Business body calls for ‘clear direction’ from Government on net zero

CBI chief executive Rain Newton-Smith will urge governments north and south of the border to harness the ‘restless energy’ of business.

The CBI will host its annual dinner in Glasgow on Thursday (Ben Birchall/PA) (PA Wire)

There must be a “clear direction” from Government on net zero, one of the country’s most prominent business bodies will say on Thursday.

The CBI will host its annual dinner in Glasgow, which will be addressed by the group’s chief executive Rain Newton-Smith.

In her address, Ms Newton-Smith will urge governments north and south of the border to harness the “restless energy” of Scotland’s businesses in relation to the net zero sector and harness “Scotland’s clean energy as a golden ticket to growth”.

She is expected to say: “There’s only so much we in business can do ourselves without clear direction, plans and backing from government.

“Now, at last things seem to be moving. We’ve got commitments from Westminster and Holyrood to reform planning – that’s more progress on planning in the last eight weeks than the last eight years.

“But it still doesn’t feel like we’ve been given the green light. We’ve got vision but not detail. We’ve got direction but not certainty.

“Businesses have a restless energy to go for growth, to invest, but they need really clear signals from governments north and south of the border to lay down their markers.”

She will add: “If governments north and south of the border are serious about getting investment flowing – about channelling that restless energy in business – we need a proper Net Zero Investment Plan.

“One that monitors the investment we need to decarbonise different sectors; one that targets solutions to knock down the barriers to commercialising breakthrough net zero technologies; and one that is accountable for delivering against targets and milestones.

“We also need the detail of the investment vehicles that have already been announced.

“From Westminster, on GB Energy and the National Wealth Fund.

“Firms need clarity on how they’ll work with each other and with business. How they’ll complement and stimulate the private sector – rather than duplicating or even displacing it.

“From Holyrood, too, we need the detail of their new climate change plan, their green industrial strategy, and their energy and just transition plan.

“We need to see that the thinking has been done on how this all connects.”

The Scottish Government’s green industrial strategy was published on Wednesday, with Deputy First Minister Kate Forbes saying it “spells out where we believe the greatest opportunities lie, and where we will focus our attention and resources”.

She added: “It provides certainty for businesses – both at home and abroad – by demonstrating where and how we will work to reduce barriers to investment and, where appropriate, share risk and reward.”

A UK Government spokesperson said: “Our National Wealth Fund and Great British Energy will work in lock-step with industry to unleash private investment – helping create thousands of jobs in clean energy to boost our energy independence.

“The results of last week’s Contracts for Difference auction show Britain is back as a global leader in offshore wind, and we can build on this success in future auction rounds.”