The government has been urged to roll-out the Green Deal to manufacturers or risk missing its carbon emissions targets

The government needs to introduce a targeted version of the Green Deal for manufacturers if it is to meet its carbon emissions targets, a policy think-tank has concluded.

The report by the Institute of Public Policy Research, which was compiled from a series of roundtable discussions with business leaders, said the government needs to focus on reducing the emissions from manufacturing if it is to reach its goal of an 80% reduction in emissions by 2050.

The report said: “At present, there are few positive incentives for conventional manufacturers to reduce process emissions and retrofit their plants and premises”

It added: “The government’s decision to reduce capital allowances has meant a further disincentive for manufacturers to invest, at a time when access to capital is tight.”

The government has previously confirmed that the roll-out of the Green Deal to businesses will be delayed from its original October launch date, but no new date for its launch has yet been set.

The report also criticised the government’s lack of consistency on green policies saying the “moving of the goal posts” over the solar electricity feed-in tariff had damaged investor confidence across all green sectors.