EXETER can become a world leader in low-carbon industries if businesses exploit the research expertise on their doorstep, it has been claimed.

It comes as the Carbon Trust launched a campaign urging companies in the South West to develop greener products and services if they want to profit from the green economy.

A survey for the not-for-profit company found two thirds of businesses in the region see green growth as an opportunity and over three quarters recognise the business benefits an enhanced 'green' reputation can bring. Yet fewer than one in three are actively developing greener products and services and two thirds do not have an annual plan to reduce carbon emissions.

The Exeter area is already home to thriving green businesses including Ashwoods Automotive – recently ranked as the fastest growing clean technology company in Europe – and Honiton-based renewable energy specialists Nu-Heat.

And the city's potential to become a 'magnet' for eco-friendly technology developers was highlighted in the recently published Exe Authorities Local Investment Plan.

"The city has around 220 University of Exeter academics and research staff working on environmentally related issues," the document states. "There are around 170 PhD students working in this area.

"There are also eminent academics contributing to the latest Intergovernmental Panel on Climate Change report – the highest number for any UK university. Combined with the Met Office's Hadley Centre, the city provides the highest number from any location in the world."

The report goes on to say: "With the Science Park, Exeter has the potential to create a national centre for an aspect of the low carbon economy in the same way that Bristol has done for the composites centre.

"Working with the Met Office and the Environment Agency, the aim is to create a physical centre on the Science Park which could act as a magnet for 'clean tech' investment, drawing on probably the highest concentration of research scientists in this field anywhere in the world. This would require capital investment and pump priming but would position the area as a national and international player."

Tim Jones, chairman of Devon and Cornwall Business Council, said: "We are very well positioned because we have this global expertise and research capability on our doorstep. Now is a very good time for companies to go and find out what the university has to offer. It's an enormous opportunity."

But he cautioned: "I don't think a lot of businesses will appreciate being told they suddenly need to become greener when most of them want to be left alone to concentrate on surviving and growing to fill the gap left by downsizing public sector employment."

Dr Stephen Wyatt, research and development manager at the Carbon Trust, said: "The recent quarterly GDP figures will spark new questions on where growth will come from. In my view, green growth is the only show in town.

"To ensure that the local economy fully benefits from this opportunity, business leaders need to place some smart early bets on the future. That's why we're launching a new Green Growth campaign, to help business leaders in the South West to identify and develop appropriate business strategies to exploit the green economy going forward."