Climate Change Business Opportunities

London, UK — New research by Shell Springboard shows that the challenge of tackling climate change could create a market of up to £30bn for British business over the next ten years. The research, carried out by independent consultancy Vivid Economics for Shell Springboard, quantifies for the first time the potential size of the market for businesses that develop technologies, products and services that help combat climate change.

The findings include a market in the UK created by the government climate change programme which could be worth over £30bn cumulatively over the next ten years, with the market doubling its current size by 2010. The cost of tackling climate change in the UK in 2010 will be affordable at 0.3% of the economy, while concerted international action to avert climate change could create a global market worth $1 trillion in the first five years alone.

The research identifies major opportunities for small and medium sized enterprises in a wide range of markets, driven by both consumer demand for environmentally friendly goods and demands created by government action. The biggest identified markets for SMEs in 2010 will be building regulations for commercial and industrial use (£950m), renewable electricity (£800m), renewable road transport fuels (£500m), domestic energy efficiency (£400m), and building regulations for domestic use (£275m).

In addition, the study identifies the UK as a world leader in the international emissions offset market, with UK firms already involved in about £400 million of projects a year. The UK voluntary offsets market could be worth another £100-200m per year.

The study was launched with a panel discussion involving former CBI head and Chair of the Carbon Trust Clean Energy Fund Adair Turner, Dr Steve Howard from the Climate Group, Karl Watkin from D1 Oils and report author Robin Smale. Lord Oxburgh, the former chairman of the House of Lords Committee on Science and Technology, said: “The urgent need to reduce greenhouse gas emissions offers opportunities to the nimble. There is now scope for a wide range of devices and services, which a decade ago would have made no economic sense.”

James Smith, Chair of Shell UK, added: “For business, tackling climate change is both a necessity and a huge opportunity. Our small businesses and the scientific depth in our universities are going to be vital contributors.”