Markets, Companies Can Rescue the Climate: U.K.’s Rudd

Companies and markets are the key to arresting climate change, according to U.K. Energy Secretary Amber Rudd.

“Without the commitment, energy and innovation of private enterprise across the world, we will not succeed in making the transformation to the global low-carbon economy we need,” Rudd will say in a speech Friday at the London office of insurer Aviva Plc, according to remarks e-mailed by her office.

Rudd will say her Conservative Party is “committed” to taking action on climate change, that left-leaning parties shouldn’t “dictate” a solution to the problem. Efforts to contain global warming should be “pro-growth and pro-business,” according to her remarks.

UN envoys hope to craft a new deal to curb warming temperatures at a climate summit in Paris in December. They’re aiming to include commitments from all nations for the first time in contrast to the existing Kyoto Protocol that bound only developed nations to cut greenhouse gases.

The U.K. energy secretary has faced domestic criticism after announcing plans to cut subsidies for wind farms, solar parks and biomass plants within two months. On Thursday, Rudd scrapped a household energy-efficiency program, a day after shrinking aid to biomass and solar plants.

“Governments can set the direction, set the vision, set the ambition,” Rudd will say. “We can create the framework, create the rules, provide the support, predictability and stability needed. But that support must help technologies eventually stand on their own two feet, not encourage a permanent reliance on subsidy.”

While renewables developers have said Rudd’s cuts will deter investors from pouring money into green technologies in Britain, she’s to say Friday that free enterprise is the key to driving down the costs of emissions cuts.

“The economic impact of unchecked climate change would be profound: lower growth, higher prices, a lower quality of life,” Rudd will say. “Climate action is about security, plain and simple -- economic security.”

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