CBI releases report on 5th Carbon Budget
As the government finalises its Emissions Reduction Plan (ERP) to meet the 5th Carbon Budget, the CBI has issued its latest report "Stepping up to the challenge", setting out what British business would like the plan to address.
The report argues in favour of a refreshed approach to energy policy, which provides a future-fit framework, giving business the confidence to innovate and invest. They believe that this approach can deliver the energy trilemma, but also build a more resilient economy, that drives global competitiveness, improves wellbeing, and creates prosperity across the country.
The report states that government, in the context of an increasingly interconnected world, must take a whole system approach to meeting carbon targets – that accounts for the interdependencies in our economy and focuses on innovation as a means by which we can deliver a smarter system.
However, they also argue that in some areas, more targeted policy action is needed in order to build upon the progress already made, and deliver investment where more heavy lifting is needed. The report states that the plan will need to set the conditions for the market to innovate, enabling the lowest cost pathway to decarbonisation, with a focus on four key sectors: homes, transport, power and business.
Finally, the report states the need for the right mind-set in government, with the low-carbon transition embedded in all departments, and in wider government policy – not least the Industrial Strategy. In addition, it argues that we must work towards a three-way partnership between business, government and consumers, both to ensure an ongoing dialogue, but also in order to build public confidence and engage consumers in this transition.
The CBI expects the Emissions Reduction Plan to be released in the coming months, and will continue to engage government to ensure that the business voice continues to be heard on this issue.
The full report is available at www.cbi.org.uk/insight-and-analysis/stepping-up-to-the-challenge
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