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Accelerating the Green Economy

Climate Change Commission for Wales27th June 2012

Peter YoungChairman, Aldersgate Group

Strategy Director, SKM Enviros

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Contents

1. Who are Aldersgate Group?

2. Overview of Six Workstreams and key issues of the moment

3. Ideas for Wales

Peter Young hats: AG, but also GEC, EMTF, SRSP/Defra advisor, 2020 Group, SKM Enviros

....and Welsh resident for 35 years!

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Aldersgate Group and Green Economy

A member organisation, founded 6 years ago

We are a broad coalition of business, politics and society

We believe that high environmental standards are vital to future economic growth and competitiveness

Operate as a think tank, forum and lobbying group founded on consensus and cross-economy, cross party support

Very influential in Westminster, now reaching out to Brussels, Holyrood....

Seek to have maximum influence, not size

Green growth and gaining competitive advantage from transitioning to a sustainable economy is our overall aim

Progress this through 6 workstreams

Reports free to all – at www.aldersgategroup.org.uk

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Aldersgate Group members

Other members include peers and MPs from all major parties

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Resource Revolution

Scope of the work

Rapidly growing demand for increasingly scarce resources necessitates the adoption of new business models and a range of well-designed environmental measures to smooth the path towards a more sustainable economy – the ‘green foundations’ needed to underpin future growth and jobs

“Pricing the Priceless: the business case for action on biodiversity”, makes the case that the protection of biodiversity and ecosystem services, while complex to value accurately, is nonetheless essential for future wellbeing and economic development.

Key issues: ‘Resilience in the Round’ next steps

Markets from valuing nature – EMTF

Natural Capital Committee and Targets

Workstream lead: Sir John Harman, former Chair of the Environment Agency

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Scope of the work

A strong regulatory and fiscal framework that addresses market failures (and works strategically to build on domestic UK strengths) will drive resource efficiency and productivity across the whole economy. It will also help develop world leading environmental industries with high export and job creation potential.

“Greening the Economy: a strategy for growth, jobs and success”, makes the case for a comprehensive green growth strategy that goes beyond reducing the budget deficit to drive a dynamic economic recovery.

Key issues: Sustainable procurement

Innovation policy development

Supply chains and circular economy

Low carbon buildings and energy efficiency

New Economy

Workstream lead: Dr Jack Frost, Director, Johnson Matthey

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Financing the Future

Scope of the work

Targeted action to address financial barriers, such as reducing policy risk and mobilising finance at scale from institutional investors, is required to enable sufficient private sector investment to build a greener and more competitive economy.

“Financing the Future: a strategy to deliver carbon targets”, examines the major financing challenge that carbon targets represent for the UK, which must largely be met by the private sector during a time of economic restraint. The report examines how the Government can remove barriers to financing low carbon projects.

Key issues: Making the GIB a bank that can borrow

Treasury; Revenue neutral green taxation and fiscal measures

Workstream lead: Emma Howard Boyd, Director, Jupiter Asset Management

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Environmental SkillsScope of the work

The development of new skills in rapidly growing sectors and sustainable literacy skills across the economy is essential to ensure the UK is able to make the transition to a low carbon, resource efficient economy at the pace required.

“Mind the Gap: skills for the transition to a low carbon economy”, addresses the under-explored policy area of jobs and skills. The UK is committed to a transition to a low carbon economy, but lacks the necessary skills to make the transition at the pace required. This report makes recommendations for government policy makers to address this deficiency.

Key issues: Grasping GEC opportunity to lead debate

Articulating and communicating future needs and opportunities for workers

Workstream lead: John Edmonds, former Secretary General, GMB

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Best value regulation

Scope of the work

Ensuring that regulation creates long-term value in the economy and increases competitiveness through early innovation, rather than being designed around the short-term needs of existing vested interests.

“Dealing the Deficits: best value regulation to reduce our environmental and financial debts”, draws the parallel between the UK’s record budget deficit and its environmental deficit. It makes recommendations for regulatory reform, which should be primarily concerned with maximising growth and innovation.

Key issues: Replace red tape challenge with ‘green tape challenge’ – strengthen

outcomes

Recognition of how the best designed regulation stimulates innovation and growth

Workstream lead: Terry A’Hearn, Global Director, WSP Environment & Energy

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Transparency and reporting

Scope of the work

Enabling greater transparency, accountability and comparability of the reporting of material environmental risks and opportunities both at company level and across the economy.

The AG commissioned a report by adelphi to provide independent analysis which was cited in last week’s announcement by Nick Clegg to implement mandatory carbon reporting. It found that for all large companies, Defra overestimated the total costs by up to £4,600m and underestimated the benefits by up to £960m.

Key issues: Leveraging value from carbon reporting

Consumption based reporting - reverse off-shoring manufacturing?

Workstream lead: Chris Tuppen, Director, Aldersgate Group

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Ideas for Wales

Analyse linear versus circular economy characters of sectors and supply chains, which ones are easiest to change?

Innovation in agriculture, especially livestock

Community woodlands and biomass CHP

Biodiversity Offsets eg soil carbon - Peatlands, Saltmarsh etc

Climate change adaptation products and services

Post Rio+20?

Low carbon buildings and energy efficiency

Rural and urban smart city infrastructure

Underpinned by:

Existing and improved metrics, including cross border flows

Wales as an evidence hub for UK, EU, global bodies

Wales own future scenarios to stimulate vision and innovation

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Ideas for Wales

A last thought: the opportunity of reversing Wales’ consumption footprint - for: Innovation,

(Re-)Manufacturing,

Jobs,

Materials,

Carbon,

Identity, and

Growth

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PJYoung@globalskm.com

www.aldersgategroup.org.uk

Thank You