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Welcome
Findings from the Regional Growth into the Low Carbon Study
Agenda
• Context - the Regional Sustainability Challenges
• What would a local low carbon strategy look like?
• Discussion & Break
• Research Findings
• Discussion
• Lunch
Context – what are the regional sustainability challenges?
Dr Simon SlaterExecutive Director
The West Midlands at a glance • 5.3 Million people – 9% of UK total
• Birmingham is 2nd largest city in UK – population of more than 1 million.
• 75% of the UK ’s population is within 5 hours drive.
• Most ethnically diverse region in the UK outside of London.
• Highest concentration of manufacturers in the UK
• 80% of the region is rural
The Regional Sustainability Challenge
– The Productivity Gap - £10 billion plus – productivity & worklessness
– The Carbon Gap – need to focus on transport, waste, decentralised energy, energy efficiency
– Quality of Life Gap – health inequalities, basket of indicators such Index Sustainable Economic Welfare – vary across region, externalities
– Confidence Gap – poor promotion within and outside region of good practice
– Leadership Gap – varied understanding on sustainability as overall framework for action, business often ahead of public sector, regional governance ‘unfinished & uncertain’
Our Vision
By 2020 businesses and communities are thriving in a West Midlands that is environmentally sustainable and socially just.
By 2012 our leaders are clear on what this looks like, have set milestones and their organisations are making strong progress.
‘Low carbon vision’ begins to set out what is possible now in terms of energy, transport, construction, demographic change to reach 2020…just add leadership and next steps
The Regional Low Carbon Building Blocks
• The National Low Carbon Transition Plan & Others
• The West Midlands Economic Strategy, Regional Spatial Strategy, Climate Change Plan
• The emerging Single Integrated Regional Strategy and Joint Strategy and Investment Board and 20 impact areas
• Regional Ministers Low Carbon Task Force
• City Region Low Carbon Economy Programme
• SWM review to identify key priorities
What would a local low carbon economic strategy look like?
Dr Simon SlaterExecutive Director
Lessons from UK first low-carbon regional economic strategy?
• Opportunity to address both the regional productivity challenge and carbon challenge.
• ‘Connecting to Success’ published in January 2008 and Delivery Framework in May 2008. Full story covered in ‘Evidence of success ‘– Dec 2008
• Lessons and approach are applicable to local level
Defining Low Carbon Economy
• There is no official government definition of a low-carbon economy so the region produced its own, definition :
“ An economy that produces goods and services of increasing value while reducing the associated greenhouse gases in their production, use and disposal…”
- Connecting to Success, page 89
• Embraces the region’s strengths in engineering, science and technology to deliver low-carbon solutions to national and international markets.
The scale of the output challenge
Gross Value Added – a measure of the net total output or income generated by an economy. Essentially it is the difference between the value of the goods and services produced in an economy and the cost of raw materials and other inputs which were used in their production.
The scale of the carbon challenge
CO2
(e) is an abbreviation of 'carbon dioxide equivalent' and is the internationally recognised measure of greenhouse gas emissions. The sources of greenhouse gas emissions include carbon
dioxide (CO2
), methane (CH4
), nitrous oxide (N2
O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6
).
Developing new policies
• Developed policy areas that could be influenced by the new economic strategy and that would address the productivity and carbon challenges at the same time.
• Developed a benchmark of what an ‘ideal’ low-carbon economic strategy could look like.
• Assess the extent which ‘Connecting to Success’ supported these key policy areas during several stages of development as a parallel process to the wider sustainability appraisal.
Improving the Strategy
Benchmarking against other regions
Prioritising actions and programmesThe actions against the policy areas were prioritised in terms of:• Economic benefit• Potential to reduce carbon• Ease of implementation• Alignment with other regional social and environmental policy
Main programmes were around:• Smarter Working / ICT• Decentralised energy & waste infrastructure• Resource Efficiency Support for Business (energy & waste)• Stimulation and support for diversification into Green Markets e.g. Procurement &
R&D
• Our commitment to deliver our role within the delivery framework is outlined in our Corporate Plan 2008 -11 which was published in June 2008.
Delivery - Monitoring Progress• Delivery of the Strategy is monitored using the following indicators:
– Tonnes of CO2e per £10,000 GVA – Headline Indicator
– Regional Indicator of Sustainable Economic Wellbeing - Headline Indicator
– Total Industry and commercial energy consumption (GWh) per £billion GVA
– Percentage of people usually working from home or travelling to work using sustainable means of transport
– Growth of companies in the region providing low-carbon products and services (to be developed)
– Industrial and commercial waste indicator (to be developed)
– Natural environment indicator (under development)
Delivery – progress to date
Delivery – progress to date (cont)
Monitoring of Strategy Actions - Overall good progress
• AWM carbon reduction from investments on target of 150,000 tonnes in 2008/9
• Smarter Working launched to help flexible working / use of ICT
• National Centre for Low Carbon Vehicles, Science City, Power Academy
• Waste infrastructure programme
• Renewable Energy and Supply Chain and deployment programmes – but more coordination required
• Business support via good practice networks e.g. Business Futures or Business link
• BUT – more sub-regional targeting at risks and opportunities required
Emerging sub-regional actions Improved business support and good practice in improving
efficiency of existing business, supported by waste and energy infrastructure, smarter working/travel
Link green space maintenance to future jobs fund to create immediate supported employment, and longer term natural assets
Mass scale housing retrofit programme – stimulate new products and employment
Public Procurement to create new low carbon markets, drive innovation, and efficiency that existing business base well placed to exploit
Pooling of resources – joint agency to improve coordination, attraction of investment
2. Key Lessons in producing your local low carbon strategy
• Definition is important – productivity & carbon of overall economy
• Low Carbon does not guarantee environmental or social
progress – need SD review, including longer term issues.
• Identifying the scale of the challenge & within target of 2020
• Focus on what can be influenced
Key Lessons (cont)• Prioritise actions on a range of investment / benefit criteria
• Balance of productivity verses jobs safeguarding / creating,
tackling worklessness
• Create new markets in areas local economy has strengths
to exploit
• Skills and investment follow longer-term demand and
certainty created by leadership
Local Low Carbon Economic Strategy Benchmark?
1. Your Local Economic Strategy is your low carbon strategy
2. Clear definition – around increased productivity and
reducing carbon
3. Evidence base to support your strategy should cover:
1. Sectors at risk from carbon / environmental legislation
2. Opportunities for sectors from decarbonisation and diversification
3. Understanding of impact on productivity & jobs
4. Actions prioritised based on addressing ‘market failure’ and
costs, benefits.
5. Monitoring – productivity, jobs, efficiency, diversification
What do you think a local low carbon economic strategy would
look like?
Dr Simon SlaterExecutive Director
