Mandelson calls for green "industrial activism"

Business secretary Peter Mandelson has today called on UK firms to demonstrate a "new industrial activism for a new green industrial revolution", urging business leaders to invest now to ensure that the UK is well positioned to meet global demand for low carbon products and services.

In a speech to the Cumbria Economic Forum, in which he pledged to focus on the future make up of the UK economy and avoid giving "another battling-the-recession speech" Mandelson said that while businesses were facing a tough year they should not lose sight of the fact that the UK was "on the edge of a new low carbon industrial revolution".

Trailing the launch early next month of the government's new Low Carbon Industrial Strategy, Mandelson argued that the transition to a low carbon economy presented a dual opportunity for businesses: allowing them to save billions of pounds through improved resource efficiency while serving booming global demand for low carbon products and services.

However, he warned that the UK had to move quickly to build upon its already strong position as a provider of green products and services, or risk losing out to international rivals.

"There were many explanations for Britain's head start in the first industrial revolution," he said. "Our financial system, our dense population, our openness to trade, our natural resources. This time around, our headstart is not unique to Britain."

Mandelson said that the new Low Carbon Industrial Strategy, which he is scheduled to launch for consultation alongside energy and climate change secretary Ed Miliband next month, would seek to address the measures that will be required to ensure the UK economy remains competitive and is well positioned to meet growing demand for low carbon products.

"We have to create an active industrial policy that supports British firms and the British workforce in developing their capacity to compete for and build these industries," he said. "A new industrial activism for a new green industrial revolution."

He also praised the North West as an emerging hub for low carbon businesses, noting that the region boasted more than 5,000 companies in the low carbon and environmental sector, employing about 86,000 people.

Mandelson added that with plans for a new nuclear reactor at Sellafield and a tidal barrage in the Solway Firth, the region could soon export its expertise to other low carbon projects around the world.

"We need to use [new build at Sellafield], and the decommissioning and cleanup work for the existing facilities, as a catalyst for making the region a base from which companies can develop expertise in civil nuclear management – and win contracts throughout the UK and around the world," he said.

The speech comes as the government's plans to promote the development of a greener UK car industry received a blow from the news that a planned green car plant in Wales had been put on hold.

Car company Connaught unveiled plans for a factory in Llanelli two years ago, which it said would create 200 jobs manufacturing components for hybrid cars as well as its own four-door hybrid sports coupe.

But according to BBC reports, the Welsh Assembly this week blocked the plans due to fears over the area's sewage capacity.

The local planning committee had been ready to approve the proposals, but have been instructed to delay their decision.

"The planning authority was supportive of the proposal and was mindful to approve planning permission," head of planning Eifion Bowen said. "However, the assembly government has issued a direction preventing Carmarthenshire council f r om approving it. No details have been provided as yet but it is understood that it is related to the issue of the water quality in the Burry Inlet."