Environmental issues are never long out of the headlines and with parties on all sides competing for the green vote, Gordon Brown has announced a raft of measures as part of a “climate action plan” that focuses on issues including carbon emissions, energy and planning.

Such sweeping proposals will undoubtedly have an impact on UK industry for years to come.

This week’s Knowledge Shop takes a look at the Prime Minister’s speech and forthcoming legislation.

But what will “hard choices and tough decisions” really mean for business and can the prospect of a new low-carbon economy really create thousands of jobs?

The Mission

The environment is certainly a hot topic at the moment and with an ever-inceasing number of pressure groups, reports and studies, it does not look like settling down anytime soon.

Its continued place in the political spotlight was assured on Monday, as the Prime Minister gave his first major speech on the environment at a press conference hosted by WWF at the Foreign Press Association.

The Prime Minister announced:

“Our mission is, in truth, historic and world changing - to build, over the next fifty years and beyond, a global low carbon economy. And it is not overdramatic to say that the character and course of the coming century will be set by how we measure up to this challenge.”

”The role of government from now on is transformed.  Once government objectives were economic growth and social cohesion. Now they are prosperity, fairness and environmental care.”

In a wide-ranging speech, the Prime Minister said climate change had been the product of many generations, but “overcoming it must be the great project of this generation”.

The Prime Minister outlined proposals from three Government Bills which, it is claimed, will help the UK reduce its carbon emissions and move to greener energy sources: The Climate Change Bill, The Energy Bill and The Planning Bill.

Climate Change

On climate change, the Government has stated its commitment to a 60 percent reduction in carbon emissions by 2050 and says that it is consulting on the possibility of raising this to 80 percent.

This follows a chorus of voices from groups such as Greenpeace, Oxfam and Friends of the Earth that argued the initial target of 60% was much too low and that the Government should aim higher.

The IPPR, Oxfam, WWF and other bodies all gave their reaction to Mr Brown’s speech.

Pressure groups have welcomed talk of an 80% target but are now asking the Government to back it up with actionable policies.

Responding to the Prime Minister’s speech, Tony Juniper from Friends of the Earth said: “After a summer of lobbying, wriggling and confusion, the Government’s apparent change of heart on renewable power is fantastic news, but will only be credible if new policies emerge to actually meet targets.”

Greenpeace commented: “Brown now appears to be serious about meeting the binding EU renewables targets. But more debate won’t get us there. Action is what counts, not words. No investment will take place off the back of a speech alone. We can meet ambitious renewable energy targets if Britain deploys all the industrial innovation and determination for which our country was once famous.”

Five year carbon budgets will be set on the advice of the independent Climate Change Committee in an effort to “provide certainty for investors, businesses and consumers.”

The Prime Minister also said that “every new policy will be examined for its impact on carbon emissions.”
 
Carbon Trading

The Prime Minister talked about a Post-2012 framework to tackle climate change.

The European Unions’s Emmissions Trading Scheme and the Clean Development Mechanism, which the Prime Minister said can provide the basis for a “global carbon market”, is already worth more than 20 billion Euros per annum.

Defra argues that it could be worth twenty times that by 2030 but also makes the case that to deliver investment at the scale needed, emission trading and crediting mechanisms will need to be strengthened and supplemented with new instruments at UN level.

The Prime Minister has said that he wants Britain to work with the US, Japan, other G8 and European donors to create a new “multilateral funding framework” through which Britian can channel assistance to help the developing world shift to low carbon growth, to reduce emissions from deforestation and to adapt to climate change.

Renewable Energy

The UK will also commit to increasing its use of renewable energy sources to meet its share of a 20 percent EU target by 2020.

Number Ten has said that clearly there would need to be a European process for deciding what the Prime Minister described as “our fair share” of the 20% European target.

Exactly how much each country must contribute is to be determined in January .

However, the Governments renewable energy strategy will not be published until spring 2009.

The Government has signalled that it will launch a consultation process next year. Proposals for significant expansion of renewable energy sources such as wind farms are bound to run into opposition from local communities and environment groups.

The construction of relatively small wind farms is often met with resistance from a variety of interest groups. In order to reach whatever target comes out of negotiations in January, the Government will be faced with the difficult prospect of balancing competing environmental lobbies as well as overcoming the perrennial problem of NIMBY.

Best Laid Plans

Looking at the Prime Ministers speech, it is clear that planning regulations will be central to enabling the Government to deliver on its green policies.

The Planning Bill includes new measures to speed up the planning system for major infrastructure projects.

The Government has said the Bill will enable it to speed up the building of much-needed housing and major infrastructure projects, such as roads, airports and power stations.

However, critics are concerned that the Bill will allow developers to push through major projects which could have a negative impact on communities, the countryside and the wider environment.

Environmental campaigners argue that the Government of being disingenuous to suggest that tackling climate change is the driving forced behind the bill and have dubbed it a “developers’ charter”.

In spite of the green language, the Government’s proposals are set for a distinctly uneasy ride through Parliament.

Business & Technology

The Government has said it will step up the support that it gives to British companies in order to develop and supply the goods and services as part of the green “technological revolution”.

The Prime Minister’s speech outlined some of the investment so far. The £1 billion public/private Energy Technologies Institute, created last year, will focus on R&D in offshore wind, wave and tidal stream energy. The £370 million domestic environmental transformation fund will “help bring these technologies to the marketplace, creating businesses and jobs.”

Mr Brown also stated that “to ensure that we have the skills and expertise for the environmental industries of the future, we will work with employers to create apprenticeships and ‘Train to Gain’ places in the environmental industries”.

John Hutton, Secretary of State for Business, Enterprise and Regulatory Reform, reinforced the Government’s commitment to business on Thursday, announcing that a renewed manufacturing strategy will look at how the Government can help British industry take advantage of opportunities presented by tackling climate change.

He said: “”There are many new and exciting technologies available for the UK to take advantage of, including on and offshore wind power, LED lighting, fuel-cell powered vehicles, carbon capture and storage, biomass, microgeneration, wave and tidal technology.

“In the UK, thousands of new green collar jobs could be created by the potential in wind power alone - from around 8,000 now to more than 27,000 in 2020.”

“Our refreshed strategy will ensure Government is doing all it can to assist UK manufacturing compete globally and take advantage of exciting new markets.”

The Minister also unveiled plans for a new Ministerial Advisory Group on Manufacturing, which will include the CBI, TUC and EEF will replace the Manufacturing Forum

Looking Ahead

Next month environment ministers from around the world will gather in Bali, Indonesia for the UN Climate Change Conference with the aim of launching negotiations leading to a comprehensive global agreement on tackling climate change. The 2009 UN Climate Change Summit will be held in Denmark.

January 2008 will see negotiations on Britain’s renewable energy commitments in Europe.

Early next year the Government plans to convene a summit with the Regional Development Agencies, NGOs and a range of public  and private sector bodies to explore the economic opportunities arising from a “low carbon future”.

2008 will certainly be a busy year for environmental campaigners, businessmen and politicians alike.

As the Prime Minister said: “All of us - government, business, civil society and individuals - have a part to play in this momentous task.”