The Aldersgate Group, which sits on the Green Finance Taskforce (GFT), urges the government to rapidly implement the GFT’s recommendations published today. However, based on the findings of its recent report , the Group warns that these recommendations will only be fully effective if the government also provides the policy detail that is needed under the Clean Growth Strategy and 25 Year Environment Plan to create a pipeline of green infrastructure projects which can be invested in.
Nick Molho, Executive Director at the Aldersgate Group said: “Today, the Green Finance Taskforce recommends a comprehensive set of measures which, if implemented together, will make investment in green infrastructure projects more attractive. The recommendations for government to develop a National Capital Raising Plan, increase fiscal incentives for investment in green projects, require investors to consider environmental risks and make it compulsory for businesses to disclose how they are coping with climate change risks are all critical to moving the needle on green finance. The Taskforce has suggested a wide range of actions beyond the top recommendations, which the government should consider in full.
However, to be fully effective, implementation of these recommendations must be accompanied by more policy detail under the Clean Growth Strategy and 25 Year Environment Plan. If we want financial institutions to ‘green’ their investments, there needs to be a pipeline of green infrastructure projects for them to invest in. This will only happen if government provides more clarity in the coming months on the regulations and incentives that will be introduced to encourage investment in the energy efficiency of buildings, on- and offshore wind, low carbon heat, electric vehicles and the natural environment.”
 Aldersgate Group, Towards the new normal: Increasing investment in the UK's green infrastructure, March 2018. Following a one-year project with businesses and investors, this report identifies the key barriers to greater investment in green infrastructure in the UK and makes key recommendations for government to grow investment in green infrastructure at the speed and scale needed to meet the objectives of the Clean Growth Strategy and 25 Year Environment Plan.
Today, the Aldersgate Group publishes a new report Towards the new normal: increasing investment in the UK’s green infrastructure. This report, which concludes a one-year research project underpinned by multiple interviews with businesses and investors, argues that overcoming the barriers currently limiting private investment in green infrastructure is essential to delivering the Government’s economic, industrial and environmental policy objectives. It sets out key recommendations for government, businesses and investors to unlock greater volumes of private investment to meet the objectives of the Clean Growth Strategy, Industrial Strategy and 25 Year Environment Plan.
This report will be launched at an event hosted by Bank of America Merrill Lynch at 11.30 on Monday 12th March .
Increasing private investment in green infrastructure represents a huge opportunity for the UK. It is a growing market for the professional services industry, and is a crucial way of reducing the cost of capital to meet the UK’s environmental and industrial policy objectives, presenting a significant opportunity in terms of job creation and potential exports. There is real urgency: up to £693bn investment in low carbon infrastructure will be needed by 2031 in the UK  to deliver policy objectives, with $90tn needed worldwide over the next 15 years .
To tackle the huge investment needs ahead and maximise the opportunities from a growing green investment market, this report puts forward 30 recommendations for government, business and investors. In particular, the report recommends that the UK government should:
Commit to support the growth of green investment over the long term through the Clean Growth Inter-Ministerial Group, with a stated remit to boost green finance up to and beyond the delivery of the fifth carbon budget
Set long-term visibility and transparency on policy direction through multi-year, cross-party frameworks, as has been the case with carbon budgets and the coal phase out, noting that after Brexit, EU-led policy drivers for investment may cease to apply. Government should build on the progress made in the Clean Growth Strategy (CGS) and 25 Year Environment Plan (25YEP) with greater policy detail to deliver ambitions, such as through measures to ensure all existing homes reach a level of energy efficiency of EPC band ‘C’ by 2030
Engage a wider base of investors by establishing the potential size of the market for different infrastructure needs within the CGS, 25YEP and forthcoming Resources and Waste Strategy, such as expected spending on low carbon transport infrastructure, to help clarify the investment opportunity
Expand UK reporting requirements to capture a larger set of reporting companies in the immediate term, and set a medium-term target for mandatory introduction of the recommendations from the Taskforce on Climate-related Financial Disclosures (TCFDs)
Adjust financial regulations to encourage long-term investment in green infrastructure, including through introducing a legal duty for all fiduciaries (such as pension fund trustees) to consider financially material environmental and social governance (ESG) risks and considering how a green supporting factor could help address market barriers arising from capital weighting requirements
Introduce flexible and smart regulation to generate reliable revenue streams for investment in newer or complex markets like natural capital and energy efficiency, including a legally binding environmental net gain approach, as promised in the 25YEP, and the resumption of a carbon price escalator from the 2020s
Ensure that all planned infrastructure spending passes a ‘green’ test to avoid locked in emissions and maximise resilience against flooding and future climate-related impacts
Create targeted funds with cornerstone public funding to tackle difficult or less mature investment areas, such as domestic energy efficiency and natural capital, with a requirement to leverage in private capital and recycle funds for reinvestment
Embed sustainability requirements in all public procurement, including supporting local government with standardised Power Purchase Agreements and energy management services contracts
Issue a sovereign green bond and municipal green bonds to help fund the delivery of the 25YEP and CGS and address a potential drop in financing from institutions such as the European Investment Bank
The report, which comes shortly ahead of the publication of the government’s Green Finance Taskforce recommendations, brings together findings from the Aldersgate Group’s year-long project on green finance with the Centre for Understanding Sustainable Prosperity (CUSP) .
The report is released in conjunction with four separate briefings from the Aldersgate Group, which explore in detail several of the specific barriers and solutions to key types of green infrastructure investment: Increasing investment in domestic energy efficiency; Increasing investment in commercial energy efficiency; Increasing investment in low carbon power, and; Increasing investment in natural capital, which was first published in November 2017.
Alex White, lead report author and Senior Policy Officer, Aldersgate Group, said: “Over the next three decades, the UK needs hundreds of billions of private investment in green and resilient infrastructure to meet the objectives of the Clean Growth Strategy, Industrial Strategy and 25 Year Environment Plan. But investment isn’t happening fast enough on its own. Government must catalyse action on green infrastructure investment now to move the financial system towards a new normal if we are to meet our policy goals cost effectively while maximising benefits for UK plc.
This should include making a long-term commitment to address the structural barriers to infrastructure investment in the financial system, helping establish new and profitable markets through targeted government investment in complex green infrastructure areas and, crucially, building an investment pipeline through greater clarity and visibility of future policy.”
Jane Pilcher, Group Treasurer, Anglian Water, said: “We welcome this new report from the Aldersgate Group and its call to support the growth of green investment over the long term. Anglian Water has committed to a range of ambitious environmental goals, including pledging to become a carbon neutral business by 2050. We have already reduced embodied carbon by 55% from a 2010 baseline and we aim to reach 60% carbon reduction by 2020. Based on this work we were able to issue the very first public utility sector green bond and we are pleased that this is featured as a case study in the report.”
Steve Waygood, Chief Responsible Investment Officer, Aviva Investors, said: “At Aviva Investors we are committed to being long-term, responsible investors. We welcome this new report from the Aldersgate Group and its clear and realistic solutions to unlock greater flows of investment in low carbon infrastructure, particularly clarifying fiduciary duty and the need for mandatory introduction of the TCFD recommendations.
We also welcome the call to use the dormant assets within the insurance and investment sectors to introduce a national financial literacy campaign to educate people about how their money is invested and how this shapes the world they retire into. This would help create sustained demand for sustainable investment, helping to grow the UK economy on a longer term and more sustainable basis for the future.”
Tim Jackson, Director, Centre for the Understanding of Sustainable Prosperity, University of Surrey, said: “Prosperity depends on us investing wisely in a resilient, green infrastructure fit for the future. The Aldersgate Group’s new report provides the kind of visionary and yet pragmatic steps required to achieve this task. All we need now is clear-sighted governance to put these recommendations into practice, and to ensure that our financial system works in the service of a sustainable and lasting prosperity for everyone.”
Emma Howard Boyd, Chair, Environment Agency, said: “Some businesses are already alive to the risks and opportunities presented by climate change, but not enough. The UK can show international leadership with financial innovation to counter increased risks from droughts and storms. The Government’s Green Finance Taskforce is currently discussing how to accelerate investment in resilience, so this report is timely and helpful.”
Edward Northam, European Head, Green Investment Group, said: “The UK has made extraordinary progress towards its climate goals for 2020, demonstrating private investors’ appetite for low carbon infrastructure and building a world-leading capability in green finance.
With the nation facing more demanding objectives in the next decade and beyond, this report sets out a collaborative framework for government and investors that could prove vital in managing risk, mobilising capital and securing the next generation of green infrastructure investment.”
Morten Sørensen, Senior Project Finance Specialist - Financial Solutions, MHI Vestas Offshore Wind, said: "The Aldersgate Group's report on green finance provides valuable and quick insight into the finance requirements needed to drive further growth of the UK’s low carbon technologies. These investments are significant and have long repayment horizons. At MHI Vestas Offshore Wind, we share the view that long-term planning and the right policy environment is required, such as through continued CfD auctions to attract greater private sector investment.
This report recommends solutions to bridge the gap in investment between current levels of finance and what we need to meet the UK’s climate targets, and we welcome the report’s support of offshore wind as playing a crucial role in this.”
 Towards the new normal: how to increase investment in the UK's green infrastructure. This event will be held from 11.30am - 1.00pm on Monday 12th March at Bank of America Merrill Lynch, 10 Newgate Street, London, EC1A 7HD. Chaired by Martin Wolf CBE, Chief Economics Commentator at the Financial Times, the event will open with introductory remarks from Abyd Karmali, Managing Director - Climate Finance at Bank of America Merrill Lynch. Panellists include Jane Pilcher, Group Treasurer, Anglian Water; Steve Waygood, Chief Responsible Investment Officer, Aviva Investors; Emma Howard Boyd, Chair, Environment Agency; Gavin Templeton, Head of Sustainable Finance, Green Investment Group; and Peter Highmore, Lead Transaction Manager - Structured Solutions, Ørsted.
 Vivid Economics (October 2011) The economics of the Green Investment Bank: costs and benefits, rationale and value for money
 New Climate Economy (2016) The sustainable infrastructure imperative
 The Centre for Understanding Sustainable Prosperity is an international, multi-disciplinary research project, addressing not just the economic aspects of sustainable prosperity, but also its social, political and philosophical dimensions. Working closely with business, social enterprise, civil society and government, the Centre aims to develop pragmatic steps towards an inclusive economy that works for everyone. www.cusp.ac.uk
The Aldersgate Group is delighted to welcome six new members at the start of 2018: SUEZ, Ramboll, Michelin, Green Investment Group, CEMEX and Bournemouth University.
Arriving on the heels of landmark environmental commitments by the UK government in the Clean Growth and Industrial Strategies and 25 Year Environment Plan, the addition of six new members to the Aldersgate Group since the start of the year demonstrates increasing corporate recognition of the investment opportunities of the low carbon economy.
As highlighted by the Clean Growth Strategy, the UK’s low carbon economy could grow four times faster than the rest of the economy, contributing up to £170bn of exports in goods and services by 2030. 
The new members, all of whom have made strong commitments on the environment and low carbon growth, are drawn from a wide range of sectors including transport, manufacturing, waste, consultancy, finance and higher education, adding to the Aldersgate Group’s existing strong pan-economy membership. The cross-sector corporate commitment to ambitious low carbon policies illustrates the well-recognised link between the health of the economy and that of the environment.
Nick Molho, Executive Director, Aldersgate Group, said: “We are delighted to welcome these seven dynamic new members from across the economic spectrum whose diverse perspectives will be highly valuable to our ongoing work on climate and energy, green finance, natural capital and resource efficiency. We look forward to working with our growing membership and the UK Government in the year ahead to drive ambitious environmental policy in the UK and build a competitive low carbon economy.”
David Palmer-Jones, CEO, SUEZ recycling and recovery UK, said: “SUEZ is very pleased to join The Aldersgate Group and to contribute to its vital work. Businesses across all sectors of the UK are increasingly embracing circular economy principles to guide their commercial activities, and this is key if we want to collectively achieve resource-efficient, sustainable, low-carbon, economic growth in tandem with world-leading environmental protection.
The UK has already made huge leaps in the past decade, shifting from a throw-away society to a culture of re-use and recycling. However, with growing pressure on saturated global secondary raw material markets, it is vital that we now quickly begin to forge a path to long-term clean growth, by carefully aligning our industrial strategies with environmental policy.”
Steve Laking, Division President, Ramboll Environment & Health, said: “Our mission is to create sustainable societies where people and nature flourish. We are in business to find solutions to our clients' most pressing needs, with improving living conditions and protecting the natural environment at the core of everything we do. We are delighted to join Aldersgate and participate in thought leadership debates to develop and strengthen the low-carbon agenda.”
John Young, Managing Director, Michelin Tyre PLC, said: “Michelin is extremely serious about its responsibility to the environment and is leading the charge in many ways when it comes to resource efficiency and the circular economy. It supports sustainable mobility initiatives across the world and hosts global sustainability events such as ‘Challenge Bibendum’ and ‘Movin’On’. By joining the Aldersgate Group Michelin hopes to bring about even greater change when it comes to issues affecting mobility and the environment.”
Edward Northam, European Head, Green Investment Group, said: “Financial innovation is central to a successful and affordable transition to a low carbon economy. We’ve already seen how the experience and capability of the UK’s green finance sector has contributed to dramatic cost reductions in offshore wind, helping establish the nation as an industry leader. The same level of enterprise has to be applied to other fronts if we want to develop a truly green and productive economy. We look forward to working as a member of the Aldersgate Group to help deliver deeper decarbonisation in the UK and internationally.”
Martin Casey, Director of Public Affairs & Communications UK & EU Public Affairs, CEMEX, said: “CEMEX is delighted to join the Aldersgate Group, whose broad cross-sectoral membership, commitment to a low-carbon and circular economy compliments well our own commitments to lower our carbon intensity and reduce emissions by managing our usage of energy and water and reducing waste generation. We look forward to engaging with the other members and the broader policy community to deliver a more sustainable future for all.”
Professor Tim McIntyre-Bhatty, Deputy Vice-Chancellor, Bournemouth University, said: “Bournemouth University has at been at the forefront of inspiring learning and advancing knowledge about sustainability and sustainable development for many years having secured millions of pounds from prestigious research funders such as the European Commission and Research Councils in the UK. Significant development of the low-carbon economy is critical to sustainably enrich society. Bournemouth University joins Aldersgate Group in order to contribute to thought leadership; adding the voice and weight of a committed advocate for sustainability from the higher education sector.”
 HM Government (October 2017) The Clean Growth Strategy. Leading the way to a low carbon future
Today, the Aldersgate Group publishes a new report written by University College London (UCL) , setting out what the government can do to support competitive industrial electricity prices as it delivers its Clean Growth and Industrial Strategies. The report recommends that the UK government improves investment conditions in low-cost renewable energy technologies such as onshore wind, co-ordinates investment in power generation and network infrastructure more efficiently and ensures that the UK leaves the EU in a way that supports increased interconnection with European power grids and cross-border electricity trading.
This report, written by Professor Michael Grubb and Paul Drummond of UCL, will be launched at an event in London on Monday 5th February . Professor Michael Grubb, Professor of International Energy and Climate Change Policy at UCL, is available for interview.
Coming shortly after the government has published a Clean Growth and an Industrial Strategy and is reviewing the findings of the Helm Review on energy costs, this report sets out six policy recommendations to provide competitive industrial electricity prices. These recommendations seek to capitalise on the technological revolution underway in the clean power sector to reduce system costs and better align the structure of the electricity market with the UK’s new Industrial Strategy.
To deliver competitive industrial electricity prices and reduce the gap with prices prevailing in some continental countries, the government should consider:
The fact that UK industrial electricity prices are higher compared to those in countries such as France and Germany has been well documented but this report goes further than previous analysis by considering the drivers behind the evolution of electricity prices and what policy measures can help mitigate unnecessary costs to businesses.
It finds that differences in industrial electricity prices have been driven by the fact that some of the UK’s key continental neighbours tend to be better interconnected and engage in more cross-border electricity trading, are more supportive of long-term contracts to reduce prices for electro-intensive companies, take a more strategic approach to supporting electro-intensive companies with network and policy costs and have historically integrated renewable energy on their system in a more co-ordinated – and therefore cost-effective – way than in the UK (although UK policy is now improving in this regard).
Professor Michael Grubb, UCL, said: “With costs tumbling, the clean energy revolution presents an opportunity for UK industry. But harnessing the benefits will require removing the obstacles to mature renewables including onshore wind, and helping business consumers profit from flexibility. It also means ensuring that both fossil fuels and renewables face their environmental and system costs along with developing smarter energy markets, through which industry can procure its energy efficiently with the most cost-effective renewables.”
Nick Molho, Executive Director, Aldersgate Group, said: “Electro-intensive companies have an important role to play in the UK’s transition to a low carbon economy. The government has a wide range of tools available to deliver competitively priced power to those businesses in the years ahead, such as taking a more strategic approach to network development and funding, improving industry access to low cost forms of clean energy and ensuring that Brexit does not get in the way of increased interconnection and cross-border trading with the European electricity market.”
Roz Bulleid, Head of Climate, Energy and Environment Policy, EEF – the manufacturers’ organisation, said: “UCL is to be commended on a thorough investigation of the many complex and interconnected factors driving electricity prices in the UK and on the continent. Energy intensive manufacturers have been concerned for some time about the disparities between UK prices and those paid by their direct competitors. They will be pleased at the recognition of the challenges they face even if the scale of disparity for individual companies may vary beyond the averages necessarily set out here.
As a starting point, government should commission regular assessments of this type, as already happens in some competitor countries, and launch a wider conversation about the impact a more activist approach to electricity prices could have on UK industrial competitiveness.”
Martin Casey, Director of Public Affairs and Communications, CEMEX, said: “This report provides welcomed clarity on some of the challenges facing the cement industry and also puts forward some interesting options to improve the competitiveness of electricity prices which are fundamental to the future success of cement manufacturing in Britain, and consequently to the delivery of the Government's ambitious infrastructure and house building programmes.”
Dr Robert Gross, Co-director, UK Energy Research Centre, said: “This report provides a proper explanation of why UK power prices differ from those in near neighbours. Industrial power prices are not high because Britain is overambitious on green energy but because the way the costs and benefits of clean energy are shared have tended to disadvantage heavy industry.
The report rightly recommends that the UK should push ahead with subsidy-free long term contracts for low cost renewables and encourage large customers to contract directly with generators. The report also shows that prices here are higher because we are less interconnected than our continental neighbours. Interconnection is threatened by Brexit and it is a policy priority to keep the UK in the European energy market.”
Mary Thorogood, Stakeholder Relations Adviser, Vattenfall UK, said: “The UK has a great opportunity to take advantage of its investment in home grown, clean power to deliver competitive prices for consumers and businesses. Vattenfall agrees that, as the cheapest form of generation, UK Government should look at providing a viable path to investment in onshore wind. This will enable decarbonisation at least cost whilst improving the global competitiveness of British businesses of all sizes.”
Angus MacRae, Head of Electricity Economics, SSE, said: “SSE welcomes this new analysis of how to achieve competitive GB electricity prices whilst delivering the Government’s Clean Growth Strategy at lowest cost. Many of the report’s recommendations will benefit customers by minimising overall costs, in particular, restoring access to the CfD mechanism for the cheapest renewable technologies, ensuring that carbon is properly accounted for in electricity imports, and providing a long-term investable carbon price signal.”
Dr Richard Leese, Director - MPA Cement and Director - Industrial Policy, Energy and Climate Change, Mineral Products Association said: “This report draws attention to an important issue for mineral products producers. Energy costs remain a significant issue for small, medium and large companies alike. Some cost compensations and exemptions exist for the few and are only partial where they apply. The Government’s clear support for renewable subsidies has brought down the cost of their installation and operation, but paradoxically, delivered electricity costs continue to rise. The Government needs to delve deeper into the energy system to understand the impacts and costs of low carbon electricity delivery on the system as a whole. In doing so it needs to take action on the rising costs associated with the network and its capacity constraints.”
 The Aldersgate Group published today a new report from Professor Michael Grubb and Paul Drummond at University College London, UK industrial electricity prices: competitiveness in a low carbon world.
 Delivering competitive industrial electricity prices in a low carbon world. This event will be held from 10.00am-11.30am on Monday 5th February at RELX Group, 1-3 Strand, London, WC2N 1JR. Chaired by Aldersgate Group Executive Director Nick Molho, the event will feature keynote speaker Michael Grubb, Professor of Energy and Climate Change, at the UCL Institute for Sustainable Resources. Panellists include Roz Bulleid, Head of Climate, Energy and Environment Policy, EEF - the manufacturers’ organisation, Dr Richard Leese, Director - MPA Cement and Director - Industrial Policy, Energy and Climate Change, Mineral Products Association, Matthew Knight, Director of Energy Strategy and Government Affairs, Siemens Plc, and Mary Thorogood, Stakeholder Relations Adviser, Vattenfall UK.
 National Grid (March 2014) Getting more connected: the opportunity from greater electricity interconnection
Reacting to the publication of the 25 Year Environment Plan, Nick Molho, Executive Director of the Aldersgate Group said: “Today, the government rightly highlighted the economic, social and health benefits of investing in the natural environment. By setting out long-term goals to improve our environment and committing to introducing reliable metrics to monitor progress, this plan provides much needed clarity on the direction of the UK’s environmental policy as it leaves the EU. Businesses will be at the heart of delivering the UK’s environmental goals and the Plan’s focus on significantly improving the resource efficiency of the economy and setting up a green business council is strongly welcomed.”
However, for the plan to be successful in the long term, it will need to coherently address the multiple barriers that are slowing down business investment in the natural environment. Some of those can be addressed by the ongoing reform of agricultural payments but others will require targeted government interventions in the form of outcomes focused regulations and incentives, support for natural capital innovation such as through the natural environment impact fund suggested in the Plan, improving business access to technical expertise and growing the UK’s green capital markets.”
Nick Molho added: “By publishing clear goals to improve the state of the natural environment, the government is showing important leadership. This will need to be supported by government itself leading by example, by fulfilling its commitment to deliver net environmental gain in major national infrastructure projects such as HS2 and developing a public procurement policy that favours businesses with a focus on resource efficiency and natural capital enhancements.”
 In November 2017, the Aldersgate Group published two briefings Key asks for the 25 Year Environment Plan, which sets out business priorities for the plan, and Increasing investment in natural capital, which recommends actions by businesses and government to overcome the barriers currently restricting flows of finance towards natural capital projects.
A new report from the Aldersgate Group out today, Beyond the Circular Economy Package, argues that EU institutions should continue to support the shift towards greater resource efficiency beyond the completion of the Circular Economy Package.
By introducing a range of new business case studies drawn from several sectors of the EU economy, the report shows that businesses and public organisations are investing significantly in resource efficiency but that the transition to a more circular and competitive economy will take time and requires long-term policy support.
This report will be launched at an event in Brussels on 14th December with keynote speaker Jyrki Katainen, European Commission Vice-President for Jobs, Growth, Investment and Competitiveness .
The new research  published by the Aldersgate Group includes a range of business trials and case studies across several sectors of the economy. Some of these include pilot projects carried out under the REBus project , which at the end of 2016 saw 28 resource efficiency business pilot projects deliver €5.62m in financial savings and a reduction of materials consumption and greenhouse gas emissions by 62,619 tonnes and 1,953 tonnes, respectively.
These pilot projects have been carried out across a range of key market sectors (including electrical and electronic products, textiles, construction and ICT) that are worth an estimated €350bn to the EU economy. Research carried out as part of the project found that adopting the resource efficiency business models tested by these business pilots across their respective economic sectors could increase the EU economy’s gross value added by up to €324bn by 2030 .
Whilst the resource productivity of the EU economy is improving overall , the report shows that businesses often face a number of barriers to taking greater action, ranging from regulatory obstacles and a lack of effective market signals to difficulties in obtaining finance or technical advice to drive innovation.
Nick Molho, Executive Director, Aldersgate Group said: “The Circular Economy Package is delivering welcomed progress on some of the barriers that are slowing down business action on resource efficiency. However, an economy-wide shift to much greater resource efficiency will take time. To invest in new business models, more resource efficient processes and new supply chains, businesses need the assurance that the resource efficiency agenda will remain a priority for the EU in the long term.”
Building on the progress that has been made to date by the Circular Economy Package, the report identifies six key areas of long-term policy action for the Commission and its co-legislators, including:
Pursuing work to include resource efficiency design criteria in product standards by delivering on the commitment to publish an updated Ecodesign Working Plan once a year and rapidly broadening the range of products subject to resource efficiency design criteria;
Promote business innovation on resource efficiency, through continued financial support for business trials and broadening the sectors that receive technical support through the Commission’s Innovation Deals;
Expand the use of circular economy criteria in the public procurement of a broadening range of products and encourage their application across EU Member States and EU institutions;
Encourage Member States to develop pricing mechanisms that support material re-use where it is environmentally effective to do so;
Ensure a consistent implementation of the Circular Economy Package in different Member States. This is especially important in terms of the improved definitions of “waste” currently being negotiated by all three EU institutions, which must ensure that materials are no longer classified as “waste” when they can be re-used safely.
European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: “The transformation towards more resource efficient business models is not a matter of choice but a necessity for retaining competitiveness. With the comprehensive Circular Economy Action Plan, the European Commission intended to address the key regulatory and financial challenges to facilitating this transition. But this is just the beginning. The move to a more resource efficient economy calls for an ambitious policy framework beyond the Circular Economy Package, which will require the active engagement of all stakeholders, from policymakers and businesses to consumers.”
Nicolas Beaumont, Senior VP Sustainable development and mobility, Michelin, said: “Resource efficiency is not a nice to have but a necessity. At Michelin, we design tyres with an aim to use resources sparingly. Ensuring they are not replaced before it is necessary, and maximizing their lifespan, in particular through retreading, makes economic, environmental and social sense. This is why we believe resource efficiency needs to remain at the top of the policy agenda and should be systematically taken into account when drafting regulation.”
Caroline Laurie, Head of Sustainability, Kingfisher Plc, said: “We know our customers want to get more from less, re-using and using longer, so the circular economy remains a key priority for Kingfisher but to accelerate activity, businesses require a more enabling policy environment that starts with the EU.”
Martin Casey, Director of Public Affairs and Communication, UK and EU Public Affairs, CEMEX said: “For CEMEX, using key circular economy principles is core to our business, ensuring that we are materially and energy efficient, whilst ensuring that we serve our customers and protect the environment for this and future generations. Having the right regulatory framework to maximise these opportunities is therefore vital.”
David Symons, UK Director of Sustainability, WSP said: “Europe uses resources at three times the sustainable rate today, so designing more efficient products, infrastructure and business models is critical for long term prosperity and productivity. Moving to a more circular economy needs to remain a priority for EU and national policy makers.”
 Beyond the Circular Economy Package: priorities for the EU. This event will be held from 8.30am-10.00am on 14th December, 2017 at Hogan Lovells International, 23 Rue de la Science, 1040 Brussels, Belgium. The event will feature keynote speaker Jyrki Katainen, European Commission Vice-President for Jobs, Growth, Investment and Competitiveness. Chaired by Aldersgate Group Executive Director Nick Molho, panellists include Martin Casey, Director Public Affairs & Communications UK & Public Affairs EU, CEMEX, Caroline Laurie, Head of Sustainability, Kingfisher, Audrey Douspis, EU Affairs Manager, Michelin and Joan Prummel, Strategic Advisor, Circular Procurement, Rijkswaterstaat (Dutch Ministry of Environment).
 The Aldersgate Group published today a new report, Beyond the Circular Economy Package: Maintaining momentum on resource efficiency.
 The Aldersgate Group is a partner on the REBus project, an EU LIFE+ funded project that aims to demonstrate how businesses and their supply chains can implement resource efficient business models. The project is led by WRAP and also includes Rijkswaterstaat, the Environmental Sustainability Knowledge Transfer Network, and The University of Northampton. Business trials are taking place in a range of key market sectors (including electrical and electronic products, textiles, construction and ICT) that are worth an estimated €350bn to the EU economy.
 Under a transformational scenario with substantial progress in recycling and remanufacturing as well as major development of the reuse, servitisation and biorefining sectors, project partner WRAP estimates that replicating the resource efficiency business models tested by these pilot projects throughout their respective economic sectors would deliver an increase in gross value added to the EU economy of up to €324bn by 2030.
 Between 2000 and 2016, the EU-28’s resource productivity went from €1.47/kg to €2.07/kg, an increase of 41%: http://bit.ly/2hOBTHG
Today the Aldersgate Group launches a report by engineering consultancy BuroHappold, Help or Hindrance? Environmental regulations and competitiveness, which looks at the impacts of ambitious environmental standards on business competitiveness, skills and innovation.
The report, which is based on interviews in the waste, construction and car industries, concludes that well-designed environmental regulations can deliver positive economic outcomes in the form of increased business investment in innovation and skills, better quality products and infrastructure, greater business competitiveness and job creation.
This report will be launched at an event in Parliament today, 7th December with keynote speaker Claire Perry MP, Minister of Climate Change and Industry .
The report, commissioned by the Aldersgate Group and written by BuroHappold, is based on business interviews studying the impacts of three key environmental regulations in the buildings (London Plan), waste (Landfill Tax) and car (EU Regulations on passenger cars) industries. It concludes that the compliance cost attached to each regulation has been more than offset by the economic benefits they have triggered. These include increased business investment in innovation and skills, better quality and performing products and infrastructure, greater business competitiveness and net job creation.
However, the report also highlights flaws in each of these regulations (from poor regulatory enforcement to a lack of focus on supply chain skills), which hold valuable lessons for designing the policies needed to deliver the Government’s objectives under the recently published Industrial and Clean Growth Strategies. To maximise environmental and economic benefits and avoid unintended impacts, well-designed regulations need to:
Nick Molho, Executive Director, Aldersgate Group, said: “With clean growth positioned as one of the four Grand Challenges of the Industrial Strategy  and the recent Clean Growth Strategy promising to drive growth of the UK’s low carbon industries, the report comes at a crucial time to show how environmental regulations can act as a help rather than a hindrance to innovation and growth, whilst also delivering positive environmental outcomes.
The government recognised in the Industrial Strategy White Paper that regulations shouldn’t just be seen as red tape; on the contrary, they can also act as an important tool to support business innovation and competitiveness. The challenge ahead will be to ensure that regulations to deliver the UK’s environmental and industrial objectives are sufficiently ambitious, stable, practical and compatible with other policy objectives.”
Duncan Price, Director of Sustainability, BuroHappold and author of the report, said: “There is no inherent conflict between well-crafted policy and economic gains. When well designed and complemented by effective economic and industrial policies, smart regulations can deliver positive environmental and economic outcomes. Insights derived through this work hold valuable lessons for the government as it works to deliver its Industrial and Clean Growth Strategies.”
Sarah Cary, Head of Sustainable Places, British Land, said: “British Land is supportive of Government regulation to drive carbon efficiency in real estate and construction, helping the UK to lead the world in developing low carbon systems and services. A clear medium-term vision for future energy and carbon policy will drive millions into construction product innovation investment and upskilling for hundreds of thousands of workers. And, in challenging the industry to innovate, Government creates an opportunity for UK architects and manufacturers to become global leaders in energy efficient building design.”
Dr. Adam Read, External Affairs Director, SUEZ, said: “Regulation has been at the heart of the positive evolution of the UK waste and resources sector, driving quality, delivering recycling and reducing our reliance on landfill, and landfill tax has been critical to this journey. We now have the opportunity to look to the future with an Industrial Strategy and a new Waste and Resource Strategy due where policy, regulation, and market incentives can come to the fore to help shape the Britain of tomorrow.”
Andy Walker, Technology Director, Johnson Matthey, said: “Regulating emissions at source is not only beneficial to the environment and human health, but also strongly drives innovation. Well considered regulations taking account of local and global considerations, signalled far enough in advance, provide scope for companies throughout the supply chain to innovate and plan for commercialisation, thereby maximising the economic benefits that can accrue from reducing the environmental impact of the vehicle fleet.”
 Help or Hindrance? The role of environmental regulations in the Industrial Strategy. This event will be held from 9.00am-11.00am on 7th December, 2017 in the Macmillan Room, Portcullis House, Westminster. The event, hosted by Peter Aldous MP, will feature a keynote speech from Claire Perry MP, Minister of State for Climate Change and Industry and Duncan Price, Director of Sustainability at BuroHappold. Panellists include Emma Howard Boyd, Chair, Environment Agency, Sarah Cary, Head of Sustainable Places, British Land, Dr. Adam Read, External Affairs Director, SUEZ, and Graham Willson, Chief Executive, British Tyre Manufacturers' Association Ltd.
 Industrial Strategy: building a Britain fit for the future, HM Government, November 2017 https://www.gov.uk/government/publications/industrial-strategy-building-a-britain-fit-for-the-future
Reacting to the publication of Industrial Strategy: Building a Britain fit for the future today, Nick Molho, Executive Director at the Aldersgate Group said: “The Industrial Strategy can have a transformative impact on the UK’s economy, driving low carbon innovation and the continued growth of jobs, skills and supply chains. It is positive to see that clean growth is now a core objective for the strategy and there is increased focus on energy and resource productivity, and strengthening the synergies between power, heat and transport systems.
Annual global investment into climate-related projects is already more than $1 trillion and accelerating. Given UK strengths in industries such as offshore wind, ultra low emission vehicles and low carbon services, UK businesses are among the best placed to capitalise on the growth of low carbon opportunities and export markets.”
Nick Molho added: “Government can grow market demand for low carbon goods and services and help maximise the benefits of clean growth for UK plc through clear incentive policies, environmental standards, supportive policies on skills and a public procurement policy that rewards resource and energy efficient business. Going forward, the Industrial Strategy must also ensure that energy intensive industries are supported in a way that is consistent with the UK’s emissions targets and helps grow the role of these high value businesses in the UK’s low carbon supply chains.”
Reacting to today’s Autumn Budget, Nick Molho, Executive Director of the Aldersgate Group said: “The Chancellor is right that we cannot build an economy fit for the future unless we ensure our planet has a future. As well as aiming to be a world leader in tackling plastic pollution, it was good to hear further support for electric vehicles and charging infrastructure, and in ensuring the UK has the skills required to benefit from the job opportunities of the future.
However, the lack of clarity and progress on the future of low carbon power investments and energy efficiency standards in new buildings is disappointing. To reduce power sector emissions cost-effectively and continue to grow renewable energy supply chains, the UK needs a policy environment that allows it to deploy mature low carbon technologies such as onshore wind without subsidy, increase its ambition on offshore wind in the 2020s and keep the door open to improvements in new technologies. The announcement that there will be no new low carbon electricity levies until 2025 mustn’t get in the way of that.”
Today the Aldersgate Group publishes two briefings: Key asks for the 25 Year Environment Plan, which sets out business priorities for the upcoming plan, and Increasing investment in natural capital, which recommends actions by businesses and government to overcome the barriers currently restricting flows of finance towards natural capital projects.
Nick Molho, Executive Director of the Aldersgate Group said: “Our economy and society are hugely reliant on the goods and services provided by nature and are also vulnerable to the impacts of a changing climate. Investing in our natural environment will help improve both the productivity and resilience of businesses, supply chains and communities. The forthcoming 25 Year Environment Plan is an opportunity to show cross-government leadership and set clear legally binding targets that help support the growth of innovative natural capital enhancement projects.”
Nick Molho added: “Significant investment will be needed from the private sector to improve the state of the UK’s natural environment and meet the goals of the 25 Year Environment Plan. Whilst the natural capital finance market is currently nascent, innovation from business, investors and communities as well as targeted government intervention can work in tandem to develop its maturity by identifying new revenue models.
Opportunities include the reform of agricultural subsidy payments to increase focus on sustainable land management following the UK’s exit from the European Union, setting up an innovation fund that provides resources for the private sector to develop new financing models, and creating a Natural Capital Investment Fund that provides seed funding for priority natural capital projects across the country.”
Reacting to the publication of Professor Dieter Helm’s Cost of Energy Review today, Sarah Williams, Public Affairs Manager at the Aldersgate Group said: “We welcome the publication of Professor Helm’s review. The UK needs a framework that supports the cost-effective growth of a secure low carbon power system. However, it is important to recognise that policies that have supported the deployment and economies of scale achieved in areas such as offshore wind have played a key role in driving clean energy innovation and cost reductions.
We note the suggestion of an equivalent firm power auction with interest, but would suggest that managing a low carbon power grid at the system level is likely to be far more efficient and cost-effective than asking individual renewable generators to arrange for their own balancing services.”
Upcoming UCL analysis commissioned by the Aldersgate Group will explore in detail why UK industry faces higher electricity prices compared to EU counterparts and actions that can be taken to address this. Sarah Williams added: “Our upcoming study will be a useful complement to the findings of the Helm Review."
 Professor Jim Watson & Dr. Robert Gross (9 October 2017) Cost of Energy Review: Insights from UKERC Research
Reacting to the publication of the Clean Growth Strategy today, Nick Molho, Executive Director of the Aldersgate Group said: “The importance of positive government messaging on the low carbon agenda for investment confidence is often overlooked and today’s clear cross-government commitment to deliver on the UK’s climate targets will be welcomed by businesses. Recent announcements in the offshore wind and car manufacturing industries have highlighted how a clear vision, supported by detailed policies, enable the private sector to drive innovation, cut the costs of clean technologies and invest in UK jobs and supply chains.
By restating key commitments such as the £557 million for new offshore wind projects, providing new funding for electric vehicle charging infrastructure and innovative low carbon heat projects, and setting out important consultations on energy efficiency, the Clean Growth Strategy is an important milestone that will improve business confidence and the credibility of the UK’s climate targets.”
Nick Molho added: “To deliver the required increase in affordable private sector investment, the Clean Growth Strategy will have to increase in detail in the near future. This will be particularly important for the UK’s buildings, where mandatory standards and well-timed fiscal incentives such as stamp duty rebates are essential to delivering a step change in energy efficiency investment.”
Reacting to the announcement of the Department of Business, Energy and Industrial Strategy’s green finance taskforce today, Nick Molho, Executive Director of the Aldersgate Group said: “The creation of a new taskforce on green finance is a very positive move forward and we are delighted to have been asked to assist the work of the taskforce. Investment needs in the green economy are ever-growing, with the Committee on Climate Change estimating the total annual investment needed to meet the UK’s fifth carbon budget at approximately £22bn . Meeting domestic and international policy commitments on climate change and the environment will therefore require a significant amount of affordable private finance. With growing strengths in areas such as offshore wind and electric car manufacturing, the UK now faces a unique opportunity to broaden its competitive advantage in the low carbon economy by establishing itself as a world leader in the provision of green finance."
Nick Molho added: "The Aldersgate Group has been looking at ways of increasing private investment in green infrastructure through our work with the Centre for Understanding Sustainable Prosperity (CUSP). We look forward to using our findings to support the UK government in developing a green finance strategy to underpin the forthcoming Clean Growth Strategy and the Industrial Strategy.”
 Committee on Climate Change (November 2015) Advice on the fifth carbon budget. £22bn figure based on 1% of £2.23tn GDP in 2015 (US$2.86tn) World Bank national accounts data http://data.worldbank.org/indicator/NY.GDP.MKTP.CD
Reacting to the results of the Second Contracts for Difference Allocation Round, Nick Molho, Executive Director of the Aldersgate Group said:
“The announcement today that the next round of offshore wind projects will receive a strike price of £57.50-74.75/MWh highlights the considerable cost reductions achieved by the offshore wind industry, at the same time as delivering increased UK content.
Larger and more efficient turbines now mean offshore wind is a mainstream component of the UK’s energy mix and turbine blade manufacturing facilities in Hull and the Isle of Wight and servicing companies around the coast are important examples of how the industry has driven jobs and supply chain growth across the UK.
The UK is reaping the benefits of competitive auctions and stable government policy in this area. To continue to see costs reduce, a clear pipeline of projects well into the 2020s will be required and the government’s forthcoming Clean Growth Strategy must ensure that the £730m earmarked for auctions of less established technologies during the last parliament will be committed by 2020 as originally planned.”
 The cost of offshore wind projects are now 50% lower than the first auction held in 2015.
 Renewable UK (September 2017) Offshore Wind Industry Investment in the UK: 2017 Report on Offshore Wind UK Content
Responding to the First Minister’s announcement today of her Programme for Government 2017-18, Nick Molho, Executive Director of the Aldersgate Group said:
“The First Minister’s proposal to phase out the sale of new petrol and diesel cars and vans by 2032 and the ambitious new targets included in the upcoming Climate Change Bill provide a clear sense of direction to business that investment in all forms of resource efficient infrastructure, renewable energy generation and clean transport will need to increase.
Scotland has a real opportunity to capitalise on its successes of recent years. The Scottish Government’s commitment to renewables has helped create a thriving sector that accounted for a total turnover of £2.7bn in 2015 and energy efficiency in Scotland’s buildings has been improving with a 74% increase in homes being rated EPC Band C between 2010 and 2015.
However, detailed policies are urgently needed if Scotland is to meet its climate targets on time and on budget and continue to grow its low carbon economy. This is especially the case for Scotland’s buildings where clear regulatory standards and well-timed incentives in the Scottish Energy Efficiency Programme and Warm Homes Bill will be essential to ramp up action on energy efficiency.”
Reacting to today’s announcement of Macquarie’s completed purchase of the Green Investment Bank (GIB), renamed the Green Investment Group (GIG), Nick Molho, Executive Director of the Aldersgate Group, said:
“Following the successful completion of the sale of the GIB today, we call on the new Green Investment Group (GIG) to honour their commitment to support investment in the UK’s renewable energy infrastructure. The GIG is ideally placed to lead private sector investment in UK green infrastructure projects and help deliver key government policy commitments such as those that will be set out in the upcoming Clean Growth Plan.”
Nick Molho added: “Delivering the government’s ambitions under the Clean Growth Plan and 25 Year Environment Plan will require supporting novel technologies and business models which may initially struggle to access finance. Now that the sale of the GIB is complete and given that the UK’s access to funds from the European Investment Bank is likely to be more restricted after Brexit, the government needs to develop a clear finance strategy in the near future. This strategy should aim to crowd in private sector investment in the new technologies and business models the UK will need to deliver on its environmental commitments and build a thriving low carbon economy.”
Today, the UK’s building stock is responsible for 19% of annual emissions. Promoting energy efficiency in the UK's domestic and commercial sector is crucial to further decarbonisation in the UK. Energy efficiency mechanisms could generate potential savings of 23.6MtCO2 per year by 2030, which is roughly equivalent to cutting the CO2 emissions of the UK transport fleet by one third.  However, there is a general lack of progress in reducing emissions across the UK’s building stock, insufficient uptake of low carbon heat and insulation and a failure to make any meaningful reduction in non-residential building emissions.  The Aldersgate Group and the UK Green Building Council have produced this briefing to highlight priorities for the government in addressing this issue.
Our briefing argues that reducing energy demand through greater efficiency can help the UK meet its legally binding climate targets, limit increases in energy bills, tackle fuel poverty, and drive economic growth and long-term job creation.
 Cambridge Econometrics and Verco (2015) Building the Future
 Committee on Climate Change (June 2016) Meeting Carbon Budgets: Progress Report to Parliament
Reacting to the publication today of the Progress Report from the Committee on Climate Change, Nick Molho, Executive Director of the Aldersgate Group said:
“If the UK is to significantly cut its emissions and modernise its buildings, energy and transport infrastructure in the next 15 years, the private sector must urgently understand the scale of the UK’s ambitions and the market arrangements under which it can invest in that infrastructure. Greater clarity is particularly needed on the policies that will drive emissions reductions in domestic and commercial buildings.”
“The EU referendum and recent General Election have resulted in some understandable delay in developing such a plan for businesses and investors. However, if low carbon infrastructure is to be delivered on time, at the lowest possible cost and in a way that grows UK supply chains, the government must deliver on the Minister’s intention to publish the Clean Growth Plan when Parliament returns from the summer recess.”
Reacting to the key findings of the Progress Report on the UK’s adaptation to climate change, Nick Molho added:
“The limited progress being made to tackle the degradation of the UK’s natural environment and better protect its infrastructure from the impacts of climate change is concerning. In the coming year, we need to see a concerted effort across government departments to develop a detailed National Adaptation Plan and 25 Year Environment Plan. These plans must attract much greater investment to improve the state of key natural resources such as coastal wetlands, peatlands and soil and ensure the UK’s infrastructure and economy are resilient in the face of more extreme weather events.”
Reacting to the publication today of the final recommendations by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), Nick Molho, Executive Director of the Aldersgate Group said:
“The publication of the TCFD’s industry-led recommendations cements the importance within the investment and business communities of disclosing the physical, regulatory and commercial risks linked to climate change. There is growing recognition that understanding how this information may impact company or asset performance is essential to enable businesses to make sensible long-term strategic decisions and to give investors the information they need to shift their investments towards more resilient and lower carbon business models.”
Nick Molho added: “These recommendations on standardised voluntary disclosure will act as an influential guide for investors and businesses across the economy. However, in light of the urgency of tackling climate change, mandatory regulations remain essential to ensure that climate-related disclosure is widely adopted in the near future and is consistent and comparable between companies of a same sector. Given the UK’s aim to become a hub for green finance, the government should take note of the ambition of these recommendations and strengthen the breadth and scope of its own mandatory carbon reporting regulations in line with the industry standard.”
Reacting to the Queen’s Speech today, Nick Molho, Executive Director of the Aldersgate Group, said:
“It is encouraging to see the government’s desire to make the UK a leader in new industries and enhance its role on the world stage. If the government is to do this successfully, it will need to commit to an ambitious environmental and low carbon agenda. With the global low carbon economy growing fast and international action on climate change gathering pace despite the US withdrawal from the Paris Agreement, this will require the publication this year of a detailed clean growth plan to deliver the UK’s climate targets under the fifth carbon budget and a framework for a 25 year plan to enhance the state of the UK’s environment. In incorporating EU environmental legislation in UK law and determining its future, the government should focus on delivering environmental improvements on the ground that are as good as or better than what is currently legislated for.”
Nick Molho added: “The government is right to seek the “broadest consensus possible” in determining the UK’s negotiating terms on Brexit. In order to deliver the UK’s climate and energy policy ambitions in the most efficient and cost-effective way, the UK must maintain close collaboration with the EU after Brexit in key areas of mutual benefit, such as through continued participation in the internal energy market.”