Aldersgate calls on UK government to back low-carbon sector
The Aldersgate Group, which represents over 30 of the UK’s green and low-carbon companies, has said that the country’s low-carbon economy, which had a turnover of over £77bn ($99bn) in 2015, could increase from 2% of GDP to 13% over the next 30 years, dependent on government support. The group, which includes Aviva, Ikea, M&S and Siemens, made the prediction in a letter to The Guardian. The business leaders called on politicians to ensure that “ambitious and long-term policies” for the green business sector, which employs over 432,000 people, are central to the UK’s industrial strategy.
Despite the US withdrawal from the Paris agreement on climate change (Anger at US as Trump rejects climate accord, 2 June), the global market for low-carbon goods and services is rapidly growing and the UK must make the most of this opportunity. Spurred in particular by major investments in low-carbon technologies by countries such as China, India, Mexico and South Africa, the Paris agreement could open up $23tn (£18tn) worth of opportunities for low-carbon investments in emerging markets between 2016 and 2030. The commitments made by six world leaders at the recent G7 summit and the decision by China and the EU to collaborate more closely on climate change support this trend.

The UK is well placed to benefit. Its low-carbon sector employed 432,000 people and produced a turnover in excess of £77bn in 2015. The UK’s strengths include manufacturing ultra-low emission vehicles and offshore wind turbines, piloting innovative ideas in energy, water and resource efficiency and providing financial and legal services for clean energy projects worldwide. The focus on developing low-cost, low-carbon infrastructure is gaining momentum across all key economic sectors.

The low-carbon economy could grow from 2% of UK GDP today to 13% by 2050. However, stable policies to grow the UK’s low-carbon market will be essential to turn this potential into reality and ensure our economy remains competitive on the global stage. We therefore call on the new government to put in place ambitious and long-term policies to tackle climate change and improve the state of the environment at the heart of its industrial strategy and vision for the UK.

Nick Molho Executive director, Aldersgate Group, Chris Newsome Director of asset management, Anglian Water, Steve Waygood Chief responsible investment officer, Aviva Investors, Nigel Stansfield President, Interface Europe, Middle East and Africa, Pierre Woreczek Chief customer officer, Kingfisher, Jens Tommerup CEO, MHI Vestas Offshore Wind, Matthew Knight Director of energy strategy and government affairs, Siemens UK, Alistair Phillips-Davies Chief executive, SSE, Julia Barrett Director, Willmott Dixon Re-Thinking, David Symons UK Director of Sustainability, WSP, Piers Guy UK country manager, Vattenfall, Paul Greensmith UK country leader, XL Catlin

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