For a government desperate to secure economic growth and drag the UK out of recession, the lack of consistent joined-up support for renewable technologies is counterproductive and hugely damaging. The green economy was one of the rare growth areas in 2011, expanding by 4.7% to now comprise 8% of UK GDP, with the number of anaerobic digestion (AD) plants growing by 28% in 2012, yet the drive to support this growth in some parts of government seems conflicted by others.
Chancellor George Osborne declared in October 2011 that We’re not going to save the planet by putting our country out of business, and his refusal to acknowledge that fighting climate change and economic growth go hand-in-hand is a clear tension in the Coalition. This creates a level of political uncertainty which is curtailing investment in renewable energy infrastructure in Britain.
The much-publicised wrangling over the Energy Bill is just one such example. While the recent publication of the Bill is welcome, as is the agreement on Treasury spending on renewables until 2020, the delaying of a decision on a decarbonisation target until 2016 misses an opportunity to send a clear early signal to investors.
However, the greatest damage may already have been done by the months of uncertainty leading up to the Bills publication. Bloomberg have recently calculated that from a peak of 6.6bn in 2009, investment in UK renewable generation fell to 4.8bn in 2010, 3.1bn in 2011, with the 2012 figure likely to be even lower.
Waste Collection
Another pertinent example of mixed messages in government policy has been seen in the Department for Communities and Local Governments (DCLGs) 250m Weekly Collection Support Scheme (WCSS) to support councils to introduce weekly waste collections. Two thirds of the potential of the AD sector to deliver 2-3bn of green gas a year, equivalent to 10% of the UKs domestic gas demand, and support 35,000 jobs is based on treating food waste, which, given Defras recognition in their 2011 Waste Review that AD offered the greatest environmental benefit of any food waste treatment, should have meant separate food waste collections were explicitly supported.
Instead, Communities Secretary Eric Pickles threw his weight and a massive budget that surely shouldnt have been supported in these times of austerity – behind supporting weekly residual collections; while food waste collections have been supported by the WCSS they were bottom of the bidding hierarchy.
Focus
Instead of giving their full-throated support to green growth, the Treasurys energy focus is on shale gas, with new tax breaks announced in the Autumn Statement. There is no agreement that shale can even deliver more energy than biogas, an established, ultra low carbon renewable gas, while the environmental implications of fracking are unclear. The Committee on Climate Change has made it absolutely clear what the impact of this will be on both our climate change targets and consumer bills.
Government cannot afford to ignore the central role that green growth and jobs must play in rebuilding the economy and the obvious potential the UK has to be a leader in the field. This potential is in danger of being squandered however if the government continues to create a policy environment where business cannot feel confident in developing the new infrastructure we need.
The main panel debate at ADBAs National Conference 2012 on December 12 considers how we make the most of our resources in a deficit constrained economy.
The panel will discuss the importance of clear and consistent policies and incentives from the government in realising the benefits AD can bring to the UK economy, and how the AD market will develop in the context of governments economic priorities. Chaired by the BBCs Julian OHalloran, panellists include Clydesdale Bank, NFU, Mercedes-Benz UK, NAWDO and the Scottish and Welsh Governments.
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