The UK is in danger of falling behind in the global green innovation race because of significant barriers to low-carbon investment, according to the British Chambers of Commerce.
Ahead of this month’s UN Climate Change Conference COP30, 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, it is calling for ministers to ensure innovation funding is available to support low carbon technologies from research through to commercialisation.
It is also recommending the development of a national green skills map to identify existing and future needs and a simplification of public sector procurement processes and environmental reporting in supply chains, to encourage low carbon investment by SMEs.
The call to improve innovation funding is part of the BCC’s Budget submission ahead of the Chancellor’s statement this month. 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 BCC’s report shows businesses see high costs and limited funding as the main barriers to net zero progress.
Shevaun Haviland, director general of the British Chambers of Commerce, said: “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 and guarantee green growth and secure jobs for decades to come.”
Source: cirmagazine.com
