Last week’s blog covered the Daily Telegraph’s series ‘Rebuilding Britain’ and regretted that no one was listening to the call for better long-term planning (more of this in future blogs). For now I will continue looking at some of the themes that the series might have dealt with had they continued to focus on current and future trends.
One of the government’s main aims is a low-carbon economy and increasing the role of clean technologies. At the EU level Member States have already agreed ambitious targets for 2020, including a commitment to:
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cut greenhouse gases by 20% compared with 1990 levels (rising to 30% if international agreement is reached);
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reduce energy consumption by 20% through increased energy efficiency, and;
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meet 20% of our energy needs from renewable sources.
In order to meet those targets the EU’s new Energy Commissioner Guenther Oettinger has already expressed his view that investment in cleaner technologies in the European Union should more than double to €8 billion a year. However, a recent report by market researchers Cleantech Group and Deloitte has found that Europe has been lagging in comparison to the US when seeking venture capital for clean technologies with the US taking 62% of global share in comparison to the EU’s 29% in 2009. So, are we doing enough in Britain and the rest of Europe to take up the opportunity offered by clean technologies?
This issue, amongst others, was raised during a discussion of SAP’s latest Sustainability Report which I attended this week. The crucial question also raised is what role information technology can play, as well as how can European policy makers deliver on their ambitious emission reduction commitments without jeopardising the competitiveness of European industry?
Leading the discussions, SAP’s Chief Sustainability Officer, Peter Graf gave an interesting appraisal of the prevailing support for sustainability in business “…Today, despite the uncertainty of the outcome of the international climate change negotiations at COP16 (the next round of climate change negotiations at Cancún, Mexico) and despite the economic crisis, companies still invest in Sustainability, because consumers demand sustainable products and services, because Sustainability investment reduces costs and because it creates a competitive advantage,” he said.
During the discussions, he also highlighted differences in approach to investments in clean technologies by the EU and US. “In Silicon Valley”, he commented, “Clean Tech development is booming. There are high investments in Sustainable Technology Start-Ups - regardless the lack of political commitment and guidance on Sustainability in the US. This is due to the fact that Clean Tech is seen as a future market with high business potential and because in the US the access to risk capital is much easier”, while “…In Europe, on the other hand, the key driver for Sustainability investment is rather regulation than market forces.”
The debate about a future energy strategy for the EU is about to heat up with the Commission due to publish an “Energy Strategy for Europe 2011-2020″ in time for the December Energy Council and a roadmap to 2050 also promised. Increased investment levels in clean technologies, driven by market forces, should be a central core of that strategy. This is an issue our new Energy Minister, Charles Hendry, should not let up on with his new EU colleagues…
