26 January 2011

Report: Green firms face scarce resource challenge

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Increasing demand for scarce resources will force green businesses to adopt efficiency measures if they are to maintain recent growth, according to a major new report from Defra

The report, 'Review of the Future Resource Risks Faced by UK Business', warns that companies must factor resource issues into long-term decision-making, while also working to develop alternatives to many of the materials they currently use.

According to the research, which was carried out by environmental consultancy AEA, a wide range of materials will face constricting supplies over the next few decades as the global population rises towards an estimated nine billion by 2050.

As flagged by earlier surveys, the report warns that the supply of rare earth elements is likely to be particularly constricted. The Defra report warns that companies will have to increase recycling rates and make better use of metals such as indium (a component in solar panels), as well as cobalt and lithium (elements in electric car batteries and solar cells).

(BusinessGreen)

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