Clean Growth: How to boost business energy productivity

What role does business energy productivity in delivering clean growth? The Rt Hon Lord Deben, Laura Sandys, Bill Rees, Richard Braakenburg and Penelope Guarnay debated these issues as Policy Exchange launched a new report looking at the opportunities and barriers to boosting business energy productivity. Despite a compelling case, widespread adoption of energy efficiency measures are yet to materialise and policies to deliver this need serious consideration. Our new project, Clean Growth, seeks to identify ways to overcome the barriers to energy efficiency investment.

Improving energy efficiency is amongst the easiest and cheapest ways to decarbonise our energy system. This applies to households and businesses, and to electricity and other forms of energy. Whilst carbon prices and low carbon subsidies tend to raise energy costs for end users, improving energy efficiency and cutting energy usage can reduce energy bills – maintaining competitiveness and reducing barriers to growth. This presents a natural synergy between energy efficiency, productivity and the wider Industrial Strategy. Consequently, it is also important to recognise the strong relationship between energy efficiency and productivity within industry and how energy efficiency investments can provide a significant boost to overall productivity.