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CBI: more energy efficiency needed

23 December 2009

Climate change tracker reveals UK lagging on progress towards a low-carbon economy

The Government should redouble its efforts to increase energy efficiency in the home and the workplace, the CBI said today. The failure of world leaders to agree binding global emissions cuts at the Copenhagen summit makes it all the more important that the UK pushes ahead as rapidly as possible to reduce its energy consumption and build diverse and low-carbon sources of power generation.

Launching its third Climate Change Tracker, which monitors progress towards a low-carbon economy, the CBI says just four of its 24 indicators are on track. It is particularly concerned about the slow progress being made in improving energy efficiency among businesses and consumers.

Richard Lambert, CBI Director-General said: "Following the disappointing outcome to the Copenhagen negotiations, the immediate emphasis must now be on those actions that don't require global agreement and that bring economic benefits in their own right. Improved energy efficiency can take us a long way towards meeting our commitments to reduce greenhouse gas emissions by 2020, and at the same time will bring significant economic benefits to the country.

"But our latest Climate Change Tracker shows that the UK is lagging on progress in this area, and that much more must be done to drive forward change. The Government's recently announced boiler scrappage scheme is a step in the right direction. But rather than piecemeal plans to tackle energy waste, we are calling for the Government to publish a low-carbon delivery plan to help the UK save energy.
"With £15m a day being wasted on energy by businesses and households every day, we need easy-to-access support and incentives to encourage improved insulation in homes and offices, a switch to more fuel-efficient cars, and other energy savings steps.

"It is also disappointing that the Government has undermined a successful scheme to encourage energy-intensive users, such as steel makers, to cut emissions by reducing the Climate Change Levy discount in the Pre-Budget Report."

Over the last six months the CBI's tracker shows that progress has been made in four areas: introducing a new planning system, supporting the development of new nuclear power, moving to the next stage of the EU emissions trading scheme, as well as the aviation and shipping industries taking steps to reduce their emissions.
But overall, progress continues to lag on the policies needed to meet 2020 emissions targets, such as agreeing a definition for zero-carbon homes and developing a practical delivery plan for smart meters.

The CBI has set out the actions that need to be taken by government and business during the next six months to get the UK back on track to build a low-carbon economy.

The CBI's recommendations for the Government include:

• Publishing a delivery plan to help the UK save energy at home and the workplace

• Helping turn public appetite for a global climate deal into consumer action on energy efficiency

Meanwhile, businesses need to take the following actions in the first half of 2010:

• Measure and monitor their energy use more and take steps to reduce energy consumption

• Engage employees, customers and their supply chain to promote energy efficiency

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