CBI calls for radical climate change measures
Tue 27 November 2007
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The next two or three years will be critical in the fight against climate change according to a new report published by the Confederation for British Industry. The CBI's Climate Change Task Force says that a much greater sense of urgency is required if the UK is to meet its targets for reducing greenhouse gas emissions at an affordable cost.
The report says that its is already clear that the Government’s targets for cutting greenhouse gases by 2020 are unlikely to be met solely through measures taken in the UK. Its longer term goals for 2050 are also very challenging, and will not be achieved without significant additional effort.
The report shows that by 2030, moving to low carbon sources of electricity and improving energy use in buildings can each deliver about 30 per cent of the additional cuts needed, with the remaining 40 per cent coming from transport and industry. Before 2050, further change is needed to more than double the level of energy efficiency and halve the carbon content of the energy used in the economy compared with today. But most taxes and regulations were designed for the old economy.
The report calls for a shift to a world where carbon becomes a new currency – so that consumers and businesses are rewarded for making the right choices. Carbon has to be priced according to supply and demand, under a system which leads to lower emissions, crosses national borders, and rewards good behaviour.
In the introduction to the report, Ben Verwaayan, Chairman of the Task Force and Chief Executive of BT writes: "Are we sure that climate change exists? I am sorry, but that is not a question for us. The best question for the business community is whether we can be certain that climate change presents a substantial risk; a risk that will have a profound impact on society and the economy? To this the answer is clearly 'yes'. And so, as with all substantial risks, it is vital to mitigate the danger".
The Task Force brought together 18 chairmen and chief executives from some of Britain's largest companies to formulate a business response to the challenge of climate change. Its membership reflected a range of manufacturing and services sectors including high-energy users, while the research was carried out by the consultancy, McKinsey.
The Task Force says that the response to the threat of climate change requires three components for success. Politicians must give much greater priority to the subject, and not just on an ad hoc basis. Consumers have to be empowered to make the right decisions and need to be given the facts to make informed judgements. And business must become green to grow.
The recommendations were welcomed by Sir Nicholas Stern, whose report for the UK Government on the economics of climate change convinced many business leaders to support early action.
The report was also welcomed, in general, by green campaigners. Simon Bullock, Friends of the Earth's climate campaigner, said (to The Guardian): "The CBI's position is almost unrecognisable from that of five years ago - tackling climate change is now seen as a major economic opportunity for many businesses with the potential to create many new jobs. Gone is the kneejerk opposition to environmental regulation and taxation, and gone is the assumption that tackling climate change is almost a bigger threat than climate change itself.
"This change in rhetoric and thinking is very welcome, but it must be measured against real-life action and a change in the CBI's position on the ground and the activities of its members."
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