Trade confederation calls for ‘whole system’ approach on net zero economy

A trade confederation has called for a “whole system” approach to deliver a net zero economy ahead of the Programme for Government announcement.

The Scottish Government is set to make the announcement on Tuesday and the Confederation of British Industry (CBI) Scotland has said it must “start delivering now to achieve net zero by 2045”.

CBI Scotland has said businesses identified the decarbonisation of infrastructure, construction of new homes and improved broadband and transport connectivity.

It says the labour market, productivity, and a competitive business environment are key areas for economic performance gains.

The CBI speaks on behalf of 170,000 businesses of all sizes and sectors, across every region and nation of the UK.

The National Planning Framework Four (NPF4) is is the Scottish Government’s national spatial strategy for the country.

CBI Scotland warned that in order for it to be implemented properly, long-standing planning barriers must be addressed and consenting times for projects must be reduced.

The organisation says the Scottish Government must also utilise Scotland’s energy strengths, stating it could boost the UK’s annual GDP by £37-£57 billion by 2030 via Carbon Capture Utilisation and Storage (CCUS) and other projects.

CBI also called on the Scottish Government to unlock trapped tax investment, increase exportation and create a long-term competitive tax strategy in order to cut business costs and drive inward investment.

This would include lowering business rates in Scotland.

CBI also stated that firms want the Scottish Government to take account of UK Government incentives and regulations to drive energy efficiency improvements, including the development of a clean heat market mechanism and the Great British Insulation Scheme, which aims to upgrade inefficient homes.

CBI Scotland said it would like to see gigabit-capable digital connectivity rolled out by the end of the next parliamentary term, a national target to build 25,000 homes each year and transport infrastructure investments that improve connectivity to key markets,

Tracy Black, director for CBI Scotland, said: “The Scottish Government needs to start delivering now to achieve net zero by 2045.

“A long-term tax strategy would create certainty and simplicity.

“It would boost international competitiveness, make it more attractive to investors and enhance Scotland’s reputation as a place to do business.

“Scotland can steal a march on its rivals by speeding up the consenting process to cut down on the 12 years it takes to build an offshore wind power project in the UK.”

She added: “Business rates should incentivise investment to decarbonise older buildings, with rates relief giving tax breaks to firms that improve energy efficiency.

“Firms know long-term sustainable growth will help support life opportunities, fund public services and deliver on shared policy priorities.

“They are ready to work with government to make sure Scotland marches ahead of its international rivals.”

Ms Black said the First Minister’s New Deal For Business should be “the starting point of an effective partnership between government and business to create a clear, stable policy environment to grow the Scottish economy for the benefit of all.”

The Scottish Government was contacted for comment.