The growth projections for the UK green economy will become reality – and their realization translated into economic benefits for the UK – only if a series of barriers to the transition to a green economy are overcome. There are three key barriers to green growth in the UK:
The need for greater ambition
Despite current government actions, the transition to a green economy is not occurring in the UK as swiftly as it is in some other countries, hence we are in danger of failing to gain from the economic benefits on offer.
The EU is a strong competitor in the global eco-innovation products and services sector with a market share of around 30 per cent, or €227bn, representing 2.2 per cent of the EU’s GDP and resulting in around 3.4 million jobs. Across Europe, the benefits of greening the economy have been recognised,13 and member states have each developed implementation strategies for the EU Environmental Technologies Action Plan.
However, the UK risks falling behind countries such as Germany, Denmark and Spain, where thousands of ‘green collar’ jobs and billions of pounds in revenue are being created from the development of the green economy. For example, the German environmental sector is estimated to employ 1.5 million people,15 over three times the 400,000 employed by the sector in the UK.
So, despite a flurry of Government action on promotion of a green economy, much still needs to be done. The global marketplace is an unforgiving environment. Failure to create a thoroughgoing and ambitious policy framework to allow green enterprise to flourish in the UK will be ruthlessly exploited by other governments and economies. Given the importance that green growth could have to the UK’s escape from recession, the UK Government must be tireless in its search for the ideal framework.
REFERENCE: http://www.tuc.org.uk/touchstone/greenenterprise/unlockinggreenenterprise.pdf
With a framework based on these key policies, the UK economy will begin to take advantage of the growth opportunities provided by the development of a green economy. The Government must do all it can to allow the natural spirit of enterprise that permeates our economy to become a driver of environmental transformation. It is clear that the market alone cannot deliver this. It is also clear that, with the UK in the depths of recession, any government that fails to take a lead in this area will be failing millions of workers and families across the country whose wellbeing relies on restarting growth.
REFERENCE: http://www.tuc.org.uk/touchstone/greenenterprise/unlockinggreenenterprise.pdf
CONCLUSION: A UK ACTION PLAN
All of these barriers can be effectively addressed through measures such as:
The following policy initiatives need to be taken:
© University of Strathclyde 2009
