U.K. Companies Call for Government Leadership on Climate Change
Business leaders from 13 major U.K. and international companies are offering to support the government in developing new, longer-term policies for tackling climate change.
Business leaders from 13 major U.K. and international companies are offering to support the government in developing new, longer-term policies for tackling climate change. In a letter addressed to Prime Minister Tony Blair, the companies argue that there is a need for urgent action to be taken now to avoid the worst impacts of climate change, and offer to work in partnership with the government towards strengthening domestic and international progress on reducing greenhouse gas emissions. They also pledge to engage other British businesses, the U.K. public and governments and businesses internationally to back this effort.
The group of CEOs and senior executives has come together under the auspices of the Prince of Wales's Business and the Environment Program in response to a challenge issued by the prime minister in his climate change speech at the program's tenth anniversary in September 2004. In its letter, it argues that investing in a low-carbon future should be "a strategic business objective for U.K. plc as a whole." However, it points out that at present "the private sector and governments are in a 'Catch 22' situation with regard to tackling climate change, in which governments feel limited in their ability to introduce new climate change policy because they fear business resistance, while companies are unable to scale up investment in low-carbon solutions because of the absence of long-term policies."
In the letter, the corporate leaders say that their main concern is about how they "as business leaders can help bridge the gap between today’s economy and the radically
different low-carbon future that will be needed" to deliver the government’s stated aim of reducing emissions by 60% by the year 2050. The business leaders point out that they and other companies have already made significant investments in low-carbon technologies, processes and products, but say that “what we have done so far is not nearly sufficient given the size of the challenge facing us”. They argue that what is needed is a “step-change in the development of low-carbon goods and services,” and that delivering this will require a strengthening of policy mechanisms, with an emphasis on the careful and focused use of market mechanisms which will minimize impacts on competitiveness. In particular they argue that the Government should work to extend targets for emissions trading policies to 2025 to increase market confidence and reduce the risk of investing in low carbon technology.
The leaders cite the International Energy Agency’s calculations that $16 trillion dollars of energy infrastructure investment will be needed worldwide over the next 25 years to satisfy the world’s growing energy needs. They argue that this investment can “set the stage for enormous commercial opportunities for the U.K. if it is coupled with a shift to a low carbon economy.” While acknowledging that tackling climate change will impose some upfront costs on businesses, governments and the public, they argue that “with the right policy framework in place, these can be minimized, and the U.K.’s overall competitiveness need not be adversely affected.”
The group concludes by offering to work in partnership with the government to:
Welcoming the Corporate Leaders Group’s report, The Prince of Wales said: “A challenge of the magnitude of climate change requires a coordinated response, based on actions across every sector of society, and the business community is going to be critical in achieving this. The role these companies are offering to play is highly strategic -- essentially helping to create a political space in which effective policies can be introduced and global progress can be achieved.”
The group of CEOs and senior executives has come together under the auspices of the Prince of Wales's Business and the Environment Program in response to a challenge issued by the prime minister in his climate change speech at the program's tenth anniversary in September 2004. In its letter, it argues that investing in a low-carbon future should be "a strategic business objective for U.K. plc as a whole." However, it points out that at present "the private sector and governments are in a 'Catch 22' situation with regard to tackling climate change, in which governments feel limited in their ability to introduce new climate change policy because they fear business resistance, while companies are unable to scale up investment in low-carbon solutions because of the absence of long-term policies."
In the letter, the corporate leaders say that their main concern is about how they "as business leaders can help bridge the gap between today’s economy and the radically
different low-carbon future that will be needed" to deliver the government’s stated aim of reducing emissions by 60% by the year 2050. The business leaders point out that they and other companies have already made significant investments in low-carbon technologies, processes and products, but say that “what we have done so far is not nearly sufficient given the size of the challenge facing us”. They argue that what is needed is a “step-change in the development of low-carbon goods and services,” and that delivering this will require a strengthening of policy mechanisms, with an emphasis on the careful and focused use of market mechanisms which will minimize impacts on competitiveness. In particular they argue that the Government should work to extend targets for emissions trading policies to 2025 to increase market confidence and reduce the risk of investing in low carbon technology.
The leaders cite the International Energy Agency’s calculations that $16 trillion dollars of energy infrastructure investment will be needed worldwide over the next 25 years to satisfy the world’s growing energy needs. They argue that this investment can “set the stage for enormous commercial opportunities for the U.K. if it is coupled with a shift to a low carbon economy.” While acknowledging that tackling climate change will impose some upfront costs on businesses, governments and the public, they argue that “with the right policy framework in place, these can be minimized, and the U.K.’s overall competitiveness need not be adversely affected.”
The group concludes by offering to work in partnership with the government to:
- Support the development of a world leading climate change policy framework for the U.K., including by advising on policy design and publicizing its support for new policies
- Influence other businesses, the public, and governments and businesses internationally, including by working on G8 and EU initiatives that are seeking to engage India and China on the issues of climate change and energy
- Increase its own investment in the development and application of low carbon technologies as new policies are introduced, and acting as champions for such investment by other U.K. businesses
Welcoming the Corporate Leaders Group’s report, The Prince of Wales said: “A challenge of the magnitude of climate change requires a coordinated response, based on actions across every sector of society, and the business community is going to be critical in achieving this. The role these companies are offering to play is highly strategic -- essentially helping to create a political space in which effective policies can be introduced and global progress can be achieved.”
