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  • Adapting the cityInvestment & Finance

  • Overview Charlie Parker, Lead Chief Executive AGMAs Environment Commission Absorb informationPrepare for the future Seek opportunitiesAdapt the CityAdapt our thinking

  • Overview - finance and investment workshopClimate change adaptation: opportunities and threats to Greater Manchester, Helen Seagrave/Becca Heron (Envirolink & New Economy) (10 minutes)Overview of climate finance, Caroline McGill, Corporate Finance Director, Deloitte (20 minutes)Setting the GM scene (10 minutes)Greater Manchester Investment Sara Todd, Assistant Chief Executive Regeneration Manchester City Council Low Carbon Investment Mark Atherton, Director of Environment for Greater Manchester (AGMA). Discussion led by Caroline McGill.

  • Adapting the city

  • Climate Change Adaptation: Opportunities and Threats to Greater Manchester

    Rebecca Heron, New EconomyHelen Seagrave, Envirolink

  • Purpose of research Provide an overview of GMs priority sectors and the impact of climate change on those sectors

    Identify size and scope of GMs climate change adaptation sector

    Provide an understanding of potential opportunities regarding job creation in that sector

  • Priority sectors Priority sectorsFinancial & professional servicesHealthRetailManufacturing

    Key sector concentrations (higher than national average)Creative industriesICT digital

    Key sector productivityBio-technology (140,500)Environmental technology (65,900)

  • Risks Increasing energy and fuel pricesSecurity of energy supplyEffects of climate change legislationCarbon pricing, trading and emissions reductions targetsFalling demand for high carbon footprint goods and servicesDamage to real estate and infrastructure

  • Potential impact

    SECTORPOTENTIAL EMPLOYMENT POTENTIAL GVA IMPACT (000s)IMPACT (m)1% negative impact5% negative impact10% negative impact1% negative impact5% negative impact10% negative impactManufacturing-0.5-2.5-5-12.5-62.6-125.3Construction0-0.2-0.4-17.1-85.4-170.8Logistics-0.1-0.6-1.2-35.4-176.8-353.5Tourism000-7.1-35.3-70.7ICT-0.1-0.4-0.7-25.7-128.4-256.8

  • Opportunities Change can stimulate innovation and adaptationSectors and organisations that embrace the challenge and adapt are most likely to survive and prosper

  • Climate change adaptation sectorDefinition developed using LCEGS sector dataClimate change and resilienceBuilding technologiesRelevant environmental consultancy services

    Low carbon and environmental goods and services sector dataUnique data set to developed to overcome lack of SIC code definitionUsed by central Government to develop to define and map sectorEnvirolink pioneered methodology for mapping LCEGS sector

  • Size of GM climate change adaptation sector

    GM Climate Change Adaptation GM LCEGSUK Climate Change AdaptationUK LCEGSSales1.2bn5.1bn27.08bn122.2bnCompanies670191815,00052,000Employment11,00037,000230,000940,000

  • Relative size of the climate change adaptation sector

  • Distribution of companies across definitions Big bulletSub bullet

    Big bulletSub bullet

    ConstructionFinance, investment, insuranceTransport

  • Distribution by company activity Big bulletSub bullet

    Big bulletSub bullet

    Engineering ServicesInstallationManufactureServicesSupplyR&D

  • Company distribution across GM Big bulletSub bullet

    Big bulletSub bullet

    BoltonBuryManchesterOldhamRochdaleSalfordStockportTamesideTraffordWigan

  • Skills requirements Wide range of skills required, not necessarily adaptation specificSpecialist and professionalManufacturing and engineeringBusiness management (particularly for SMEs)Under-supply of young people entering high value engineering and skilled tradesApprenticeshipsImage problem in relation to climate change sectorsEncourage high level candidates to enter the sectorSchool leavers and graduatesRole of the universitiesLargest student population in EuropeRange of relevant courses offered

  • Conclusions Priority sectors at risk if a failure to adapt

    BUT opportunities through innovation and adaptationStrength in construction retrofit, doors and windows should be maximised through access to opportunities presented by GMs large scale commercial and domestic retrofit programmeDevelop specific sector strategies for particularly vulnerable sectorsDraw on the universities reputation for excellence to turn Manchesters reputation for entrepreneurship to economic advantageIncrease efforts to attract high-calibre candidates to the climate change adaptation sector

  • Adapting the city

    2012 Deloitte LLP. All rights reserved.

    Investment and financeFor climate change adaptation

    2012 Deloitte LLP. All rights reserved.

    Investment and financeAgendaInvestment & finance requirementPrinciples of invest-abilityClimate change financeFinance for Greater Manchester

    ManufacturingConstructionRetrofitTransport CertaintyAssetsIncomeSavingsMeasurement

    Risk Policy Technology Supply Demand Counterparty Climate change

    Risk MitigationInsuranceFamiliarityPrevention vs mitigationChallenges for the future

    2012 Deloitte LLP. All rights reserved.

    Investment and finance requirementKey sectorsFamiliar sectors Construction Transport

    Supply chain R&D Manufacture Installation / Engineering Services

    2012 Deloitte LLP. All rights reserved.

    Principles of invest-abilityCertainty, risk and familiarityCostsInvestors and financiers seek to understand the level and nature of risk in order to decide: whether to provide finance; at what price; and on what terms.

    2012 Deloitte LLP. All rights reserved.

    Climate change financePrevention vs mitigationPublic goodPrivate valueWell understoodNot well understoodWaste managementCapturing the value of climate change mitigation is more difficult than climate change prevention as this tends to be thought of in terms of energy cost. Solar PVSolar ThermalBrown field remediationEnergy Service contractsFlood defencesBiomassWater managementRenewable HeatInsulationPossible financier perceptions

    2012 Deloitte LLP. All rights reserved.

    Climate change financeChallenges for the futureHow can the level of familiarity with climate change finance be broadened among the wider financial community?

    Can the true value of works mitigating the effects of climate change be captured financially?

    What role should the insurance sector play?

    Can community finance initiatives be used more widely?

    What should be the role of national and local government?

  • Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (DTTL), a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.Deloitte LLP is the United Kingdom member firm of DTTL.This publication has been written in general terms and therefore cannot be relied on to cover specific situations; application of the principles set out will depend upon the particular circumstances involved and we recommend that you obtain professional advice before acting or refraining from acting on any of the contents of this publication. Deloitte LLP would be pleased to advise readers on how to apply the principles set out in this publication to their specific circumstances. Deloitte LLP accepts no duty of care or liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication. 2012 Deloitte LLP. All rights reserved.Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 2 New Street Square, London EC4A 3BZ, United Kingdom. Tel: +44 (0) 20 7936 3000 Fax: +44 (0) 20 7583 1198.Member of Deloitte Touche Tohmatsu Limited

  • Adapting the city

  • GM Investment Framework

  • GM ContextCities as engines of growthCombined Authority (CA) and LEP provide the platform for growth and reformPlace - based approach to aligned priorities, funding and deliveryMove away from a grant culture to a self sustaining investment approachSecure the benefits from local investment

  • GM Investment FrameworkMIER provides the evidence base to understand what we need to do Reduced access to public resources and difficult market conditions (especially in terms of market finance failure) A new approach to investment is required to:- make the most of our evidence base and opportunities; and- minimise the impact of the funding and market challenges we face

  • Investment Framework Work StreamsProjectPipelineDevelop an approach to coordinating private and public sector fundingEnabling FundsInvestment AdvisorInvestment Strategy

    Recruiting a central GM Core Team to strengthen AGMAs delivery capacity and capability Developing skills and capacity in districts

    CapacityDevelop single AGMA pipelineIndicative prioritisationShort term and medium to longer term pipeline

  • Project Pipeline DevelopmentAround 80 projects now identified by Local Authorities and the Manchester Family Includes economic development, housing, low carbon, transport, broadband, business growthMany have multiple barriers to bringing them to marketLocal capacity and expertise varies to support pipeline development Considerable pressure to commit Enabling Funds asap

  • Investment Strategy Initial PrioritiesIdentify potential sources of enabling fundsMatch suitable enabling funds to projectsMove quickly towards a single Feeder