Embracing change

14 December 2010

Its not just environmentalists who reckon taking action to tackle climate change will be good for large parts of the UK economy.

The Aldersgate Group, an alliance of businesses, campaigning and conservation groups (including Friends of the Earth), argues that environmental regulation is good for the economy and will help businesses to innovate. 

1. Be a winner:

The world's top three most competitive economies - Switzerland, Finland and Sweden - are also noted for their high levels of environmental regulation. Sweden is even aiming to create an economy entirely running on renewable energy rather than oil by 2020.

2. Plane truths:

Reducing the growth in aviation benefits local tourism. Following the 9/11 attacks in the United States there was a reduction in flights into and out of the UK but our tourism industry gained by over half a billion pounds because of the increased income from people taking their holidays here, which outweighed the losses.

3. Jobs boost:

A major push for renewable energy could create more than 200,000 jobs in the UK according to an EU funded study.

4. For petrol heads:

The decision by the Government to abandon the fuel tax escalator (the system that saw petrol duty rise by more than inflation each year) in 2000 means the Government has lost over £4 billion of tax revenue. Our consumption of fuel is 4 or 5 per cent higher than if the scheme had continued.

5. Power leaders:

Countries that have invested in renewable energy have reaped the economic benefits. The German solar industry has increased turnover ten-fold in the last six years, is worth 3.7 billion euros annually and employs 42,500 people in production, distribution and installation.

6. Tackling climate change can save businesses money:

Small and medium-sized firms could cut over £1 billion off their energy bills every year through energy-efficiency measures. According to The Carbon Trust UK businesses could have saved £570 million last summer by taking simple cost-effective efficiency measures.

7. Clean sweep:

Studies shows that between 50,000 and 801,000 new jobs could be created in recycling and sustainable waste management in the UK.

8. Right target:

There are currently more than 2 million people in the UK who can't afford to heat their homes. Yet over 1 millions homes don't even have their hot water tank insulated, 6 million homes don't have proper loft insulation and 9 million homes need cavity wall insulation. These measures alone would save the UK 3.5 million tons of carbon a year while combating fuel poverty.   

9. Good value:

Solutions to environmental problems are often much cheaper than corporate lobby groups predict. The car industry claimed that catalytic converters would cost between £400 and £600 per vehicle. The real cost ended up at about £40.

10. Business likes certainty:

Environmental regulation is a great spur to innovation and investment. The Corporate Leaders Group on Climate Change recently told Tony Blair:

We need a strong policy framework that creates a long-term value for carbon emissions reductions and consistently supports and incentivises the development of new technologies. Without such policies, our companies are not able to justify to our boards or investors the necessary high up-front investment in low-carbon R&D, technologies and processes.

It's a great argument for annual targets for reductions in carbon emissions.