LATEST

See our latest news and commentary on environmental policy
and politics. To join our mailing list, please click here. For any media enquiries,
please get in touch.

Filter

Theresa May appointed new Chair of the Aldersgate Group

19th July 2021

Today, the Aldersgate Group announces the appointment of the Rt Hon Theresa May MP as its new Chair, with effect from Tuesday 20 July 2021. She will take over from former Labour MP Joan Walley, who has chaired the Aldersgate Group for the last six years. Theresa May will support the Group’s ongoing work on the delivery of the UK’s net zero emissions and nature restoration targets and ensure the UK can build a globally thriving green economy in the process.

The appointment comes as the Aldersgate Group welcomes new business members from the facilities, retail, water, legal and energy sectors, and is involved in three major projects on green finance, resources and waste, and industrial decarbonisation.  

The Aldersgate Group is delighted to announce the appointment of Theresa May as its new Chair, as the organisation looks forward to a critical year for the climate, environmental and economic recovery agenda.

The appointment is a landmark moment for the Group, whose members include leading businesses, NGOs, professional institutes, and academic institutions. The former Prime Minister and MP for Maidenhead will bring immense leadership to the role and a commitment to driving action for an environmentally sustainable, net zero emissions and competitive economy.

As Prime Minister, Theresa May enacted the UK’s landmark commitment to reach net zero emissions by 2050, making the UK the first major economy to enshrine this target in law. She also oversaw the publication of the Clean Growth Strategy and the decision to end unabated coal-fired electricity generation in the UK by 2025, both of which are helping accelerate emission cuts in the power sector and driving the growth of renewable generation such as wind and solar.

On the environment, her Government published the 25 Year Environment Plan, which provided an ambitious framework to protect and restore the natural world within a generation, a vision which is now in the process of being enshrined in the Environment Bill currently going through Parliament.

Theresa May will assume her role on 20 July 2021. She will be handed the baton by current chair, former Labour MP Joan Walley, who has completed a two-term period of office and been an asset for the Group since 2015.

Today’s announcement comes at a significant moment for the Aldersgate Group, with the organisation welcoming new members from the facilities management, retail, water, legal and energy sectors including Mitie, the Co-operative Group, Wessex Water, CMS and Octopus Energy. Their expertise and insight will bolster the Group’s knowledge base across a range of important sectors where the Aldersgate Group is driving policy change to support more rapid cuts in emissions and actions to restore the natural environment.  

The Aldersgate Group is as active as ever in this crucial time for the climate and environmental agenda, with ongoing work to support the delivery of the UK’s net zero and nature restoration targets and green economic recovery ambitions. The Group is working on three major projects ahead of the crucial COP26 climate summit, focused on the future of green finance [1], resources and waste [2], and accelerating the decarbonisation of heavy industry [3].

Theresa May, incoming Chair of the Aldersgate Group and MP for Maidenhead, said: “I am joining the Aldersgate Group to champion the business case for decarbonising the UK economy, improving resource efficiency, and investing in the restoration of nature because we are at a crucial crossroad for our climate and the environment. As Prime Minister, I was proud to lead the UK to be the first major economy to enshrine the net-zero emissions target into law and publish a strategy to overturn the decline in nature within a generation. It is vital we now accelerate our progress towards these ambitious targets and develop clear delivery plans.”

Joan Walley, outgoing Chair of the Aldersgate Group, said: "It’s been a privilege to lead the Aldersgate Group as Chair for the last six years. I am proud of the contribution we have made on setting the zero carbon and nature recovery agenda. I am delighted to leave a legacy that puts the organisation in a strong position, with membership at its highest since the Group was formed and exciting new reports on key policy areas on the horizon. I have no doubt that under Theresa May’s leadership, the Group will go from strength to strength and play a key role in leading the conversation on climate and the environment and driving ambitious policy in the critical years to come.”

Nick Molho, Executive Director, Aldersgate Group, said: “We are delighted to welcome Theresa May as our new Chair at this critical time for the Group and the environmental agenda. Decisions made in the next few years will determine whether the UK economy is on a credible pathway towards net zero emissions and whether the country is on track for overturning the decline in its natural environment within a generation. Mrs May’s unrivalled experience and her passion for the climate, environmental and clean growth agenda will be a huge asset to the organisation. As a Group, we would like to give our profound thanks to our outgoing Chair Joan Walley who has been an inspiring leader and a key part of the Aldersgate Group’s success over the past six years.”

Peter Simpson, Chief Executive, Anglian Water, said: “I’m delighted to welcome the appointment of the Rt Hon Theresa May MP as the Aldersgate Group’s new chair.  As long-time Aldersgate supporters, I look forward to working with her and other members to promote the strong environmental consensus there is amongst leading businesses and civil society groups.  I would also like to congratulate Joan Walley as she comes to the end of her very successful term.  The Aldersgate Group goes from strength to strength, and under Theresa’s leadership, the Aldersgate Group will be a decisive voice in shaping policy for the net zero age.”

Mark Versey, Chief Executive Officer, Aviva Investors, said: “Theresa May’s experience and longstanding commitment to the environment, including legislating the UK’s world leading net-zero target, will be invaluable and we look forward to working with her.”

Sergio Menendez, EMEAA Regional President, CEMEX, said: “CEMEX is delighted to welcome the Rt Hon Theresa May MP as the new Chair of the Aldersgate Group. In taking up this appointment, it shows to policy makers and wider society in the clearest way possible why it is vital that both government and businesses keep focused on delivering net zero emissions and other vital sustainability goals.”

Ece Ozdemiroglu, Founding Director, Eftec, said: “Theresa May’s arrival as Chair will boost the Aldersgate Group’s contribution to delivery of the legally binding net zero target and 25 Year Environment Plan, which are key parts of the legacy of her premiership. This combination of respected leadership and credible implementation across the Group’s diverse membership is needed to give confidence to investors in net zero, climate adaption and new environmental markets across all sectors of the economy.”

Michelle Scrimgeour, CEO, Legal and General Investment Management, said: “Climate change is not just an urgent issue for society, but also a significant investment opportunity. As business leaders, we can align our influence and financial might, collaborating with other companies and policy-makers, including through the Aldersgate Group, to help accelerate the net zero ambition, producing positive sustainable economic and environmental returns. This is inclusive capitalism in action.”

Duncan Clark, Head of UK Region, Ørsted, said: “The economic and job creation opportunities created by the net zero target are significant and we are working hard in the offshore wind sector to skill up and grow domestic supply chains. We would like to congratulate Theresa May on her new role and look forward to working with her and the team at Aldersgate Group to maximise the benefits of the net zero transition across the UK.”

Beccy Speight, Chief Executive, RSPB, said: “As a long-standing member of the Aldersgate group, we’re pleased to welcome Theresa May as its new Chair. Aligning economic policy with the huge steps we must all take to address the climate and nature emergency will be fundamental over the coming decade and beyond. The work of the Aldersgate Group is vital in bringing both NGO and business voices together to find solutions to the emergency facing our natural world and to make a shared case for the legal and policy frameworks needed. Its work in helping to shape and influence those policies with urgency, bringing together organisations who share this mission has never been more important and we look forward to working together to secure a healthier future for us all.”

Carl Ennis, CEO, Siemens plc, said: “I am delighted to welcome Rt. Hon. Theresa May MP as Chair of the Aldersgate Group.  An ambitious, co-ordinated and accelerated approach to the climate and environmental agenda is critical if the UK is to reach a timely, equitable and economically beneficial net zero emissions future. As an experienced and respected figure, Theresa May will be an effective ambassador for this vital work.”

John Scanlon, Chief Executive Officer for SUEZ recycling and recovery UK said: “With Glasgow hosting COP26 this autumn, all eyes are on the UK to lead the way in combatting climate change. Protecting our environment goes to the very heart of our work at SUEZ and only an ambitious environmental agenda can bring about the systemic change needed to create a resource efficient economy. Aldersgate recognised early on that environmental sustainability and economic prosperity are intrinsically linked and that for our nation to thrive we need policies that can credibly deliver on both counts. In this pivotal year for our environment and our economy, I’m delighted to welcome Theresa May as Chair of the Aldersgate Group and look forward to working with her and the Aldersgate team to tackle our environmental challenges.”

Rick Willmott, Group Chief Executive, Willmott Dixon, said: “We warmly welcome Theresa May as the new Chair of the Aldersgate Group.  At Willmott Dixon, last year we announced what we believe are the construction industry’s most ambitious sustainability targets to 2030 because we see that putting net zero and green growth at the heart of our business is core to our continued development and success.

“The work of the Aldersgate Group in shaping policies that tackle environmental challenges helps drive investment in projects, innovation, skills and supply chains. Around 350,000 new roles in construction could be created by putting the UK economy on track for net zero emissions by 2050.”

Tanya Steele, CEO, WWF-UK said: “It is great to see the appointment of Theresa May as Chair of the Aldersgate Group.  As a former Prime Minister, she will bring to the group enormous experience and a clear understanding of the scale of ambition required if both governments and businesses are to deliver the cuts in emissions needed to keep global temperature rise to 1.5 degrees.

This could not be a more important year in the fight to restore the planet, our one shared home, and the UK has a central role to play as host of COP26. I look forward to continuing to work with the Aldersgate Group in the mission to build a low-carbon, nature-positive economy, the only route to long-term prosperity.”

—ENDS—

In line with the government’s Business Appointment Rules, Mrs May consulted the Advisory Committee on Business Appointments before taking up the appointment of Chair at The Aldersgate Group. This position is a voluntary role.   

[1] The Aldersgate Group recently released a report exploring the next steps for the UK’s green finance strategy. To find out more, you can access the full publication here: Financing the future: Driving investment for net zero and nature restoration. The report was launched at a webinar with Economic Secretary John Glen MP on 22 June 2021.

[2] The Aldersgate Group published its latest report, Closing the Loop: Time to Crack on with Resource Efficiency,  on 15 July 2021. The report, which was launched at a webinar with Chair of the Environmental Audit Select Committee Philip Dunne MP, assesses recent progress in England’s resources and waste policy and puts forward a number of recommendations to drive greater resource efficiency across the economy.

[3] The Aldersgate Group will publish two major reports in early September, setting out key policy recommendations to accelerate the decarbonisation of heavy industry, lower industrial electricity prices and support industrial competitiveness in the process. These have been commissioned from UCL and Frontier Economics.

Theresa May

England’s resource efficiency agenda must be accelerated with urgency

15th July 2021

In a new report out today [1], the Aldersgate Group calls on the Government to accelerate progress on resource efficiency to secure major benefits in terms of emission savings, reduced environmental impacts, job creation and economic resilience.  Although government strategies have built a positive overarching vision for resource efficiency, policy commitments in this area have lacked ambition, pace and detail, and appear to have received limited buy-in from other government departments beyond the Department for Environment, Food and Rural Affairs (Defra).

The Group argues that government must improve collaboration across departments to achieve further progress, accelerate the implementation of policies that improve how products, industrial materials and infrastructure are designed, and introduce measures to reduce consumption in the first place, such as through citizen engagement campaigns and incentivising service-based business models.


Driving greater resource efficiency across the economy would deliver significant economic and environmental benefits, with research suggesting that such action would deliver 80% of the additional emission savings required to deliver the UK’s Fifth Carbon Budget with a net gain in Gross Value Added of £9.1bn by 2030. [3]

However, the Aldersgate Group’s extensive engagement with businesses, professional institutes and civil society organisations shows that England’s policy on resources and waste has to date been too piecemeal and subject to repeated delays. Whilst the UK Government outlined a positive policy ambition in its 2018 Resources and Waste Strategy for England, insufficient progress has been delivered since, with the recent Waste Prevention Programme restating many pre-existing policy commitments.

In its new report out today, Closing the Loop: Time to crack on with resource efficiency, the Aldersgate Group calls for much greater urgency, stronger cross-government collaboration, and a more systemic approach to improve resource efficiency across the economy. The report sets out priority areas where the development and implementation of existing policy proposals needs to be accelerated, highlights policy gaps where new proposals are needed, and makes specific policy recommendations to improve resource efficiency across the construction and automotive industries, two resource intensive sectors.  

Key recommendations for the future of England’s resources and waste policy include:

  • Resource efficiency should become a cross-government priority beyond efforts led by Defra, with all departments such as HM Treasury, BEIS, DfT and MHCLG contributing to policy development and implementation in this area. This should include close collaboration with devolved administrations, with nations such as Wales having made significant progress on this agenda.
     
  • The Government should accelerate the implementation of proposals which will have the most rapid impact in improving product design. This includes accelerating the development of mandatory eco-design standards and lifecycle assessments for a growing range of products and rolling out Extended Producer Responsibility (EPR) Schemes beyond packaging, with a focus on ambitious fee modulation mechanisms, clear definitions and a close monitoring of performance. The design and role of Deposit Return Schemes should be clarified, with a particular focus on introducing these schemes in areas where the introduction of EPR schemes and eco-design criteria may not deliver sufficient progress.
  • The Environment Bill – which will introduce long-term, legally binding targets on waste reduction and resource productivity - should be amended to provide for more robust interim targets that will provide businesses with greater clarity on the near-term policy actions that the Government will take to meet the long-term targets under the Bill.   
     
  • New proposals should be put forward to tackle ongoing market barriers that are slowing the take-up of more resource efficient business models. This should include developing resource efficiency criteria for the £290 billion a year spent by the UK on public procurement [4], introducing fiscal mechanisms – such as variable VAT rates and a broader tax on single-use items – to help more resource efficient products and materials compete on cost, and funding for public awareness campaigns to build consumer trust in resource efficient products and services. The use of targeted public finance – such as through the UK Infrastructure Bank – could also play a critical role in attracting private investment in much needed infrastructure to support greater rates of recycling, repair, remanufacturing and re-use.    
     
  • A comprehensive strategy on low carbon skills will be essential to support an economy-wide drive towards greater resource efficiency. This should include embedding climate change and environmental sustainability at all stages of the national curriculum, encouraging a much higher uptake of STEM subjects, and broadening the scope of the Apprenticeship Levy Standards. To support workers in need of reskilling, the Government should continue to provide financial support for training, upskilling and retraining through the National Skills Fund and encourage Further Education Institutions to offer a broader range of flexible, short-term courses.
     
  • The Government should facilitate greater trade in circular products and materials, by featuring circular economy principles in the trade and sustainable development chapters of trade agreements. As the Aldersgate Group set out in a recent policy briefing, [5] Government must also use its trade policy to provide a level playing field to ensure that domestic businesses innovating in resource efficiency are not exposed to unfair competition from imports with lower environmental standards.

The report also calls for a range of measures to drive greater efficiency in the resource intensive sectors of construction and automotive. This includes the introduction of design regulations for buildings, streamlined lifecycle assessment methodologies for buildings and vehicles, and the introduction of mandatory product standards for construction materials and vehicle components.

Nick Molho, Executive Director of the Aldersgate Group, said: “Improving resource efficiency across the economy makes sense on all counts: it reduces demands on the environment, cuts emissions, makes our economy more resilient to supply shocks, and can grow supply chains and create jobs in areas such as recycling, repair, remanufacturing and reuse. The Government set some good ambitions in 2018 but the time has come to move to the delivery phase. What we need now need is an urgent, cross-government and systemic approach that improves product design, supports the development of new business models and engages citizens to help drive down resource consumption.”

Martin Casey, Director, Public Affairs, Europe at CEMEX said: “CEMEX welcomes this important report by the Aldersgate Group and the scope of its recommendations which can drive forward the goal of real resource efficiency across the whole economy. It’s vital that the policy framework, Government, and the regulatory bodies proactively take note and enable businesses to maximise their resource efficiency potential and deliver on the promise of a truly circular economy."

Dr Adam Read, External Affairs Director at SUEZ said: “If we can’t get BEIS, DEFRA, MHCLG and DfT to develop policies that complement one another and support societal change in a holistic way, then we may end up with any number of unintended consequences that undermine our drive towards greater resource efficiency and sustainability. This welcome report from the Aldersgate Group highlights another of SUEZ’s key concerns, namely a lack of real focus by Government on actually reducing consumption and incentivising reuse, refill and repair. The portfolio of recent policy reforms that have been consulted on all focus mainly on driving better recycling, with the DEFRA Waste Prevention Programme failing to deliver any real target for reducing consumption and highlighting the important role of the consumer in this process. The UK needs leadership around better citizen awareness campaigns, product eco-design, life-cycle thinking and closed loop materials management, and this must happen soon if we are to give ourselves a chance of decarbonising by 2050."

Libby Peake, Head of Resource Policy at Green Alliance said: “We know that the overconsumption of resources is driving both climate change and nature’s degradation and yet it is very rarely addressed by government policy. The good news, as this report outlines, is that there are many simple actions the government could – and should – be taking to improve the situation which would not only be good for the environment, but also the economy and the public. It really is time to get on with it.”

Peter Jelkeby, Country Retail Manager and Chief Sustainability Officer, IKEA UK and Ireland said: “Developing a circular economy is essential for building a low-carbon business and society. At IKEA, our aim is to transform into a fully circular business. To do this, we are committed to designing all of our products using only renewable or recycled materials, and to develop circular services. As such, we fully endorse the recommendations in this timely report, and the call for Government to accelerate its progress on resource efficiency, ahead of COP26, making the UK a leader in this field. We also welcome the call for more green jobs, firmly rooted in the skills we will need to make the circular economy a reality. At IKEA, our Recovery department employs over 350 people in the UK. Not only do they play a vital role in helping us strive for zero waste, but they are also a living example of how we are creating the retail workforce of the future; supporting a circular, green economy and our collective journey to climate positivity.”

Anna Turrell, Head of Environment at Tesco said: “If we are to meet our shared ambition to deliver a net zero economy, we must rethink how we manage the resources available to us more efficiently. We support the Aldersgate Group’s recommendations that the solution is to create a closed loop circular economy and that this is going to require substantive actions from business, industry and government to achieve. We are playing our part and working with partners to reach this ambition by, for example on packaging, removing and reducing single use packaging wherever possible, introducing reusable alternatives, and working to ensure everything that’s left is recyclable as a part of a closed loop.”

David Symons, UK Director of Sustainability at WSP said: “Using materials more efficiently is an easy way to grow Britain’s productivity, increase resilience and help deliver a net zero economy. Government has a great opportunity to up the pace on waste management - growing the economy and delivering on one of the public’s highest priority environmental issues.”

Julia Barrett, Chief Sustainability Officer at Willmott Dixon said: “The built environment consumes almost half of the materials extracted globally every year, so as this report sets out, we need a systematic rethink of how we design, construct and use buildings. At Willmott Dixon we have set a target of zero avoidable construction waste by 2030 and welcome the recommendations put forward today: for Government to urgently accelerate the transition to the circular economy by using fiscal mechanisms to change behaviour, for government procurement to demonstrate leadership, and for the creation of cross departmental policy and standards to drive resource efficiency.”

-ENDS-

[1] The Aldersgate Group’s new report Closing the Loop: time to crack on with resource efficiency is available here.

[2] The report will be discussed at a public webinar from 9.30am to 11.00am on Thursday 15th July, with panellists from multiple business sectors and civil society. You can register here.

[3] Sixth carbon budget data from Green Alliance (2018) Less in, More Out available here, and GVA data from Suez/Eunomia (2016) A resourceful future: expanding the UK economy available here.

[4] Cabinet Office (2020) Transforming public procurement available here.

[5] In June 2020, the Aldersgate Group published a report setting out why the UK’s trade policy should be aligned with its climate and environmental goals. This report is available here.


Response to the Green Jobs Taskforce Report

14th July 2021

Reacting to the launch of the Green Jobs Taskforce's Report, Nick Molho, Executive Director at the Aldersgate Group and member of the Green Jobs Taskforce, said: “The Green Jobs Taskforce has been a great example of industry, trade unions, the skills sector, civil society and government working together to make the net zero transition a success for the UK economy, its workforce and citizens. There is strong agreement across all sectors that we can achieve the UK’s climate and environmental targets in a way that grows new low carbon supply chains across all parts of the economy and creates a significant number of high quality jobs across the country. Achieving this ambition is ultimately down to the actions that government, industry and the skills sector will take in the coming years.
 
To deliver this objective, the UK needs to have a detailed policy plan for its net zero target, mainstream the teaching of climate change and green skills across all stages of the education system, and provide those already in the workforce with the financial and flexible learning support they need to have access to reskilling.”

GJT image

Transport Decarbonisation Plan is an important step forward, but key decisions need to follow swiftly

14th July 2021

Reacting to the publication of Government’s Transport Decarbonisation Plan, Ana Musat, Head of Policy at the Aldersgate Group, said:  “The Transport Decarbonisation Plan is an important milestone, setting out a comprehensive blueprint to cut emissions across all modes of transport and boost active travel. It is particularly welcome to see the proposal to phase out petrol and diesel trucks by 2040, which will play a key role in helping grow supply chains for electric vehicles and secure a level playing field for those already investing in low carbon mobility solutions.
 
Government’s commitment to electrify its fleet by 2027, bolstered by similar commitments from other businesses across the UK, is an important way to grow demand and offer confidence to manufacturers. The ‘ZEV mandate’ is another promising policy lever, which has successfully grown the market in California and China, and consulting with industry on how best to implement that in the UK is a promising move.” [1]

Ana Musat added: “We now need to ensure that the transition to electric mobility is just and benefits everyone. To achieve this, good charging infrastructure needs to be in place across the country, so that those without off-street parking and fleet drivers are able to conveniently charge their vehicles. This is why the delivery of chargepoints must become a national infrastructure priority, led by central government, with increased levels of coordination between local authorities. Currently, investors in public charging infrastructure in particular, have to understand the different costs and planning requirements from different local authorities, which can act as a barrier to infrastructure development.
 
In addition, measures to ensure electric vehicles and trucks are financially accessible will be essential. The Plug-in Grant is key in reducing upfront cost, but other measures, including zero-interest loans for EVs like those available in Scotland, and policies to grow the market and boost consumer confidence in a second-hand EVs, will need to be developed.” [2]
 
—ENDS—

[1] In October 2020, the Aldersgate Group published a report outlining the policy next steps for decarbonising a range of sectors, including transport. The report Building a net zero emissions economy: Next steps for government and business is available here.
 
[2] Aldersgate Group is part of the Coalition for the Decarbonisation of Road Transport (CDRT), convened by the Green Finance Institute. The Coalition will publish a report by the end of this month with recommendations and demonstrator projects to unlock private finance into three key areas of road transport decarbonisation: charging infrastructure, consumer finance and battery production.

EVs

Detailed Net Zero Strategy must be published ahead of COP26

24th June 2021

Reacting to today’s Progress Reports from the Climate Change Committee [1], Nick Molho, Executive Director of the Aldersgate Group said: “The only way the UK can credibly protect its economy from climate risks and get on track for achieving net zero emissions is by making climate change a top priority for all government departments and supporting this with detailed and timely policy plans. Today’s Progress Reports from the Climate Change Committee show that this is clearly not the case at present.

"This parliamentary term is critical for meeting the UK’s climate and adaptation targets and doing so in a way that delivers supply chain growth and job creation across the country. The extent to which the UK can minimise the costs and maximise the economic opportunities from the net zero transition and adapting to climate change will ultimately depend on the policy decisions that the Government makes in the years to come.”  

Nick Molho added: “Whilst some welcome progress has been made in cutting emissions in the power sector, our extensive engagement with businesses show that there is a critical lack of policy measures to drive low carbon investment in buildings, transport, agriculture and heavy industry. The Government can answer these concerns by publishing a detailed and cross-sectoral Net Zero Strategy ahead of COP26 and carefully co-ordinating this Strategy with the funding plan to be published by the Treasury as part of its Net Zero Review. [2]” 

- ENDS -

[1] The Climate Change Committee’s Progress Reports on climate change mitigation and adaption will be published at 00.01 on Thursday 24 June.

[2] As part of a major project with Frontier Economics and University College London, the Aldersgate Group will be publishing detailed reports in early September, setting out key policy decisions to successfully decarbonise UK heavy industry and maximise economic opportunities in the process.

CIRCLE-parliament

UK should seize unique opportunity to green its financial system

22nd June 2021

In a new report published today [1], the Aldersgate Group urges the Government to use the UK’s current leadership position on climate change and the environment, and its ongoing review of financial services regulations [2], to embed environmental sustainability into the rules governing the UK’s financial system and influence similar changes to international rules and standards. The Group also calls for the publication of more detailed and comprehensive policy commitments to accelerate and lower the cost of private investment in the low carbon and nature restoration projects needed to meet the UK’s climate and environmental targets.

The report – which is based on extensive engagement with leading financial institutions, FTSE100 businesses and civil society organisations – sets out a range of recommendations to: (i) more deeply embed climate and nature restoration targets into the decision-making of financial institutions, businesses and Government; (ii) accelerate and lower the costs of private investment in green projects; and (iii) work closely with international partners in areas of mutual interest, such as carbon trading, disclosures and green taxonomies.

~ The key findings of the report will be discussed at a webinar on Tuesday 22 June at 9.30am with John Glen MP, Economic Secretary to the Treasury, and a range of senior speakers from the business, financial institution and NGO community. [3] ~

The UK Government has made welcome commitments on green finance since the publication of the Green Finance Strategy in 2019, including mandating that disclosures are aligned with the recommendations of the Taskforce on Climate-Related Financial Disclosures (TCFD) by 2025, and launching the new UK Infrastructure Bank with a mission to support the delivery of the net zero target. The Government has also rightly identified mobilising green finance as one of the four key themes at COP26.

However, climate and environmental considerations are still not sufficiently embedded in the UK’s financial system, with only a third of Prudential Regulation Authority-regulated banks and building societies having a science-based target or net zero strategy. [4] Whilst private investment into low carbon and environmental projects is on the rise, it remains insufficient, with some complex projects facing significant market barriers in areas such as heavy industry and nature restoration. This comes at a time when the Climate Change Committee estimates that some £50bn in additional infrastructure investment will be needed every year from 2030 onwards to put the UK on track for the Sixth Carbon Budget and its 2050 net zero emissions target. [5]

In light of these challenges, the Aldersgate Group’s latest report Financing the future sets out a range of recommendations to put the whole financial sector on track to deliver the UK’s net zero and environmental targets, whilst simultaneously unlocking private investment to drive low carbon innovation, supply chain growth and job creation across the UK. The report highlights that the ongoing review of the regulatory framework governing the UK’s financial services sector – made necessary by the UK’s departure from the EU – provides an opportunity for the UK to lead the way in incorporating environmental sustainability into the regulatory framework governing its financial system and, in doing so, influence key changes to the international financial rules and standards.

Key recommendations include:

Accelerating the take-up of climate-related disclosures

  • The Government should support a review of existing guidance, standards and definitions governing climate-related disclosures (including the TCFD, Streamlined Energy and Carbon Reporting, and the Carbon Disclosure Project) to ensure a more rapid take-up and greater consistency and comparability between disclosure requirements. The report also calls on regulators to provide guidance to improve voluntary reporting of scenario analysis under the TCFD, with a view to introducing mandatory scenario analysis from 2025.

Embedding climate and environmental targets at the heart of the financial system

  • The Government, Bank of England and the Financial Conduct Authority should consult on a roadmap to introduce regulation that requires financial institutions to produce net zero targets and transition plans in the 2020s, with regulation starting no later than 2025. Part of this consultative process should involve regulators providing guidance to support and encourage all sub-sectors of the financial services industry to publish net zero transition plans and targets on a voluntary basis, with guidance to be published no later than 2022.
  • Pension fund managers should be required to automatically enrol new beneficiaries into Paris Agreement-aligned pensions funds and proactively engage with existing beneficiaries to outline the benefits of transferring fund holdings into Paris-aligned funds and environmental, social and governance (ESG) schemes.
  • UK policy makers and regulators should work together to set capital treatment for banks and insurers in a way that reflects the long-term risks of assets to financial stability, to incentivise more strategic asset allocation in environmentally sustainable assets and a transition away from high carbon or environmentally damaging assets.

Maximise the impact of public finance to crowd in private investment

  • Maximise the impact of targeted public finance to crowd in private finance in complex low carbon and environmental projects [6]. In particular, the recently launched UK Infrastructure Bank (UKIB) should be strengthened by including environmental resilience as part of its mandate, ensuring that it is able to tackle different market failures as market conditions evolve and by increasing its capitalisation over time. There should be a joined-up strategy to ensure that the focus of the UKIB and the Government’s green sovereign bond issuances are carefully co-ordinated to maximise the impact of public finance in overcoming market barriers.

Introducing strong policy signals to accelerate private investment in low carbon infrastructure and nature restoration projects

  • The Government should accelerate and lower the cost of private investment in low carbon infrastructure and services by publishing a detailed and cross-Government net zero delivery strategy ahead of COP26. This should set out the key policy decisions that will be adopted over the next five to ten years on a sector-by-sector basis to put the UK on a credible pathway towards its net zero target. [7]
  • The Group also calls for more ambition on carbon pricing and in particular a strengthening of the UK Emissions Trading Scheme (UK ETS). This should include Government rapidly consulting on the alignment of the UK ETS with the net zero target, setting a rising carbon price trajectory throughout the 2020s, gradually phasing out free emission allowances and expanding the scope of the scheme to a growing number of economic sectors where feasible.
  • Building on the Dasgupta Review commissioned by HM Treasury, urgent efforts should be made to embed the value of nature into economic policy and investment decision making and accelerate private investment in nature restoration projects. This requires strengthening the target setting and delivery process in the Environment Bill, making reporting in line with the new Taskforce for Nature-related Financial Disclosures (TNFD) mandatory in the 2020s, and working towards the introduction of a mandatory requirement for businesses to prepare and publish biodiversity loss mitigation and adaptation targets, and associated transition plans.

Influencing international rules and standards and driving global collaboration on green finance

  • Building on domestic reforms, the UK should use its leadership position on the global climate agenda following the G7 summit and its presidency of COP26 to encourage a greater focus on environmental and climate considerations in the rules and standards governing international financial markets. This should include collaborating with key international partners, including the EU, on areas of common interest such as the development of green taxonomies and climate and nature-related disclosure requirements.
  • The UK should use its presidency of COP26 to finalise a rule book for international carbon trading under Article 6 of the Paris Agreement. The Aldersgate Group would also welcome the restoration of the historical commitment of 0.7% of Gross National Income on Overseas Development Aid, to demonstrate the UK’s dedication to international climate finance.

Nick Molho, Executive Director, Aldersgate Group said: “Meeting the UK’s net zero emissions and nature restoration targets is a significant investment challenge, most of which will be met by the private sector. Providing clear policy commitments and fully embedding the UK’s climate and environmental targets in the way the financial sector operates are key to attracting the level of private investment we need and lowering the cost of finance. The regulatory review made necessary by the UK’s departure from the EU provides the UK with the opportunity to be a world leader in greening the rules governing its financial system and becoming a genuinely world class centre for green finance; the Government should seize it.”

Ian Dickie, Director at eftec, said: “The potential environmental markets on biodiversity, carbon and nutrients etc are now real. The Government needs to provide clear rules, adequate governance and invest to leverage private finance; this will give confidence to investors and benefit the environment. The Aldersgate Group message, that good environmental regulation is good for the economy, has never been more relevant".

Stephanie Maier, Global Head of Sustainable and Impact Investment, GAM Investments, said: “The recent Net Zero by 2050 report from the International Energy Agency provided compelling evidence of the enormous effort that will be needed to decarbonise the sector; private finance and investment have a pivotal role in supporting both this and the transformation of the whole economy. This report from the Aldersgate Group sets out recommendations for Government and financial regulators to facilitate and accelerate this transformation by capitalising on the opportunity presented by COP26.”

Raphaëlle Vallet, Manager, Sustainable Finance, Green Investment Group, said: “Achieving Net Zero requires a colossal effort across the public and private sectors. We urgently need to mainstream sustainability throughout policy frameworks and investment decisions. Aldersgate Group’s report is an excellent contribution to the agenda, with practical steps that will help drive finance towards a net zero future.”

Sam French, Business Development Director, Johnson Matthey, says: “The recommendations for financing green projects and infrastructure in Financing the future are critical to accelerate innovation in areas such as hydrogen and CCUS, and drive emissions reductions across the UK. In particular, it is vital that the Government uses carbon pricing as a tool to drive funding towards low carbon technologies, by aligning the UK Emissions Trading Scheme (ETS) with net zero and the EU ETS, and giving stability to businesses through a carbon pricing escalator. In addition, developing supportive business models for hydrogen and CCS will be essential to enable businesses to invest in these new markets allowing the UK to position itself as a leader in both deployment and the associated supply chain.”

Paul Morling, Economist at the RSPB, said: “Our future economic prosperity depends on the choices we now take to build back better from Covid and the centrality of climate and nature in recovery strategies. Greening finance is an urgent priority and this report sets out the necessary actions to effect the sustainable transition we need to see for our wellbeing, future generations and nature.”

Bevis Watts, Chief Executive Officer at Triodos Bank, said: “We are pleased to support the findings of this important report. We welcome the calls to support investment in areas such as nature-based solutions, but while increasing interest in the environmental crises and net-zero is encouraging, we now need a step change in the ambition of the financial sector to have any hope of meeting the scale of the challenges we face. Achieving this will require drastic changes to the structures of our financial systems and the regulation that supports it.

Robust, science-based net zero targets are critically important and we also need to recognise the inherent value of our environment and the challenge we have to redesign systems to reflect much more than a financial bottom line. It is time for the finance sector to play its role and use more imagination in how economic outcomes can be linked to investment in nature alongside the broader social needs outlined in the UN Sustainable Development Goals. This is central to developing a new economy built on values rather than value, and that has an integral connection to societal health and environmental limits.”

Julia Barrett, Chief Sustainability Officer at Wilmott Dixon, said: “Private sector investment will be essential in helping the UK meet its climate and environmental objectives and secure a green recovery, as today’s report by Aldersgate Group makes abundantly clear.  For businesses, the publication of a comprehensive and joined-up Net Zero Strategy by Government ahead of COP26  will be fundamental to demonstrate the direction of travel for each sector in the run up to 2050, helping them allocate capital in the most efficient way to meet these milestones. 

In the construction sector specifically, binding regulatory standards and tax incentives to drive investment in energy efficiency and low carbon heat in existing buildings will be key. Furthermore well-designed and properly enforced, ambitious environmental regulations will help mobilise investment in the infrastructure, innovation, skills and supply chains needed for the whole sector to meet net zero.”

-ENDS-

[1] The new report Financing the future: Driving investment for net zero emissions and nature restoration is available here. The report was developed with the support from the Centre for the Understanding Sustainable Prosperity (CUSP).

[2] The ongoing Financial Future Regulatory Framework Review considers how the regulatory framework governing the UK’s financial services sector needs to evolve to reflect the UK’s position outside the EU. More information is available here.

[3] The report will be debated at an event from 9.30am to 11.00am on Tuesday 22 June, with panellists from multiple business sectors. You can register here.

[4] PwC (October 2020) Rising to the challenge: climate risk in the UK banking sector, available here.

[5] Currently, the UK is seeing a major investment gap in both low carbon infrastructure and natural capital. Research from the Climate Change Committee (CCC) has estimated £50 billion of annual additional investment will be required from 2030 onwards to deliver the net zero target, in addition to current economy-wide annual investment of just under £400 billion. The largest increases in investment are needed for building low carbon power capacity, retrofitting buildings, developing batteries and putting in place the required infrastructure for electric vehicles. The Institute for Public Policy Research has estimated that nature restoration alone could need as much as £4.7 billion of additional funding each year.

[6] The crowding in theory of change is based on the principle that rising public spending and Government borrowing drives up private sector demand and spending in areas of the market which have typically been low. This can be achieved by, for example, de-risking new technologies, or “creating a market in the gap” where market failures have existed for a long time.”

[7] In October 2020, the Aldersgate Group published a report outlining the policy detail for decarbonising each sector, titled Building a net zero emissions economy: Next steps for government and business. The report is available here.

 


Launch of the UK Infrastructure Bank marks important milestone for recovery and net zero

17th June 2021

Reacting to the launch of the UK Infrastructure Bank, Nick Molho, Executive Director at the Aldersgate Group, said: “The creation of the UK Infrastructure Bank is a vital and strongly welcomed intervention at a time where the UK economy needs to recover from the disruption brought about by the pandemic and put itself on track for net zero emissions. The Bank has a key role to play in crowding in much needed private investment towards crucial and complex low carbon projects and industries, which can drive innovation, supply chain growth and job creation across the country. However, with the Committee on Climate Change [1] highlighting yesterday that the UK is poorly prepared to deal with the impacts from climate change, it is essential that the Bank also has climate adaptation and nature restoration as a key part of its mandate. It is also key that the Bank be set up as an enduring institution, with the flexibility to tackle different market failures over time as market conditions evolve and with a gradual increase to its capitalisation to ensure that it has the right financial firepower to carry out its mission effectively and tackle the significant market barriers ahead.”

- ENDS -

[1] Climate Change Committee (2021) Independent Assessment of UK Climate Risk

Northern-Powerhouse

Future business resilience depends on urgent climate adaptation measures

16th June 2021

Reacting to the Climate Change Committee’s advice, Nick Molho, Executive Director of the Aldersgate Group said: “Today’s high-quality analysis from the Climate Change Committee makes it abundantly clear that adapting to climate change is an environmental and economic imperative. In addition to devastating impacts on species and habitats, climate change will, without further urgent action, significantly disrupt the UK’s critical infrastructure, supply chains, food supply and business productivity. Businesses are clear that climate adaptation and the delivery of the UK’s net zero emissions target should both be cross-departmental priorities and be fully embedded across all areas of Government policy making.”

Nick Molho added: “A key message from today’s report is that restoring the natural environment – including soils, peatlands, wetlands and forests – will significantly improve the UK’s ability to cope with climate change as well as provide much needed negative emissions to deliver the net zero target. The Environment Bill could play a crucial, positive role here and we urge the Government to strengthen it by introducing binding interim targets that will drive rapid investment in nature restoration projects.”    

Nick Molho concluded: “Businesses also have an important and pro-active role to play in improving the future resilience of the economy. This should include regularly monitoring and disclosing their vulnerability to the physical and regulatory impacts related to climate change, reviewing the environmental impacts and resilience of their supply chains, incorporating climate change adaptation in everyday investment decisions and large corporations supporting smaller businesses in their supply chains to develop adaptation strategies.”  

CIRCLE_pexels-dominika-gregušová-672532

Regulatory reform needs to recognise economic benefits of ambitious climate and environmental regulations

16th June 2021

In response to the report produced by the Taskforce on Innovation, Growth and Regulatory Reform, Signe Norberg, Head of Public Affairs and Communications at the Aldersgate Group, said: “Regulation is a vital part of ensuring the competitiveness of UK industry, creating jobs, increasing innovation and driving investment in crucial technologies and goods. We welcome the Taskforce’s recommendation on reforming the UK regulatory framework for energy generation and distribution in line with the Government’s climate ambitions. However, while the report examines areas to modernise regulation and highlights important areas of innovation, such as transport, energy and finance, it fails to adequately incorporate Government’s environmental objectives and net zero ambitions, which will be essential to ensure that the UK builds back greener and creates a green industrial revolution.”
 
Signe Norberg added: “Businesses support ambitious, forward looking, well joined-up and properly enforced environmental regulations, policies and market mechanisms. [1] They are essential to creating a stable environment in which businesses can invest. Previous regulatory efforts have been insufficient in assessing wider social and environmental impacts [2], and to ensure we meet our objectives it is crucial that climate and environmental objectives are placed at the heart of the Government’s regulatory reform agenda.”

- ENDS -

[1] Buro Happold (2021) Fostering Prosperity: Driving innovation and creating market opportunities through environmental regulations, commissioned by the Aldersgate Group
[2] National Audit Office (2016) The Business Impact Target: cutting the cost of regulation

CIRCLE_shutterstock_1192264885

Business coalition calling for the Planning Bill to deliver net zero and protect nature

14th June 2021

More than 100 prominent business leaders have written to the Prime Minister calling for the net zero transition, nature’s recovery, and climate resilience to be at the heart of the UK’s new planning system.

The letter, which has been co-ordinated by the Aldersgate Group and UK Green Building Council (UKGBC), welcomes the government’s commitments to addressing the housing crisis and reaching net zero by 2050. To ensure it meets its housing targets and environmental commitments, it is vital that the Planning Bill drives a strategic approach to the net zero transition, ensuring that development that is resilient to the impacts of climate change, and that nature can be supported and restored.

The signatories therefore call on the Prime Minister to ensure the new Planning Bill directly aligns with the obligations under the Climate Change Act and plans to reverse nature's decline in the Environment Bill. The letter highlights how planning can play a fundamental role in meeting the Government’s new homes target, achieving its environmental goals, and delivering the infrastructure that is needed for the transition to a decarbonised, climate-resilient economy.

The letter calls for:

  • The new Planning Bill to align directly with, and support, the UK’s net zero target and ambitions for nature set out in the Environment Bill.
  • Clarity on how land allocated for ‘growth’ will be compatible with achieving net zero, securing nature’s recovery and delivering development resilient to the impacts of climate change.
  • Genuinely enhanced levels of protection in planning for designations in the Envrionment Bill intended to support nature’s recovery.
  • Increased resourcing and skills support for local planning authorities, in order to support their abiltiy to set local targets, and deliver across multiple objectives in their local areas.  

The letter has been sent to the Prime Minister, alongside Secretaries of State Rt Hon Robert Jenrick MP, Rt Hon George Eustice MP and the Chancellor of the Duchy of Lancaster the Rt Hon Michael Gove MP.

Julie Hirigoyen, Chief Executive at UKGBC, said: “The upcoming Planning Bill has been earmarked as the biggest planning shake up since World War II and represents a critical opportunity to embed a strategic vision for a decarbonised and climate resilient economy, as well as reversing biodiversity decline. Planning is part of a wider system that is currently failing to deliver both the quality and quantity of homes needed to tackle the environmental and social challenges we face, and the upcoming reforms must form part of a coherent, long term commitment by the Government to environmental protection; one that gives developers clarity around low carbon, nature friendly investment.

“The number of businesses coming together to support this letter shows clear demand for climate change to be at the heart of our planning system, and I urge government to listen to industry and match the level of ambition set out in this letter.”

Signe Norberg, Head of Public Affairs and Communications at Aldersgate Group, said: “Reforms to the planning system present an opportunity for Government to not only tackle one of the most significant social challenges facing the country – the housing crisis – but also to ensure that our planning framework actively supports the UK’s climate and environmental ambitions. To reach net zero emissions by 2050 and reverse the decline of the natural environment, it will be essential that the planning system fully integrates these issues at the heart of the new legislation. By setting forward a strategic approach to planning in line with this, Government can unlock private sector investment, create jobs, generate vital low carbon skills, and build homes that are fit for the future.”


Response to Dasgupta Review good first step but further action needed

14th June 2021

Responding to the publication of the Government’s response to the Dasgupta Review, Signe Norberg, Head of Public Affairs and Communications at the Aldersgate Group, said: “It is positive to see the Government taking on board the findings from the Dasgupta Review and in particular the fact that economic and financial policy decision making has a crucial role to play in supporting the restoration of a healthy natural environment and ensuring the long-term resilience of the economy. The response also confirms that biodiversity net gain will apply to nationally significant infrastructure projects in England, which is an important development that helps bolster this important provision in the Environment Bill.”

Signe Norberg added: “However, today’s response does not amount to the necessary step change called for by Professor Sir Dasgupta. It is vital that the response goes further and clearly lays out a cross-departmental plan with a range of commitments that support the mainstreaming of nature into economic decision making. In addition to contributing to the Better Regulation Framework and supporting the development of nature-related financial disclosures, it is important that the whole of Government takes on the challenge posed by the Review and introduces new measures in the near and long term to support nature’s recovery. An ambitious Environment Bill, with binding interim targets and environmental improvement plans focused on delivering these targets, can play a key role in driving investment to restore the natural environment to the healthy status that our economy and society need.”

Bee-On-Flower

Strengthened Environment Bill key to reach net zero and tackle biodiversity crisis

18th May 2021

In reaction to the Environment Secretary’s speech on nature, Signe Norberg, Head of Public Affairs and Communications at the Aldersgate Group, said: “It is positive to see a strong commitment today from Government on nature, highlighting the importance of biodiversity, peatlands and trees in delivering on our net zero target. To support net zero and tackle the biodiversity crisis, it will be important to see further improvements to the Environment Bill. In addition to the new species target, the Bill must be strengthened by legally binding interim targets and clearer links between environmental improvement plans and long-term targets. Finally, to realise the vision of the Dasgupta Review, Government needs to champion this agenda and its formal response needs to set out a clear action plan that details next steps for Government, business and civil society.”

CIRCLE_pexels-akil-mazumder-1072824

Global commitment to a green recovery and progress on carbon trading and climate finance key to successful COP26

14th May 2021

In response to the publication of the UK Government’s COP26 strategy, Nick Molho, Executive Director of the Aldersgate Group, said: “The UK is right to place a strong emphasis on delivering the 1.5 degree goal of the Paris Agreement and send a clear message on phasing out the use of coal globally. This approach is clearly supported by science and countries should aim for more ambition, not less, ahead of this important summit. Plans to push for all new car sales to be zero emissions by 2040 globally and radically increasing international finance to deliver on climate initiatives are also vital.” 
 
Nick Molho added: “However, recent analysis from the International Energy Agency tells us that many parts of the world are pursuing economic stimulus investments that are taking us away from the 1.5 degree goal. To close the gap, it is essential that the UK presidency continues its diplomatic efforts to secure increased climate commitments from the world’s key emitters and a global commitment to pursue and co-operate on delivering a green economic recovery from the COVID-19 crisis.”
 
Nick Molho concluded: “The confirmation that COP26 will be held in person sends a strong signal for international diplomatic negotiations in the months ahead. Particular areas of focus for negotiations must include finalising a rule book for a credible global carbon trading system under Article 6 of the Paris Agreement as well as delivering on today’s commitment to provide climate finance support for developing economies, which are often disproportionately impacted by the growing impacts from climate change. The UK can also strengthen its influence globally by publishing a detailed net zero delivery strategy well ahead of COP26, in a way that provides a clear policy plan for UK businesses and serves as a credible exemplar for other major economies to follow.”

—ENDS—

CIRCLE_pexels-laura-penwell-3608056

Nature restoration and net zero emissions central to national recovery

11th May 2021

Following today’s State Opening of Parliament and Queen’s Speech, the Aldersgate Group calls on Government to embed climate and environmental considerations at the heart of the levelling up agenda.

Nick Molho, Executive Director at the Aldersgate Group said: “The Queen’s Speech clearly set out the importance of delivering a national recovery from the pandemic and spreading economic opportunities across the country. Climate and environmental objectives are central to generating the geographically disperse investment and job creation the UK needs, and they should therefore be embedded at the heart of the Government’s legislative and policy programme.

“The first step must be to urgently bring forward the Environment Bill to progress vital amendments that will strengthen the Bill and allow for robust delivery of environmental targets. These include making interim targets binding and enhancing the linkages between the forthcoming environmental improvement plans and long-term targets. It is also crucial that the changes to procurement and planning policy announced today are consistent with and actively support the UK’s climate and environmental goals.”

Nick Molho added: “Alongside its legislative programme, it is critical that the Government further develops credible policy programmes to deliver on its net zero ambition in this parliamentary session. The highly-anticipated net zero strategy and Treasury’s net zero review must, together, provide a clear policy and funding plan to achieve net zero emissions and maximise opportunities for the economy in so doing.”
 
Nick Molho concluded: “Plans to spark a skills ‘revolution’ unveiled in the speech must prioritise delivery of a low carbon workforce that can drive the net zero transition. Government should carefully consider the upcoming recommendations from the Green Jobs Taskforce to prevent the supply chain issues that hindered the rollout of the Green Homes Grant.”  

—ENDS—

CIRCLE_pexels-dominika-gregušová-672532

Next parliamentary session vital to advance climate and environmental objectives

10th May 2021

Ahead of State Opening of Parliament and the Queen’s Speech on Tuesday 11 May, the Aldersgate Group calls on Government to place the Environment Bill at the top of its legislative programme. Nick Molho, Executive Director at the Aldersgate Group said: “The Environment Bill must return to Parliament at pace to ensure that the UK establishes an ambitious environmental governance regime which will help reverse the decline of the natural environment. The Bill itself should also be strengthened through the introduction of binding interim targets that ensure continuous action to improve nature, the inclusion of an overarching target which helps guide long-term targets, and guarantees to safeguard the Office for Environmental Protection’s independence.”
 
Nick Molho added: “Climate and environmental objectives should also be embedded in the Government’s levelling up agenda to ensure that areas such as planning and public procurement contribute towards the UK’s ambitious targets. Incorporating these issues as a core part of the Government’s legislative agenda will help boost economic opportunities across the country and create jobs.”
 
Nick Molho concluded: “A clear funding strategy from Treasury and a policy programme focused on delivering the UK’s net zero target must also be priorities in the forthcoming parliamentary session. The highly anticipated net zero strategy needs to set out a detailed cross-sector plan across all government departments of what measures will be required in the near future. It must provide a sector-by-sector analysis and ensure that the Government’s economic and industrial policy, as well as its infrastructure spending decisions, are all fully aligned with this target.”

—ENDS—

CIRCLE-parliament

International climate commitments send a strong signal ahead of COP26

23rd April 2021

Reacting to the conclusion of the Leaders Summit on Climate hosted by US President Biden, Nick Molho, Executive Director of the Aldersgate Group, said: “The Leaders Summit on Climate has made a material contribution towards improving the outlook for COP26. The United States have sent a strong signal through their much improved target, with more positive contributions coming from the likes of Japan, Canada and China. The UK Government, which played its part by adopting the target set out in the Sixth Carbon Budget, must now drive increased pledges from all key emitters as well as a doubling down on key outstanding issues, such as climate finance for vulnerable nations and agreeing a clear rule book for carbon markets under the Paris Agreement." 

Nick Molho added: “The International Energy Agency made clear this week that on current trends, 2021 will result in the second biggest annual rise in emissions in history. The UK Government should use its leadership position as host of COP26 to obtain a commitment from all major economies to align economic stimulus investments with the goals of the Paris Agreement and collaborate on delivering a green economic recovery from the COVID-19 crisis. To maximise its influence in the run up to the COP26 climate summit, the UK should also match its ambitious climate targets with a comprehensive and tangible policy plan that will put all sectors of the UK economy on a credible pathway towards net zero emissions. This will serve as a credible example for other major economies to follow.”

CIRCLE_pexels-laura-penwell-3608056

Welcome climate commitment must now be supported by detailed net zero strategy 

20th April 2021

Reacting to the announcement that the UK Government will set an emissions reduction target of 78% by 2035, Nick Molho, Executive Director of the Aldersgate Group, said: “The Government should be commended for adopting the ambitious and evidence-based recommendations from the Climate Change Committee for the Sixth Carbon Budget. The emission cuts set out in the Budget represent essential next steps the UK needs to take to ensure a credible, cost-effective, and timely pathway to net zero emissions by 2050. The inclusion of the UK’s share of international aviation and shipping emissions is a particularly welcome addition, and will help to accelerate the development of sector-specific decarbonisation plans.

"Focus must now turn to strengthening the UK’s policy framework to meet this new target, by putting in place a detailed and cross-departmental net zero strategy that will drive private investment in low carbon goods and services, supply chains, jobs and skills.”

CIRCLE_2pexels-naveen-annam-1581693

Reaction to the termination of the Green Homes Grant

28th March 2021

Reacting to the end of the Green Homes Grant, Nick Molho, Executive Director of the Aldersgate Group, said: "The premature end of the Green Homes Grant is a significant disappointment. Improving energy efficiency and slashing heating emissions from the UK’s homes is a vital, foundational step on the journey to achieve net zero emissions. It is also one of the most promising avenues to create jobs in the near-term as the UK economy recovers from the impact of the pandemic. There are many reasons for the difficulties encountered by the Grant, a key one being the lack of an adequately skilled supply chain, itself caused by the absence of a long-term policy on energy efficiency and low carbon heat for many years now."

Nick Molho added: "Beyond the funding provided to local authorities for low income households, the Government must rapidly provide a new, long-term solution for ‘able to pay’ homes. This must include urgent investment to develop energy efficiency and low carbon heat installation skills across the supply chain, binding regulatory standards to require all UK homes to operate at low levels of carbon emissions by 2035, and targeted fiscal or funding incentives to make it attractive for home owners to green their houses. An ambitious Future Homes Standard policy will also be essential to ensure all new homes are ultra-low carbon from the outset. Without a detailed and long-term policy to drive low carbon investment in homes and buildings, the UK will simply not be able to put itself on a pathway to net zero emissions."

solartexas

Net zero strategy and low carbon skills crucial for oil and gas decarbonisation

24th March 2021

Reacting to the North Sea Deal, Nick Molho, Executive Director of the Aldersgate Group said: “This North Sea Deal recognises the importance of helping all key economic sectors and their workforce transition towards net zero emissions and is therefore an important step forward. With the right policy framework and low carbon skills strategy, the move to net zero emissions can create significant employment opportunities for the UK’s oil and gas workforce, whose skills will much needed in contributing to the huge infrastructure deployment challenge facing the UK in areas such as marine renewable energy, carbon capture and hydrogen. Putting in place a detailed net zero strategy in the near future will be key to ensuring that the transition to net zero emissions can occur in a timely fashion and in a way that delivers economic and social benefits to the UK.”
 
Nick Molho added: “Tackling the net zero emissions challenge in a way that is credible and effective requires the UK’s domestic and global climate policy to be consistent. We strongly welcome the UK’s commitment to stop funding fossil-fuel projects overseas and would call on any exceptions to be strictly limited, based on transparent and very tightly defined criteria.”

Oil & Gas

Aligning CAP with the Paris Agreement

22nd March 2021

In a paper published today, the Aldersgate Group joins an alliance of investors to call on the European Union to align reforms to the Common Agricultural Policy (CAP) with European Climate Law and the Paris Agreement.

Representing €2 trillion of assets, the alliance highlights four recommendations to promote enhanced carbon mitigation and negative emissions. It will also enhance resilience for climate adaption, biodiversity and global food security. These recommendations are:

  1. Encourage use of enforceable performance-based targets which link support to member states and farmers, commensurate with the cost of delivering public good or environmental services;
  2. Shift away from incentives that prioritise yields at the expense of the climate and environment, and balance this with new monetary incentives that put a value on sustainable agriculture;
  3. Decouple support from production metrics for single commodity transfers with high associated greenhouse gas emissions (e.g. beef and dairy);
  4. Apply the Just Transition Mechanism to support farmers’ social and economic well-being, where impacted by CAP reforms.

If implemented, these recommendations would unlock the potential for private finance to have a transformative impact on the sector by supporting the decarbonisation agricultural and land-use practices. The recommendations are derived from the paper, which was authored by Legal & General Investment Management and experts at Chatham House.

In publishing the paper, Nick Molho, Executive Director at the Aldersgate Group, said:
“The Common Agricultural Policy could be used as a powerful tool to drive a thriving European agricultural sector, whilst also delivering significant environmental improvements. Business and investors are today coming together to call for an ambitious programme that will not only support sustainable food production but also promote public goods such as nature restoration, biodiversity net gain and a reduction in greenhouse gas emissions. The EU’s commitment to climate neutrality by 2050, its ambitious commitments on biodiversity restoration by 2030 and the overall ambition of the European Green Deal all provide a unique – and long awaited - opportunity to align agricultural and land use policy with the EU’s climate and environmental goals.”

Alexander Burr, ESG Policy Lead at Legal & General Investment Management, said: "We are all becoming increasingly alert to the size and scale of risk that climate change poses to sustainable economic growth. As long-term investors, and stewards of our clients’ assets, we engage with businesses across the food and agriculture sector to help them transition towards a net-zero economy. However, to truly effect change we seek stronger action from policymakers. Working with this alliance, we at LGIM, view the reform of the EU CAP as an opportunity for the EC to once again be bold and ambitious; and, we should demonstrate to the world how agricultural subsidies can support – and not undermine - the transition."

Tim Benton, Director of Energy, Environment and Resources Programme at Chatham House: "The EU is taking steps to align the land-use sector with the Paris Agreement through the Green Deal and the updated Bioeconomy Strategy. By encouraging climate to be at the heart of its subsidy packages, alongside food security, farmer wellbeing and dietary health, the Common Agricultural Policy could work in tandem with these other strategies if ambitiously applied. The EU can support a land-based economy that works for people and planet and create a system that prioritizes not just output but food quality."

Helena Wright, Policy Director at FAIRR said: "Governments have committed under Article 2.1c of the Paris Agreement to make finance flows consistent with a pathway towards low greenhouse gas emissions, and there is no way to achieve that without transformation of the animal agriculture sector. Current EU agricultural subsidies are not aligned with climate or biodiversity objectives. Investors recognize that CAP reform is critical for the agriculture and food sector itself which faces hugely increased costs of water, feed, and infrastructure damage due to more extreme weather events."

Faith Ward, Chief Responsible Investment Officer at Brunel Pension Partnership, said: "For the EU to meet its own climate targets and move in line with the Paris Agreement targets, it urgently needs to reform the Common Agricultural Policy, agreeing stronger enforcement measures, removing misaligned incentives and ending support for high-emission commodities. I support the recommendations of this letter to bring meaningful reform to the CAP based on our shared climate goals"

Peter van der Werf, Senior Engagement Specialist at Robeco, said: "Robeco has been engaging with large-scale agricultural producers for many years in our program to improve sustainability in the meat and fish supply chain. We can’t solve these issues alone, and some of the main barriers for further improvements in sustainability have to be resolved by policy makers. We have started engaging with the Brazilian government to ensure environmental protection is enforced. At the same time it’s equally important is to achieve subsidy reform of the Common Agricultural Policy (CAP) in Europe to ensure that any subsidies provide the right incentives for farmers to align with the Paris Agreement. Ultimately the CAP should achieve a circular business model for farmers that provides a sound economic basis for their farming operation."

Nina Roth, Director for Responsible Investment at BMO Global Asset Management, said: "BMO Global Asset Management is engaging companies along the food and agriculture value chain, including its financiers, on improving sustainable practices to combat climate change and biodiversity loss. Strong incentives in the CAP are vital for transforming the industry."

Ben McCarron, Managing Director at Asia Research & Engagement, said: "We support these recommendations as a stronger approach to environmental management in the agricultural sector is needed to meet global targets for climate and create a stronger food industry. There needs to be stronger incentives to improve the way land is treated, not to degrade it."


« Previous 1 | 2 | 3 | 4 | 5 | 6 | 7 Last »