A survey made by the Institute of Directors – a community of directors in the UK, shows how high energy prices are affecting the green energy and carbon removal industry.
Out of around 600 business leaders, 16% agreed that rising energy costs would make them more likely to invest in carbon reduction measures in the short term, 28% would like to invest in the medium term, and 22% in the long term.
All in all, as a result of rising energy costs, more than half of businesses now are more likely to invest in methods that reduce carbon emissions.
“With rocketing energy prices, many businesses are increasingly looking at investing in carbon reduction measures to ensure that they are more resilient to the impacts of energy price volatility in the short, medium and longer-term,” said Alexandra Hall-Chen, Senior Policy Advisor at the Institute of Directors.
According to Mrs. Chen, businesses also need clear signals from governments to encourage the long-term direction of clean energy sourcing. Those signals also need to be aligned with the target of transitioning the economy towards net zero.
One of the suggestions put forward to the UK government is the introduction of a lower corporation tax rate for companies that achieve net zero.
The Institute of Directors also released in a policy paper called “The Green Incentive: how to put net zero at the heart of business planning” some proposals to provide businesses and particularly SMEs, with an effective incentive to play their part in decarbonizing the economy.