Britain is home to some of the world’s most forward-thinking institutions and businesses with regard to climate change – those that recognize it as a risk and, as the Financial Times suggests, possibly “the greatest business opportunity of the century.”
 | Renewable EnergyWorkers install solar panels on the roof of London City Hall. The UK government wants 10 percent of all electricity produced in the country to come from renewable sources by 2010 (Photo: Reuters) |
Emissions Trading
EU climate policymaking, including the pioneering Emissions Trading Scheme, has given Britain and Europe a head-start in finding ways to profit from the world's transition to a low-carbon economy. London has become a hub for international carbon trading.
London-based Climate Exchange plc owns not only the Chicago Climate Exchange, but also the European Climate Exchange, which reportedly handles 80 percent of European carbon trading. Meanwhile Climate Change Capital, also based in the British capital, controls a billion-dollar investment fund focused on the market mechanisms created by the Kyoto Protocol, such as emissions trading and Clean Development Mechanism (CDM).
Business and Investor Initiatives
Britain has also seen a number of major campaigns to get businesses to see the opportunities of climate change. The London-based Carbon Disclosure Project (CDP) surveys thousands of large companies with the support of 280 institutional investors controlling assets of several trillion dollars.
In April 2007, the government helped launch the "We're in this Together" initiative to support major UK businesses, including British Gas, O2, and BSkyB, in developing products to help consumers reduce their household emissions. Steve Howard, director of The Climate Group, which co-organized the initiative, said these companies could help "allow consumers to do their bit" and potentially save 25 million tons of CO2 emissions.
Renewable Energy
The renewable energy sector in Britain is also a major area of growth and opportunity. Due to the emissions of coal-fired power plants and the unpopularity of nuclear plants, the British government wants 10 percent of all electricity produced in the country to come from solar, wind and hydropower by 2010. Their current stake is less than 2 percent.
According to a study from Ernest&Young, the UK holds Europe's most interesting wind power potential. London Array, a consortium of major energy and oil companies, is currently planning the world's largest off-shore wind park 20 kilometers off the coast of the Thames estuary. According to their figures, the park would provide 1,000 Megawatts, enough to meet the electricity needs of 750,000 homes.
Energy Efficiency
Some of Britain's biggest companies have found that climate-friendly policies can also save big money. British Telecom, for example, has saved 119 million pounds since 1991 by improving energy efficiency and have committed to purchase almost all of its energy from renewable sources like wind, solar, tidal or hydropower.
Sources: Financial Times, Carbon Disclosure Project, The Climate Group, Climate Change Capital, National Energy Foundation, The Carbon Trust, The Independent, CNBC
editor: Valdis Wish
latest update: May 28, 2009
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