the EEF also includes a call to replace the 2020 renewables target with a 2030 energy decarbonisation goal. The manufacturing body claims this will provide the certainty energy companies need to invest in low carbon generation technologies for the least cost. It also wants energy policy to focus on “carrots”, such as the feed-in tariffs, rather than “sticks”, such as the proposed carbon floor price, due to start in April 2013.
In addition, the EEF recommends extending climate change agreements to all sectors prepared to agree to deals to improve their energy efficiency, in place of the Carbon Reduction Commitment Energy Efficiency scheme.
The Aldersgate Group describes the existing carbon policy framework as too complex. The group claims clearer policy will encourage businesses to invest more in energy efficiency. It also wants the government to increase the proportion of tax revenue from environment taxes.
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