The UK government’s energy white paper “The low carbon transition plan” , purports to provide a pathway to a low carbon economy.
After the past 10 years of dithering, mixed messages and unfulfilled promises, can we expect more this time around?
The white paper promises, by 2020:
- More than 1.2 million people will be in green jobs.
- Seven million homes will have benefited from whole house makeovers, and more than 1.5 million households will be supported to produce their own clean energy.
- Around 40 percent of electricity will be from low carbon sources, from renewables, nuclear and clean coal.
- We will be importing half the amount of gas that we otherwise would.
- The average new car will emit 40 percent ess carbon than now.
The record of government since the publication of the 2003 White Paper — which purported to place the environment at centre stage – has not been good.
The Royal Society summed up the views of many when it said the white paper showed “a lack of political courage to make the hard decisions necessary to move this country away from its dependence on fossil fuels”.
In 2003, the ambition was to deliver 10 per cent of energy supplies from renewable resources by 2010. It’s resulted in just two per cent so far.
So, what does the 2009 vision of 2020 mean to business?
- Energy will cost more, so will the right to use it. Energy prices are likely to rise by around 20 per cent to pay for the new “green” infrastructure we need. This is greenwash and typical of ways in which governments of all parties paint unpopular cost increases with a green glow. Most of our energy infrastructure relies on 1960s technology, and 1960s engineers to maintain it, there has been 40 years of chronic under-investment in energy infrastructure and skills which needs to be paid for anyway. Painting it green does not change the inconvenient truth. Furthermore, those businesses with energy bills of over £500,000 will be required to participate in the Carbon Reduction Commitment scheme in 2010. They will have to report their emissions and participate in a cap-and-trade scheme. This will produce winners and losers. Energy will get more expensive so we need to use less, or find greener sources.
- Green jobs. This is another grey (or pale green) area. The skills required to install a smart meter are very similar to the skills required to install a dumb one, but suddenly it is a “green” job because it is a smart meter. But if the government’s plans are implemented, the jobs are real and yield opportunities for contractors and engineers, then who’s to quibble?
- Purchasers will demand lower carbon products and services. Demand from public sector and major corporate supply chains is already starting to happen, companies like Marks & Spencer remain faithful to their Plan A and the Olympic Delivery Authority placed a very high weighting on carbon footprint in the procurement of concrete, resulting in 50 per cent less carbon per tonne than Heathrow Terminal 5.
This issue will not go away, the ice caps continue to melt in a recession and if you plant a tree it will continue to grow.
Smart businesses need to use less energy, find renewable energy sources and seek out the opportunities that the “green economy” will undoubtedly bring. We should not be gloomy: climate change is the opportunity of our generation.
