"Vast" financial risk to ignoring low-carbon economy

Winners and losers will come out of the shift to a low-carbon economy, depending on how businesses adjust to the changes, according to the Carbon Trust.

The group, which was set up by the Government to speed up the move to a low-carbon economy, has released a report outlining the opportunities and risks associated with the change, testing the idea that it could be revolutionary for major sectors of industry.

Climate change - a business revolution? suggests "well positioned and proactive" businesses could gain up to 80% in value in some sectors, but those which were slow to adapt stood to lose up to 65%.

The report looked at seven areas of industry, including aluminium, automotive, beer, building materials, consumer electronics, oil and gas exploration and production, oil and gas refining - together worth an estimated $7 trillion (£3.8 trillion) to the UK economy.

According to the report the building industry stood to gain the most, while the aluminium and automotive industries faced being the biggest losers.

Chief executive Tom Delay said that there was only a "short window of opportunity to act".

"Climate change will cause a revolution in business and our findings should act as a trillion dollar wake up call to the investment and business communities," he added.

"Companies and investors that prepare now and develop new strategies will reap the commercial rewards of the move to a low carbon economy.

"The financial risks of inaction are just too vast to ignore."

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