Restoring growth and confidence through green innovation

The current period of low confidence and sluggish private investment presents a golden opportunity for UK to boost employment and stimulate economic growth, while encouraging competition and innovation. At the same time, we can cost-effectively meet tough emissions targets and leave a long-lasting legacy in the transition to a resource-efficient green economy. Growth requires investment, yet investment has slumped to record lows in most rich countries mainly because households, businesses and banks are nervous about future demand, and have responded by forgoing more risky investment in physical capital.