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Overview of Low Carbon Economy
Policy in the West Midlands
How to develop Green Collar Jobs in Your Area 30th
November 2009
Dr Simon Slater
Executive Director
sustainabilitywestmidlands.org.uk
Who we are
We are the sustainability adviser for the leaders of the West Midlands.
– Government recognised ‘regional sustainability champion body’
– Our Board is private sector led and cross-sector representative
– We are a not-for-profit company, that works with our members in the business, public and voluntary sectors.
Our role is to act as a catalyst for change through our:
– policy advice to leaders
– developing practical cross-sector solutions with our members, and
– share success through our communications.
Overview
1. The Regional Sustainability Vision and Challenges
2. The UK’s First Low Carbon Regional Economic Strategy
3. Emerging Findings from Regional Growth into the Low Carbon Economy Study
4. Key Lessons when developing your own strategies
The West Midlands at a glance • 5.3 Million people – 9%
of UK total
• Birmingham is 2nd largest
city in UK – population of
more than 1 million.
• 75% of the UK ’s
population is within 5
hours drive.
• Most ethnically diverse
region in the UK outside of
London.
• Highest concentration of
manufacturers in the UK
• 80% of the region is rural
Our Vision
By 2020 businesses and communities are thriving in a West Midlands that is environmentally sustainable and socially just.
By 2012 our leaders are clear on what this looks like, have set milestones and their organisations are making strong progress.
‘Low carbon vision’ begins to set out what is possible now in terms of energy, transport, construction, demographic change to reach 2020…just add leadership and next steps
The Regional Sustainability Challenge
– The Productivity Gap - £10 billion plus – productivity & worklessness
– The Carbon Gap – need to focus on transport, waste, decentralised energy, energy efficiency
– Quality of Life Gap – health inequalities, basket of indicators such Index Sustainable Economic Welfare – vary across region, externalities
– Confidence Gap – poor promotion within and outside region of good practice
– Leadership Gap – varied understanding on sustainability as overall framework for action, business often ahead of public sector, regional governance ‘unfinished & uncertain’
Overview
1. The Regional Sustainability Vision and Challenges
2. The UK’s First Low Carbon Regional Economic Strategy
3. Emerging Findings from Regional Growth into the Low Carbon Economy Study
4. Key Lessons when developing your own strategies
Why a low-carbon economic strategy?
• The first Regional Economic
Strategy to be produced since the
publication of the Stern Review:
“Low-carbon economy is the pro-
growth strategy for the long-term”
• Opportunity to address both the
regional productivity challenge and
carbon challenge.
• ‘Connecting to Success’ published
in January 2008 and Delivery
Framework in May 2008. Full story
covered in ‘Evidence of success ‘–
Dec 2008
Defining Low Carbon Economy
• There is no official government definition of a low-carbon
economy so the region produced its own, definition :
“ An economy that produces goods and services of increasing
value while reducing the associated greenhouse gases in their
production, use and disposal…”
- Connecting to Success, page 89
• Embraces the region’s strengths in engineering, science and
technology to deliver low-carbon solutions to national and
international markets.
The scale of the output challenge
Gross Value Added – a measure of the net total output or income generated by an economy. Essentially it is the
difference between the value of the goods and services produced in an economy and the cost of raw materials
and other inputs which were used in their production.
The scale of the carbon challenge
CO2
(e) is an abbreviation of 'carbon dioxide equivalent' and is the internationally recognised measure of greenhouse gas emissions. The sources of greenhouse gas
emissions include carbon dioxide (CO2
), methane (CH4), nitrous oxide (N
2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF
6).
Developing new policies
• Developed policy areas that could be influenced by the new
economic strategy and that would address the productivity and
carbon challenges at the same time.
• Developed a benchmark of what an ‘ideal’ low-carbon
economic strategy could look like.
• Assess the extent which ‘Connecting to Success’ supported
these key policy areas during several stages of development as
a parallel process to the wider sustainability appraisal.
Improving the Strategy
Benchmarking against other regions
Prioritising actions and programmes
The actions against the policy areas were prioritised in terms of:
• Economic benefit
• Potential to reduce carbon
• Ease of implementation
• Alignment with other regional social and environmental policy
Main programmes were around:
• Smarter Working / ICT
• Decentralised energy & waste infrastructure
• Resource Efficiency Support for Business (energy & waste)
• Stimulation and support for diversification into Green Markets e.g.
Procurement & R&D
Delivery - Monitoring Progress
• Delivery of the Strategy is monitored using the following
indicators:
– Tonnes of CO2e per £10,000 GVA – Headline Indicator
– Regional Indicator of Sustainable Economic Wellbeing - Headline
Indicator
– Total Industry and commercial energy consumption (GWh) per
£billion GVA
– Percentage of people usually working from home or travelling to
work using sustainable means of transport
– Growth of companies in the region providing low-carbon products
and services (to be developed)
– Industrial and commercial waste indicator (to be developed)
– Natural environment indicator (under development)
Delivery - Monitoring Progress (cont)
• Underpinning the strategy is the commitment to valuing the
environment while delivering a lower-carbon economy.
• Advantage West Midlands will contribute towards this aim through
creating / safeguarding 50,000 jobs and reducing the CO2e emissions
investments by 500,000 Tonnes per year by 2010/11.
Delivery – progress to date
Delivery – progress to date (cont)
Monitoring of Strategy Actions - Overall good progress
• AWM carbon reduction from investments on target of 150,000 tonnes in
2008/9
• Smarter Working launched to help flexible working / use of ICT
• National Centre for Low Carbon Vehicles, Science City, Power
Academy
• Waste infrastructure programme
• Renewable Energy and Supply Chain and deployment programmes –
but more coordination required
• Business support via good practice networks e.g. Business Futures or
Business link
• BUT – more sub-regional targeting at risks and opportunities required
Overview
1. The Regional Sustainability Vision and Challenges
2. The UK’s First Low Carbon Regional Economic Strategy
3. Emerging Findings from Regional Growth into the Low Carbon Economy Study
4. Key Lessons when developing your own strategies
Regional Growth into Low Carbon Study
Aims to:
• identify key areas of economic risk and opportunity for economy
• monitor diversification into low carbon economy
• sub-regionalise existing regional low carbon evidence base
• Study Chaired by SWM with AWM, WMRO, Carbon Trust, Regional
Economic Development Officers Group.
• Sub-regional component which can be further tailored by local
authorities at workshop on 15th Jan 2010.
• City Region Leadership Programme also drawing on this work to look
at potential joint actions within wider region.
Initial findings: economic risks and
opportunities
• Low exposure in terms of productivity e.g. sectors that contribute highest GVA often low energy users
• But around 30% of employees within City Region are within sectors that have high exposure to rising energy costs/security and carbon legislation
• City Region identified as biggest driver for wider region in terms of creating new low carbon markets
• Greatest opportunities are in: manufacturing of building products, transport/fuel equipment, energy generation/ efficiency, waste reprocessing, agri-food, ICT, and R&D
Initial Findings: Baseline of where we are
Good practice with local authorities around construction, transport, waste, R&D and businesses improving efficiency of production and growing into new areas.
Not yet replicated to scale or coordinated
Rural areas in region often ahead of agenda
Nationally City Regions of Manchester and Leeds ahead in terms of pooling resources, procurement, joint-climate agency, linking green space maintenance to future jobs fund.
Globally sub-regions in USA, Germany, Scandinavia, South Korea, China, aggressively creating low carbon markets to stimulate investment
Emerging next steps to improve
performance
Improved business support and good practice in improving efficiency of existing business, supported by waste and energy infrastructure, smarter working/travel
Link green space maintenance to future jobs fund to create immediate supported employment, and longer term natural assets
Mass scale housing retrofit programme – stimulate new products and employment
Public Procurement to create new low carbon markets, drive innovation, and efficiency that existing business base well placed to exploit
Pooling of resources – joint agency to improve coordination, attraction of investment
Overview
1. The Regional Sustainability Vision and Challenges
2. The UK’s First Low Carbon Regional Economic Strategy
3. Emerging Findings from Regional Growth into the Low Carbon Economy Study
4. Key Lessons when developing your own strategies
Key Lessons
• Definition is important – productivity & carbon of overall
economy
• Low Carbon does not guarantee environmental or social
progress – need SD review, including longer term issues.
• Identifying the scale of the challenge & within target of 2020
• Focus on what can be influenced
Key Lessons (cont)
• Prioritise actions on a range of investment / benefit criteria
• Balance of productivity verses jobs safeguarding / creating,
tackling worklessness
• Create new markets in areas local economy has strengths
to exploit
• Skills and investment follow longer-term demand and
certainty created by leadership
Overview of Low Carbon Economy
Policy in the West Midlands
How to develop Green Collar Jobs in Your Area 30th
November 2009
Dr Simon Slater
Executive Director
sustainabilitywestmidlands.org.uk