G20 leaders must sow the seeds of recovery in a low carbon economy, not create the next bubble

London, 31 MAR 2009 - As G20 leaders gather for the London Summit, the World Economic Forum’s Taskforce on Low Carbon Economic Prosperity launched today warned that world leaders “must not sow the seeds of the next bubble as we recover from the last.” There was agreement that coordination of a green recovery will not only make the fiscal boost more effective, it will also accelerate carbon reduction.

At a press conference to launch the taskforce, Ian Powell, chairman, PricewaterhouseCoopers LLP joined Rick Samans, Managing Director of the World Economic Forum; Lord Mandelson, Secretary of State, BERR; Ed Miliband MP, Secretary of State for Energy and Climate Change; Lord Stern; and Caio Koch-Weser, VP, Deutsche Bank.

Speaking at the launch, Lord Nicholas Stern said that the world was entering a critical three month phase for the climate debate, and that the G20 discussions could embed a low carbon economy to reinforce a global deal on climate change in Copenhagen later this year. The taskforce’s report calls for G20 leaders to commit to spend around 20% of stimulus packages on explicit low carbon measures.

Stern likened the opportunity of the green economy to the “revolution caused by the arrival of the railway, motor car and IT in the past”. The low carbon economy was recently estimated to be worth £3 trillion globally, and employs over 800,000 in the UK.

Ed Miliband, secretary of state for energy and climate change welcomed the launch of the taskforce saying the economic and climate crisis had to be tackled together and business would be crucial to finding those solutions. He predicted that in the future every business would be a green business, with the use of green energy, green building regulations and the introduction of the carbon reduction commitment.

PwC joins 52 companies and 32 experts in forming an task force who will work with government and UN offices to develop a set of practical projects and policy proposals to significantly stimulate the low carbon economy from 2010 onwards.

The taskforce will identify how to create millions of green jobs in the short term and deflect economic growth onto a more sustainable, low carbon path for the longer term. Recommendations for ready-to-implement “low-carbon projects” and how to stimulate the flow of green technology and investment into developing countries fast will be delivered to UN Secretary-General in September.

At the launch of the taskforce, Ian Powell, senior partner, PricewaterhouseCoopers LLP said that business needed pragmatic plans to embed sustainability, and progress to a low carbon economy, particularly given the challenge of current market forces. Echoing comments from Ed Miliband and Lord Stern, Powell emphasised that the taskforce’s work was a step change:

“The difference this taskforce and report will have is that it is much more focused on the practical, with pragmatic recommendations that we in business can and should support. That’s what has been missing from previous initiatives for business. On the road to the Copenhagen Climate Change meeting, the very last thing we need is another debate whose sole outcome is the creation of yet more hot air, that’s why I welcome this taskforce wholeheartedly. ”

Three quarters of UK CEOs have or are planning to make changes to their day-to day-operations to help tackle climate change over the next twelve months according to PwC’s 12^th Annual CEO Survey. 67% have or are planning to make changes to the products and services they offer.

A large number of UK CEOs said that they are already making a return on their investment in several areas of their businesses, including day to day operations, and recruitment / retention of staff. Benefits from strategic and property / infrastructure investments are expected to take five years or longer.

Worldwide, reflecting UK strategies, over 80% of CEOs are taking steps to reduce energy costs by findings efficiencies in their operations and more than half said they are seeking alternative energy sources. UK companies are also investing in technology to reduce energy dependence and trying to secure future energy supplies. Energy costs remains in the top five threats to UK business growth prospects. Only 22% of CEOs feel that the government has clear and consistent long term environmental policies

Note(s) to Editor:

• PwC has a 17 year track record of advising clients on sustainability and corporate responsibility issues across its assurance, tax and advisory practices. In the past 18 months the UK practice has trebled in size, joining a global network of over 800 practitioners.

• PwC works with clients to develop sustainability strategy, performance management and reporting solutions including corporate governance and business ethics, environmental health and safety management, social responsibility, strategy and economics, responsible supply-chain management, and reporting and assurance of non-financial information.

• PwC’s internal sustainability strategy and performance was recently independently assessed and recognised as one of the top 15 UK companies in the inaugural Sunday Times Best Green Companies list.