Ian Marchant: Why it is right for Scotland to lead way on climate change

On the one hand, it is fair in its assessment that a 42 per cent cut in emissions by 2020 – required under the Climate Change (Scotland) Act 2009 – is possible but challenging. We can all agree with that.

What is rather more contentious is the UKCCC's view that Scotland's rate of progress on tackling emissions should depend upon the amount of action being taken outside Scotland. For me, and I believe for other members of Scotland's 2020 Climate Group, tackling climate change should be a race to the top, not a case of settling for the lowest common denominator.

We need to avoid any temptation to put off early action, and the UKCCC suggestion that Scotland aim for 0 per cent cuts in the first three years, and then make a cut of 10 per cent in a single year to make up for it is a concern. If we do not act early, we risk not only failure to tackle climate change effectively, but we will miss the opportunities that a low carbon economy has to offer. We will end up facing much greater costs in the future.

We need to transform how we use and generate energy with a level of urgency that many more people are now beginning to appreciate. Even without climate change, the need to decarbonise our economy is strong. The issue of "peak oil" is fast rising up our economic and political agenda, and the potential impact could be felt from as early as the middle of this decade. Not everyone agrees with this specific conclusion – but there is no doubt that oil is a finite resource.

So there is urgency and an imperative – economic, as well as environmental. Of course, it is going to be a challenge and it will require a new collaborative approach between all sections of society. The 2020 Climate Group is one example of what will be required, as it aims to encourage co-operation between individual businesses, between business and communities, between companies and unions, and between the public and private sectors.

Real co-operation will make our 2020 targets eminently achievable. A challenge it may well be, but the benefits are many; not least the security and stability of domestic energy supplies, warmer homes that are easier to heat and better public transport to name a few.

The 2020 Climate Group is looking at how best to contribute to the delivery of the targets. Since its launch, there have been some very positive signals of collaborative and ambitious approaches The Sustainable Glasgow initiative, for example, seeks to deliver the targets on a city-wide basis.

We should be working together to create and deliver similar city- and town-scale plans and see these gather pace all over the country. Renewable investment offshore and onshore amounts to billions over the next five years. Greater energy efficiency is essential, too, and achieving that also boosts the economy. The economic opportunities are there, the imperative is there and political framework is there – so let's not weaken our resolve before we even get started!

The longer we leave it till we act on climate change, the more difficult and costly it will be to deal with it. Equally, those countries that lead the way stand to benefit most from the new economic opportunities. That is the position Scotland is in – and the decision to go for a 42 per cent cut in emissions by 2020 is not only the responsible one, it is the right one for the economy and for the people of Scotland. That Scotland has chosen to lead the leading pack sends an important signal to others across the world.

Ian Marchant is chief executive of Scottish & Southern Energy and convener of the 2020 Climate Group.