Business is ready to help tackle climate change but needs politicians to help companies not hinder them, CBI President John Sunderland will say today (Wednesday).
Government and business must work together to develop policies to cut carbon emissions by 60 per cent by 2050 - with sensible milestones which allow companies to plan investments within a settled framework without the burden of increased regulation
In a speech in London, Mr Sunderland will say: "Business recognises and shares this concern about climate change not just from an ethical standpoint but also because the potential cost of climate change could be highly significant.
"At the same time it is also important to ensure that business has access to secure and affordable energy supplies. Energy is a prerequisite of growth, prosperity and our quality of life. So we face a major challenge – can we decouple carbon emissions from our journey to prosperity?
"Technology will play a key role - history shows it has been key to reducing the energy intensity of industrial processes - but carbon emission reduction policies and targets also have a role and it is fundamental that these are intelligently designed."
Mr Sunderland will stress five points:
* Carbon targets must be achievable and set in a realistic time-scale which relates to business investment cycles.
* Governments must implement policies focused on sectors other than just energy intensive industrial elements.
* UK and EU policies should not indiscriminately overlap and increase the regulatory burden on industry.
* Policies should allow flexibility in the ways in which businesses contribute to carbon reduction.
* Carbon reduction goals must be pursued in an international context both to minimise competitive distortions and to maximise environmental benefits.
Mr Sunderland added: "Climate change is becoming a reputational as well as a cost and social responsibility issue for business and, across the world, companies are in the forefront of reducing energy use and developing low carbon emissions.
"Business has a significant role to play in meeting future climate changes and is prepared to engage fully in this process but needs equally engaged, committed and, above all, practical Government policy frameworks."