24 May 2021
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4 min read
The CBI has called for UK to seize the moment in 2021 to deliver the foundations of a net zero economy
CBI head Tony Danker argues 'we will never get a better chance to change our economy' as he unveils major net zero-focused economic plan
The UK has a golden opportunity to build a net zero emissions economy, boost jobs and skills, become a globally competitive powerhouse for green technologies and expertise, help all corners of the country to thrive, and unlock tens of billions of pounds of additional revenues - but these multiplebenefits will onlybe realised if government and businesses act decisively, rapidly, and ambitiously to "seize the moment".
That is the clarion call today from Britain's biggest business group, the Confederation of British Industry (CBI), which has unveiled a "landmark" economic plan to drive decarbonisation, innovation, and 'levelling-up' that it claims could be worth £700bn in commercial growth for UK companies.
The result of "months of research and business consultation", the CBI's economic plan identifies six key ways to transform the economy and drive green growth towards net zero emissions in a bid to realise "a decade of better economic growth and social solidarity" in the wake of 10 years of austerity measures, Brexit-related disruption, and the coronavirus crisis.
Tony Danker, the CBI's director-general, argued now was the time for the UK to "seize the moment" in the wake of the Covid-19 crisis and ahead of the critical COP15 and COP26 UN summits on biodiversity and climate change, respectively.
"This country will never have a greater opportunity to transform our economy and society for the better than we have right now," he said. "This is the moment where we have a genuine chance to make big bets on how the UK economy will grow and compete."
"Our workforce demands better of us," he added. "Our customers judge us by the values we keep. And our investors rightly assess us through environmental, social, and governance frameworks."
The strategy is designed to complement the government's Plan for Growth, setting out how Westminster's ambitions can be delivered by businesses across the UK, backed by policy recommendations for different sectors and companies that set out the clear economic and environmental gains on offer, the CBI said.
With ambitious and decisive action now from businesses, national, and local governments, the UK could realise the a huge prize on offer from winning the global race to net zero, estimating the country could capture £8bn in additional revenues from hydrogen electrolyser production alone.
Moreover, closing the future skills gap could provide a £150bn uplift to UK gross value added (GVA), reforming regulation to incentivise investment in sustainable growth could boost GVA through global trade by £20bn, and support for innovation in AI alone could add £38bn in GVA, according to the CBI's calculations.
Among a host of policy recommendations for businesses and government, the economic strategy calls for a long-term tax roadmap for the UK to help restore public finances in a way that is consistent with supporting business investment, competitiveness and delivering net zero.
The CBI said it planned to engage with thousands of businesses in the coming months to test its analysis and identify the most pressing issues for the government to address, while alos establishing a new advisory group to help shape the strategy, which it has dubbed 'Seize the Moment'.
Members of the advisory group include leading CEOs such as Microsoft UK's Clare Barclay, BT's Philip Jansen, Unilever's Alan Jope, Legal & General's Nigel Wilson, and GSK's Dame Emma Walmsley.
While Danker conceded there was "much to worry about in the short run" as a result of the on-going pandemic, significant debt for many companies, and the uncertainties of trading in a new regime outside the auspices of the European Union, he argued that "we know [that it is] from crises that new realities are shaped".
"Our plan is to make the UK the most competitive, dynamic and future-focused economy in the world," Danker said. "Become a beacon to the world in achieving green growth. Decarbonising our economy is a planetary imperative, we can use our transition to net zero to create green jobs, to find sustainable solutions and sell them to the rest of the world.
"All of this, government cannot do alone. Only business can create jobs and opportunities for people. You will hear a lot from us on this campaign to come. Not just this week, but this year and for the five years to come. We want every business in the UK to get involved.
He added that there was also "a unity of purpose in my view across politics, business, trade unions and civil society" around issues such as the net zero transition and 'levelling up'. "We may disagree on detail but not on the need to align around this vision and these principles," he said.
The report comes on the same day as the government announced a new £166m green spending programme designed to help cut emissions from energy intensive industries through a range of hydrogen and carbon capture projects. Meanwhile, reports over the weekend suggested the government's upcoming Heat and Buildings Strategy is set to require households to switch to low carbon heating systems when they sell their property or undertake major renovations.
The fresh moves are likely to be welcomed by the CBI and others, but green business groups are still continuing to call on the government to fast track crucial net zero-related policy decisions in the coming months and deliver a multi-billion pound green recovery package akin to those being pursued by the US, France, Germany, and others.
