The UK could unlock £57bn for the economy by 2030 through a green industrial strategy, according to the CBI.
New analysis from the CBI has shown that making the most of 27 green growth ‘prizes’ could deliver a £37-57bn boost to GDP by 2030, equivalent to between 1.6% and 2.4% of GDP.
But, as other countries make serious pitches for green investment, businesses fear that the UK faces a ticking clock and serious competition to realise these opportunities.
With policy direction and ambitious goals now locked-in, the CBI is proposing a series of measures to help the UK move urgently into delivery mode to secure investment, boost supply chains and create green jobs:
Deliver a clear and stable policy environment to build business confidence
Devise a comprehensive and competitive set of incentives to enable investment in the green economy
Drive efficiency and improved coordination of delivery mechanisms
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.”
On the need to move at speed to realise those prizes, Rain said: “The UK 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 UK 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.”