evidence of success - sustainability west midlands...advantage west midlands evidence of success...

Advantage West Midlands

evidence of successdeveloping the UK’s first low-carbon regional economic strategy

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Advantage West Midlands – the low-carbon regional economic strategy2

Advantage West MidlandsThe Regional Development Agency (RDA) for the West Midlands Region

Advantage West Midlands is the Regional Development Agency (RDA) for the West Midlands and one of nine RDAs in England.

Our role is to lead the economic development of the West Midlands Region, working alongside public, private and voluntary sector partners to help our region to prosper. We build upon our region’s many strengths and address our unique challenges.

Our key task is to lead the development and delivery of the West Midlands Economic Strategy (WMES), the framework for our region’s growth. Through working in partnership, we speak with one voice for the region and make a far greater impact than we would acting in isolation.

We have an annual budget of over £300 million to invest in the West Midlands Region and, at any one time, we manage around 2,500 projects which change the lives of people across our region. We drive economic development by identifying where we can make the greatest impact, either by targeting specific needs or investing in success. M50

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BIRMINGHAM INTERNATIONAL

COVENTRY AIRPORT

Birmingham

Coventry

Warwick

Worcester

Hereford

Sta�ord

Wolverhampton

Stoke-on-Trent

Shrewsbury

SHROPSHIRE

HEREFORDSHIRE

WORCESTERSHIRE

WARWICKSHIRE

TELFORD & WREKIN STAFFORDSHIRE

Bridgnorth

Ludlow

Bishops Castle

Oswestry

Market Drayton

Leek

Lich�eld

Tamworth

Nuneaton

Rugby

Stratford-upon-Avon

Redditch

Evesham

Great Malvern

Ledbury

Leominster

Kidderminster

Stourbridge

Dudley

Walsall

Solihull

Ross-on-Wye

Uttoxeter

Burton-upon-Trent

Telford

West Bromwich

To Manchester & North West To Leeds

& North East

To Bristol & South West

To Oxford,London & South

To London & South East

Cover image: The Environmental Centre in Shrewsbury, Shropshire is a unique joint venture between Shrewsbury and Atcham Borough Council, developer Indigo Seven, water management consultants Pension Fund and the Rural Regeneration Zone which receives funding from Advantage West Midlands.

The project includes refurbishment and new build to create more than 9,000 sq. ft of offices for environmental technology companies including facilities to support start up businesses.

For more information visit www.advantagewm.co.uk

Advantage West Midlands – the low-carbon regional economic strategy 3

Contents

Introduction 4

Defining the low-carbon regional economy 5

Scale of the Carbon Challenge 6

The scale of the productivity challenge 8

Developing new policy criteria 11

The results in ‘Connecting to Success’ 19

Lessons to learn 32

Next Steps 33

Key References 34

Acknowledgements 34

Contact 35

page


In December 2007 Advantage West Midlands produced on behalf of the West Midlands, a new Regional Economic Strategy: ‘Connecting to Success’. Hailed as a landmark strategy, ‘Connecting to Success’ has been formally recognised as the UK’s first low-carbon economic strategy and has established Advantage West Midlands as a leader amongst the regions. This summary document explains the process that Advantage West Midlands embarked upon with its partners to produce the UK’s first low-carbon economic strategy.

“This is the first Regional Economic Strategy to emerge since the world really woke up to climate change and began taking the challenge of a low-carbon future seriously. ‘Connecting to Success’ takes a major step forward by seriously getting to grips with the challenges and opportunities this very different future presents the West Midlands.

Advantage West Midlands has considered the implications of this changing scene across the whole regional economy. We are particularly pleased that this analysis is supported by a convincing plan for delivering the necessary changes on the ground. We believe ‘Connecting to Success’ shows the kind of ambition that is urgently needed if the West Midlands is to make a successful transition to genuine sustainability. Achieving it will make AWM a leader in the regions.”

Jonathon Porritt, Chair UK Sustainable Development Commission (December, 2007)

“We applaud your ambition to have the first low-carbon Economic Strategy with sustainable development fully embedded as an underlying principle. We are encouraged that the Strategy also addresses wider aspects of resource efficiency such as waste, water and energy efficiency.”

Rt Hon Liam Byrne MP, Regional Minister for the West Midlands

Rt Hon Stephen Timms MP, Minister of State for Competitiveness (December, 2007)


The purpose of this report is to share the steps we took and lessons we have learned in developing ‘Connecting to Success’ so that others can build on the example set in the West Midlands. Our aim is to inform both regional policy makers so that they can build on this evidence base and national policy makers so that they can learn from our aproach.

Defining the low-carbon regional economy

The central focus of ‘Connecting to Success’ was to support the transition to a regional low-carbon economy. However, there was considerable uncertainty over what a low-carbon economy means, particularly in a regional context. With no official Government definition to build upon at the regional level we comissioned research to produce a bespoke regional definition that would characterise what the low-carbon economy would mean for the West Midlands. Our definition of a low-carbon economy is:

“An economy that produces goods and services of increasing value while reducing the associated greenhouse gases in their production, use and disposal.

Low-carbon goods, services and skills are related to achieving this outcome and can be specialist e.g. wind turbine manufacturer or micro-generation domestic installers, or changes within mainstream processes, for example a food manufacturer improving the efficiency of its logistics or production process, or plumbers learning how to also install solar heating.”

‘Connecting to Success’ 2007

Our definition of what this means for the region:

“In the West Midlands a low-carbon economy means an economy that will underpin a prosperous and thriving region through capturing the economic benefits of increasing efficiency whilst reducing direct carbon emissions and using the region’s strengths in engineering, science and technology to deliver low-carbon solutions to national and international markets.

For Business, this means fully capturing the opportunities for both existing industries and new enterprises to ensure the West Midlands region secures a reputation for profitable low carbon enterprise.

For People, this means upskilling to secure the benefits from new employment opportunities emerging from a low-carbon economy, along with behavioural change, to enhance quality of life.

For Place, this means creating the conditions for growth by optimising transport networks and developing a low-carbon built environment through energy efficiency and renewables.”

‘Connecting to Success’, 2007 page 39

Reflecting the nature of our work as a Regional Development Agency and the remit of the West Midlands Economic Strategy this definition was deliberately focused upon growing the economy while reducing carbon and did not encapsulate the broader sustainable development agenda. However, to ensure that the wider issues of economic inclusion, social cohesion and the natural environment were not neglected ‘Connecting to Success’ was developed with a robust long-term sustainability appraisal.

With a specific definition of a regional low-carbon economy the next step was contextualise our plans for ‘Connecting to Success’ in light of the regional carbon and productivity challenge.


Scale of the Carbon Challenge

Although there are currently no regional targets for carbon reduction and each region will contribute differently to national targets, we used the carbon targets established in the UK Climate Change Act as a guide for the new economic strategy.

We undertook research to provide a quantitative assessment of greenhouse gas emissions associated with the West Midlands region. This is expressed as

CO2 (e)1. The results provided a detailed inventory of regional emissions and form the building blocks of our reduction efforts. Emissions were assessed using a geographical source-based methodology that recognises emissions generated within the boundaries of the region. This methodology therefore recognises the emissions generated by through-traffic on the West Midlands’ extensive motorway network, but not international aviation or imported goods.

1 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 (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). Water Vapour (H2O) is also an abundant Greenhouse gas but does come under any regulatory frameworks as it is not a ‘forcing agent’ i.e. concentrations of water vapour in the atmosphere vary upon temperature, rather than causing variations in temperature. Whilst all Greenhouse gases play a significant role in determining global temperature variations, particular focus must be given to carbon dioxide (CO2) concentrations. CO2 accounts for approximately 85% of the total UK greenhouse gas emissions – of which the vast majority of emissions are released from the burning of fossil fuels.

Total annual regional emissions from sources geographically based within the regionare in the order of 44,500 Kt CO2 (equivalent).

Domestic - 16%

Industrial, Commercial& Public Sector - 40%

Land use change& Forestry - 1%

Waste - 5%

Agriculture - 7%

Other Transport - 1%

Road Transport - 26%

Figure 1 The regional CO2 (e) contribution 2004

This methodology is consistent with Government reporting and monitoring for the Kyoto Protocol, but will be reviewed in the future. Figure 1 shows the regional inventory of CO2 (e) emissions.

From this inventory of regional emissions we were able to estimate the potential to reduce emissions by the regional implementation of the principle national reduction measures. The reduction measures could result in potential carbon savings in the range of 4,900 – 7,600 kilo tonnes CO2(e) by 2020. This saving represents a 20–28% reduction below 1990 levels in regional CO2(e) emissions. However this is slightly below the UK target range of 26–32% by 2020 as established in the UK Climate Change Act. We have labelled this shortfall in emission reduction potential ‘the carbon gap’ which we currently estimate at 2 – 2.6 million Tonnes CO2e to be reduced annually by 2020.

The regional carbon gap is mainly due to the relatively small proportion of industrial sites subject to the European Union Emissions Trading scheme (EU ETS) in the region, while the EU ETS is expected to provide almost half of UK savings.


For example the West Midlands account for approximately 4% of UK CO2 emission allowances for EU ETS sites, while the East Midlands account for approximately 11% of total UK allowances.

Addressing the carbon gap requires additional carbon saving measures to be implemented at the regional level, in particular in areas that are not fully covered by national policies such as road traffic reduction, behaviour

change, a shift to low-carbon public transportation modes, industrial and commercial waste reduction and decentralised energy, such as combined heat and power.

Figure 2 shows the challenge facing the region to reduce emissions by 26 – 32% by 2020.

The West Midlands Economic Strategy directly influences 20% of the total potential carbon savings that could be

achieved in the West Midlands through implementing national measures. Our research estimated that through additional regional action ‘Connecting to Success’ could have the potential to close the carbon gap by reducing emissions by a further 1,400 to 2,300 kilo tonnes CO2(e)/year by 2020.

These new programmes could bring overall carbon reductions to 24 – 35% by 2020, exceeding the national target.

West Midlands

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UK target by 2020 (26-32%)based on Climate Change Bill

target of 80% reduction by 2050

Supplementary regional actions such as:

Regional transport actions includingflexible working programme

Regional energy and waste actions includingdecentralised energy programme

0

5

10

15

20

25

30

35

Additional regional actions

Climate Change Bill

Regional implementation of national actionssuch as EU Emissions Trading Schemeand Energy White Paper

Lower limit of national mandatory target(26% reduction from 1990 baseline)

Figure 2 The challenge – the region has a 2 million tonne CO2 (e) ‘carbon gap’


The scale of the productivity challenge

A low-carbon economy is not just about reducing carbon, it is also about improving productivity. Our research identified the scale of the regional productivity challenge. Figure 3 shows that, output per head in the West Midlands was 89% of the UK average. When scaled across the whole of the economy, this equates to a £10 billion output gap – in other words, the region’s economy would be £10 billion richer if our output per head were the same as the UK average. We undertook research in the preparation of ‘Connecting to Success’ that found that 80% of the £10 billion output gap is attributable

to the structure and productivity of the region’s economy, while the remaining 20% can be accounted for by economic exclusion. Increasing the region’s employment rate from 72.9% to the UK average of 74.1% would help address this 20% contribution to the region’s output gap, both by increasing the output capacity of the West Midlands economy and by increasing demand for goods and services. It would also help address regeneration and social inclusion issues.

The remaining 80% of the output gap is due to a predominance of low

productive sectors within the West Midlands economy (estimated to account for around one-third of the gap), and to generally low levels of productivity across all sectors. Structural causes of the output gap can be addressed by promoting diversification within the economy and encouraging new business formation in more high-value sectors. Addressing low productivity levels required the analysis of the main drivers of productivity – identified by Government as skills, enterprise, innovation, competition and investment, and added to by Advantage West Midlands to include the additional driver of quality of life.

We believe that a key aspect of our efforts to close the regional productivity gap should be the new business opportunities of the low-carbon economy. The UK market for environmental or low-carbon technologies is expected to grow to £10 billion within the next three years, with the worldwide market growing to $1 trillion over the same period, followed by annual increases of £70 billion. This is an opportunity that the West Midlands is extremely well placed to exploit.

In addition, many low-carbon actions such as resource efficiency, lean manufacturing and flexible working will act to improve productivity while opportunities presented in the recycling and home insulation sectors can tackle economic inclusion.

80% due to economic structure

and productivity

20% due toeconomic exclusion

The £10bn output gap

20,000

0

15,000

10,000

5,000Per

Cap

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VA

(£)

UK WestMidlands

Scaledacross theeconomy

Figure 3 The Challenge – the region has a £10 billion output gap

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 impact of closing the carbon gap on business

Despite the opportunity there was a perception amongst some regional stakeholders that carbon regulation and a low-carbon business approach would have a negative impact on the economy.

We conducted research to assess the impact that carbon constraints would

have upon the economic make-up of the region. The results (shown in figures 4 and 5) reveal that no high financial contribution sectors subject to high regulatory constraints have been identified in the region.

This research showed that overall the regional economy was well placed to respond to national carbon regulation

in terms of operations and services. However, the research recognised that there would be exceptions at the local level. For example, a high energy using company that either through its location or supply chain was a significant local employer. Such a scenario would require targeted support to help particular sectors adapt to new regulation.

Carbon constraints on operations

High (EU ETS, Renewable

Fuel Transport Obligation, Renewables Obligation)

Medium (Carbon Reduction

Commitment, Carbon Neutral Government, etc.)

Low

Financial contribution of sector to region

High > 10% of regional GVA –

Retail & distribution (14.6%) Total GVA share: 14.6%

Business services (13.7%) Total GVA share: 13.7%

Medium 5-10% of regional GVA

Transport & Communication (7.6%) Education (6.7%) Health & social work (7.8%) Total GVA share: 22.1%

–

Construction (6.7%) Finance & insurance (7%) Total GVA share: 13.7%

Low < 5% of regional GVA

Transport equipment manufacture (3.5%) Food & drink manufacture (2.3%) Electricity, gas & water supply (2.3%) Mineral products manufacture (1.2%) Chemicals manufacture (0.6%) Total GVA share: 9.9%

Other manufacturing sectors (12.2% in total) Hotels & restaurants (3.2%) Public administration and Defence (4.7%) Miscellaneous services (4.5%) Total GVA share: 24.6%

Agriculture (1.2%) Mining (0.1%) Total GVA share: 1.4%

Figure 4


Carbon constraints on products and services

High (EU car fuel efficiency,

Building Regulations, Zero Carbon Homes, Code for

Sustainable Homes)

Medium (Energy efficient products)

Low

Financial contribution of sector to region

High > 10% of regional GVA

– –

Business services (13.7%) Retail & distribution (14.6%) Total GVA share: 28.3%

Medium 5-10% of regional GVA

Construction (6.7%) Total GVA share: 6.7%

–

Transport & communications (7.6%) Finance & insurance (7%) Education (6.7%) Health & social work (7.8%) Total GVA share: 28.3%

Low < 5% of regional GVA

Transport equipment manufacture (3.5%) Total GVA share: 3.5%

Manufacture of electrical equipment (1.7%) Total GVA share: 1.7%

Agriculture (1.2%) Mining (0.1%) Other manufacturing sectors (14.7%) in total) Electricity, gas & water supply (2.3%) Hotels & restaurants (2.3%) Public administration & Defence (4.7%) Miscellaneous services (4.5%) Total GVA share: 28.3%

Figure 5


Developing new policy criteria

Having identified the carbon and productivity challenges as the two key driving forces behind the new economic strategy the next step was to develop appropriate criteria to address these two issues. We commissioned research to

develop new policy criteria that could be influenced by the new economic strategy and that would support the decoupling of economic growth from increasing emissions. From there we developed a benchmark of what an

‘ideal’ low-carbon economic strategy could look like.

The following table shows the policy criteria that would need to be included in the new economic strategy.

Policy Criteria Components Details

Business Case: demonstrates how becoming a low-carbon region will support economic growth and employment

1.1: Economic benefit Provides understanding of the economic benefits energy efficiency, waste reduction and of a low-carbon economy

1.2: Market opportunities Encourages business clusters to focus on the major market opportunities of low-carbon developments

1.3: Value of upskilling Acknowledges and supports the need for low-carbon skills to boost business value and economic opportunities

Planning and regulation: Uses planning and regulation, and sets targets for reducing carbon emissions and influences planning system and public sector resources

2.1: Emissions targets Provides a comprehensive plan to stabilise emissions with clear targets

2.2: Planning system Exploits planning opportunities to optimise carbon management

2.3: Transport planning Optimises planning of transport system to encourage low-carbon forms of transport

2.4: Public sector Supports the public sector in setting its own energy efficiency targets. Places low-conditions on investment and encourages public sector to do the same

2.5: Business regulation Incorporates robust low-carbon regulations and standards for new businesses and sectors

Low-carbon lifestyle: Promotes low-carbon lifestyle at home

3.1: Positive image Improves the attractiveness of the region to businesses and residents through becoming a low-carbon region

3.2: Quality of life Demonstrates that low-carbon living can improve quality of life e.g. fuel poverty relief

3.3: Living opportunities Demonstrates the opportunities associated with pursuing low-carbon technology and renewable energy



Low-carbon working: Acknowledges and encourages low-carbon businesses and careers

4.1: Awarding business Promotes, actively engages with and rewards low-carbon businesses and the providers of low-carbon services

4.2: Encourages skills Addresses emerging demand for skills in the low-carbon sector

4.3: Home working Strengthens the opportunities for home working particularly in rural areas

4.4: Promoting careers Raises awareness of low-carbon career opportunities

Efficient clusters: Promotes efficient clustering of businesses and encourages interaction with low-carbon providers

5.1: Minimising energy in clusters

Plans business clusters and corridors to minimise energy and fuel use

5.2: Knowledge sharing Creates and nurtures explicit linkages between carbon intensive sectors and providers of low-carbon solutions

5.3: Self-sufficient energy supply and use

Business clusters, zones and corridors are developed with plans to become self-sufficient with energy use and supply

Efficient buildings: Promotes the use of best available technologies in the building stock

6.1: Technology in buildings

Supports the incorporation of energy efficiency technologies into the building stock by encouraging both supply and demand

6.2: Sustainable construction industry

Supports the sustainable construction industry by developing skills, stimulating demand and strengthening the supply chain

6.3: Renewable generation and energy waste

Encourages renewable generation and energy waste reduction enterprises so as to reach energy target

Efficient business: Supports improved carbon management by industry and individuals including support for research and development

7.1: Carbon management Encourages businesses to see the benefits of efficient resource use. For example using tools such as ICT and cutting energy use

7.2: Supply chain Promotes understanding of the low-carbon supply chain and recognition of each business’ position within that chain

7.3: Sector collaboration Collaborates with sector representatives to support their member businesses to converting to low-carbon working

7.4: Research and development support and implementation

Supports research and development into a comprehensive and strategic range of low-carbon technologies in order to exploit markets



Education and skills: Promotes education on low-carbon and energy efficiency and promotes low-carbon skills base

8.1: Formal education Promotes formal low-carbon themes within formal education to target the future of the region’s workforce

8.2: Vocational education Provides direct links between low-carbon vocational and higher education courses and employment prospects

8.3: Supporting skills providers

Actively supporting low-carbon learning and skills providers e.g. integrates carbon management themes across all providers

8.4: Promoting energy providers

Promotes energy efficient behaviour to a wide range of social groups and puts in place measures to actively reduce demand for energy

8.5: Informing business and consumers

Supports a programme for the collation of information to inform commercial and domestic consumers

Transport systems: Reduces reliance on private cars for personal and business journeys and optimises freight

9.1: Integrating local and national transport

Supports the integration of local transport system with existing and anticipated national system

9.2: Supports car alternatives

Supports journeys where public transport, walking and cycling offers equal or better quality of journey

9.3: Public transport for rural and urban links

Plans links between rural and urban places to maximise use of public transport

9.4: Public transport amenities

Lobbies for the provision of amenities to make use of public transport more attractive

9.5: Freight Engages with businesses and freight operators to encourage the use of logistics to optimise freight, promote slow-carbon freight and reduces freight miles.

Transport technology: Supports energy-efficient vehicles, biofuels and improved driver behaviour

10.1: Energy efficient vehicles

Comprehensively supports the uptake of energy efficient vehicles, including their economic attractiveness to buyers and manufacturers

10.2: Biofuel Encourages biofuel enterprises and the sustainable provision of biofuel

10.3: Services for alternative vehicles

Supports the provision of services for alternative fuels and vehicles

10.4: Driving and travel behaviour

Actively promotes the awareness of energy efficient driving and travel behaviour


Independent appraisers were then able to assess the extent which ‘Connecting to Success’ supported these key policy areas and low-carbon criteria during several stages of development as a parallel process to the wider sustainability appraisal. This was carried out on the previous Economic Strategy, the policy components stage, the consultation draft and the final strategy.

Figure 6 shows how improvements were made between the draft and the final strategy.

Figure 7 shows the benchmarking of our strategy against other regional strategies.

Our score shows that ‘Connecting to Success’ robustly addresses the low-carbon challenge. We did not score higher because in several areas such as

skills and transport technology we were still at the early stages of developing appropriate actions with partners. This has now been addressed in the Delivery Framework.

Our appraiser believed that we had made enough progress in our strategy, to claim to be the UK’s first low-carbon regional economic strategy. This was endorsed by Government.

Figure 6 This review of the final strategy concludes that AWM can now label the economic strategy low-carbon, subject to the actions included in the delivery framework and delivery itself

Policy Criteria Supporting scores Total score

This review of the �nal strategy concludes that AWM can now label the economic strategylow-carbon, subject to the actions included in the delivery framework and delivery itself

Business Case 1.1 5 1.2 5 1.3 5

2.1 5 2.2 4 2.3 4 2.4 3 2.5 1

3.1 5 3.2 4 3.3 5

4.1 4 4.2 4 4.3 4 4.4 4

5.1 3 5.2 3 5.3 4

6.1 5 6.2 5 6.3 4

7.1 4 7.2 4 7.3 4 7.4 4

8.1 1 8.2 3 8.3 3 8.4 4 8.5 4

9.1 3 9.2 3 9.3 3 9.4 3 9.5 4

10.1 4 10.2 3 10.3 1 10.4 3

Planning and Regulation

Low-carbon Lifestyle

Low-carbon Working

Ef�cient Clusters

Ef�cient Buildings

Ef�cient Business

Education and Skills

Transport Systems

Transport Technology

December 2007Final Strategy

May 2007Draft Strategy

1 2 3 4 5

WeakRED �gures denote improved scores from the May Draft WMES

Moderate Strong


Figure 7 The final economic strategy has been strengthened since the May draft and remains stronger than the economic strategies of all other regions, with low-carbon an integrated theme

The �nal economic strategy has been strengthened since the May draft and remains strongerthan the economic strategies of all other regions, with low-carbon an integrated theme

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Index Score10 15

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2004

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NWDA

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LDA

22

EEDA

17 18

SWRDA

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SEEDA

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33YF

AWMMay Draft

38

AWMFinal

AWM DeliveryFramework

WeakLow-carbon

considered in alimited number of

specific areas

Weak-ModerateLow-carbon addressed

briefly in some areashigh number of weakpolicies over scoring

ModerateLow-carbon addressed

in some areas, letdown by several key

policies

Moderate-StrongLow-carbon robustly

addressed in many areas,let down by some

key policies

StrongLow-carbon key to

RES policies

ONE EMDA


Programmes and Actions

Details

Prioritisation based upon potential carbon savings, business benefits, ease of implementation and support for wider policy

(ranked A – F)

1 Capitalise on opportunities to create economic value from carbon savings from non-energy intensive sectors such as retail, e.g. energy efficiency and waste reduction savings

B

2 Boost low-carbon growth markets and opportunities, particularly those where the region has existing relevant core competencies, through strengthening both demand and supply

A

3 Mitigate the effects on the economy of changing energy patterns, carbon constraints and the switch to a low-carbon economy

A

4 Support energy intensive sectors (e.g. manufacturing) to optimise processes to realise carbon savings alongside increased productivity

B

5 Incorporate low-carbon procurement and energy efficiency throughout the public sector

D

6 Target the barriers preventing the uptake of low-carbon innovations E

7 Strengthen knowledge transfer networks to link low-carbon innovators with investors and businesses and introduce more high-value technologies and services into the market

A

8 Increase awareness amongst jobseekers and the general public of the skills and careers which contribute to the low-carbon economy, such as jobs in resource efficiency

F

Prioritising actions and programmes

Having had the key policy areas assessed to ensure that they were compatible with a low-carbon economic strategy the next step was to prioritise the delivery of our actions and programmes. We reviewed our proposed actions based upon their

potential carbon savings, business benefits, ease of implementation and support for wider social, economic and environmental policy.

Figures 8 and 9 show the analysis of the actions and programmes that would be needed in the new economic strategy delivery framework.

The actions were then further developed with partners and turned into actions and tasks that were published in our delivery framework in May 2008 Advantge West Midlands commitment to deliver its role within the delivery framework is outlined in our Corporate Plan 2008 -11 which was published in June 2008.

Figure 8 Proposed draft low-carbon actions


Programmes and Actions

Details

Prioritisation based upon potential carbon savings, business benefits, ease of implementation and support for wider policy

(ranked A – F)

9 Facilitate flexible working which supports a low-carbon economy and increases participation

B

10 Match skills provision to the demand/anticipated demand for low-carbon products and services

D

11 Promote domestic energy efficiency and thus boost the industries which can supply this, e.g. building consultants, insulation installers, glaziers, manufacturers of related products

C

12 Promote the attractiveness of a low-carbon region for business and residents, and so encourage investment by local businesses and inward investment, particularly in high-skilled jobs

E

13 Promote the economic benefits of resource and energy efficiency within the domestic, public and business sectors and to a wide range of social groups, thus increasing energy cost savings and boosting related sectors, e.g. construction (This recommendation overlaps with recommendations 1, 5 and 11, and does not feature in this part of the analysis)

Not-applicable

14 Support the creation of a low-carbon energy infrastructure (e.g. one with less centralised generation, more decentralised generation)

A

15 Promote a comprehensive high quality integrated transport network and information on low-carbon options and encourage changes in travel behaviour to reduce the constraint on development caused by congestion

C

16 Reduce the carbon intensity of freight F

17 Support the creation of a low-carbon transport infrastructure, e.g. biofuels stations C

18 Support planning for the low-carbon economy, including the extensive housing growth anticipated in the region and changes in the capacity of transport systems

B

19 Create units which are self-sufficient in energy based around concentrations of domestic and business energy consumers, e.g. business parks

D


Eco

nom

ic v

alue

Ease of implementation

Easy Medium/Easy

Medium/High

Medium

Medium/Low

Low

Medium

Low effort,medium return

Medium effort,high return

High effort,high return/enabling

Medium/Difficult

Difficult

High

8

12

3

107

9

1916

5 1 64

11

18

17

2

1514

HighHigh

Carbon SavingOther policy alignment

Medium-high

Medium-high

Medium

Medium

Medium-low

Medium-low

Enabling factor

Low

Low

Figure 9 Analysis of proposed low-carbon economy actions

* Numbering refers to proposed draft actions (See figure 8 for details)


The results in ‘Connecting to Success’

With this robust evidence base and analysis supporting the development of ‘Connecting to Success’ the final strategy incorporated the key prioritised policy criteria and actions within the strategy and delivery framework. This includes the headline indicator for the strategy: Tonnes of CO2 (e) per £10,000 GVA to demonstrate decoupling of economic growth and carbon.

‘Connecting to Success’ West Midlands Economic Strategy - Policy priorities (Dec 2007)

‘Connecting to Success’ West Midlands Economic Strategy - Delivery Framework – Actions (May 2008/09)

‘Connecting to Success’ West Midlands Economic Strategy - Delivery Framework

–Monitoring - (May 2008/09)

Extracts based on relevant outcome, indicators, and tasks. Bold explicit low-carbon economy activity. Italic bold implicit low-carbon actions monitored via underlying principal of valuing the natural environment while delivering a low-carbon economy.

Low Carbon Economy Research Policy Criteria (January 08)

1.1 Developing markets and sectors with the most wealth and employment potential

1.1.1 Facilitate business collaboration to address priority markets and sectors through a clustering programme and related market exploitation projects.

1.1.2 Support manufacturing to become more knowledge intensive by exploiting innovation, technology, design, high-level skills and world-class business techniques

1.1.3 Develop public sector procurement opportunities to encourage innovation and other beneficial change

Overall growth in regional economy, with particular growth in sectors identified as offering the greatest potential.

Automotive Cluster Plan: low emissions vehicles and intelligent transport.

Aerospace Cluster Plan: low emissions engines.

Building Technologies Cluster Plan: products for CO2 emission reduction and climate change mitigation.

Environmental Technology Cluster Plan: renewable energy, waste management, water and waste water treatment, energy management.

Food and Drink Cluster: Low- carbon food options.

Information Communication Technology (ICT) Cluster Plan: strategic ICT technology adoption.

Rail Cluster Plan: infrastructure services, vehicle services, intelligent systems.

Screen Image and Sound Cluster plan: series games (digital training simulations.

Ensure new manufacturing strategy and actions continue to address resource efficiency, lean manufacturing, and innovation and skills required for low-carbon economy.

Ensure collaboration built with Local authorities, the NHS and other major public spending bodies on procurement to initially address climate proofing of houses, low-carbon vehicles/vehicle emissions, and food procurement.

Business Case

Efficient Clusters

Efficient Business

Efficient Buildings




1.2 Competing in the global economy

1.2.1 Help business drive up their international competitiveness through a focused trade development programme and increase inward investment from both existing and new investors by more effective understanding and promotion of the region’s distinctive knowledge assets.

1.2.2 Increase participation in international networks and partnerships in order to exploit the knowledge and relationships gained, particularly high growth markets.

Increase investment by foreign owned companies and more international trade involving a wider range of companies.

Ensure actions continue to attract and export low-carbon technology and skills to region.

Business Case

Low Carbon Lifestyle

1.3 Creating economically sustainable new business

1.3.1 Enhance the support to improve survivability and growth of new businesses, especially high growth companies, university spin-outs and those in key target areas, markets and communities. Proactively promote the benefits and challenges of starting a business, including ensuring there is access to appropriate sources of finance and related ‘investment’ assistance.

1.3.2 Provide bespoke enterprise support, mentoring and training (including those activities set out in 1.3.1) for social enterprise and also for those groups and communities that face barriers to create sustainable business, such as Women, BME groups and young people.

Increased numbers of new business and fewer business failures within the first two years. Particular growth in business in the high-growth sectors and from under-representative groups.

Ensure continued support to social enterprises and growth of start-ups exploiting low-carbon opportunities.

Business case

Low Carbon Working



1.4 - Capitalising on sustainability and low-carbon opportunities

1.4.1: Create effective linkage between low-carbon economic and climate impact opportunities for regional business to realise their wealth-generating potential and manage their risk.

Growth of business in environmental technology and energy sectors. Improved energy efficiency in regional business.

Carbon emissions per £10,000 GVA (Headline Indicator).

Regional Index for Sustainable Economic Welfare – Carbon emissions related to other social, economic and environmental indicators (Headline Indicator).

Total Industry and commercial energy consumption (GWh) per £billion GVA.

Industrial and commercial waste indicator (to be developed).

Help identify low-carbon economic and climate impact opportunities and risks for regional business, and skills needs.

Support the regional climate adaptation partnership and other networks to enable companies to both exploit and adapt to the key future drivers affecting the regional economy (future proofing).

Develop a programme of targeted support for key sectors for growth and diversification into low-carbon and climate adaptation markets, and support at-risk sectors to make the transition required through supply chain, trade associations or industrial estates. For other sectors ensure specialist advice and support on diversification, risk management, and resource efficiency is an integral element of mainstream business and skills support.

Develop a (business futures) programme working with larger regional companies and their supply chains on issues around developing low-carbon products and services, resource efficiency in their operations, and risk management.

Develop a Regional Resource Efficiency Fund to improve the access and take-up of funds which help organisations make long-term efficiency gains to deliver financial and carbon savings.

Business case


Efficient Clusters

Low Carbon Working

Efficient Buildings

Efficient Business




1.5 Investing in business processes and enterprise

1.5.1 Help business transform their performance by ensuring they have simplified access to a streamlined range of high-quality, market facing business support services and appropriate finance.

Increased productivity levels brought about through greater innovation, increased adoption of Information and Communications Technology, more collaborative and entrepreneurial attitudes.

All business to improve their key business proficiencies e.g. strategy formulation and longer-term planning, development of new markets, generating orders, creating new and improving existing products and services, resource efficiency, fulfilling orders, financing growth.

This will include support to develop new markets and products / services, generate new sales, exploit intellectual property, realise benefits from design, implement environmental management systems and improve resource efficiency, participate in supply chain initiatives and other beneficial inter-business collaboration.

Improve use of ICT by businesses, improve public procurement opportunities.

Ensure regional finance initiatives promote access to existing and new schemes for help around energy savings.

Business Case

Efficient Business

Low Carbon working


1.6 Stimulating employer investment in skills and training

1.6.1 Engage business in the design of training and skills development: ensure that training and skills are more relevant to business processes and that the public sector is able to deliver what is required.

1.6.2 Business working in partnership through the fully integrated skills and business brokerage services to develop and make more effective use of the skilled people they need to achieve sustainable improvements in performance.

More employees will add greater value to the employer they work for. More employers will be investing in relevant training for their staff.

Ensure relevant low-carbon skills are delivered as part of mainstream skills actions.



1.7 Investing in high-value skills for the future economy.

1.7.1 Increase the number of higher-skilled people in private sector jobs.

More business employing the higher-skilled people needed to produce higher value goods and services.



1.8 Stimulating innovation, creativity and knowledge generation.

1.8.1 Increase the volume of collaborative business-led research and development, leading to commercial exploitation and improved knowledge exchange between businesses, public sector bodies and universities and other knowledge providers.

1.8.2 Facilitate the creation, development and commercialisation of new product and service concepts by providing access to appropriate sources of finance complemented by high-quality support services.

Increase turnover generate by new products and services, Increased Research and Development collaboration between business, public sector bodies and universities.

Ensure relevant low-carbon innovation is realised as part of mainstream innovation actions and Birmingham Science City energy theme.

Ensure grants for research include addressing life cycle impact of new research products.

Business Case

Efficient Clusters

Efficient Business


2.1 Birmingham Competing as a global city.

2.1.1 In response to the Birmingham 2026 Vision, support the continued growth and promotion of Birmingham as a global city and economic driver for the benefit of the region as a whole. In particular…strive for a city that takes advantage of a low-carbon future and increases its resilience to climate change.

Birmingham to be recognised internationally as a leading centre for investment, financial and business services, and business tourism.

Establish a series of joint priorities between Be Birmingham and AWM in support of Birmingham’s Climate Change strategy and ambition to be a leading low-carbon city, responding to climate change, and with strong natural assets.

Reduction of Carbon as delivered and monitored through the Birmingham Climate Change Plan.

Efficient Buildings



2.2 Improving transport and communication to increase accessibility, efficiency and competitiveness.

2.2.1 Promote the early delivery of economic significant and strategic projects that improve accessibility, business competitiveness and visitor perceptions and encourage residents, visitors and business to adopt sustainable travel practices. This includes the strategically important gateways into the region (e.g. improvements to Birmingham New Street Station and the extension of the runway at Birmingham International Airport) but should also support projects which significantly improve connectivity within the region.

2.2.2 Encourage the adoption of existing and future technology infrastructure in ways that improve the region’s competitiveness.

Driving up the take-up and use of the current ICT infrastructure, including broadband.

Encouraging the use of new technologies that will enable businesses to maximise efficiencies, access new markets and respond to new opportunities.

Looking to pioneer new technological transport solutions that will improve the efficiency of the transport network and help achieve a low-carbon future.

The West Midlands will be a well-connected region. Adoption of transport and ICT technologies will support competitiveness. The focus will be on more efficient use of the existing network to improves competitiveness while reducing the impact of a major source of carbon emissions.

Average vehicle delay (minutes per 10 vehicle miles) for the slowest 10% of journeys on the strategic road network.

Percentage of all trips made by public transport

Total fuel consumption for road transport per head of population (Kg per person).

Information and Communications Technology adoption by business indicator (to be developed).

Ensure low-carbon outcomes delivered via the mainstream regional infrastructure fund, and regional transport priorities and action plan.

Redevelop New Street Station as a gateway to the region and a multi-modal transport hub and catalyst for the regeneration of the south of the city’s core.

Obtain planning permission for an extension to the runway at Birmingham International Airport to support connections to a greater number of long-haul business destinations. Work to ensure the project minimises environmental impact and maximises the social benefits.

Ensure promotion of ICT benefits to business results in overall carbon savings.

Develop market opportunities from the public procurement and purchasing programme and Birmingham Science City to speed up adoption of low vehicle emissions and technology.

Investigate the potential for a low-carbon transport centre to market the region’s strength in providing integrated transport solutions, across the modal spectrum, to the public and private sector both regionally and internationally.


Transport Systems



2.3 Sustainable management and utilisation of our land and property assets.

2.3.1 Maximising opportunities for economic growth by removing barriers that prevent the productive recycling and development of brownfield land (and waste materials associated with such land), and that restrict wider economic growth, broader regeneration and private sector investment – particularly those barriers relating to site assembly and finance.

2.3.2 Safeguard and manage our natural and agricultural assets effectively while continuing to support the innovative use and management of our land in response to the region’s challenges, needs and aspiration.

The portfolio of land and property will be responsive to demand and we will have utilised our brownfield land as an asset in meeting that demand.

Percentage of land used for developments which was previously developed (new indicator being investigated).

Ensure sites are close to public transport and decentralised energy options identified and implemented.

Ensure strategic approach to natural assets includes access by public transport and potential for energy production.


Transport Systems

Efficient Buildings

2.4 Supporting a secure, low-carbon energy infrastructure for the region.

2.4.1 Support the development of secure, low-carbon energy, waste and resource infrastructure that supports efficiency in energy use.

The West Midlands will have a secure supply of energy, with efficient transmission and use within the region resulting in increased competitiveness and reduced climate impact.

Carbon dioxide emissions (kg carbon) per resident.

Industrial and commercial waste indicator (also see priority 1.4).

Percentage of energy used for heating/cooling and electricity generated from new or renewable, low-carbon energy sources (indicator being developed).

Develop appropriate regional leadership and capacity on Energy issues (building on the good practice and lessons learned from EnergyWM) in response to the requirements of the Energy White Paper and regional need.

Disseminate the heat, energy and renewables connection mapping to aid the development of a decentralised energy infrastructure.

Efficient Buildings

Efficient Business

Efficient Clusters



Develop a programme to encourage the uptake of low-carbon forms of energy, reflecting the geographical constraints and opportunities in the region, through a positive approach to planning and procurement.

Create appropriate partnership to build on work of Regional Technical Advisory Body and deliver the regional leadership required on business waste management.

Establish a programme to bring forward waste infrastructure developments, create markets for recyclables and promote business resource efficiency.

2.5 Developing sustainable communities.

2.5.1 Deliver a sustainable balance and pattern of development throughout the West Midlands, including both Urban and Rural Renaissance, in line with the priorities of the RSS to support the growth objective.

Ensure a balance of housing and employment development as well as planning to deliver additional housing to contribute to place-making in both rural and urban communities; creating vibrant communities; improving the environment; and facilitating economic growth (including in the knowledge economy) and regeneration.

Support our market towns, which act as hubs of enterprise, skills and service delivery in ways that support the delivery of wider Rural Renaissance and tackle dispersed disadvantage in rural communities.

The West Midlands will consist of a range of urban and rural communities that will retain and attract residents, workers, businesses and investors to the region.

Implement the Review of Sub-National Regeneration and Economic Development (SNR) by alignment of the WMES & WMRSS and development of a single strategy for the region via a single and comprehensive evidence base.

Ensure the continued implementation of the principles of urban renaissance and rural renaissance to deliver a sustainable balance of development for the benefit of the region and its communities as a whole.

Disseminate best practice from the evaluation of the Market Towns programme, and develop activity to support access to services, enterprise development and low-carbon communities.

Implement design standards and a regional sustainability planning checklist that encourages the creation of quality places through good design of the physical and built environment, including for all regionally funded public buildings.


Transport Systems

Efficient Buildings


Low Carbon Living


Develop transport systems that will connect our people with opportunity and services, as well as our physical places.

2.5.2 Improving the quality of our region as a place where people and businesses choose to connect by implementing support measures that create better quality places through improved planning, design and building approaches.

Develop a programme of awareness raising, education and training to support the raising of building and environmental quality standards in the design of buildings and of space and settings. This to include an online resource of design good practice case studies for the West Midlands.

Improve the skills and capacity of the region’s regeneration workforce to support sustainable regeneration through training and learning programmes and the promotion of good practice.

2.6 Regenerating our most deprived communities.

2.6.1 Encourage the sustainable regeneration of our most disadvantaged communities.

Significantly raise overall enterprise levels, including social enterprise, especially where current levels of enterprise and investment are low.

Develop a coherent approach to linking opportunities created by physical regeneration to deprived communities.

Increase the development of, and access to, community assets that enable community capacity building, access to opportunity, and greater community ownership for the benefit of local people.

2.6.2 Ensure that the physical environment of our region adds value to our population’s quality of life and wellbeing via the forward planning of activity.

Our deprived communities will have benefited from a holistic approach to regeneration. The approach will have improved the physical infrastructure of our deprived areas and will have improved quality of life and access to services and opportunities.

Ensure low-carbon business opportunities also identify opportunities for social enterprise and inclusion.

Deliver Design Review Panels and Design Enabling region-wide in order to help raise the design, quality and environmental performance of the built environment.

Ensure that the implementation of the regional sustainability planning checklist recognises the need to future proof throughout the design process.

Ensure that masterplanning, innovative design and good practice on consultation are founding principles for the design of projects to meet community and wider regeneration needs.

Business Case


Efficient Buildings



2.7 Maximising our cultural offer and natural assets.

2.7.1 Enhance the region’s quality of life offer through utilising and improving our cultural and natural assets to strengthen the West Midlands appeal as a place to live, work, visit and invest.

• Develop a cultural, sporting and tourism (both business and leisure) offer that brings people to the region and encourages people to stay.

• Utilise beacon tourism assets to significantly enhance and add value to the region’s visitor economy.

• Maximise the opportunities generated by the London 2012 Olympic Games and associated Cultural Olympiad.

The cultural offer and natural assets of the West Midlands will retain and attract businesses and people to the region.

Natural environment indicator (under development)

Ensure low-carbon outcomes achieved through mainstream tourism and culture actions.

Ensure that the full economic and social value is obtained from the sustainable management and safeguarding of the region’s natural and agricultural assets.

Low Carbon Living

Efficient Businesses

3.1 Changing attitudes to sustainability and consumption

3.1.1 Provide better information, advice and guidance to encourage people to adopt new and creative practices in their work environment. Achieve this by exploiting improvements in technology and changes in working culture, and support procurement policies which support and encourage more efficient use of energy, water, waste and other resources, as well as promoting more healthy lifestyles.

People and employers are making daily positive choices that result in lasting economic, social and environmental benefits for themselves and the region.

Percentage of people usually working from home or travelling to work using sustainable means of transport.

Percentage of household waste which is recycled or composted.

Develop and deliver a public procurement programme, including a focus on food miles, waste and sustainable practices, that maximises the opportunity to stimulate innovation, help inclusion, diversify and attract environmental-related business, in order to create long-term benefits from low-carbon goods and services.

Low Carbon Living

Low Carbon Working


Efficient Buildings

Efficient Business

Transport Systems



This can be done through: Science City and other public sector demonstrator projects and procurement driving demand on housing, etc.

3.1.2 Increase public demand for low-carbon options in housing, transport and consumer products, by raising public awareness and working with business and public partners to provide better information regarding the availability and benefits of such options and products. Encourage lifestyle changes which shift the region towards more sustainable patterns of energy consumption.

Support a regional campaign with partners to realise improved productivity and inclusion through smarter working practices. Develop specific programmes with partners to help realise carbon savings and productivity from flexible and remote working.

Work with partners to improve knowledge about what the region’s residents and workplaces are doing to improve their sustainable performance, and use this to stimulate further activity. Promote the West Midlands as a low-carbon region to key stakeholders.

3.2 Raising aspirations of leaders and managers

3.2.1 Businesses and business support networks such as Sector Skills Councils working in partnership to stimulate employer investment in leadership and management skills.

An increase in business performance as a result of more leaders and managers gaining the inspirational skills they need to make the most of opportunities in the global market and get the best results from their people.

Build the capacity of the brokers and training providers to enable them to offer a flexible, truly demand led and responsive service that is business focused and considers issues such as sustainability and strategic use of IT.


3.3 Driving up ambition and aspiration

3.3.1 Establish a clearer understanding of the barriers that prevent adults and young people in and out of work from seeking employment, becoming more enterprising and acquiring the skills they need for employment and continuous professional development.

People and employers in the region are interested in and committed to learning and progression. There will be more people in higher value added jobs (in particular an increase from under-represented groups), a reduction in worklessness /economic inactivity, and more young people will leave school and enter a job with training or further education, having been inspired to reach their full potential.



3.3.2 Employers giving more information and intelligence about current and future employment opportunities, about the skills and aptitudes they most value and about the range of choices available to young people and adults already in work.


3.4 Skills for employment and enterprise.

3.4.1 Inform adults and young people about the opportunities for work and progression.

3.4.2 Enhance the vocational training and development opportunities for all adults and young people.

There is an appropriate mix of skills available for the employment opportunities in the region and to allow for future developments.



3.5 Defining employability

3.5.1 Employers and key agencies working together to gain understanding and intelligence about current and future skills needs. Employers to be involved in the design of qualifications and placement opportunities.

3.5.2 Work with employers in the key markets to explore and exploit the opportunities and challenges of an ageing workforce, increased patterns of migration, emerging young entrants to the labour market and an increasingly ethnically diverse employee base. Work with employers to promote healthy workplaces and champion equality and diversity in the workplace.

A culture of continuous professional development will be established in businesses across the region that will drive up business competitiveness and productivity.




4.1 Improving the evidence base for policy

4.1.1 Develop the evidence base needed to support regional strategies and delivery mechanisms.

4.1.2 Building understanding of what does and doesn’t work by sharing experience and best practice.

Policy and strategy development at regional, sub-regional and local levels is evidence based, informed by a common understanding of the current situation in the region and experience of ‘what does and doesn’t work’.

Index of Sustainable Economic Wellbeing (ISEW) for the West Midlands updated on an annual basis.

Developing a programme of research to extend and deepen the WMES evidence base. Progress report on initial workstreams at the Agency’s Annual Conference. This includes ongoing low-carbon evidence work.

Planning and regulation

Efficient Clusters

4.2 Engaging with UK, European and international decision-makers

4.2.1 Develop a network of strategic contacts, including the Regional Minister, capable of engaging with and influencing national government, the EU, other key strategic bodies and the broader business community.

4.2.2 Use the networks to the benefit of the region by identifying areas for potential cooperation with neighbouring regions, or regions with shared interests, on issues of importance to the development of the West Midlands.

The priorities for the region are effectively communicated to decision-makers and influence the decisions they take to the benefit of the region.

Ensure low-carbon economy activity is mainstreamed through communications actions.

Implement the revised West Midlands European Strategy through the new European Strategy Board. Includes energy and climate change theme.

Joint working to influence local, regional national and international policy and legislation to benefit the region.


Low Carbon Living

Efficient Clusters

4.3 Position the West Midlands as a global centre where people and businesses choose to connect.

4.3.1 Develop and implement a coordinated regional marketing and events strategy with support from key partners, which exploits all the region’s branded assets and the developing West Midlands brand as appropriate.

4.3.2 Position Birmingham as a global city at the heart of the region, for the benefit of every part of the region

The West Midlands is widely perceived as a desirable place to invest, work, learn, visit and live, compared to relevant comparator regions.

Through implementation of the revised West Midland Visitor Economy Strategy, develop a federation of destination management partnerships under the leadership of Tourism West Midlands.

Ensure includes managing carbon impacts.

Low Carbon Living

Efficient Business


Lessons to learn

Definition

How you define the low- carbon economy is important, otherwise it becomes a meaningless phrase and does not capture the full business benefits. We have developed a definition that includes both efficiency of resource use and developing new products and services across the whole of economic activity and not just areas such as environmental technology.

We have also resisted terms such as ‘zero carbon’ as although useful for publicity, they are open to interpretation, and not useful in terms of setting out clear steps that make business sense, such as improved efficiency and productivity, rather than over reliance on ‘offsetting’.

It is also important to ensure that the definition of a low-carbon economy remains relevant for your region or area. In the West Midlands the physical and economic geography directly impact the scale of our low-carbon challenge. With no coast line and limited potential for on-shore wind energy our efforts to decarbonise energy use must focus on decentralised energy in the form of combined heat and power and biomass. Similarly, with our large concentration of manufacturing industries the region is well placed to develop and export low-carbon technologies to be deployed elsewhere in the UK. As such, whilst some industries diversify into this

market and achieve greater efficiency of production per unit, their overall emissions may increase while delivering the carbon benefits outside the region.

Low-carbon is not the same as climate change or sustainable development

The Low-Carbon economy has a particular focus; it does not cover elements of climate change, such as adaptation to the changing weather, or the wider elements of social inclusion, health, the natural environment, longer-term issues such as an ageing population, and international issues covered by sustainable development. It is possible to have a successful low-carbon economy that is ill prepared for the changing weather, and is creating new businesses that will not address social inclusion, or improve the natural environment. For this reason we ran two processes. One was clearly focused on achieving a low-carbon economy and helped drive the changes we required in the strategy development. The other was a sustainability appraisal which covered the wider issues including adaptation, and longer-term issues, to act as an overall check and balance on the whole strategy, including the low-carbon element. This process was also repeated when we prioritised the low-carbon economy actions. This was also reflected in having the Regional Index for Sustainable Economic Welfare as a headline indicator reflecting broader

economic, social and environmental progress.

Identify the scale of the challenge

Identifying the scale of the challenge in both carbon and economic terms was very useful as it helped to develop an understanding of what needed to be done to tackle both challenges together. This process helped to develop a better understanding of ‘decoupling productivity and economic growth’ which was reflected in our headline indicator in ‘Connecting to Success’ of CO2 per £10,000 of Gross Value Added.

Focus on what can be influenced

There is a tendency to put the ‘right words’ into a policy or strategy to respond to stakeholders, when the strategy is unable to implement or influence these areas. Wherever possible we have only put policies in place that the strategy and our partners can actually influence or deliver. In the long-term this is beneficial as it helps to focus action on areas that partners can make a difference, while flagging up issues for others, such as national government to deliver. As a result we have a range of low-carbon economy actions that are either helping implement national policy and activities in a more focused, quicker, or enhanced way, or specific regional actions to address specific regional issues.

We are proud that ‘Connecting to Success’ has been recognised as the UK’s first low-carbon economic strategy but we acknowledge that it is only a first step towards achieving a low-carbon future. We want others to learn from our example and produce relevant low-carbon economic strategies for their areas of influence.


Prioritise actions and sell the business case

The prioritisation exercise we went through based on business benefit, carbon saving, ease of implementation, and alignment with other economic, social and environmental policy was useful as it helped to develop a set of interventions that deliver the greatest and widest benefit. These prioritised actions remain valid if national policy changes. For example the changes in the Government carbon target mean that the speed of some of the interventions will change, but the wider benefits, and justification will remain.

The prioritisation based on the business case has also helped in ‘selling’ the agenda as it helps move the debate away from climate change and towards the business case based on reducing costs and improving productivity. We have found it is important that this message comes from the business members of our Board and companies in the region, rather than just the public sector.

Focus on 2020

The 2050 target for carbon reduction is too distant, therefore the focus needs to be on progress by 2020. We have found this is a more useful and meaningful target to help policy makers and modelling and monitoring. It is important to focus on reducing emissions immediately so that longer-term targets can be supported.

First is not necessarily best

Although we have produced the UK’s first low-carbon regional economic strategy, and this is a key milestone, we recognise this is not the end of the story. We hope by sharing our lessons to date, that subsequent regional strategies developed by others will move this agenda on. We look forward to learning from others improvements in this area.

The learning outcomes from this process are being shared within the region, nationally, and internationally to help those seeking to develop their own economic strategies to develop the appropriate responses for their areas of influence to help realise the transition to a low-carbon economy.

This work is also informing the further development and delivery of the actions within ‘Connecting to Success’ and our Corporate Plan.

For example our corporate plan has set a goal of creating or safeguarding 50,000 jobs while reducing 500,000 tonnes of CO2 (e) per annum by 2010/11.

Within the region we are working with a range of partners to ensure this work is built upon by the review of the Regional Spatial Strategy, the Sub-National Review in developing the Single Integrated Regional Strategy, and local authorities and sub-regions seeking to develop their own low-carbon economy strategies and actions.

Next Steps


AcknowledgementsKey References

Pioneering the UK’s first low-carbon Regional Economic Strategy (RES), April 2007, for AWM by Arthur D Little

The West Midlands new consultation draft economic strategy – alignment with low-carbon economy, May 2007, for AWM by Arthur D Little

Low Carbon Benchmarking of Regional Economic Strategies, May 2007, an independent analysis by Arthur D Little

West Midlands Economic Strategy, Low Carbon Evidence Base, October 2007, for AWM by URS

Low Carbon economy alignment of the new West Midlands Economic Strategy –’Connecting to Success’ – assessment and national benchmarking, January 2008, for AWM by Arthur D Little

‘Connecting to Success’, West Midlands Economic Strategy, December 2007, Advantage West Midlands and West Midlands Regional Assembly

Connection to Success, West Midlands Economic Strategy, Delivery Framework, May 2008/09, Advantage West Midlands and West Midlands Regional Assembly

Corporate Plan 2008-11, Advantage West Midlands, June 2008

The Regional Carbon Gap, October 2008, for AWM by West Midlands Regional Observatory, October 2008.

Developing the UK’s first low-carbon regional economic strategy has taken the teamwork and effort of a great many people. This has included the external sounding board of Richard Davies (Marches Energy Agency), Rebecca Gill (Government Office West Midlands), Fran Gilbert, (West Midlands Regional Assembly), Jackie Lawrence, (Warwickshire County Council), Sandy Taylor, (Birmingham City Council), Peter Braithwaite, (Arup and Midlands Environmental Business Club), and all the stakeholders who responded during the consultation process.

The internal team included Board members David Brown and Sue Prince, Mark Pearce (Corporate Director of Economic Regeneration) Dr Simon Slater (Head of Sustainable Development) Philip Amison (Director of Strategy) Ralph Hepworth (Environmental Technology Cluster Manager) and Thomas Anderson (Sustainable Futures Researcher).

Technical support was provided by Forum for the Future, Arthur D Little, and URS.


Contact

For more information about ‘Connecting to Success’ and how Advantage West Midlands is supporting the regional transition to a low-carbon economy contact:

Dr Simon Slater Head of Sustainable Development Advantage West Midlands 3 Priestly Wharf Holt Street Aston Science Park Birmingham B7 4BN United Kingdom

Telephone: +44 (0)121 380 3500 Email: [email protected]

www.advantagewm.co.uk

For more information about the low-carbon evidence base contact:

John Walker Senior Research Analyst West Midlands Regional Observatory

Telephone: +44 (0)121 202 35 43 Email: [email protected]

www.wmro.org

Text-only versions of this brochure can be provided on request in large print, Braille and other languages.

Please contact the Communications Team on 0121 380 3500.

3 Priestley Wharf • Holt Street • Aston Science Park • Birmingham B7 4BN

Tel: +44(0)121 380 3500 • Fax: +44(0)121 380 3501 • www.advantagewm.co.uk

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