Concerns that a move towards 'green technologies' could damage the UK economy were counteracted by the fact of 17% growth since 1997, during which time emissions have fallen by 5%.

The White Paper, providing reforms which will speed planning consents for renewables projects, formalises an emerging era of opportunity for many operating within the European maritime industries. The 20% by 2020 target represents a real step change in terms of the UK energy mix and will create demand for competitive products and services.

It is rare that complete new industrial markets such as offshore renewable energy are created and Britain is not the only country pursuing a development strategy designed to provide an industrial base to serve it. Britain, however, is uniquely well placed to apply decades of experience in the offshore oil and gas industries into the marinisation of established renewable technologies, particularly wind power. The past few years have seen the proving of enabling technologies which are acting as a catalyst to a market development, now further boosted by confirmed Government policy.

Although the White Paper was broadly welcomed by the British Wind Energy Association and environmental groups, concern was expressed that planning remains an obstacle to the large scale development of new capacity and that the dropping of firm targets for renewable energy from the Paper could put investment at risk. Friends of the Earth warned that the plans must be accompanied by clear timetables, targets and investment if they are to be achieved.

In the post 9/11 world, and war with Iraq looming at the time of writing, security of energy supply takes on a newly enhanced significance and a diversified mix is considered of strategic importance. . The White Paper warns that Britain will be a net importer of gas within three years and of oil within seven years.

However, according to consultants Ernst & Young's recently released 'Renewable Energy Country Attractivenes Index', the UK currently provides the best market in the world for wind energy as a result of the new regulatory and improving planning environment. The study cites Britain's vast unexploited wind resource and the relative protection renewables receive under the new Renewables Obligation Certificates (ROC) system, which sees renewables obtaining prices typically three times those for conventional energy.

The British Government's 'World Offshore Renewable Energy Report 2002 - 2007' (available free on CD-Rom or for download from www. dti. gov. uk/renewable), expects the world's offshore renewable energy industry to grow 400% between 2002 and 2007. Total expenditure will be at least £3.1 billion, 90% of which will be in Europe and 97% of which will be in offshore wind developments. With Denmark's early leadership now stalled by a removal of government subsidies, the UK is expected to be the next major growth market, accounting for 42% of European capacity installed in 2004. The report envisions Britain developing into the world's largest market for offshore renewable energy technologies and expertise over the next few years.

MJ Information No: 18001