Slashing regulations could put environment at risk

Government plans to slash environmental regulations as part of its on-going red tape challenge could put the environment and peoples health at risk, the Environmental Audit Committee has warned.

And, the Committee said that the Government must set targets to encourage businesses to reduce their waste and emissions. It said the existing voluntary approach will not work as it does not offer businesses the policy certainty they require.

The warnings were highlighted in a 194-page report by the Committee entitled A Green Economy which analyses the potential impact of the Governments approach to developing a green economy which was outlined in its report Enabling the Transition to a Green Economy.

The Government has pledged to reduce over 10,000 pages of regulatory guidance, following its Red Tape Challenge, to help businesses comply with environmental laws. For waste, this includes proposals to slacken the requirements for using Waste Transfer Notes and a full review of the waste electrical and electronic equipment (WEEE) system (see letsrecycle.com story). But the MPs point out that regulations have an important role to play.

Joan Walley, chair of the Environmental Audit Committee, said: The Treasury seems to see environmental regulations as nothing more than costly red-tape, but what we are talking about here are vital laws to give us clean air, safe food, and a thriving countryside. If this process reduces bureaucracy and improves outcomes, as the Government claims, then we will support it. But it would be irresponsible to get rid of sensible regulations in a desperate dash for growth and we will be watching ministers very carefully on this.

The Committee is made up of members from the Conservative, Green, Labour and Liberal Democrat parties and includes: environment minister Richard Benyon; Green Party leader Caroline Lucas; Labour MP for Southampton Test Dr Alan Whitehead; and Conservative MP for Richmond Park Zac Goldsmith.

Requirements

In addition to this the Committee has warned that by placing no new legal requirements on businesses will limit the progress that is made in creating green growth and jobs.

The report states: Placing no new requirements on businesses, The Governments market-led approach is too focused on voluntary action. Relying on consumer demand to stimulate the green economy will not work. The recent financial crisis has demonstrated that there are clear risks from such a market-based approach.

Instead it has called for time-bound milestones which would set out a clear trajectory to achieving a green economy through targets and by outlining action required by businesses.

It says: Enabling the Transition suggests things that businesses could, rather than should do. However at a time when businesses need policy certainty, this is unlikely to provide the platform to deliver the billions of pounds of green investment needed. The Government must set key time-bound milestones towards a green economy for businesses to achieve such as reduced emissions, waste, and resource use and a halt to activities harmful to the environment.

Consumers must also be aware of the impact of their decisions, through better information on their consumption choices and through requiring mandatory greenhouse gas reporting from businesses.

The report notes that some businesses wanted to see stronger regulations to divert waste from landfill and said that the current regime did not provide enough incentives for doing this. Northampton-based energy company Agri-Energy was cited as calling for a ban on food waste going to landfill to help increase the renewable energy supply produced from anaerobic digestion.

Measures

The Committee also said that whilst green investment should play a key role in the UKs economic recovery, it appears the Treasury still sees environmental measures as a cost or block to economic development.

Ms Walley added: The Government promised a roadmap to a green economy, but two years in it seems to have stalled and we risk slipping back to business-as-usual. Rising global demand for commodities and fossil fuels mean that prices will continue to rise in future, so it is incredibly short-sighted of the Treasury not to give businesses clear incentives to use resources in a smarter way. Making businesses report their carbon emissions is one of the first steps we need to take on the road to a green economy, so it will be a key test of this Governments green credentials.

The report highlights the positive impact additional investment could have on employment opportunities in the waste and recycling industry as it moves away from landfill and towards waste incineration and recycling.

In minutes from a meeting on February 1 2012, which are detailed in the report, Caroline Spelman, environment secretary, highlighted the waste industrys contribution to the economy as it is growing at approximately 4% per annum. She also noted that effective resource management could save UK businesses 23 billion a year.