Warning over clean-tech sector

THE ‘cleantech’ sector in this country is in danger of being left behind by China and South Korea, putting hopes of jobs and growth under threat.

This is according to a quarterly survey from business advisers Ernst & Young and ecoConnect.

The poll of more than 600 corporates, financiers and cleantech companies and found that levels of confidence and optimism in the ability of the UK clean technology sector to deliver growth and job creation has fallen dramatically over three successive quarters.

Just 14% of those surveyed were optimistic that the cleantech sector would deliver significant economic growth and green jobs in the UK, compared to 65% in the previous six months.

Only 39% of those surveyed for the UK business confidence report thought that investment in clean energy and clean technology would increase in 2011 compared to 2010.

Gary Harding, Ernst & Young’s cleantech leader in the North West, says:  Despite the outstanding potential the sector holds for the UK, confidence has eroded as the government takes its time to get a clear policy framework in place to drive green growth.

“In certain areas, policy changes have had a very damaging impact on market confidence.

“A prime example cited repeatedly in the survey findings is the significant dilution of feed-in-tariff regime which has not only undermined the market for the UK commercial solar market but also shaken investor confidence in the wider ‘green’ sector in the UK.”

Mr Harding added: “Compared to the level of ambition, clarity of policy direction and scale of investment being delivered by a number of other countries, the UK is in danger of being left behind.

“With decisive action and more radical policies and mechanisms to attract investment we can recover our position but time is running out.”