Posted Monday 9th August 2021
Last month, the Department for International Trade, released its most recent report: Green Trade. The report outlines the opportunities that Green Trade presents for the UK and how the UK should be a champion for sustainable industries and growth nationally and abroad.
First making the case for fair green trade by outlining the impact climate change has had on several industries and trade, the report goes on to present the opportunities for the UK to become a leader in green trade and the lasting benefits this could bring. Securing key imports to support green businesses in the UK, decreasing competition costs for green technology in the global economy and exporting green services and products overseas to accelerate the transition should be at the hears of British policy.
Inward investment will continue to play a key role in developing green technologies across sectors. With initiatives already in place to do exactly that, the UK can capitalise on cross-border investments to promote the growth of green sectors and businesses across the UK as a whole.
As the G20 country that has reduced its greenhouse emissions the fastest since 1990, the UK is uniquely placed to welcome and champion green innovation. The British financial and regulatory environments have been developed with sustainable investment and industries in mind. For example, in 2019, green funds raised over a third of all capital in London and the UK has the world’s largest trade surplus in financial services. Combined with a prevalent insurance market, this means the UK services are well-placed to manage and mitigate existing nature-related risk while promoting and investing into businesses aimed at reducing it.
The UK is also the a first among G20 countries when it comes to its regulatory environment by creating a Task Force for Climate-related Disclosure. Other regulatory efforts and investments, such as the Ten Point Plan or the UK Global Tarif (which keeps the tariff for environmental goods at 0% post Brexit), mean the UK is already setting itself up to welcome sustainable and green businesses nationally and internationally.
The global export market for low-carbon products is set to be worth up to £1.8 trillion by 2030, with the UK’s low-carbon economy possibly growing 11% every year. In England alone, 1.2million full-time worked could be employed by low-carbon industries by 2050.
To capitalise on this opportunity, the UK must to drive sustainable growth and expand its green industrial base _ as it has been doing in recent months. This is likely to increase investment and therefore opportunities for new businesses and new directions for existing businesses in the UK. This is exemplified in the recent hydrogen hubs or Green Jobs Taskforce as well as the Freeports initiative. The report argues that the UK should push for more green technologies to export and increase its influence as a global hub in green finance.
That way businesses from within and beyond the UK can capitalise on the financial and regulatory environments leading to more jobs and climate stability within the UK. Attracting and promoting technology business, such as cleantech companies, will play an important role in the success of this.
To what extent the government will follow these suggestions remains to be seen.
The focus of British Trade policy should be using the global Britain platform to promote green trade to combine and encourage global efforts to combat climate change. The UK can use trade negotiations to safeguard and promote environmental standards and raise them, where possible. By doing so, the UK can play a crucial role in the liberalisation of environmental goods and services.
This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
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