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Tackling climate change: good for the economy, people and the environment says new FOE report
10 June 1998
Cost effective measures to substantially reduce UK emissions of climate changing gases could create nearly a quarter of a million jobs according to new research commissioned by Friends of the Earth and published today [1]. Furthermore, the cost of these measures -which would deliver on the government's manifesto promise to cut carbon dioxide by 20 per cent by 2010 (based on 1990 levels) - can be more than met by introducing a moderate Industrial Energy Tax.
The conclusions of the report, by consultants Energy for Sustainable Development, will be presented at today's seminar, Delivering Climate Protection [2], by Friends of the Earth's Executive Director, Charles Secrett. The meeting will also be attended by two Government ministers with key responsibility for climate policy.
The researchers used an economic model developed for the European Commission [3]to assess the costs and effects of a range of policies to promote energy efficiency,combined heat and power, renewables and traffic reduction. The report, which is published ahead of a Government Green Paper on Climate Change, concludes that:
* The Government's carbon dioxide reduction commitment is practically and technically achievable. A more ambitious 30% reduction is also feasible [4].
* The 20 per cent commitment can be achieved in a cost effective way for an investment of just £9 billion up to 2010, or 0.7bn per year. Achieving a 30%reduction would cost £2.2bn per year. A moderate carbon/nuclear tax would raise up to £6bn per year by 2010 [5].
* The policies would bring considerable social and economic benefits in the form of new jobs - a net increase of 235,000 in 2010. Achieving a 30% reduction would deliver even more jobs - potentially over half a million additional jobs according to the modelling [6].
* New nuclear capacity is not needed to meet either target, and the old Magnox plants could be closed down.
Charles Secrett, Executive Director of Friends of the Earth said:
"Our report effectively demolishes the highly damaging myth that environmental protection policies are bad for business and jobs. Climate change is one of the biggest threats the world faces. We are delighted that the UK Government is taking a lead by promising to cut its carbon dioxide levels by 20 per cent by 2010: significantly more than other countries have committed themselves to.Friends of the Earth's important new research shows that the Government has a wonderful opportunity to show the world that tackling climate change is good for the economy, good for people and good for the planet."
He continued:
"Climate change can only tackled by investing in renewable, less polluting and more efficient forms of energy. It cannot be effectively slowed by the hugely expensive dinosaur industry of nuclear power. The Government must grasp the exciting green opportunities of the future and help lead the world out of the mess it has helped create."
1. Cutting CO2: creating jobs. Available from FOE 020 7490 1555.
2. Delivering Climate Protection. A seminar organised by the Socialist Environment Resources Association. Wed 10th June 1998. Venue: Church House Westminster from 10am-5pm. Speakers include John Battle MP (Energy), Michael Meacher MP (Environment) and FOE Director Charles Secrett.
3. ESD's SAFIRE model is an sectoral input-output economic model for the assessment of new energy technologies. It is used to examine the market penetration of new energy technologies and the factors and policies that influence their market take-up.
4. The 30% target is based on FOE 'environmental space' calculations of the CO2 reductions needed for the UK to make an equitable contribution to constraining climate change within ecologically tolerable limits (McLaren, DP et al 1997. Tomorrow's World: Britain's share in a sustainable future.Earthscan for Friends of the Earth). For the 20% CO2 cut, 3% comes from traffic reduction and 17%from the energy sector. For the 30% cut, the proportion is 5% and 25%. Under the 20% cut, energy demand is reduced for all sectors of the economy, except the industrial, by around 8% reflecting the significant potential for energy saving. Under the 30% cut, energy demand is reduced for all sectors of the economy, except the industrial sector by up to 20% reflecting the maximum potential for energy saving. The following electricity fuel-mixes are attained:
20% CO2 cut, 270 Twh 30% CO2 cut, 240 Twh
Nuclear 10.4% Nuclear 11.8%
Coal 17.1% Coal 9.4%
Renewables 11.3% Renewables 23.2%
Cogeneration 17.1% Cogeneration 22.5%
Gas 41.7% Gas 30.5%
Oil 2.3% Oil 2.6%
5. The revenue figures are taken from Cambridge Econometrics, 1998. Industrial Benefits of Environmental Tax Reform in the UK. Forum for the Future and Friends of the Earth.
6. The 235,000 new jobs will be gained as a result of net increases resulting from growth in the following sectors: Renewable Energy (94,000 jobs), Combined Heat and Power (34,000 jobs), Energy Conservation (21,000 jobs), Public Transport, and improved cycling and pedestrian facilities (87,000 jobs).
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Published by Friends of the Earth Trust
Last modified: Jul 2008
