Ian Marchant: Escaping the closing jaws requires a change in mindset

PEAK oil production and climate change have been described as "twin jaws in a closing vice". That's an extremely uncomfortable place to be, but it is what is now confronting our planet.

Anyone with a leadership position needs to understand the issues and respond to them - and that's why a wide range of leaders from business, politics and civic society are coming together in Edinburgh next week.

It's not often that you get top people from RBS, Lloyds, Barclays, NAB, HSBC and Deutsche Bank working together in a common cause. PwC, Grant Thornton and Ernst & Young are all represented too and I'll be taking part in a boardroom debate alongside my opposite number in ScottishPower, Nick Horler.

Yet these names mean nothing if the Scottish Low Carbon Investment conference proves to be another talking shop. It has to be far more than that; I believe it will be. It is only important if it makes a difference in tackling the hugely complex and difficult funding challenges surrounding renewable energy - and as a result, helps Scotland, the UK and EU meet carbon emissions targets.

Politicians have set tough targets - 60,000 or 70,000 jobs in the so-called green economy and a 42 per cent reduction in carbon emissions by 2020. The bar is set high - and Scotland has to jump now if it's serious about clearing it. Scotland and the UK have to compete in global markets for finance, and if we are not one of the most attractive places in which to invest, the money will go elsewhere. So we have to make sure that Scotland capitalises on its natural resources and has political and regulatory framework, incentives and skills to encourage investment here. The overall climate for doing business in Scotland also has to be first class. Can Scotland rise to that challenge? To do so, the transition to a low-carbon economy really has to gather pace. Delays are a huge risk at a time when we need to be cutting risk and there is a lot more that can be done to accelerate decisions that are needed if we are serious about our low-carbon ambitions - and about highlighting the cost and risks associated with high carbon decisions.

Ministers, MSPs and officials - supported by industry and environmental organisations - are moving in the right direction. Speed, however, is of the essence and we're not yet fast enough. Doing things quickly, and reducing the risks for investors, is absolutely crucial. As chair of Scotland's 2020 Climate delivery group, I am committed to helping Scotland hit its target and I will work with fellow 2020 members to deliver behavioural change in energy and resource use without recourse to financing.

However, the big prize for Scotland - a genuinely low-carbon economy with tens of thousands of green jobs - will only happen if the finance is in place to support the key projects like offshore wind which will make the most difference.Offshore wind power, complemented by onshore wind, hydro and pumped storage, and delivered by a modern electricity network, really is central to the realisation of Scotland's long-term ambitions.

As people in Scotland know full well, constructing and operating offshore can be done successfully, but it is not easy. We need to maintain and develop partnerships to minimise the inevitable risks associated with projects of this kind.

At SSE, we are investing billions in renewable energy and sponsoring low-carbon initiatives in areas such as carbon capture and storage but sustaining investment of this kind over the long term depends on Scotland and the rest of the UK being not just world-class in terms of natural resources, but also in terms of facilitating low-carbon developments and in supporting business generally.

The energy industry has woken up to the problem far earlier than it is given credit for, and is very much part of the solution. Business is good at action and delivery, and has to play to that strength, but leadership across the board really matters.

If we don't move quickly, Scotland and many other countries face being caught between those "twin jaws in a closing vice". And that really is an uncomfortable place to be.

• Ian Marchant is CEO of Scottish & Southern Energy and takes part in the Scottish Low Carbon Investment conference, 28-29 September at the EICC, www.slciconference.com