UK: EEF urges Government to support manufacturers in low carbon economy

A solar farm

A solar farm - Credit: PA

The Government must set out how it will support manufacturers to unlock the multibillion-pound potential of the low carbon economy, it was urged today.

Driving forward development of green products and technologies to cut emissions, which UK businesses could export to the rest of the world, could deliver an £880 billion boost between now and 2050, manufacturers organisation EEF said.

But the UK’s position as the sixth largest producer and provider of low carbon goods and services is faltering, with manufacturing output falling in 2010/2011, a report by EEF warned.

Other countries, including China, the US, India and South Korea, that have strategic policies for boosting their low carbon industries, saw double-digit growth in the same period, EEF said.

The UK is also lagging behind in government spending on research relating to climate and energy, committing just over 1% of its research and development budget to energy, compared with a developed country average of 4%.

EEF is calling on the Government to set out a clear vision by the end of this year for UK manufacturing in a low carbon economy, in order to give businesses the certainty to invest in new products and technology.

The organisation’s head of climate and environment policy, Gareth Stace, said: “The low carbon economy represents a massive opportunity for manufacturers and a major prize for our economy.

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“If we can build an early lead in key areas we have the chance to export our solutions to the rest of the world.

“But we are currently failing to take advantage of this opportunity to be a world leader in low carbon goods and services.

“We need Government to set out its vision of manufacturing’s place in the low carbon economy, focus more on innovation and provide greater regulatory stability and predictability in breakthrough technologies that will deliver it.”

Companies are already investing in green growth, with six out of 10 developing new processes to improve their environmental performance and more than half of large companies developing products and processes to help them and their customers manage climate and environment issues, EEF said.

But steps by Government are needed to ensure the UK can gain a lead in developing technologies, to ensure industry has access to the right skills and can obtain the finance to invest in decarbonising technology, and to ensure competitively priced electricity.