New analysis from the CBI has shown that making the most of 27 green growth ‘prizes’ could deliver a £57 billion boost to the economy.
The business organisation, behind a trailblazing decarbonisation demonstration cluster on the Humber, has outlined the potential for a 2.4 per cent uplift in GDP if the path is followed. And it has warned of a ticking clock on investment wins as global competition continues to emerge.
Projects around the Energy Estuary are flagged in the comprehensive report, including the headline need for carbon capture and storage in the region and the hydrogen pathfinder project from SSE. Senior CBI representation was also at the Humber Freeport launch on Friday, with the green agenda key to the 7,000 job ambition.
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With policy direction and ambitious goals now locked-in, the CBI is proposing a series of measures to help the 海角视频 move urgently into delivery mode to secure investment, boost supply chains and create green jobs.
It is a call that has been heard from business, with the Humber Zero team making a policy push plea earlier this month.
Rain Newton-Smith, CBI Director-General, said: “If we needed any further proof that green growth really is the ‘economic opportunity of the 21st century’ then a potential £57bn boost to the economy provides just that. Not only does it offer hope for lifting the current economic gloom, but it can deliver a path to sustained growth for years to come – all while providing vital protection to our environment, improved energy security and increased prosperity across the country.
"With a pivotal General Election fast approaching, all parties should be on red alert for green growth and put it at the very heart of their manifestos."
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The CBI is calling for a three-pronged approach, detailed here.
Deliver a clear and stable policy environment to build business confidence:
- Accelerate major policy decisions to stimulate green markets on the supply and demand side, with concrete timetables for phasing out gas boilers and advancing the CCUS cluster process.
Implement a new compulsory Net Zero test for government policy making and work with the Office for Budget Responsibility to make the climate impact of major tax and spending decisions transparent.
All political parties should put green growth at the heart of their manifestos ahead of the next General Election.
Devise a comprehensive and competitive set of incentives to enable investment in the green economy:
Review the tax system within the first year of a new government to ensure it supports the net zero transition – alongside considering a new tax credit designed to support and encourage green industries.
Establish a Net Zero Investment Plan, identifying green investment gaps and policy with the intention of crowding in private finance.
All parties should commit to a way forward on carbon pricing and future innovation funding designed to drive industrial demand for crucial green technologies.
Drive efficiency and improved coordination of delivery mechanisms:
Establish an Office for Net Zero Delivery to ensure consistent delivery across Whitehall departments, alongside new mechanisms to promote coordination between the 海角视频 and Devolved Governments.
Incorporate green skills into existing training opportunities and create a statutory requirement for all schools and further education institutions to make young people aware of green career pathways available.
Reform the planning systems for both local and major projects to enable faster delivery of green infrastructure, including financial incentives for communities that accommodate critical net zero infrastructure and ensuring all planning processes have a duty to support net zero transition.
Speed up grid connections by replacing the current first-come first-served model with a system that better reflects project delivery milestones.
On the need to move at speed to realise those prizes, Rain said: “The 海角视频 has always been an undisputed leader in the transition to net zero, allowing it to go further and faster than many other nations. It was the first major economy to sign net zero into law, has a strong track record on emissions reductions, and has a business community that not only backs the transition but is ready to seize the commercial opportunities available.
“But, in the wake of the US Inflation Reduction Act and similar moves in the EU, that position is now under threat. With competition for green investment heating up across the globe, the 海角视频 faces a race against time to claim the generous growth prizes on offer. That’s why we need decisive action – from government and business – to reclaim our place at the front of the queue.
“Given the tough fiscal environment, we may not be able to outspend the competition when it comes to attracting green investment, but I’m convinced we can outsmart it. Moving at pace to offer targeted incentives and deliver much-need confidence boosting measures is critical to success.”
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The 27 asks:
On carbon capture, use and storage development, the report says: "The Government has committed an unprecedented amount of funding to CCUS in early 2023, with £20 billion allocated to the initial eight Track One projects. This funding will enable key decarbonisation projects to become a reality and pave the way for industrial decarbonisation in the 海角视频, while unlocking private sector investment in jobs, supply chain and construction.
"However, the commitments made to date only scratch the surface on the 海角视频’s industrial decarbonisation challenge and CO2 storage potential, with projects in the 海角视频’s largest industrial region – the Humber – missing out on support. By 2035, over 70 million tonnes of carbon emissions in the 海角视频 could be abated by CCS, with a large proportion of these emissions located in industrial clusters, which could support over 140,000 new and existing jobs.32 With projects ready in the pipeline and business ready and able to invest significant private capital, the 海角视频 must now set out its long-term CCUS deployment plan."
Disappointment at missing out on forerunner status was expressed back in March, with the Hull and Humber Chamber of Commerce alongside local authority leaders calling for a 'rapid re-think'. Humber Zero, the Immingham power and refining-focused project, has been tipped as a leading contender in Track Two.
Welcoming the work, Beckie Hart, the CBI's regional director for Yorkshire and Humber, said: "No less a body than the World Economic Forum has recognised that there are few places in the world more crucial to delivering net-zero and industrial decarbonisation than the Humber.
“This is not just a 海角视频 opportunity but a global opportunity to drive investment, innovation and job creation and the whole of Yorkshire and the Humber stands ready to play a leading role in the 海角视频’s net zero future.
“With the right government support, we can drive private sector investment maximising the region’s natural resources and building upon existing expertise in offshore wind, hydrogen and the development of sustainable aviation fuels.”