CARBON TRADE OPPORTUNITIES
Low-carbon trade opportunities
The demand for low-carbon goods and services is increasing rapidly, with a turnover of £43.3 billion in 2015 for low-carbon and renewable energy companies in the UK. A low-carbon strategy for international trade agreements will maximise opportunities after Brexit.
Policy recommendations
- Low-carbon research, innovation and skills should be made a priority issue throughout the Government's Industrial Strategy.
- Low-carbon goods and services should be a cornerstone of the UK's international trade strategy post-Brexit. The Department for International Trade (DIT) should secure a strong Environmental Goods Agreement with trading partner countries post-Brexit to support free trade in low-carbon goods, complemented by bilateral deals on key sectors not covered by the agreement.
- The Department for Business, Energy and Industrial Strategy (BEIS) should develop an effective Clean Growth Plan, consistent with the fifth carbon budget, which allows UK firms to develop expertise for the low-carbon economy, exploit the domestic market and become globally competitive.
- There is a need for further BEIS analysis on low-carbon services, and assessment of the opportunities for leveraging the UK's existing advantage in high-value services.
- UK support for developing countries' low-carbon transition, currently managed by the Foreign and Commonwealth Office, the Department for International Development and BEIS, could be coordinated with DIT activities to advance this transition and create new low-carbon markets.
About the research
The low-carbon sector is one of the fastest growing parts of the global economy, creating new opportunities. Meanwhile, the demand for high-carbon goods and services will increasingly be constrained by more stringent regulations and policy targets, making high-carbon investment increasingly risky.
