The UK risks falling behind in the global green innovation race because of significant barriers to low-carbon investment, according to the British Chambers of Commerce (BCC).
Research by McKinsey suggests the net zero transition could be worth over £1 trillion to UK business by 2030.
With the UN Climate Change Conference COP30 just weeks away, the BCC is calling for urgent Government action to fix funding gaps, tackle skills shortages and ensure policy stability.
Among the recommendations in a new report, the BCC is calling for ministers to:
- Ensure innovation funding is available to support low carbon technologies from research through to commercialisation.
- Develop a national green skills map to identify existing and future needs.
- Commit to a clear, long-term net zero roadmap which gives investors and innovators confidence.
- Deliver on grid connection reform to fast-track clean energy projects.
- Simplify public sector procurement processes and environmental reporting in supply chains, to encourage low carbon investment by SMEs.
The call to improve innovation funding is central to the BCC’s Budget submission ahead of the Chancellor’s statement next month.
This week’s report is released as new BCC research shows businesses see high costs and limited funding as the main barriers to net zero progress.
In a survey of over 2,000 firms (mostly SMEs), who were all at different stages of their green journey, nearly half (43%) of responding firms cited cost as a significant barrier in progressing towards net zero. Meanwhile a third (34%) said a lack of finance or grants was holding them back.
The report has been produced by the BCC’s Green Innovation Challenge Group, drawing on expertise from businesses, academics and think tanks.
It highlights the potential for the net zero transition to be worth over £1 trillion to UK business by 2030. And it sets out how many businesses are carrying the country’s rich tradition of innovation into the low carbon era.
The report has 15 recommendations in total, many of them ‘revenue-neutral’, that can drive forward the take up of low carbon innovation.
The BCC is calling on the Government to work in partnership with businesses on the issues and set up working parties to discuss the way forward.
Shevaun Haviland CBE, Director General of the British Chambers of Commerce said:
“The UK has the businesses, ideas and talent to lead the world in low-carbon innovation. I speak to these amazing firms and their workforces every day.
“But without urgent action, we risk falling behind in the global race for green growth.
“We need ministers to work with business to tear down the barriers on finance, skills and policy that are holding too many firms back.
“Our report sets out practical recommendations to boost green innovation, reform grid capacity and procurement, and strengthen the skills of our workforce.
“The call to improve access to innovation funding is central to the BCC’s budget submission. The Chancellor has an opportunity next month to start the ball rolling on this.
“Now is the time for bold action from government so we can turbo-charge the UK’s low carbon transition. This will ensure we hit our net zero targets, guarantee green growth, and secure jobs for decades to come.”
Read the full report here.
About Hampshire Chamber of Commerce
Hampshire Chamber of Commerce is the independent voice of local business across the county and one of the largest regional business networks in the UK. With a strategic vision to ‘unlock Hampshire’s potential’, Hampshire Chamber brings together the combined influence, strength and expertise of the county’s three former major chambers. It works with over 2,000 individual firms spanning all sectors and sizes of business. Member services include training, advice, international trade documentation, events, networking opportunities and lobbying to policymakers on issues affecting business. Hampshire Chamber’s business network is designed to help any employer to grow and thrive irrespective of their stage on the enterprise journey.
About the British Chambers of Commerce - Where Business Belongs
The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 51 Chambers of Commerce across the UK, representing thousands of firms. It provides a unified voice for these companies, rooted in their communities, at the national level. We link our UK network with over 75 international member chambers, to promote trade and investment, and work for a better future for businesses around the world.
For more information, visit: www.britishchambers.org.uk