Climate change is worth billions, says oil giant

Climate change is a business opportunity worth £30bn for British companies over the next decade, one of the world's biggest oil companies has said.

A new study commissioned by Shell from a consultancy firm is the first to put a number to the climate-related products, services and technology market, according to the energy giant.

The study also identifies areas where small and medium companies should find the biggest business opportunities stemming from both consumer and Government-driven demand.

The biggest areas of opportunity as seen by the report’s authors are:

· Building regulations for commercial and industrial use – £950m

· Renewable electricity – £800m

· Renewable road transport fuels – £500m

· Domestic energy efficiency – £400m

· Building regulations for domestic use – £275m

James Smith, chairman of Shell UK, said: “For business, tackling climate change is both a necessity and a huge opportunity. This creates a huge new opportunity for British business nationally and internationally.

“We have to step up to the challenge. Our small businesses and the scientific depth in our universities are going to be vital contributors.”

The study is part of Shell’s Springboard programme, which offers support and funding to small businesses engaged in low carbon projects.

Lord Oxburgh, chair of the Shell Springboard UK, said: “The urgent need to reduce greenhouse gas emissions offers opportunities to the nimble. There is now scope for a wide range of devices and services, which a decade ago would have made no economic sense, and for which there would have been no demand.

“Shell has created the Springboard programme to help people to grasp some of these opportunities, and to take the first steps towards turning their ideas into viable businesses and products.”

Goska Romanowicz

Action inspires action. Stay ahead of the curve with sustainability and energy newsletters from edie