The UK is falling behind US and EU in the race for green growth: Beckie Hart

That is a great concern for businesses in Yorkshire and the Humber and was certainly a topic of conversation when Chris Skidmore spoke at the Foresight Net Zero conference in Hull last week and will undoubtedly be discussed over the next few days during Yorkshire Sustainability week.

The CBI has long been clear that we must urgently accelerate our efforts to decarbonise.

At COP26, the UK committed to cutting emissions by 68 per cent from 1990 levels by 2030.

So far, they have fallen by 46 per cent - meaning that we must quadruple the rate of yearly emissions outside the electricity supply sector in just seven years.

It’s clear that we have no time to waste. Our planet – and our economic future – depends on it.

When it comes to green growth, the UK is getting less competitive. In the last two years alone, we have lost out on £4.3 billion of green growth market value in Europe alone.

So, we need to step it up to capture our share of fast-growing green markets.

Earlier this year, we called for comprehensive action to stimulate green growth to keep up with fierce global competition – from the US to the EU.

The US has introduced the Inflation Reduction Act (IRA), delivering wells of green subsidies.

And in February, the EU announced measures to simplify access to tax breaks for green developers, boosting attractiveness for investors.

Yet, progress here at home has been sub-par. While the UK has demonstrated bold ambition, and has outlined much needed high-level commitments, now is the time to walk the walk.

First, we need to make sure we deliver on our commitments at pace. And if we are to meet net zero targets, business and Government must be pulling on the same rope.

Second, we have to use this opportunity to capitalise on our early leadership position – like on the roll-out of clean heating systems or enabling access to the electricity grid.

And for a realistic shot at reaching our targets, businesses need a tax environment that encourages green growth.

Because the majority of investment needed to enable the net zero transition will come from the private sector.

The CCC has laid out where we need to do more – like on the supply of green technologies and their take-up by firms and households. Those gaps need filling now.

We need all hands on deck – with Government and firms across the UK, arguably being led by those in our region, working together to make sure the UK is the number one destination for green investors.

Right now, we’re simply not there yet – and we can’t risk falling behind even further. Together with our members, we stand ready to help make the UK a world leader on net zero once more.

Beckie Hart is Yorkshire and Humber regional director for the CBI.