22 May 2011, 19:05 BST
The CBI has announced that the UK needs to be wary that it is failing to attract the full amount of investment required to develop our low carbon infrastructure. It outlined that with ever pressing emissions targets and the UK due to lose a third of its energy supply over the next ten years, the UK alone would need £150 billion of private investment in the energy sector over the next twenty years. They have warned that this is a hugely ambitious amount.
In the CBI?s latest report named ?Risky Business: Investing in the UK?s low carbon infrastructure?, the body have outlined that they do not think the UK can attract the investment at the speed and amount it is required. Katja Hall, Chief Policy Director for CBI commented:
?We know the UK needs a balanced energy mix to cut emissions and grow the low-carbon economy, but the big question now is how we pay for it. Businesses want to get on with building new low-carbon infrastructure, but there is still too much policy uncertainty. We need the Government to set a clear direction of travel and to stick to it.?
?Electricity Market Reform is a positive start but more needs to be done to provide wider policy certainty for low-carbon investment. It is particularly important that the planning system delivers timely decisions and there are no more sudden policy shifts as we saw with the Carbon Reduction Commitment. The Green Investment Bank needs to issue bonds as soon as possible to provide a secure bridge between pension funds and capital intensive technologies.?
The report was conducted by Accenture, the Managing Director of which commented about the findings:
?The companies we spoke to were clear ? few believe that the UK is on track to meet its emissions-related targets. If the Government reduces investment risks, low-carbon spending can happen sooner, driving economic growth and cutting the cost to the end consumer. If not, investment could be attracted to other countries with more appealing incentives.?
Source: Green Energy UK