Supporting business growth
As CBI report The Colour of Growth showed, maximising the potential of green business could provide up to £20billion to the economy in 2014/15
We cannot afford to miss this opportunity. The government must work to develop a coherent strategy for all policy areas including the following to ensure continued business growth.
The CBI has long promoted the benefits of business energy efficiency in reducing carbon emissions, improving energy security and providing bottom line benefits. However, there are a number of hurdles to overcome to realise this potential - not least of which is raising awareness among business and ensuring that their financial and time investments really do pay off.
A structured policy framework is needed to help businesses identify and benefit from the opportunities available. To be effective, policy must make good use of a combination of financial and reputational/reporting drivers. The Carbon Reduction Commitment (CRC) has not proven effective at combining these drivers and the CBI believes it will not deliver its objectives.
In our response to the government’s simplification consultation on the CRC we called for the CRC to be scrapped and replaced with a time limited tax that will allow government to develop a more strategic approach to business energy efficiency, starting with mandatory carbon reporting.
Mandatory carbon reporting has been high on the CBI agenda for many years and the government’s announcement earlier this year that 1,000 public companies in the UK will start to publish their carbon emissions on a compulsory basis is a step in the right direction. A lot of work is still to be done and CBI members who have been voluntarily reporting their carbon emissions are keen to share their experiences with the government to ensure that future policy reduces emissions and allows for business growth.
Energy-intensive industries (EIIs) are at the heart of the low-carbon economy. However, these vital industries face growing problems as rising energy costs, much of which are a direct result of government policy, put their competitiveness in the UK at risk. The CBI in Protecting the UK’s Foundations: A blueprint for energy intensive industries called for urgent action from the government to protect EIIs and provide them with the right environment for continued growth. As a result of the CBI’s work, the government has proposed an EII compensation package to help against costs from policies such as the EU Emissions Trading Scheme and the Carbon Price Floor.
It is vital that this package is delivered but the government should also look to ensure EIIs are supported elsewhere through a clear and transparent Climate Change Agreement process and exemption from increased costs as a result of Electricity Market Reform. The CBI will continue to work to affirm the importance of EIIs in the government’s plans for growth.
Environmental taxes have the potential to deliver carbon savings by unlocking business investment. However, the environmental tax landscape in the UK is currently uncoordinated and ad-hoc with far too much overlap between taxes and other government policies. The CBI’s report, Solving a Taxing puzzle: Making Environmental Taxes Work for Business, calls on the government to commission an independent review of the environmental tax landscape in the UK while proposing a set of guidelines to be followed for the introduction of any new environmental taxes, or change to existing measures.
News and publications
CBI responds to DEFRA announcement on mandatory carbon reporting
The CBI responded to the Department for Environment, Food and Rural Affairs (DEFRA) announcement that over 1000 public companies in the UK will start to publish their carbon emissions on a compulsory basis
How UK green taxes have evolved since 1995
From the Fossil Fuel Levy to feed-in tariffs, the environmental taxes that consumers and businesses have paid in the past 17 years
Defra's delay on introducing mandatory carbon reporting is frustrating
Carbon reporting has strong business support and offers clear benefits to business, the environment and the UK economy, writes CBI director for business environment policy Rhian Kelly
Delay on emissions reporting frustrating - CBI
The CBI responded to DEFRA’s Parliamentary Report, Company Reporting of Greenhouse Gas Emissions
Budget breakdown: Energy and climate change
CBI analysis of how the Chancellor's announcements on energy and climate change will affect business
CBI immediate reaction to Budget
The CBI today gave its immediate reaction to the Chancellor's Budget speech
CBI's Budget 2012 submission to the chancellor
CBI calls on Chancellor to use budget to score growth and investment policy goals
CBI backs mandatory carbon reporting for businesses
The CBI today reiterated its call for the Government to introduce mandatory carbon reporting for businesses, but urged it to take the opportunity to align it to existing regulations on measuring emissions.
CBI comments on planned changes to carbon reduction commitment
The CBI today commented on the Government’s consultation on proposed changes to the Carbon Reduction Commitment (CRC).
Make carbon reduction commitment work for business - CBI
The CBI today warned that the Government’s flagship energy efficiency scheme is untenable in its current form, as it reiterated its call for the incentive behind the Carbon Reduction Commitment to be restored.