UK lagging behind in global green growth race

15 May 2024

The UK is falling behind its international competitors in the race for green growth, the Confederation of British Industry (CBI) has warned.

The CBI is urging the UK to unlock the potential of the green economy with tax incentives, which could deliver a boost of £57 billion a year by 2030.

However, the UK risks falling behind as both the US and Europe have introduced impressive reform packages to incentivise green investment, using tax credits, subsidies, grants and loans.

The CBI is proposing a number of recommendations including Green Innovation Credits, lower corporation tax for profits derived from green technologies and an enhanced green super-deduction rate.

Rain Newton-Smith, CBI Chief Executive, said: 'The UK is lagging behind in the global green growth race. Our US and European rivals have bolted out the gate with incentivising reform packages, securing major market share and creating skilled jobs.

'The UK initially led the pack, setting international standards and as the first major economy to sign net zero into law. We must now move at pace to reclaim our lead in this field, to achieve our net zero goals and build in long-term, sustainable economic growth. Public funding alone will not be sufficient.

'As we head into a General Election, political parties have an opportunity to prioritise green growth by using their manifestos to set out a package of tax measures that provides the best value for money and impact in bringing the UK closer to its decarbonisation goals.'