Investment uncertainty devastating low carbon economy
A lack of certainty is crippling the UK's renewable energy industry, according to the latest research by the CBI.
Echoing a call yesterday by accountancy giants Grant Thornton the CBI's latest Climate Change Tracker today (July 8) revealed business fears over the green economy.
The tracker, which marks a series of indicators on climate change and green business, currently has only one of its thirteen indicators on track.
And, on top of that it reveals progress is 'lagging' on decarbonising buildings, transport and industry, says the CBI which speak for around 240,000 businesses.
The CBI points to the damage to business confidence caused by unexpected changes to the Carbon Reduction Commitment (CRC) energy efficiency scheme, feed-in tariffs and the North Sea oil and gas tax.
And, also uncertainty, surrounding a number of major policies, including electricity market reform, funding for Carbon Capture and Storage (CCS) and the Renewable Heat Initiative and consumer grants for low-carbon vehicles.
CBI chief policy director, Katja Hall, said: "Decisions being taken now will make or break the UK's low-carbon economy.
"Business confidence has clearly been bruised by sudden and unexpected policy shifts on the Carbon Reduction Commitment, the oil and gas tax hike and feed-in tariffs.
"The carbon floor price and CRC have been dressed up as helping achieve carbon targets but they risk becoming little more than revenue raisers for the Treasury. Meanwhile, there is also genuine concern about how the Green Deal and electricity market reform will work."
However, the CBI does praise the Government for setting the wheels in motion in a number of key areas, including providing more clarity on Climate Change Agreements and funding for the Green Investment Bank.