Special Features - How UK firms can exploit new climate-friendly technology

British manufacturers are well-placed to take advantage of the drive towards the low carbon economy, according to the latest report.

How UK firms can exploit new climate-friendly technology
(29/02/08)

As the UK moves towards a low carbon economy, a new report says British firms are well-placed to exploit the business opportunities on offer.

Business opportunities

The report - Delivering the low carbon economy: Business opportunities for UK manufacturers - was published in early February by Deloitte, the business advisory group, and EEF, the manufacturers' association. It argues that the chances are there but this will only happen "if companies are quick to identify these opportunities and move swiftly to take advantage of them".

And not just industry: the government also has an important role, the report argues. It "needs to back industry with a strategy that provides leadership, overcomes the barriers and helps develop the capabilities needed to deliver a low carbon economy".

The report outlines significant business opportunities for manufacturers in three key areas: low carbon energy; low carbon vehicles and energy efficiency.

Renewables

Renewables are potentially huge, according to Martin Temple, EEF Chairman. "The UK is well positioned to take advantage of any growth in the global market for clean coal technologies and possesses the best wind and marine energy resources in Europe".

Temple added that there are more businesses trying to harness energy from waves and tidal streams in the UK than in any other country.

Internal combustion engines and electric and hybrid vehicles - vehicles which use more than one power source - are another area where UK manufacturers could score. The report says the country produces close to three million engines a year, and also has a number of market-leading designers and developers of engines and engine-related technologies.

It also has significant expertise in a range of technologies key to the development of hybrid vehicles, such as control systems and electric drivetrains.

Simple and quick

The mayors of London and New York, Ken Livingtstone and Michael Bloomberg, about to aboard a hybrid double-decker London bus. (c) AFP/Getty Images

The report identifies two quick and easy things which would improve energy efficiency significantly, both at home and work.

The first would involve the replacement of all home boilers with condensing boilers, a sector where the UK is a world leader. Second, since motor systems account for nearly 60 per cent of energy consumption in industry, experts think there is considerable scope to increase the use of variable speeds drives on the motors which power industrial processes.

Going green

A new survey from UK accountants, PriceWaterhouseCoopers (PWC), reveals that as public involvement in environmental issues increases, technology companies are starting to go green themselves.

According to the survey - Technology Executive Connections: Going Green: Sustainable Growth Strategies - published in mid-February, 61 per cent of executives feel it is very important (29 per cent) or important (32 per cent) that their companies take steps to reduce their environmental impact.

There has been a noticeable increase in customer demand for green products and services, the survey says. Additionally, 60 per cent of respondents cite energy savings as one of the most important factors in their company's environmental decision-making process.

Growing demand

The growing demand for environmental products and services could translate into one of the biggest new markets in recent memory, according to PWC partner, Bill Cobourn. "Technology companies can exploit this opportunity to drive growth, but they must ensure their green initiatives are in line with their business strategy."

The survey was published in mid-February. Indepth interviews were conducted with nearly 150 senior executives in technology companies worldwide.