A shift to a low-carbon economy offers UK businesses their best hope of leading the world again, the chairman of the Environment Agency has said.

Speaking at the Royal Society of Arts, in London, Lord Smith said the climate crisis is the most serious and difficult challenge facing the country.

Lord Smith warned that the UK must not return to business as usual when the economy emerges from the recession, but must make a “historic shift” towards sustainability.

He also urged politicians to recognise that sustainability is so important it should override political differences within and between nations across the world.

Referring to his speech to the Environment Agency conference, where he called for a “Green New Deal” Lord Smith said the UK needed to decarbonise electricity production by 2030, largely by developing carbon capture and storage.

Others are now calling for Britain to be one of nations showing a lead, being an example, and helping to create the international consensus about the solutions that will be needed.

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