CBI urges government to ‘build back better’

The Confederation of British Industry (CBI) has made investment in the green economy one of its three asks of the government in forming an economic recovery plan.

An open letter from the business body’s director-general Dame Caroline Fairbairn was headlined “build back better”.

This topic – and the sector’s role within it – will be discussed in the latest of Utility Week’s #AskUsAnything online shows tomorrow (12 June) at 11am, with Affinity Water chair Tony Cocker, the chief executive of Energy & Utility Skills Nick Ellins and a representative from National Grid. You can register here.

In her letter, Fairbairn called for the government to bolster UK efforts to provide global leadership on climate change issues when it holds the COP26 summit next year by upping progress on delivering the net-zero target.

The government is due to publish its plans for economic recovery next month.

She writes: “One thing is clear: the UK will only build back fast and better through a market driven plan that supports sustainable growth.”

By investing in green growth, through both proven and new technologies, the government can both create jobs and a more sustainable future, says the letter.

The CBI calls for the introduction of a time-limited car scrappage scheme to incentivise the take-up of electric vehicles and kickstart demand for motor manufacturing, which it identifies as the one of the sectors likely to be hardest hit by the current crisis.

It also argues for the rollout of a national programme, starting with social housing, to retrofit all homes with a high standard of energy efficiency and lay the foundations for low-carbon heat.

In addition, it urges the government to bring forward funds committed towards the electric vehicle charging network and speed up its deployment through fast-track planning.

And it supports further business investment in renewables and nuclear power, a flexible energy system and the “rapid delivery” of a carbon capture and storage (CCS) infrastructure fund.

The letter has been published on the same day as a new report, which estimates that the low-carbon and renewable energy economy could create nearly 700,000 direct jobs in England by 2030, rising to more than 1.18 million by 2050.

The report, carried out for the Local Government Association by Ecuity Consulting, says that  around half (46 per cent) of these estimated 693,628 total new low-carbon jobs would be in clean electricity generation and providing low-carbon heat for homes and businesses, such as manufacturing wind turbines, installing solar panels and installing heat pumps.

Another fifth (21 per cent) of the new low-carbon jobs would be involved in installing energy efficiency products, such as insulation, lighting and control systems, while a further 19 per cent would be in the provision of low-carbon services and producing alternative fuels, such as bioenergy and hydrogen.

Acting Liberal Democrat leader Sir Ed Davey called on the government to launch a green recovery plan to repair the economic damage caused by the coronavirus pandemic, which new research from the OECD shows is likely to be worse than for any other developed economy.

He said: “The UK desperately needs a Green Recovery Plan. We can rebuild the economy and protect the environment by creating jobs through embracing new, green technologies.