The CBI is set to use the opening of its annual conference in London today to call for urgent action by businesses, consumers and government on climate change as the employers’ body tries to reposition itself on the issue.

Once reluctant for business to take on the burden of combating climate change, the CBI will give warning that the Government is likely to miss its target of cutting carbon emissions by 20 per cent by 2020, but could meet a later 2050 target.

The CBI argues that the 2050 target, of cutting emissions by 60 per cent, is achievable only if climate change becomes a shared national priority.

A report by a CBI taskforce published today and based on research by McKinsey claims the measures needed to address climate change present a huge opportunity for UK businesses to become world leaders in environmental technology, a vast emerging industry which the CBI claims could be worth $1 trillion in the first five years if governments can agree on an international framework to reduce carbon emissions.

The taskforce is chaired by Ben Verwaayen, BT chief executive, and includes Sir Terry Leahy, Tesco chief executive, and Sir John Rose, Rolls-Royce chief executive

The taskforce’s report, which aims to build on the work of Sir Nicholas Stern, also said that it would be vital to achieve a high and stable price for carbon in order to stimulate business investment in new technology and energy efficiency.

The report says that prices will need to rise from about €24 per tonne at present on the European emissions trading scheme to between €60 and €90 per tonne.

“The establishment of a reliable long-term price for carbon is vital to pull through new technologies,” Ian Conn, a member of the taskforce and group managing director of BP, said.

Richard Lambert, the Director-General of the CBI, said that the Government needed to take critical decisions “immediately” if the UK was to have a realistic chance of meeting its long-term targets.

“The Government 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.” he 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, a step which would represent a “fundamental breach of trust”.

Mr Lambert also said that the shift to a low carbon economy need not come at the expense of either continued economic growth or quality of life. “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 CBI climate change report contained a series of other findings based on research by McKinsey. It said that meeting the Government’s 2050 emissions target was likely to cost British households £100 per year – or under 1 per cent of GDP – for each of the next 42 years.

On the agenda

MONDAY

9.30 Prime Minister Gordon Brown

10.15 Liberal Democrats focus on business.
Nick Clegg MP, Shadow Home Secretary
Chris Huhne MP, Shadow Envrionment Secretary

11.30 Stephen Schwarzman, chairman, chief executive and co-founder, Blackstone

11.45 Panel session – Private Equity: The Model, the Management, the Money
Chairman: Jeff Randall, writer and broadcaster
Panellists: John Connolly, chief executive and senior partner, Deloitte
Will Hutton, chief executive, The Work Foundation
Tim Parker, former chief executive, The AA
Stephen Schwarzman, chairman, chief and co-founder, Blackstone
Kitty Ussher MP, Economic Secretary, HM Treasury
Philip Yea, Chief Executive, 3i Group

13.00 Lunch

14.30 Keynote address: Greg Dyke, chairman, HIT Entertainment and former Director-General, BBC

14.45 Panel session – The Reputation of Business
Chairman:
Patience Wheatcroft, former Editor of The Sunday Telegraph
Panellists: Martin Broughton, chairman, British Airways
Iain Coucher, chief executive, Network Rail
Greg Dyke, chairman, HIT Entertainment Ltd and former Director-General, BBC
Steve Easterbrook, chief executive, McDonald’s
Albert Ellis, chief executive, Harvey Nash
Gary Hoffman, group vice-chairman, Barclays

19.00 Gala Dinner – Andrew Marr as guest speaker

TUESDAY

10.00 Keynote address: Rt Hon David Cameron MP, Leader of the Conservative Party

11.15 Keynote address: Ben Verwaayen, chief executive, BT

11.30 Panel session three – Climate Change: Business Solutions
Chairman:
Adam Boulton, Political Editor, Sky News
Panellists:
Rt Hon Hilary Benn MP, Secretary of State, Defra
Sir Terry Leahy, chief executive, Tesco
Robert Napier, chairman, The Met Office
Philippe Varin, chief executive, Corus
Ben Verwaayen, chief executive, BT and chairman, CBI Climate Change Task Force

12.30 Keynote address: Rt Hon Alistair Darling MP, Chancellor of the Exchequer

13.00 Closing address: Richard Lambert, Director-General, CBI

Times Recommends

• Food prices rise 8.3% on soaring fish and meat
• Car sales crash as economy hits skids
• House prices fall but Bank leaves rates on hold