18th May 2011, This week heralded, for many, the first bout of positive news to come from the collation government. The Energy and Climate Change Secretary, Chris Huhne, announced to parliament that the ‘carbon budget’ will focus on a 50% emissions cut averaged across the years 2023 to 2027, compared with 1990 levels.

So what does this mean for businesses?

For business this is good news because it will provide what every business wants; greater clarity and certainty.  It could well lead to lower electricity prices in the future, create jobs, export opportunities, energy security, growth and prosperity.

A number of organisations including Unilever, Microsoft, Tesco, Philips and the WWF have all backed the commitment to a legally binding target to reducecarbon emissions. They believe that strong and clear action on climatechange is essential for long-term economic growth, innovation and competitive advantage. This commitment also sends out a clear signal to investors that the UK realises the potential of a low carbon economy.  

Some business leaders have argued that going further than other countries in cutting carbon could damage the competitiveness of British Industry and drive companies abroad. To counter this, Huhne explained that concessions will be made to support energy intensive industries like steel and chemicals. "We want these industries to remain competitive internationally, so we will be announcing a package of support to reduce the risk from higher energy prices by the end of the year."

Needless to say, sustainability is good for your business. If carbon emissions are reduced, costs will inevitably mirror these.  Any failure to act at sufficient scale and pace would mean that the costs of tackling climate change in the future will be much higher. Instead, and by making the UK the first country to make such commitments beyond 2020, it is hoped that this announcement will help to underpin the UK's transition to a low-carbon economy.

Now the government have shown us the long term targets it is down to us as individuals and businesses to modify it in order for the UK to reach these targets.