The CBI has thrown its weight behind a proposal to slash stamp duty for homeowners who invest in making their properties more energy-efficient, as a means of tackling climate change.

Iain Conn, chief executive of BP’s refining and marketing division and a member of the CBI’s climate change taskforce, said that the policy would create a clear financial incentive for consumers to invest in improved energy efficiency and green energy devices. He said that the policy would deliver a boost to the growing market for green energy devices, such as solar panels and combined heat and power units – domestic boilers that use excess heat to generate electricity.

His views were echoed by Richard Lambert, the CBI’s Director-General. “That is exactly the sort of initiative we would like to see,” he told The Times.

The taskforce’s report also claims that the shift to a low-carbon economy need not come at the expense of continued economic growth or quality of life. Mr Lambert said: “We don’t have to return to the dark ages or live joyless lives to cut our carbon footprints – we just have to learn, together, to do things differently, with carbon becoming a new currency in our economy.”

The report, which frames a new strategy on the issue for the CBI, said that government needs to take critical decisions “immediately” if the UK is to meet its long-term targets.

“It must see through legislation that allows low-carbon power plants – of all types – to get through our planning and regulatory systems and it must keep the pressure on our international partners to commit to agreements that deliver a robust world price for carbon,” Mr Lambert said.

He also called for the Government to “oversee a fundamental redesign” of taxes and regulations to create incentives for businesses to make the necessary changes, while at the same time avoiding the temptation to rake in more revenue.

The report is the culmination of ten months of work by a group chaired by Ben Verwaayen, the BT chief executive.

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