UK sets up council to help SMEs achieve net zero targets by 2050

Many can agree that small businesses in the UK have a vital role in helping the country reach its ambitious net zero targets by 2050. By reducing carbon emissions in their operations, creating green jobs and supporting the transition, these businesses can significantly contribute to a greener future.

In a recent development, the British government launched the Industrial Energy Transformation Fund (IETF), providing funding to support energy-intensive firms in their efforts to increase energy efficiency and cut carbon emissions. Nonetheless, to accelerate the transition to net zero, a proper policy framework is required.

To this end, UK ministers have established a new Net Zero Council, with some of the world's top business and financial figures as members in the council. The Council, co-chaired by Energy Minister Graham Stuart and Co-op Group CEO Shirine Khoury-Haq, will work with various industries to reduce emissions and implement greener practices.

Additionally, it will deliver on the UK government's priority to grow the economy by ensuring British businesses can profit from the UK's leading position in renewable technologies, achieve net zero and export their expertise internationally.

The Council's first meeting on May 9 highlighted the UK's already-world-leading position on net zero, as well as the importance of forging a single, cogent voice across the government, the finance sector and businesses to support the UK's major industries in the net zero transition.

The Net Zero Council's main goals are to identify the biggest obstacles that SMEs across the nation face in reducing their carbon footprints and provide them with new information and advice.

This, in return, will ensure that industries and businesses have a pathway to net zero, including examining the connections and barriers between industries, and lead to a systematic review of the financing issues and the corresponding functions that the government, enterprises and the financial sector have in addressing them.

Members of the Council including Siemens, SSE, HSBC, NatWest and Lloyds will hold quarterly meetings to ensure that businesses play a significant role in achieving net zero.

Speaking on the Net Zero Council, Graham Stuart, the Energy Minister, said UK business leaders may collaborate in a high-level forum through the Net Zero Council to "guarantee that they can work with and advise the government and vice versa so that our environmental leadership translates into economic advantage."

He added that businesses can save money by reducing emissions while increasing their energy efficiency and UK energy security. According to him, this may present chances to increase the UK market share, export solutions created in the UK abroad and generate employment.

The Energy Minister mentioned that the UK was expected to have almost 400,000 jobs in low-carbon firms and their supply networks across the country by 2020, with a turnover of £41.6 billion. He, however, noted that with the new government initiatives implemented since 2020, over 80,000 green jobs are already being supported or planned, and by 2030, that number might reach up to 480,000.

The Co-op Group CEO, Shirine Khoury-Haq, stated that the world is experiencing a climate crisis caused by human activity. He said it is the most significant problem that the entire world faces.

According to Khoury-Haq, failure to take advantage of this opportunity is not an option. He also advised that it is essential that all businesses actively participate in the net zero path with vigour, adding that it's apparent that we must all cut carbon emissions at a faster rate. He said he looks forward to working "with the government — who also have a role — to push the industry to go farther."

Another member of the new Council and National Chair of the Federation of Small Businesses (FSB), Martin McTague, stated: "We're happy to be a part of the Net Zero Council and look forward to working with the government and like-minded peers to bring down net-zero barriers and incentivise greater investment with smart policies that work for the 5.5 million small businesses in the UK."

The launch of the Net Zero Council represents a significant milestone in the UK's efforts to transition to a greener future. By bringing together government, finance, and business, the Council can provide the needed environment for the British government's ambitious net zero plans.