Following the release of CBI’s Going for Green Report, Matt Bratton, Deputy Regional Director – North East and Cumbria, discusses the potential gains of Green Growth for the North East and actions needed to achieve it. 

Winning the race to net zero is essential if we are to protect our planet from the catastrophic impacts of a rising global temperature. It’s also fundamental to protecting the global economy.

While the UK economy remains relatively resilient in the face of significant headwinds, the inflationary environment coupled with higher interest rates are weighing on business investment and productivity. Businesses in the North East are desperately looking to unlock green investment opportunities to boost growth but fear the UK is not keeping pace on the global stage.

Here in the North East, we have ample opportunity to be changemakers on net zero. The North East devolution deal incorporates transport powers – that means we have a huge opportunity to decarbonise our transport system, reducing omissions and creating new green jobs. We’re also uniquely placed geographically, with the world’s largest offshore windfarm development positioned near our coastline. And recently, the Port of Tyne secured £100 million of support to drive forward green growth. Plenty of our members in the North East are already powering the transition to net zero, like PowerRoll, who are innovating in solar power technology and Lhyfe who are spearheading our regional hydrogen supply. 

But the Climate Change Committee recently warned that the UK is no longer a world leader on climate issues. In contrast, the US and EU have invested billions of pounds to support green investment via the US Inflation Reduction Act and the EU Net Zero Industry Act.  
 
The good news is that the UK isn’t out of the race just yet. New analysis from the CBI’s Going for Green Report shows that if the UK were to capture green growth prizes it could potentially offer gains of £57 billion to GDP within the next seven years. However, to achieve this requires government and business to work together to secure market share, create jobs and boost supply chains. 
 
Indeed, the UK has previously had the competitive advantage as the first major economy to sign net zero into law and by reducing emissions faster than its counterparts. And despite lacking the fiscal ability to outspend its international competitors, it can leverage regulatory and policy expertise to stand out and get ahead.   
 
Critically, in the North East and across the UK the business community is keen to secure the sustainable growth that the country’s transition to net zero can bring. That could take the form of boosting green finance exports and exports of manufactured battery cells for electric vehicles or modernising heating systems. Above all, business needs reassurance across the political spectrum that achieving net zero is a priority. We know that there is a strong political commitment in the region to position the North East as a green destination. But firms need the Government to deliver policy decisions that will stimulate green markets and incentivise investment in the green economy.

Making green growth a key priority requires a change of mindset as much as it needs changes in policy. Net zero needs to become embedded across the architecture of government and designated as a key consideration when devising tax and regulatory policy. To ensure that happens, we need a new mechanism to promote coordination across government departments – as well as devolved governments – and to leverage key moments, like the Budget and Spending Review, to measure progress. 
 
As economic uncertainty looms, businesses of all sizes, sectors and corners of the UK urge government to advance the green economy. In time this will strengthen UK competitiveness and in the long term deliver fairer, more sustainable growth for the benefit of all. 

Read CBI's Going for Green Report.

If you’ve a story to share or would like to find out more how you can start your decarbonisation journey, please email [email protected].