Environmental Regulation Key to Economic Recovery

A new report by the Aldersgate Group, Green Foundations 2009, finds that from presenting a crisis for environmental policy making, the challenges posed by the recession actually reinforce the urgent need to accelerate the transition to a low-carbon, resource efficient economy, and align economic, environmental and societal benefits.

The report, launched at the House of Commons on the 4th December, argues that a rapid transition to a greener economy is more essential than ever for our future prosperity and should not be derailed by the recession. The new parliamentary session is an opportunity for the government to steer the UK economy towards recovery onto a more sustainable path, both financially and environmentally.

Peter Young, Chairman of the Aldersgate Group, said: "Far from being an indulgence that would damage competitiveness, the low carbon economy is an essential component of the economic recovery.  The government must grasp this unique opportunity to reform unsustainable business practices, boost competitiveness and stimulate green jobs and wealth."

Sustainability must be a Priority during the Recession

At the Aldersgate Group’s Reception at the House of Commons on the 4th December, the speakers stressed the need not to shelve the environmental agenda in response to the recession. 
Energy Minister, Mike O’Brien, stated that the credit crunch, however severe, must not affect the rationale for action on climate change and that part of the government’s fiscal stimulus programme will provide additional resources to support low carbon growth and jobs. Lord Chris Smith, Chairman of the Environment Agency, argued that safeguarding the environment and surviving the global financial downturn must go absolutely hand-in-hand, while Mark Clare, Chief Executive of Barratt Developments, outlined the business case for focusing on environmental and sustainability issues. 

Carbon Reporting Amendment to CC Bill 

The Aldersgate Group welcomed the government's amendment to the Climate Change Bill which will make it likely that all large and medium sized businesses will be required to report their Greenhouse Gas Emissions by April 2012. The Aldersgate Group has long felt that a clear commitment to require reporting is an essential part of creating a low carbon economy in the UK. While the development of the regulations which specify how this is done will be challenging, clear and rigorous implementation will bring significant economic and environmental benefits.

Peter Young, Chairman of the Aldersgate Group, said: “We applaud the government's decision. This will give certainty to the business community and attract the significant wealth creation and jobs that London’s role as the carbon finance capital of the world would deliver. The Group will support the government’s implementation of this decision in any way that we can.”

AG Host Green Buildings Event in the House of Commons

In November, the Aldersgate Group hosted an event in conjunction with the All Party Urban Development Group that debated the impact of the credit crunch on the sustainable buildings agenda.  Jon Lovell, author of the Aldersgate Group report Better Regulation for a Sustainable Built Environment, argued that disjointed policy and weak enforcement risked damaging the credibility of the Government’s ambitious plans for zero-carbon homes and buildings, while long-term profitability will increasingly be linked to sustainability.  Other speakers included Paul King (Chief Executive, UK GBC), Peter Cosmetatos (British Property Federation), Neil Jefferson (Zero Carbon Hub) and Clive Betts MP.  

BRE Consultation on Regulatory Budgets

In its response to the Better Regulation Executive’s Consultation on Regulatory Budgets that would limit new regulation on the basis of cost alone, the Aldersgate Group outlined some grave concerns with the proposals as they currently stand.  These include the risk that policies with high short-term costs and large long-term benefits will be marginalised (such as those essential for the transition to a low carbon, resource efficient economy); will encourage deregulatory behaviour with limited analysis of regulatory outcomes; and it is not clear how the government will decide what the UK economy can afford by way of regulatory costs. The Government response is expected shortly.