Firms ‘need clear lead on green tech’

The government needs to offer businesses a firm commitment to green technologies if it wants companies to invest in environmentally-friendly industries, a think-tank said.

Research found ministers were sending “mixed signals” about their aims to reduce carbon emissions – initially promising ambitious targets before seemingly wavering about the effect they could have on the economy.

Ministers’ caution was making industry leaders in the energy sector jittery about investing, the Institute of Public Policy report said. To shore up business confidence, the Treasury should also abandon its plans to introduce a “carbon floor price”.