A new analysis from the Carbon Trust has reported that UK could generate up to GBP70 billion for the economy and almost 250,000 jobs in offshore wind and wave power alone. Offshore wind and wave can alone provide at least 15% of the total carbon savings required to meet the country’s 2050 targets. As part of the ‘Clean Tech Revolution’ campaign, the Carbon Trust will be launching 15 new R&D and technology acceleration projects in 2009, in addition to over 40 projects that are already in place.
Launching the Carbon Trust’s ‘Clean Tech Revolution’ campaign, Chief Executive, Tom Delay, said a new strategy is required if Britain is to transform itself into a global hub of low carbon innovation. He called for Britain to make smart investments through greater technology prioritisation and to move away from technology neutrality. This new approach, outlined in a new report, means public support will be focused on emerging low carbon technologies and industries that will have the maximum impact on cutting carbon and generating UK economic benefit.
In the first of a series of economic reviews, the Carbon Trust demonstrates that by applying this new approach the UK could seize 45% of the global offshore wind market by 2020, delivering £65 billion of net economic value and some 220,000 total jobs by 2050. To do this we need a comprehensive package of technology focused support including investment of up to £600 million in R&D, removal of regulatory barriers and new incentive mechanisms to accelerate deployment of offshore wind power around our coasts. Two thirds of this economic value will come from the fast growing low carbon technology export market, which can be unlocked by ensuring that investment into the UK is made attractive.
Analysis also shows that, with 25% of the world’s wave technologies already being developed in the UK, Britain could be the ‘natural owner’ of the global wave power market, generating revenues worth GBP2 billion per year by 2050 and up to 16,000 direct jobs. To generate maximum economic benefit, the UK must focus on addressing funding gaps in the wave sector.
Tom Delay, chief executive of the Carbon Trust said: “These technologies are not green ‘nice to haves’ but are critical to the economic recovery of the UK. To reap the significant rewards from their successful development we must prioritise and comprehensively back the technologies that offer the best chance of securing long term carbon savings, jobs and revenue for Britain. We have known for a while that the UK has an important role to play in the clean tech revolution. But, rather than following in the footsteps of others, this new analysis shows it is an economic no brainer to be leading from the front. The global race is clearly on and the clock is ticking.
Minister for Energy and Climate Change, David Kidney said: The Government aims to secure Britain’s green future, and seize the economic benefits of the move to a low carbon economy. We are determined to position our country as a hub of the advanced green manufacturing revolution. The GBP405 million towards investment in low carbon industries secured in the recent budget is a strong signal of our intention to realise that vision. The commercialisation review is an important contribution from the Carbon Trust and I welcome their valuable insights.”
Professor John Beddington CMG FRS, chief scientific adviser to HM Government and Head of the Government Office for Science, commented:
“The UK’s greenhouse gas targets mean that by 2050 we must reduce our emissions to just one tenth of today’s levels, per unit of output. This is a formidable challenge, requiring step changes in the rate at which we improve our energy efficiency and in low carbon innovation. The Carbon Trust’s proposals recognise the need for us to be smarter in focusing our investments, including to help businesses seize the economic opportunities of the transition.”
John Sauven, greenpeace executive director, said: “Every country now needs a decarbonisation plan to help solve three of our greatest challenges – climate stability, energy security and economic prosperity. The UK has an enormous untapped supply of clean, green renewable energy and a world class engineering industry well placed to develop it. Our economy can also save billions in energy costs by investing in an unprecedented energy efficiency drive. We need nothing less than to make the UK a global leader of the green industrial revolution. The Carbon Trust is right to find the ways in which we can rapidly develop the low carbon technologies that could help solve the greatest challenges facing our planet.”
Martin Rees, president of the Royal Society, commented: “The world’s economy is facing one of its biggest ever shifts as the necessity of tackling climate change and dwindling supplies of fossil fuels dictate a move to a low carbon economy. In the past we have let opportunities to capitalise on our scientific leadership slip through our fingers. The US and others are investing heavily in low carbon technologies; we must not fall behind and waste the scientific expertise that we have in the UK.”
Sir David King, director, Smith School of Enterprise and the Environment, Oxford University: “If the UK is really going to live up to its leadership position on climate change we now need to look to the future and focus on developing the technologies, markets and businesses that will deliver the greatest carbon and economic benefits. I welcome Carbon Trust’s campaign as it comes at a pivotal point in our history. We have a rare chance to rebuild our economy in a way that will reduce carbon emissions at the same time as being sustainable and prosperous. We must not pass up the opportunity.”
Dr Neil Bentley, CBI director of business environment, said: “This campaign brings a welcome focus on how we can maximise UK economic benefit from the low-carbon revolution. Government should work with industry to prioritise technology families with the greatest potential. Fully commercialised, low-carbon technologies need targeted research support, improvements to infrastructure and intelligent public procurement to help drive demand.”
Maria McCaffery, chief executive, BWEA commented: BWEA believe that this report is a benchmark step in terms of joined up thinking for RD & D in the UK Clean Tech Revolution, something the offshore wind, wave and tidal industries have been pressing on for some time. Tailoring UK financial support to specific technology groups, by addressing their entire funding landscape, integrating innovation and business, will allow the UK to cement its position as global market leaders in the green technologies identified.”
“BWEA are confident that the offshore wind, wave and tidal industries will rank highly in the assessment procedure outlined in this report, as the UK will require rapid deployment of all three technologies if it is to meet its future renewable energy and carbon reduction targets. It is also fantastic how this report demonstrates that focused investment in these technologies now will secure long term economic benefits for the UK in the future.
Miles Templeman, director general, Institute of Directors commented: “It is business that will provide the long term solutions to climate change, and the rewards for British firms and for the British economy could be substantial. But it is for Government to provide a supportive framework, including the removal of regulatory and other hurdles. The Carbon Trust’s campaign on how to stimulate low carbon innovation in the UK is therefore both timely and important.”
Professor Jim Skea, research director, UK Energy Research Centre, commented:
“The UK has a unique, once in a generation, opportunity to lead the world in clean low-carbon innovation. But it will take vision and enterprise to make the most of that opportunity. The Carbon Trust’s new campaign is not only shining a light on the way ahead but promises concrete steps that will allow the UK to forge ahead with the development and deployment of new, world-leading technologies”