The Confederation of British Industry (CBI) is warning that uncertainty about the future direction of planning policy is discouraging major investments from being made that are critical to securing energy supply and reducing carbon emissions.

Launching its second Climate Change Tracker today, the CBI says little progress has been made in speeding up the planning process over the last six months. This is preventing businesses from investing in new low-carbon energy, such as wind, nuclear and clean coal plants.

The Tracker monitors the progress of the government, companies and consumers towards a low-carbon economy over the last six months. Worryingly, only four of the CBI's 24 key indicators being measured is on track.

Richard Lambert, CBI Director-General, said: "Massive private sector investment will be required to get our energy system up to scratch and cut carbon emissions, but delays in implementing the Planning Act are threatening the future of these critical energy projects.


"Businesses are not going to commit to building the new wind, nuclear and clean coal power stations that will be needed to keep the lights on if they think the goal posts are going to get shifted further down the line.

"That is why we need the government to publish the long-promised National Policy Statements as soon as possible."

For example, although progress has been made to develop new nuclear power and ensure a strong Europe-wide emissions trading scheme, there has still been no announcement of a competition winner to build a new carbon capture and storage demonstration plant.

The CBI has set out the actions that need to be taken by government and business during the next six months to get the UK back on track to build a low-carbon economy and help consumers make low-carbon choices.

Mr Lambert added: "Progress on meeting our climate change goals has been patchy so far, but we can still get back on track if we take decisive action in the next six months.

"The government will need to take bold decisions to provide certainty and attract private investment, as well as setting out a clear framework and timetable for action.

"Meanwhile, more businesses need to get their house in order by better managing their carbon emissions, as well as by developing more innovative low-carbon products and services aimed at consumers."

(CD/JM)