Can carbon reduction and the development of a low carbon economy help the UK through the recession?

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Dr Neil Bentley, CBI director of business environment spoke at the Carbon Trust’s annual stakeholder event on the 28th January discussing whether a low carbon economy can pull the UK out of the downturn - read the full speech below:

“I would just like to say thank you to the Carbon Trust for inviting me to speak here today, and also for their commitment in working with business to help reduce carbon emissions.

I would like to make three key points about the question asked.

The first is that we’d better pay close attention to Lord Stern, who said that the coincidence of the global economic downturn and climate change gives “a fundamental opportunity, and it is only confused and muddled thinking that sets one against the other.”

It is without doubt that a low-carbon recovery is key to pulling through the downturn, meeting our climate change commitments and securing our energy supply at a manageable cost.

The economic downturn has changed expectations and may change priorities, but it has bought to life the need to revaluate how our economy functions. We now have an opportunity to radically change this to a more sustainable economy, which does not base itself on irresponsible consumption of energy, materials and resources.

It is evident that our climate is changing, and the way we live must change with it too. As Barack Obama rightly said last week in his speech to America, “we cannot continue to consume with no regard for effect”.

It is vital that we begin developing the technologies which will help us to use our resources in more efficient ways and enable us to use the natural forces; wind, light, heat and tidal to produce our energy and reduce emissions.

In turn, if we are able to develop the technologies and intellectual property, here in the UK, we will be able to bring new prosperity to our economy and become a low carbon market leader.

The Government must support this drive in low carbon technologies such as renewables, new nuclear and carbon capture and storage.

If the Government can deliver the right framework for investment in 2009, then UK businesses can take the initiative by developing and exploiting new green technologies to improve energy efficiency and cut costs for business and consumers.

We can then also look to transfer our skills to the developing world and developing economies to help them grow sustainably.

At the CBI we are publishing roadmaps for energy, transport, buildings and industry which will set out pathways for moving to a low carbon economy.

My second point is that our near-term emphasis must be on energy efficiency. As cost pressures mount, now is the time to encourage a fundamental shift in behaviour. Businesses must continue to sniff out opportunities for emissions reduction in their supply chains, transport fleets and buildings.

I know the Carbon Trust has worked hard to help business save money in these areas and that is why we have partnered in order to help our members make further cuts.

Consumers are also looking for cost-beneficial ways they can take action to do the right thing, just as companies are. The key is to find a way which enables consumers and companies to work together towards the same objectives.

It is important that we understand that saving money and saving the environment need not to be mutually exclusive. It is not an either/or situation.

My third point is that the businesses which succeed in the twenty first century will be those that seize the opportunity to adapt to a low-carbon future. A low carbon economy will offer significant opportunities as consumers drive change, stimulating competition to produce low-carbon products and services, and rewarding those businesses that take the lead.

Moving towards low carbon, especially in these times, is not a luxury. It is a critical issue and an important opportunity for business and for creative thinking. Where the great depression was solved by building roads and bridges, what this economic crisis needs is green innovation.”

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Dr Neil Bentley, CBI director of business environment speaking at the Carbon Trust’s annual stakeholder event.