New report warns the government must set a clear policy direction to attract the investment needed for a low carbon economy.
Recurrent policy uncertainty could mean the UK fails to attract the estimated £150bn of investment needed to build a low carbon infrastructure over the next 20 years. This is the conclusion published in a new survey today by the CBI and Accenture entitled: “Risky Business: Investing in the UK's low-carbon infrastructure.”
After interviewing 24 senior executives from the energy, finance, manufacturing and property sectors, the CBI report warns that the UK is at risk of missing its carbon emissions targets and failing to close the energy gap left by ageing coal and nuclear power stations that will become offline over the next 20 years.
According to the CBI, the UK's record of 'sudden policy shifts', such as the changes to the Carbon Reduction Commitment (CRC) and feed-in tariff scheme (FiT), made investors reluctant to deliver low carbon investment at the scale and pace required. For the UK to appear as an attractive destination for investment, the CBI report calls for a UK-wide long-term, low carbon growth strategy.