Launching a new report ‘No Time To Lose: Deciding Britain’s Energy Future’, CBI warned that without clarity on government policy, GBP150bn of private sector investment in low-carbon infrastructure will fail to materialize. This investment is essential for the country to achieve a secure, sustainable and cost-effective energy mix that includes renewable sources, nuclear power and fossil fuels.
According to the business group, uncertainty about the planning regime in particular is making investors wary of committing to new energy projects.
Among measures CBI is calling for from the government by the end of February 2011 are tackling delays in the planning system, speeding up the development of carbon capture and storage technology, and providing more detail on electricity market reform, its renewable energy policy and the implications of the Emissions Performance Standard.
John Cridland, deputy director general of CBI, said: “Energy companies are unable to get the ball rolling on new infrastructure projects when it is unclear how the future planning regime will work.
“Uncertainty on plans for electricity market reform, slow progress on clean coal and nuclear power, as well as the cost of renewable energy are adding to the mood of caution among investors. We need investment from companies, not delays from government.”
