Lack of policy-focused leadership and financial constraints are both holding back this major part of the economy – estimated to represent half of the UK’s business emissions  – from pursuing green growth.

Last month, Small Business Britain polled more than 2,000 SMEs – small to medium enterprises –  to examine their sustainability efforts, requirements, ambitions, and prospects.

Four in five business owners want to improve their sustainability, the survey found. Almost one in four view ‘going green’ as a growth opportunity.

Yet the survey – analysed by Oxford Brookes Business School – found almost two thirds (64%) want greater support to make sustainability improvements. Two fifths – 41% – feel lack of finance is a substantial barrier to action.

Over three quarters – 77% – of SME owners say they have already taken steps to make sustainable changes. But only 20% feel their action is significant, indicating a gap between the level of change needed and current progress.

The parties’ ‘Small Business, Green Growth’ report calls for greater leadership across government and the private sector, particularly around providing access to finance, if Britain’s employment and commercial backbone is to reach its full potential in sustainable growth, and achieve Net Zero by 2050.

Recent economic pressures – from the cost-of-living crisis to recession – are clear factors behind 34% of business owners feeling restricted in their efforts to reduce emissions. 65% want more grants to be made available.

Despite this, 25% of small businesses recognise the financial benefits and business opportunity of going green. The trend is most visible among younger start-ups. With customer and supply chain demands growing, as sustainability increasingly becomes seen as a critical issue, small businesses are also being driven by their own personal values.

Wilmer Carcamo, co-founder, Caribe Coffee Co. said: “As a small business, we prioritise sustainability as our customers expect that from us, and it’s the right thing to do. We use compostable packaging for all our coffee bags, donate our coffee sacks to a reuse and recycle community project, and would love to invest in an electric van and go further – but finances are a barrier.

“We see the desire to do more in the small business community but people are limited and need more support – while sustainable practices can unlock cost savings, this needs to be more affordable.”

“There are mounting concerns about climate change and the transition businesses and society need to make in the coming years,” said Michelle Ovens CBE, founder of Small Business Britain.

“Our research clearly shows that small business owners overwhelmingly want to go greener – driven by their own ethics as well as growing consumer expectations and supply chain demands. However, the path they need to take is not clear at all. We need more leadership and ambition – across society, the private sector and with Government – to engage and educate this vital part of the economy and to find innovative solutions for the major challenges businesses now face, particularly around financing greener growth.”

Recognising the need for enhanced practical support, Small Business Britain and BT also today launched applications for a new free, six-week ‘Sustainability for Small Business’ training programme to empower small businesses across the UK to better understand their environmental impact and embrace more sustainable practices and opportunities for change.

Delivered entirely online, with over 1000 places for small businesses available, it will focus on key sustainability topics such as measurement, accreditation, and financing.

“The commitment to sustainability among small businesses in the UK is growing, but there are challenges that still need addressing,” said Chris Sims, Managing Director, Small and Medium Business at BT.

“BT has already supported more than 1 million small businesses with digital skills support, but we are determined to help even more, which is why we are launching these new initiatives. They are designed to provide enhanced practical support to the UK’s entrepreneurs, so they can cut their CO2 emissions, implement lasting sustainability principles into the core of their businesses, and drive forward the UK’s net zero agenda in a manageable way.”

Read the report here.

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The public welcomes the prospect of zero-emissions aviation technologies, despite unfamiliarity and even some concerns over their viability.

Researchers for the Jet Zero Council, a partnership between the UK government, industry and academia focused on reducing aviation emissions, quizzed 2,000 travellers about their attitude to kerosene-bereft flying.

They found British adults need thorough reassurance that any new aviation technologies are rigorously tested to ensure their safety before they are introduced commercially.

On average, they believe zero-emissions aviation – i.e. battery- and hydrogen-powered aircraft – to be around 15 years off commercial use.

Despite concerns about range and weight, 37% said they would fly on a battery powered aircraft, and a further 40% said they’d consider it. The public is more confident about hydrogen-powered aircraft, with 35% saying they would take a flight powered by hydrogen, and a further 47% said they’d be open to it.

Emma Gilthorpe, CEO of the Jet Zero Council, says, “It’s great to see how confident the general public are about zero-emissions aviation technologies. Battery- and hydrogen-powered aircraft are a crucial part of decarbonising the future of flight, and it is important that industry makes it as easy as possible for the public to embrace these technologies as they enter service”.

Rachel Gardner-Poole, Chair of the Jet Zero Council Zero Emission Flight Delivery Group, says, “It is really helpful to see the views of the general public on these important topics.  Battery electric aircraft are already being used on a daily basis by some UK-based private flying schools, and will expand significantly to urban and rural settings in the near future, with regional flight also anticipated. Meanwhile, emerging hydrogen propulsion will be capable of domestic flights, and in the longer term, international routes will be flown using hydrogen. Jet Zero Council members are at the forefront of this work and it’s very exciting to see that some of these technologies are projected to enter the commercial market before the end of the decade.”

“It’s important to recognise that aviation is already on the journey to net zero. Commercial flights are using Sustainable Aviation Fuel right now, which are a key part of aviations sustainable future, alongside the zero-emissions aviation technologies of the future”.

“As an industry, we need to clearly communicate the safety and performance of these new technologies and I look forward to the day when transatlantic flight has zero impact on the environment.“

To find out more about the Jet Zero Council, visit https://www.gov.uk/government/groups/jet-zero-council.

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An average of only 31 per cent of people approaching working age have heard of Net Zero, the organisations’ poll reveals. NEETs – youngsters not in employment, education or training – are even less confident with the term.

This poll’s conclusions from a monarchy-linked charity runs contrary to technology enthusiastic young energy innovators such as in community-focused Energy Garden London, pictured.

The Trust believes youngsters’ levels of ignorance imperils government hopes to recruit new workers into trades such as heat pump installer.  One estimate says 50,000 technicians are needed to meet the Conservatives’ target of 600,000 fittings by 2028.

For  their report out today, ‘Generation Green Jobs?’ research consultancy Public First polled 2,054 people under 25 years old.  Five focus groups held online with young people in the West Midlands, Teesside, and Fife – all areas slated by the government for new green industries– added to insights.

Forty-six per cent had not heard about green jobs during their education; among NEETs – 64 per cent – and young women – 61 per cent higher – ignorance was higher still.  Only 41 per cent of NEET youngsters had an interest in training for green jobs, compared with 59 per cent of all young people.

Only 5 per cent of youngsters imagined any green workers without university degrees, despite many low carbon technical roles being suited to vocational training.

Despite 49 per cent of young people declaring climate change as one of our time’s most pressing issues, only 18 per cent said that the environmental sustainability of their employer would be a factor in deciding between jobs.

Young people identified career progression (49 per cent), job security (48 per cent) and flexible hours (48 per cent) would increase their interest in working in the green economy. But they linked none to green jobs. Poor pay was identified as the top disadvantage of green jobs, citied by 25 per cent.

The  Trust wants its new modules on green skills to be included in Achieve, an education programme delivered in schools.

Lindsey Wright, The Prince’s Trust’s head of future sectors, said: “This report provides a stark warning about how much needs to be done to educate young people about green jobs and offer structured pathways into training and employment. Problematically, young people who could benefit most from these opportunities do not see themselves as suitable“.

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Results for the second year of the Energy Transition Readiness Index (ETRI), prepared by polling members of the Renewable Energy Association, show that the UK is dogged by politicians’ short-term NIMTO –   “not in my term of office” – concerns and evasions, and so lacks consistency towards longer-term goals of decarbonisation.

The results, the REA tracking study concludes, are continuing uncertainty and second-guessing among energy users, suppliers and investors about the best way to meet Net Zero economically.

Investors, in particular, will be attracted to the UK’s energy transition only if they can see patterns of clear governance and regulatory stability, says the report’s authors. At present, the signals from Richi Sunak’s administration are simply not strong enough.  The PM is pictured appointing new D-ESNZ secretary of state Claire Coutinho in August.

The Energy Transition Readiness Index (ETRI) 2023 assesses electricity markets, their workings and their outlooks in 14 European countries.  The REA publishes it with sponsorship from power engineers Eaton and investors Foresight Group.

While Britain has risen since last year to sit in front of Germany, Italy, and Switzerland, in 2023 it lags  others countries benefitting from better evolved flexibility markets delivering fair, transparent, and simple access.

Flexibility is essential to stabilising regional and national grids relying lots of intermittent clean generation.  The best way for countries to attain flexibility, say the ETRI authors, is by encouraging new spending on demand-side response kit such as batteries and changed behaviour such as load-shfiting around the clock.

Open markets for flexibility must be designed and delivered. Despite tinkering with pilots, Britain lags our neighbours.

Respondents to a survey underpinning the report say progress towards Britain’s energy transition badly needs a root-and-branch leg-up such as President Joe Biden’s Inflation Reduction Act.

Slowing the UK’s energy transition, as dictated in recent months by perceived short-term political gains for Sunak’s Conservatives, will be severe in its long-term financial costs, the REA repeats.

Taking its helicopter view across Europe, the ETRI 2023 report recommends:

• Creating open, easily accessible market for flexible low-carbon assets, and allowing them to compete head to head with carbon-intensive generation and storage
• Identifying future needs in low carbon flexibility;
• Choosing then speeding up the best reforms to flex markets;
• Tear down process barriers holding up cleverer DSR technologies

REA policy director Frank Gordon observed: “UK policy must shift away from prioritising the short term, if we are to meet our ambitious targets and increase investment certainty“.

Big growth is needed in Britain’s flex resources, Gordon argued, if the country was to meet its aspiration to generate 132TWh without carbon by 2030.  Without them, consumers would be footing higher bills.

“At last year’s publication of the ETRI study, we welcomed the Government’s warm rhetoric but called for significant action. This year the need for urgent need for action still stands, but we don’t have the luxury of the government’s warm words“.

Siobahn Meikle, managing director of power management multinational Eaton, said: “The survey’s good news is that Britain is well placed to attract investment. The UK has scored 15% higher on average for ‘investor attractiveness’ since the survey started in 2019.

“There is clear progress. A steady rollout of EV charging infrastructure, 55% of UK homes now with a smart meter, and flex markets are opening up. But the government still has work to do to set out the long-term policies that will consolidate investor confidence.”

Chris Tanner, chair of the REA’s finance forum and a partner at investors Foresight Group, added:  “Improvements seen in various countries underscore the fact that, with the right policies, the UK, and Europe have potential to attract significant investment in the energy transition”.

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Adults who voted Tory in the last 2019 general election are even more enthusiastic to back decarbonising upgrades and grid reinforcements.  71% of recent Conservative voters favour greening improvements, against 6% who oppose them, the same poll finds.

In a survey of 1,039 voters run on 14 July by pollsters Survation for Renewable UK, 55% of self-declaring Conservatives agreed that lack of grid connections is Britain’s biggest obstacle to greener electricity.  That’s higher than the 51% aggregate agreement shown by voters of all parties.

RenewableUK’s figures come amid signs that Conservative leaders, still lagging in the wider polls, plan to use Fleet Street titles to mobilise antipathy against greening measures and Net Zero, in their long campaign before the next general election, which is possibly as distant as January 2025.

Since fewer than 500 voters last month ensured a Conservative remains MP for Uxbridge and South Ruislip, ministers including premier Rishi Sunak have been inching away from Net Zero commitments. The retreat includes Sunak’s intention announced last week of licencing more than 100 new oil & gas extractions this year alone in the North Sea.

Former National Grid chief Nick Winser urged ministers on Friday to be bold in actions to halve from as much as 14 years the wait times faced by green developers in securing a grid connection.  Britain’s 230 GW pipeline of wind U& solar farms now in development but without connection offers dwarfs 80GW of existing generation capacity, Winser calculates.

Of today’s poll findings, Barnaby Wharton, RenewableUK’s director of future electricity systems, commented:

“Contrary to widespread misconceptions, most people are actually in favour of building vital new grid infrastructure to connect up clean energy projects and enable them to deliver cheap power to British homes and businesses.

“It’s interesting for Government to note that Conservative voters support this even more than the general public.

“Not only is there a strong foundation of support for new grid development, but government can build on that support by taking forward the recommendations in the report just released by Nick Winser, the government’s networks commissioner.

“One of the clear messages from the polling is that people want to feel the benefits of hosting new grid near their homes, with funding for local community projects high on their list of priorities, alongside clear explanations of why it’s needed and how they can influence what’s built in their area”.

61% of all respondents to RenewableUK’s poll agreed that a guaranteed community benefit fund provided by a grid developer would make them more in favour of an electricity powerline within five miles of their home. Again, Tories voiced proportionally stronger support, with 65% approving a benefit offering.

SolarEnergyUK, for Britain’s PV farm developers, today echoed near-unanimous industry support for Winser’s pleas to energy secretary Grant Shapps.

Gemma Grimes, the trade association’s policy director, singled out among Winser’s eighteen recommendations to ministers his urging that design principles should be disclosed and followed by transmission operators, ensuring a more transparent process for enacting improvements, including how they are assessed by the Planning Inspectorate.

“We greatly support the recommendations, “ the SolarEnergy UK spokesperson added.

“We agree that they are needed to reduce the delivery time for strategic transmission. Any longer than seven years risks jeopardising the attainment of Net Zero. The changes must be taken forward as a package to be most effective.”

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Scheduled to run from this week until April 2028, Hunt’s Energy Generator Levy seeks to claw back 45% of ‘exceptional revenues’ booked by wind-, solar and hydro-generators. The EGL still needs retrospective Parliamentary authorisation in March’s budget.

Already threatening to sue the government over the levy, wind-farm developer Community Windpower is leading clean power firms’ fight against Hunt’s five-year “emergency” impost, from which gas, nuclear and coal generators are exempt.

An opinion poll commissioned by Community Windpower among 1,000 representative Brits in Christmas week finds 41% objecting to the EGL targeting green generators exclusively.  Only 9% agreed.

Half of the poll’s respondents backed schemes which feed back locally some energy profits, to help people struggling with their bills.  10% opposed such moves.  Community Windpower is pumping £ 1 million this winter into the first such scheme of its kind in East Lothian.

Overall support for green electricity production runs deep, with 49% backing clean power and 14% opposed.

Polling firm Censuswide excludes from its report respondents declaring themselves ‘unsure’ on any question.

The poll probed views on the Conservatives’ wider record over twelve years on green issues and energy.  Key findings from respondents included:

• 45% say the government is too close to big oil and gas companies. 17% disagree.
• 41% say ministers are not doing enough to support renewable energy. 21% say they are
• 34% say the Conservative administration does not care about the environment. 26% say they do.

• 41% do not believe ministers when they say they will take action on climate change. 23% do believe ministers.
• 41% disagreed that the Conservatives have a good track record on tax policies. 23% are satisfied.

Commenting on the poll’s findings, Community Windpower managing director Rod Wood said:

“This poll confirms what we suspected all along, namely that there is significant public disquiet over the controversial Energy Generator Levy and its smash and grab raid on renewables.

“The levy is bad news for consumers, bad news for the climate and bad news for our national energy security.  We need more green energy, not less. The Government’s own legally-binding commitment is that all electricity will be low-carbon by 2035.

“A dependable domestic renewables sector is key to achieving this, so why are Ministers undermining their own ability to achieve Net Zero?”

Wood went on:  “This polling shows that voters find it bizarre that the Government is bringing in a levy that will deliberately penalise renewable energy firms. This comes at a time when over half of Britain’s electricity demand is being met by low carbon power, saving consumers an estimated £5.7 billion in the last quarter by avoiding the need for gas imports.

“With this policy, the Government is putting at risk the UK’s renewables industry. It is jeopardising £200 – £300 billion of new investment and the 440,000 well paid jobs that the Government itself had previously forecast to be delivered by 2030. Investors will simply look to other countries if this policy is not substantially reversed.”

Community Windpower says it has already invested £2 billion into 1.5 GWp of non-thermal electricity capacity.

Last week the developer announced it has hired top solicitors Mischon de Rea in its efforts to block the EGL.   Legal submissions already made after advice from senior barristers describe the levy as “unfairly disproportionate, discriminatory and adverse to the Government’s Net Zero Strategy”.

Representing 400 firms trading in low-carbon power making, the REA attacked the EGL as endangering investment in the sector, within hours of the government publishing its details on the last day as Parliament rose for its Christmas recess.

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