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The Low Carbon Economy Ltd

07 Jun 2011 12:06:12

CBI: Urgent action is needed on green policies

CBI: Urgent action is needed on green policies
"Urgent action" is needed by the government on its low carbon energy policies, according to the Confederation of British Industry (CBI).

In its assessment of the coalition government's first year in office, the industry body said there is still much work to be done in ensuring energy security.

Director general John Cridland described energy market reform as the "single most pressing issue for businesses" and expressed concerns about the impact of any form of carbon tax.

"The new carbon floor price cannot be allowed to compromise the competitiveness of our heaviest energy users, and must not become little more than a tax raiser," he said.

In its report the CBI also stressed the need for a full low-carbon heating plan to be put in place, although the announcement of the Renewable Heat Incentive as a "positive step".

However, it claimed investor confidence in carbon capture and storage projects was being eroded by delays in awarding demonstration projects.

The CBI has also previously said it is uncertain whether the investment needed to build the low carbon infrastructure required to support the low carbon economy will be found.  ADNFCR-1235-ID-800569744-ADNFCR

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