Speaker 1: Charles Secrett (Executive Director, Friends of the Earth)

Climate in Crisis: Sustainable Solutions

To create solutions for climate change, we must understand the nature and causes of the problems. Climate change is nature's 'wake-up call' to humanity, because we cannot continue in the manner we have been doing for the last 200 years. The main cause of climate change is the problems caused by the burning of fossil fuels: 90% of energy in Great Britain is derived from fossil fuels. A problem in the Southern hemisphere is the burning of tropical and other forests. The problems of lifestyle, especially over-consumption in countries in the North, is both an unsustainable present and future. At present, 20% of the world's population uses 80% of the world's resources. Such inequality cannot continue.

We are dealing with political forces and there is no stronger political force than a starving person trying to put food on the table. These forces must be tamed to resolve the problems of climate change.

With reference to a satellite image of the earth) There is only one earth and we must learn to live within its limits, but at the moment we are drastically exceeding the limits of the environmental system. To make poorer improve their living to our standards of living would require the equivalent of 8.5 planets to provide the energy required to support this. We will not find solutions to climate change unless we can resolve the differing scaled needs of the North and South.

Moving to a carbon-free future requires a revolution as profound as the industrial revolution that created the problems we face now. There are no environmental solutions to environmental problems. There are only political, economic and social solutions because the causes of environmental problems are political, economic and social by nature. Solutions lie in the political, economic and social spheres.

Categories of solutions are technical, infrastructure, management or personal choice.

Renewable energy resources are part of the technical solution. Renewable energy resources could provide most of Britain's energy in the long-term, are home grown, involve less risk and pollution and are popular. Off-shore wind could be the first such technology to be backed and has a near commercial potential of £6 billion in this country. Solar power could be used in both offices and in homes.

At the moment, the market is distorted and is mitigating against the uptake of these solutions, even though they appear to be popular with the public, as shown in poll undertaken by Mori (1996): o 86% of the UK public would prefer to buy electricity from renewable sources o 21% of the UK public would pay more for it. The technology exists, but it is not yet widely available.

The infrastructure solution is public transport and is essentially about providing alternatives. It has worked on the continent, so it can work here! People will not change their behaviour unless the choices are provided.

Resource efficiency

The USA has 4% of the world's population but contributes 25% of global carbon dioxide emissions. In any one day in America, the economy consumes twenty times the weight of the American population in natural resources and raw materials. Six months later, only 1% of these resources and raw materials are still circulating in the economy, the rest having been disposed of as waste and pollution.

There is great resource inefficiency in industrial economies. A carbon-free future is needed and we need to create choice and convenience in the market place, so that we can change people's values towards markets.

Transport

Of the world's population, only 4% of the richest 20% have no car: for the poorest 20%, 70% have no car. Public transport provides everyone with the opportunity to travel. There are benefits to be gained from taping fuel poverty. Energy conservation is about saving people now as well as cutting greenhouse gas emissions.

Renewable energy

This constitutes less than 2% of the UK's electricity, yet according to official figures, it has the potential to reach 34% by 2015. This could reach 120% by 2050 through rigorous promotion and investment.

The Government's target is to reach 10% by 2010, which could create 94000 jobs at a cost of £5.8 billion. A 20% cut in carbon dioxide by 2010 could over 230000 jobs in renewable energy, energy efficiency, CHP (combined heat and power) and public transport. It is a myth that environmental action is bad for the economy, for people and for business, and we must resist negative propaganda. The market needs to be shaped to change people's behaviour.

What the Government can and should do:

o Policy: need to set targets to drive integration with the private sector and Government at all levels. A domestic market is needed to bring renewable energy solutions into demand.

o Regulation: force green, clean production technologies. We should be building to higher conservation standards, such as those in Scandinavia.

o Tax reform: at the moment, we penalise through taxation the things we like (such as jobs/income) and reward pollution and waste. We must make the polluter pay.

o Spending: take revenue to invest in public infrastructure and services to make 'going green' easier for everybody.

Industry should move to a closed loop production process system to eradicate waste and pollution entirely. Large companies are setting zero emissions targets, and countries should follow this action. This should also take place at the level of the individual, for example, using the car less and using energy efficient devices in the home. 'Action begins at home'.

It should be remembered that climate change is the result of billions of people's activities, and, therefore, billions of people will have to change the way in which they do things to improve the situation.

It is important to live within the earth's limits and create a fair share of its resources. Cuts are required to live within these limits. An 88% cut in carbon dioxide emission is required by 2050. The Government's target is 60%: this is good, but not good enough. In order to live in a world where everyone has a fair share of environmental resources, including climate space, means that we need to equalise what all countries have available to them.

For example, 5 billion people have 4 tonnes of environmental space each. In Great Britain, 50 million people have 10 tonnes of environmental space each. This is unsustainable. To achieve a 50% cut in emissions [globally] by 2050, Great Britain would be required to make a 90& cut. Is this possible? In short, yes!

The possible outcomes that could be achieved include: o higher quality of life o improved standards of living o fairer society

How can this be brought about?

Information is power: it is ideas that change the world Organise and mobilise people who are ware of the issues to initiate change. We need to show people that this can be done in a democratic fashion. Need to focus on companies and Government departments to pressure and persuade people that change is necessary. Markets and democracies tend to change very slowly when left to their own devices. This will require lobbying or working in partnership. Similarly, at international level, there is a need to forge huge coalitions for people in the North and South to persuade politicians to change.

We are only held back by a lack of political will to implement solutions. Citizen action can create a carbon-free future and make the planet a safer place to live on. To create a political solution for all environmental problems will need environmental protection, conservation, social justice and economic prosperity to all go hand-in-hand.

Speaker 2: Dr Merylyn McKenzie Hedger (UK Climate Impacts Programme)

UK Climate Impacts Programme (UKCIP), Outcomes and Lessons from other regional studies

Slide presentation

Addressing adaptation to climate change impacts and reducing greenhouse gas emissions are the main focus of the DETR effort. Climate change is now acknowledged as a reality with which we are faced. Therefore we need to think about adaptation. UKCIP aims to look at the impacts of climate change and drive policy towards both mitigation and adaptation.

Role of UKCIP · To help organisations to prepare for climate change · To support decision makers · To provide a framework for research based on common tools and datasets

CIP core tools and datasets · Climate scenarios · Socio-economic scenarios · Risk and uncertainty in decision making (with EA) · Methodology for costing the impacts of climate change · Quality assurance, integration, GIS

Current status of UKCIP

The UKCIP oversees the preparation of regional studies, i.e. the South East, Wales, the North-East etc. In addition to these studies UKCIP operates a modular framework for a series of thematic studies, including:

1. REGIS - Integrated assessment (underway) 2. Sectoral assessment (underway) · MONARCH · DETR/MAFF biodiversity review · Health (finished) 3. Sectoral assessment · Subsidence/insurance · Gardens

UKCIP studies are not government funded but receive funding from a variety of organisations. If organisations are involved in the studies themselves, they have more commitment to the study.

Regional Study Issues

Every regional study provides distinct issues that have priority in that region. For example:

Scotland - Poor quality housing will result in increased dampness. With climate changes these problems will become worse.

Wales - Water quality and flooding issues

North West England - Changes to landscape, ie the Lake District - Pollution of water courses - Heat stress for workers in buildings not designed for a warmer future

South East England - Vulnerability to both floods and drought - Structural problems associated with clay based soils - Increased pests and diseases

South West England - Rising sea levels and associated coastal erosion - Toxic sediments in estuarial waters - Risks to transport infrastructures

Despite these regional priorities it is also important to look at the UK as a whole.

Types of Adaptation

We can adapt to potential impacts of climate change in a variety of ways, including:

· Share loss (Insurance) · Bear Loss · Prevent the effects using 'hard' methods such as structural/technological changes: - Increase reservoir capacity, - Increase water transfer, - Upgrade coastal protection structures, - Create water systems, - Create transport infrastructure, - Plant new crops, - Create wildlife corridors.

· Prevent the effects using 'soft' methods such as legislation, regulation, management: - New ways of planning, integration of individual sectors - Land-use planning with greater weight to flood risk/water availability - Make clear responsibilities for flood defence - Factor climate change into criteria for site designation - Amend building regulations - New methods to deal with uncertainty

· Change location - eg of crops, new housing

· Research - more information is necessary before adaptation changes can happen

· Education and behavioural change is critical.

· Change planning timeframes

· Increase public awareness

· Accept changes to policy

Lessons from other regional studies

The South West has already embarked upon its regional study, particularly through the Climatic Challenge conference in Cornwall and this conference here in Cheltenham today.

What is needed now to move things forward to the next stage are:

- Initial leadership - Informal groups of key players - Financial contributions £3-15K - Agreement for the first stage regional study - One organisation within the region to manage the study - Participation, perceived as a buy-in for an ongoing process over time - Links with regional structures - Outputs for regional and local planning eg. Regional Plans, Structure Plans - Inputs to national level policy

Everyone can benefit from these studies.

Speaker 3: Phil Harding (Regional Energy and Environment Office for the Government Office for the South West)

Implementing the Climate Change Levy

Slide presentation

Sir Edmund Hilary stated that "Environmental Problems are social problems really". They all involve people; it is people that make the problems!

Since the 1970's there have been numerous energy-conservation marketing slogans produced by both Conservative and Labour governments. For example:

Save it 1970's Make the most of your energy 1983 MONERGY 1986 It pays to be energy friendly Energy Efficiency, the Environmental Solution Helping the Earth begins at home Wasting energy costs the Earth Energy Efficiency - Its Clever Stuff Are you doing your bit?

The first energy conservation slogans were though of as too negative. The original focus of energy efficiency slogans was on the financial savings that could be made. However, as energy prices came down the focus on financial benefit was no longer as effective. People were paying less for energy than they had been before the privatisation of gas and electricity. Therefore, the slogans started to push towards the environmental benefits.

Market Transformation

To encourage energy efficiency it is necessary to push 'Laggards' (who are apathetic and hostile towards new energy efficient practices) towards the 'Leaders' who are helpful and supportive of these changes. In between these two groups is the general mass, divided into the aware and the unaware. Achieving this transformation requires the help of the leaders, who can pass on their knowledge. Climate change has a huge part in trying to achieve this transformation.

Climate Change Levy

The current government is trying to shift the tax burden from 'goods' top 'bads' ie. to tax things that are bad, in this case, for the environment. The government asked for a study by Lord Marshall. This study was able to conclude that business wastes 15-20% of its energy usage. It suggested that changes could be made through cost-effective actions, but that economic instruments are necessary to reduce energy use. Following this report, the Climate Change Levy (CCL) was first announced in the March 1999 budget. The Climate Change Levy on non-domestic fuel takes effect from 1st April 2001.

The Climate Change Levy is: · Revenue neutral (National Insurance Contribution cuts and assistance, negotiated agreement for 80% discounts) · Broadly neutral between manufacturing and services · Exemptions: 'Good Quality' Combined Heat & Power (CHP), use of 'new renewables'

Cost of the CCL from April 2001

Electricity 0.43 p/kWhGas 0.15 p/kWh Coal 0.15 p/kWh (1.17 p/kilo) LPG 0.07 p/kWh (0.96 p/kilo)

This equates to 8-14% increase in energy costs for most businesses. Some will have up to a 25% increase.

The CCL will raise £1 billion in the first year and will save at least 5 Million tonnes of carbon emissions per year by 2010.

Costs Recycled from April 2001

· NIC will be cut by 0.3% · £150 Million support in first year · Capital allowances and a fund for which the new 'carbon trust' (or similar name) will be responsible · Packages to help businesses cope with the changes · Discounts for energy intensive sector and horticulture · Emissions trading · Negotiated Agreements for companies that are part A, IPPC (Integrated Pollution and Prevention Control) sites. They will have stringent targets and reviews to keep to. However, for this to work State Aids clearance from the EC will be necessary.

Winners and Losers

With all these kind of changes, inevitably there are winners and losers.

Winners:
· Those parts of industry and commerce that are labour intensive
· Those parts of industry and commerce that are energy efficient
· The Environment

Losers:
· Those parts of industry and commerce that are energy intensive
· Those parts of industry and commerce that are wasteful of energy.

Help and Guidance

What is the government doing to help business avoid the effects of the levy?

· Carbon Trust
· Energy Efficiency Best Practice Program (including SSA)
· Environment and Energy Helpline 0800 585 794
· Enhanced capital allowances

The Government Office for the South West

- South-West Energy and Environment Management Groups
- Horizon South-West network - events etc
- www.oursouthwest.com. This website provides information for everyone working towards a sustainable future for the South-West
- Provision of 'Effective Energy Management Guide'. This guide shows businesses how to manage energy as an ongoing process. The guide has become a national guide for energy management for business.

The Climate Change Levy - threat or opportunity? - it's up to you.

There is a strong case to be made for these initiatives, particularly if oil prices increase as expected. The UK could gain a competitive advantage on energy costs, as well as having a head start in the market for low energy products and services. This is likely to be good for job creation too.

The CCL can be regarded as either a threat or an opportunity - it's up to you. Lets go for it!