Speaking at a Low Carbon Industrial Summit in London today (March 6), Lord Mandelson outlined how he believed the UK could develop its economy successfully as it looked to reduce carbon emissions, promote resource efficiency and increase its use of renewable energy.
This transition to low carbon is an environmental or economic imperative. It is also inevitable. There is no high carbon future
Lord Mandelson
He told business leaders at the event: “We are on the edge of a low carbon industrial revolution. Everything is going to change. How you manufacture and the services you provide. The skills your employees and members will need. How we all save money in both the private and public sector through energy efficiency.”
The strategy will aim to create change in four key areas: energy efficiency to save businesses, consumers and the public sector money; putting in place the energy infrastructure to deliver a low-carbon economy; developing the UK's low carbon business sector; and, making the UK a global leader in low-carbon vehicles.
It has been introduced in the wake of last year's Climate Change Act, which included measures to reduce single-use carrier bag use as part of its plan to cut the UK's carbon emissions by at least 26% by 2020 and 80% by 2050 (see letsrecycle.com story).
The department for business, enterprise and regulatory reform (BERR) has launched an interative website today to accompany the vision, in a bid to encourage “direct and ongoing” engagement with business on the strategy.
A spokeswoman for BERR told letsrecycle.com that the initial aim was “engaging with businesses to say 'how do we work together?'.
Explaining that it was “premature” to gauge just how exactly the strategy would impact on the waste and recycling sector, she did add: “It's important for the recycling sector just as much as for any others, we need to be more efficient with what we do”.
Transition
Outlining just why the strategy was necessary, Lord Mandelson said: “This transition to low carbon is an environmental or economic imperative. It is also inevitable. There is no high carbon future. We've regulated in the UK to make it inevitable through carbon targets, vehicle emissions targets and renewables targets.”
It's important for the recycling sector just as much as for any others, we need to be more efficient with what we do
BERR spokeswoman
“What's not inevitable is that the UK will capture the full industrial and business benefits of this shift – here, and around the world. That will have to be something we pursue as policy. That's what today is about. That's why the idea of a low carbon industrial strategy was at the heart of our manufacturing strategy when we launched it last year,” he added.
To accompany the launch of the strategy, new independent reseach was published today which showed that the UK was already the 6th largest low carbon and environmental goods and services economy and the sector was worth £107 billion to the UK in 2007/08.
And, the study claimed that figure could grow by another £45 billion over the next decade, while the 880,000 jobs in the sector could be added to by another 400,000 new positions by 2019.
CBI
Reaction to the strategy came from Richard Lambert, director-general of the Confederation of British Industry (CBI), who said: “Now that the legislative framework for climate change policy is in place, the time has come for action.
“The government's job is to provide industry with the right set of regulations and incentives, and to create the investment climate that will encourage the enormous investment of private capital required to build a low carbon economy. This means consistency, clarity and certainty in the implementation of policy.
“With stretching but credible targets to aim at, business will then create the products and services necessary for the new economy. Together with government, it will empower consumers to make the choices that will deliver the green agenda,” he added.
Liberal Democrats
However, the plans have come under-fire from the Liberal Democrats, who attacked the level of the government's commitment to supporting the low carbon economy.
The party's shadow energy and climate change secretary, Simon Hughes, said: ” “The Government is spending £20bn on its fiscal stimulus but less than 3% of this is going on greening the economy, a much smaller percentage than France, Germany or even China.
“Instead of setting the international agenda, he is trailing in its wake. Gordon Brown does not understand the green agenda,” he added.
EIC
And, Adrian Wilkes, chief executive of the Environmental Industries Commission (EIC), also called for the government to do more to ensure the move to a low-carbon economy was a success.
“Securing the huge economic benefits of a low carbon economy will not be achieved through “vision” alone. We urgently need the sorts of industry support policies – such as long-term regulatory targets and coordinated policies on R&D funding, skills and training – that will turn the “vision” into a reality.
“Following today's announcement, April's Budget is the first opportunity the Government has to act. EIC is calling for the Budget to include an ambitious green economic stimulus with, at the very least, a £10 billion “Green Jobs Investment Fund” that can start turning the Government's “vision” into reality,” he added.
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