Low Carbon Industrial strategy: remarks by Ed Miliband, Secretary of State for Energy and Climate Change
Can I start by saying how grateful I am to everyone here for having given up their time and to Lord Browne for chairing this event, and to the CBI and TUC being co-hosts.
What is the task before us today? I want to say a few words about the scale, the focus, and the opportunity.
So first, our task is to recognise that transformation of our economy is going to be enormous - and I’ve got to be honest, I don’t think everyone has yet fully realised it.
We can’t negotiate with the science - and the science says we need to cut greenhouse gas emissions by 80 per cent to avoid the most catastrophic and irreversible effects of climate change.
We’ll have 20 per cent of the emissions, with an economy that we want to be three times bigger. That’s not just a change, it’s a transformation.
And it’s one we’re getting on the path to now: we’ve already written the target into law, and this year we’ll be announcing the first ever carbon budgets - five-year budgets that the government will be legally bound to stick within.
In this certain low carbon context, we know the low carbon economy is here, we know it will grow exponentially in Britain and abroad, and we know we need to get with it; the question for Britain therefore is not whether it should put its toe in the water; but how to lead the pack.
Anyone who sees that, for example, the United Arab Emirates is investing £15bn in the Masdar carbon-neutral city of 50,000 people at $300,000 a person knows the race is on.
Second, our focus is on areas where change is most urgent and opportunities most attractive.
It starts with the trinity of the low-carbon economy: nuclear power, renewables and clean fossil fuels.
But we also need to ensure that in other key areas, we take advantage of the competitive and jobs opportunity.
- Our wider energy infrastructure, beyond the low carbon power sources we need and including the transition to a smart grid
- Low-carbon vehicles, perhaps the most visible change
- And Energy efficiency, saving money for businesses, public services and consumers.
In some cases they are distinct industries, but the truth is green will not simply be a niche industry of the future, but like the internet, part of the way everybody does business.
So third, the task is to answer the question: how do we make sure Britain is positioned to lead in those areas?
The old debate about markets versus government is different perhaps from the situation in other industries. We know from a cursory glance that that we need both.
We need the ingenuity and the innovation of companies in the market, but we also know very clearly that what business wants is a framework: not just to set a price on carbon, but also, because of market failures or uncertainty, to drive technology.
And we need the right support to build on where Britain already has a head start on other countries:
• Like off-shore wind, wave and tidal power, where our strong and reliable winds and currents are now a blessing.
• Like carbon Capture and Storage - a huge engineering challenge but one where the North Sea again gives us a vital resource.
• And like ultra-low carbon vehicles, where our strong innovation and manufacturing base gives us the chance to succeed, if we move quickly to grasp the opportunity of new technologies.
We need the right business environment, to give businesses the technology, the skills, the infrastructure to be the best place in the world to grow business in a green way - and that is the fourth area for discussion today, alongside energy infrastructure, energy efficiency, and transport.
Let me end with this thought.
We can’t ignore the fact that green industry is not just a way to make profit but a way to save the planet for future generations.
Why do I draw attention to this? Because I think it has huge potential to motivate people and give them a sense of optimism not just about the new economy but the kind of business we are talking about.
What we are talking about today is I believe an inspiring vision of the future and I look forward to working with you to make it happen.