Believing in the British people: why environmental stewardship will benefit from decentralised power

On Monday 11 July, the day Theresa May found herself to be the last candidate standing for the leadership of the Conservative Party, she made a speech setting out her vision for the country. While she did not mention the environment, she did articulate a fundamentally green principle when she described Conservatives as “custodians with a responsibility to pass on something better to the next generation”. This allies with Edmund Burke’s notion of society as a partnership between “those who are living, those who are dead and those who are to be born”. This is the most powerful conservative argument for environmental stewardship.

Also in May’s speech were two other extremely salient points. The first was her call “to break up power when it is concentrated among the few”. The second was her declaration that Conservatives “believe in Britain – and in the British people”. These principles are less obviously environmental, but they will in fact be crucial to shaping the UK’s natural environment post-Brexit, because a more decentralised state has the potential to deliver improved stewardship. 

Who governs?

May has made clear that the UK must leave the European Union. We will take back control, as the Vote Leave campaign consistently demanded. But what will we do with this new power? And who will take control? Will the British public feel content if we wrest powers from Brussels, only to concentrate it further in Westminster and Whitehall?

Thinking about power in this context is best provoked by the question, ‘who governs?’ This was articulated in the 1960s by political theorist Robert Dahl in his study of democracy in an American city. He attempted to map out the geography of power: who had it, who didn’t and what that meant for pluralistic politics. Pluralism is essential for a healthy democracy, not only because silencing any group within society could lead to unfair outcomes, but because what the liberal philosopher John Stuart Mill called the “collision of adverse opinions” enables us to get closer to the truth. Pluralism requires multiple groups to check and balance each other; it fails when power is overly concentrated.

Today, asking ‘who governs?’ is a pressing task for those of us seeking to restore the health of our environment. The EU has enabled the UK to co-ordinate policies with our neighbours, to raise ambition together, tackling everything from acid rain to sewage-strewn beaches. EU environmental law has also allowed campaigners to challenge the national government to clean up London’s air. That source of external pressure was why environmental groups like the Wildlife Trusts made the case for keeping our EU membership. After we leave the EU, who will decide on the future of our green and pleasant land? How will we hold government to account on environmental issues like air pollution, which until now Brussels has, at least in part, enforced?

Rethinking where power lies

We shouldn’t need to rely on Brussels to ensure healthy surroundings, clean air and water, and the diversity of our wildlife. The argument that we needed a higher power to keep us in check was never Remain’s strongest point. At least, it wouldn’t have been, if we’d had strong accountability mechanisms within our own borders. But we don’t. 

Leaving the EU is an opportunity to rethink where power should lie. Right now, political power is concentrated among “the few”: a handful of top ministers and senior civil servants are responsible for major decisions about the future of our country.

It’s nothing new to say that we have an unusually powerful executive branch of government, and weak devolution. When Americans – the first Brexiteers - took control from Britain in the late 1700s, they understood that their new government must seek to balance executive power, which they tried to do with two strong elected houses, a robust judiciary and a federal structure which maintains the power of states.

Perhaps we should ask not only who governs, but how they govern, and who they listen to. Accountability is a product of transparency, as well as of checks and balances. The new prime minister has proposed having employees represented on company boards, arguing they will provide better scrutiny, coming as they do from outside the social and professional circles of the other directors. She has not yet indicated whether she would be open to exploring a similar opening up and decentralising political power.

Giving people a say

Taking back control should not stop at Westminster. The centre needs to get better at listening, and people need platforms and processes to enable them to have a voice in decisions about the future of their local communities and the country. Neighbourhood plans are a good start, but they operate on such a micro scale that many issues are beyond their scope. We have written about this before in relation to infrastructure planning, but the argument can be applied to most areas of public life.

The process of decentralising political power has gathered momentum in recent years. City or county wide, the new regional government deals operate at a scale at which strategic decisions can be made, at which sustainable solutions to twenty first century problems can be found, whether in providing integrated transport systems or wildlife corridors. What’s more, cities and counties are where we live, places we truly know and are familiar with. So they make a great context in which to engage the public in discussions about where new energy or transport infrastructure should go, or which protected landscapes should be made more accessible to visitors and volunteers.

Some representatives see their role as requiring sustained engagement with those they represent, but this should be standard practice. And it needs to go beyond simply educating or informing, and involve meaningful deliberation. Engagement experts have developed a plethora of tools that can assist with this, such as citizens’ assemblies: two recent pilots in Sheffield and Southampton found that these can build political engagement, legitimise decision making and go some way towards defusing apathy, as well as producing evidence based recommendations that reflect local needs. There will still need to be national frameworks of minimum environmental and social standards, but devolved administrations or local governments, whose citizens wish to see them go further, should be enabled to race to the top.

New environmental governance

If accountability is not to come from Brussels, it must come from the citizens themselves: as participants in local dialogues; as members of diverse civic and campaigning organisations from the National Trust to Greenpeace; and as local and national electorates. 

In this new era, good environmental governance will rest on a commitment to public engagement and a politics in which all interests are better represented. Voters have demonstrated that they are fed up with politicians not listening. Politicians of all parties and places need to accept the underlying referendum challenge and, as Theresa May says, believe in the British people, giving citizens a say in the decisions that affect them. That goes for environmental champions too: we need to remember that we seek to protect the environment for people, and that people are the environment’s only defence, as was well demonstrated by the response to the attempt to sell off the nation’s forests. We need to trust that, when given the chance to deliberate, our fellow citizens recognise the case for protecting and restoring the natural world on whose integrity we, and those who are to be born, all rely.

Matthew Spencer is director, and Amy Mount is senior policy adviser at Green Alliance

The views expressed in this article are those of the author, not necessarily those of Bright Blue.

Accelerating productivity investment

Theresa May’s new government has an unprecedented opportunity to reshape the UK economy and it should not be wasted. Now is the time for Government to review its role in helping to finance productivity enhancing capital investments.

Lost confidence due to Brexit uncertainty and persistently weak productivity growth, the ultimate driver of long-run economic growth, are major concerns and new supply side investments and reforms are urgently required. While the amount of financing available is returning to pre-crisis levels, the length of loans and the cost of capital have not. Financing is available for too short a period of time and is too expensive, which results in many potentially profitable and productive investment opportunities failing to go ahead.

Given the massive difference between long-term UK government borrowing costs and those available to private investors, it would make sense to pass on some of this difference in capital costs and length of loans to those making productivity enhancing investments in social, physical, technological, and human capital.

An approach could be based on existing instruments created since 2010, namely the UK Guarantees Scheme for Infrastructure (the Scheme) and the UK Green Investment Bank (the GIB). Both of these policy instruments were created to help unlock financing for infrastructure, but both are severely constrained - largely because of the need to comply with EU State Aid rules.
State development banks in other European countries, such as KfW (originally Kreditanstalt für Wiederaufbau) in Germany, have block exemptions from these requirements as they were established prior to the EU existing and were folded into EU treaties and directives.

Now that we are committed to Brexit, the Scheme and GIB should be similarly unshackled so they can provide concessional finance. Providing low cost finance to sectors (as opposed to specific companies or ‘national champions’) through fair and competitive tendering processes can boost growth, without unfairly and counter-productively ‘picking winners’.

Such a reform would allow lower cost capital to be invested in assets able to improve long-run productivity. Concessional finance can be disbursed through tenders, or by allocating funds to banks or asset managers operating in selected sectors. This would be an important public policy tool able to accelerate investment in key areas. It could also improve the UK government balance sheet: interest would be charged on finance provided and these rates would be above the government’s own cost of capital, but below market rates.

Priorities for financing could include energy efficiency or capital improvement loans for households and small businesses – dramatically improving the attractiveness of borrowing to invest for those groups. Projects eligible for Contracts-for-Difference (CfDs) - which underpin power generation investments - could also receive the option of low cost loans, which also have the benefit of reducing their overall cost. Other priorities could be energy intensive industries – providing low cost finance for new technologies that improve the resource efficiency of industrial processes – and the deployment of a new national electric vehicle charging network. An offer of low cost capital could unlock the construction of an ambitious new UK electric vehicle charging network that would be privately owned and operated on a commercial basis.

Investments that are more resilient (for example, those future-proofed against flooding) and supportive of multiple government objectives (such as pollution and biodiversity) should be prioritised. HM Treasury and the new Department for Business, Energy and Industrial Strategy (BEIS) should determine these win-win opportunities together with the independent Committee on Climate Change and Natural Capital Committee. The creation of BEIS is a significant opportunity for a joined up approach to supporting investment.

The government can enable important productivity enhancing investments, while minimising the direct role of the state, the impact on the public finances, and the risks of ‘picking winners’. A majority Conservative Government can deliver this and get the appropriate balance between positive intervention and counter-productive market distortion.

 

Ben Caldecott is an Associate Fellow of Bright Blue and author of Green and responsible conservatism: embedding sustainability and long-termism within the UK economy

This article first appeared on BusinessGreen.

Ruling the waves: Britain’s marine reserves

Our seas and oceans support a great diversity of species and habitats. With ever greater levels of human development of land, the oceans are now home to around 80% of the world’s biodiversity.

Sadly, however, Unesco reports that 60% of the world’s major marine ecosystems that underpin livelihoods have been degraded or are being used unsustainably. Protecting this rich natural inheritance for future generations is an essential task for policy makers.

Marine protection areas (MPAs) are an important policy tool for safeguarding the underwater natural environment. National governments have the powers to establish them to prohibit any damaging or extractive practices, such as fishing or mineral excavation, within the marine areas for which they are responsible.

Usually, an MPA is designated with a list of protected natural features and enforced by a management authority. Small-scale, local fishing is allowed in some MPAs. However, one of the major challenges for governments when implementing MPAs is ensuring that there are sustainable livelihoods for local populations, particularly those dependent on the fisheries industry, while depleted fishing stocks recover. This can require government investment in coastal communities to enable diversification of incomes.

Previously, enforcement of MPAs by patrol boats was difficult and expensive. But modern satellite monitoring has made them a more attractive, cost-effective policy for governments. In 2015, the Pew Charitable Trusts and Satellite Applications Catapult launched ‘Project Eyes on the Sea’. This new system, which the UK government uses to monitor MPAs in overseas territories, analyses multiple data streams in near real time to identify suspicious vessels. It then sends an alert to system users, so that rapid action can be taken to investigate potentially illegal activity.

Scientific research has found that MPAs effectively safeguard the population and diversity of species. They make marine ecosystems, such as coral reefs, more resilient to environmental problems like ocean acidification and climate change. They allow overexploited species to replenish their stocks. They are also beneficial to surrounding unprotected waters, as species spread out from the MPA to neighbouring seas.

Marine Conservation Zones are a kind of MPA that have been introduced by the UK. The legal framework for these MCZs was instituted by the UK’s Marine and Coastal Access Act 2009, which passed with cross-party support. There are currently 50 MCZs around the UK. The first tranche of 27 zones was established in November 2013, and the second of 23 zones in January 2016. These now cover 7,886 square miles, or around 17% of UK waters. A third and final tranche will be designated in 2018, completing a ‘blue belt’ around the whole of the UK.

Because of the UK’s significant overseas territories, it is able to have a greater impact on the marine environment than simply the seas around the British Isles. The Chancellor announced in his 2015 Budget that an MPA would be established around the Pitcairn Islands, a UK overseas territory in the South Pacific. Once established, this MPA will be around 830,000 square kilometres (roughly equal to three and a half times the size of the UK’s land mass), making it the largest of its kind anywhere in the world.

The Conservative Party’s manifesto for the 2015 general election promised similar MPAs around the Ascension Island and other UK overseas territories. The UK could have a significant impact on the global marine environment, as it controls the fifth largest marine area of all countries in the world. More than 94% of the UK’s biodiversity is found in the overseas territories.

Similar to much of our nature laws, EU regulation has played an important role in the protection of our marine areas. There is still considerable uncertainty about the future relationship the UK will have with the EU, and which environmental rules will be retained. Much of the UK’s policy on MPAs was driven by the introduction of the EU Habitats and Birds Directive, which has been implemented through the Natura 2000 network of nature sites. There is now domestic legislation that covers MPAs, but the initial political pressure came in part from the EU.

The UK has shown that it can take strong national and international action on this issue outside of EU institutions. Through establishing such a large network of MPAs around the British Isles and in the overseas territories, the UK is demonstrating global environmental leadership. The UK already protects approximately 30% of its oceans around the world, a higher percentage than any other country. Given Britain’s historic influence over such large areas of sea, it is a fitting environmental achievement and one that must be strengthened in the future. 

Solar PV: why the UK needs to get involved in a global opportunity

The global market for solar photovoltaics (PV) is ‘one to watch’ for every financier, policymaker and energy professional. If you are looking for a technology that is going to boom over the next few decades, you’ve found it.

This is ‘the one’ that is going to transform the way we generate our energy – at home and overseas.

Why? Because ultimately a solar panel is not that dissimilar to a computer microchip. Both are semiconductors. Both have seen staggering falls in costs as manufacturing economies of scale increase. For computing hardware this is known as Moore’s law, for solar it is Swanson’s law. Costs drop astronomically and efficiency goes up as more and more of the stuff is made.

And that means solar is quickly becoming a mainstream electricity generation technology. Bloomberg New Energy Finance recently predicted that there will be $3.7trillion of investment in solar between now and 2040, much of it small-scale rooftops. That is a market worth getting in on.

The International Energy Agency is predicting that globally solar could be the largest source of electricity by 2050. India is aiming to install 100 GW of solar by 2022 – more than twice the amount needed to supply all of Britain's power needs.  China is moving faster still, and will have far exceeded 100 GW by 2020. Hillary Clinton is talking of installing a billion solar panels across the United States. From Chile to Morocco to Bangladesh, the solar revolution is accelerating fast.

According to the International Energy Agency, we could have 440 GW of solar PV capacity installed worldwide by 2020. At present the UK has a world-class solar design, installation and financing sector and could, with help from UKTI, be out there getting our share of that business. Some already are, with leading solar businesses Solarcentury and Lightsource examples of home grown solar companies already starting to set up shop abroad.

However, in order to reap the rewards of export markets you need a stable domestic market to build on, and sadly the situation here in the UK could not be worse. Cliff-edge cuts to the Feed-in Tariff, Renewables Obligation and (in effect) Contracts for Difference has led the market to crash by over 80% according STA analysis, with thousands of jobs and exportable skills disappearing as we speak.

By 2030 solar could be generating 13% of global electricity by 2030, according to a new report from the International Renewable Energy Agency. Some might say “ah but that’s just for southern climes in the global sun belt”. Not true. Solar works well in Britain – solar panels in London generate much of the power they would in Madrid. Cooler British temperatures prevent the panels from overheating, keeping them efficient. Solar uses daylight, not sunshine or heat, generating power even from just diffuse light on a cloudy day.

The cost of solar has come down by 70% over the last five years. The cost of a typical solar installation on a home has dropped from around £20,000 five years ago to £6,000 today. Not yet cheap enough for it to be attractive without government support, but that gives you an idea of how cheap a way of generating power this has become.

And as the cost of the actual modules falls through the floor, the rest of the cost of installing a solar PV system, such as the labour, scaffolding, mounting gear and the inverter that converts the power from DC to AC make up an increasing proportion of the total cost. That means it is more important than ever to support a stable domestic industry with a broad based supply chain that can work to reduce costs as installed volumes increase.

The prize is enormous – a market of $3.7 trillion. If the UK moves now we can still get a significant slice of that. But export markets and domestic markets are inextricably linked, and if we want our businesses to thrive abroad, we have to allow them to thrive at home first.

Paul Barwell is CEO of Solar Trade Association

The views expressed in this article are those of the author, not necessarily those of Bright Blue.

Breathing easily: how to clean up our air

Today we celebrate the sixtieth year since the Clean Air Act, introduced by a Conservative Government, received royal assent. This Act of Parliament introduced ‘smokeless zones’, banishing dirty chimneys and power stations from Britain’s urban centres, and consigning to history the London smogs of Dickens and Conan Doyle. With its passage into statute, the health of the nation took a big leap forward.

But 60 years on, air pollution remains a big problem. In the 1990s, policy makers in the EU and the UK decided to promote diesel cars, believing them to have lower carbon emissions than the petrol alternatives. But while the benefit of lower CO2 emissions has subsequently been found to have been overstated, the surge in diesel cars has produced more harmful emissions of nitrogen dioxide and particulate matter. So dirty air still blights our cities.

The Royal College of Physicians recently produced a report examining the health effects of air pollution. They estimate that around 40,000 people die prematurely each year from dirty air. The EU sets and enforces stringent air quality standards across all member states, including, for now, the UK. The recent vote to leave the EU does not undermine the imperative for tackling air pollution, and the standards should not be weakened. Indeed, there is research showing that even the EU’s legal limits are not sufficient to prevent all negative health effects.

What is the best policy response to air pollution, which the London mayoral election has shown is of growing concern to the public? One important step is to implement the phase-out of coal-fired power stations as soon as possible. Bright Blue has been among the leading voices in support of the Government’s decision to phase out coal from our electricity generation by 2025. Burning coal causes 1,600 premature deaths in the UK. So, as well as removing a big chunk of our carbon emissions, the coal phase-out will provide a major boost to public health.

Up to 70% of our air pollution, however, comes from road transport. So any credible response to this challenge must tackle this. In December 2015, the Government announced an air quality plan to reduce pollution. The centre-piece was the introduction of five ‘clean air zones’ in Birmingham, Leeds, Nottingham, Derby, and Southampton by 2020. Councils in these cities will be able to levy a charge on drivers of polluting lorries and coaches that travel inside the designated clean air zone. In addition, there will be an ultra-low emission zone coming into effect in London in 2020. Experience from similar schemes in Germany and Denmark suggests clean air zones are effective at cutting air pollution.

But these measures are not ambitious enough. Under the plan for London, the legal limits won’t be met until 2025, meaning that children in the capital will continue inhaling unsafe levels of air pollution for another nine years. The zone also doesn’t include parts of London beyond zone one, despite the problem extending past the inner core of the city.

The Government is also wrong to limit the number of cities with clean air zones. Many more cities have unsafe levels of air pollution than the six granted clean air zones by the Government. Germany has a network of over 70 low emissions zones. The Government also excludes private cars from the policy, despite them constituting a major share of the pollution.

Bright Blue is today launching a campaign to establish a network of clean air zones across England. City councils should be given the power to set one up, in consultation with local residents and businesses. Polluters should pay for the environmental and health costs they impose on other people. Vulnerable groups should be exempted from charges.

Any revenue this scheme raises should help fund a diesel scrappage scheme. This will help replace diesel vehicles with new ultra-low emission vehicles. Sales of electric vehicles are increasing significantly each year, and the trend is expected to continue. Clean air zones and a diesel scrappage scheme together are a carrot and stick approach to accelerate this transition.

Today we are reminded of the proud conservative legacy on air pollution. In the last century we forced dirty factories out of our cities. This century we need to drive polluting vehicles off our roads for good.

Sam Hall is a researcher at Bright Blue

Britain’s forests: not seeing the wood for the trees

Forests are an essential component of our natural environment. They provide eco-systems for wildlife to flourish, beautify landscapes, and provide green spaces for recreation and leisure. Matt Browne, an associate at Bright Blue, has already written for this site about how the National Forest in the Midlands, planted under John Major’s government, is an exemplar of green conservatism in action.

Yet further action is required to improve the state of the UK’s forestry. England has one of the lowest levels of forest coverage in the Europe. Just 11% of its land surface is covered with trees, compared to an EU average of over 44%. Across the whole UK, the figure is not much higher – just 13%.

The pendulum has now started to swing the other way, as forestry’s share of UK land has started to tick up. The nadir came after the First World War, when forest coverage fell to just 5%. The Government now boasts that woodland cover is back to the levels of the fourteenth century.

Policy framework

The twin challenges for government in improving forest coverage are maintaining existing forests and planting new trees.

Ancient woodlands are defined as forests planted over 400 years ago and make up approximately a third of England’s total woodland. They are particularly important habitats for wildlife. They enjoy special protection from development, although organisations like the Woodland Trust claim that many are under threat from a loophole in the planning guidelines. In 2014, the Communities and Local Government select committee recommended strengthening the wording of the National Planning Policy Framework, adapting the clause that allows ancient trees to be cut down if the benefits of development outweigh the loss.

Forests are a sensitive and potent political issue. One of the biggest policy reversals in the last Parliament came when plans were announced to privatise the state-owned Forestry Commission, which administers the 18% of the UK’s forests that are in public ownership.

Following the u-turn, the Government set up the Independent Panel on Forestry to advise on the future of public woodlands in the UK. In response to the Panel’s report, the Government in 2013 announced its target to increase tree coverage in England from 10% to 12% by 2060.

The Government has maintained this commitment, by pledging to plant more trees in the UK in this Parliament. In the Spending Review last year, £350 million was ring-fenced for spending on public forests, with the aim of planting an additional 11 million trees over the course of the Parliament.

Yet analysis last week by the Woodland Trust found that the rate of new tree planting had slowed, and was insufficient to meet the planting rates required to meet the 2060 target. The goal requires the planting of 5000 hectares of trees annually on average, but last year just 700 hectares were added.

Benefits of woodland

The maintenance of forests falls within the Government’s natural capital policy agenda, which provides a framework for ascribing value to and enhancing natural assets. In their latest report, the Natural Capital Committee, set up by the Coalition government, called for more trees to be planted on the periphery of major cities and towns. They argued that this would bring greater recreational benefits and carbon savings than continuing to plant new forests in peatlands. They quantified the net economic benefits of this approach as being worth £550 million per year.

Planting more forests will have a number of important benefits for the UK’s natural environment. First, trees lock up carbon, allowing warming emissions to be removed from the atmosphere and helping to mitigate climate change. The Committee on Climate Change has recommended that an additional 10,000 hectares of trees are planted annually in order to cost-effectively meet the emission reductions in the Climate Change Act 2008. It’s worth noting that the Committee on Climate Change’s recommendation for additional tree planting is twice the level implied by the Government’s 2060 target.

Second, trees can make catchment areas more resilient to flooding. They slow the flow of flood water, by evaporating more water, increasing water absorption by the soil, roughening up land surfaces, and decreasing soil erosion. This helps the environment adapt to the effects of climate change. In her statement to Parliament following the flooding in December 2015, the Environment Secretary Liz Truss MP identified tree planting as part of a long-term approach to flood risk management.

It is also claimed that there are economic benefits of woodland. By quantifying the monetary value of a hectare of woodland in terms of health, climate, business, recreational, and water management benefits, the Woodland Trust has estimated the total value of £270 billion of Britain’s forests.

The Government’s 25-year environmental plan is due before the end of the year. Ministers have indicated already that forests are going to be one of its focuses. It’s clear that greater afforestation offers many public benefits. The challenge is now to increase the rate of planting to match the ambition. The forests planted under this Government could rival the Major government’s National Forest as a demonstration of green conservatism in action.

Releasing the potential of energy storage

Energy storage will play a central role in our future power system. It enables electricity that is generated at times when supply exceeds demand to be stored, and consumed later at peak demand. It’s one of a suite of ‘smart’ technologies that help to balance the grid, which include interconnection and demand-side response.

The benefits of energy storage

Demand for electricity varies significantly throughout the day. At some times, total UK electricity demand can be below 30GW. At other times, it can be just below 60GW. A lot of this variation can be managed through turning up or down power stations, but this can be difficult, particularly with an increasing number of renewables on the grid. Energy storage can help to even out that profile. It obviates the need to build new generating assets in order to meet peak demand. This can save consumers money, because they do not have to pay for expensive new energy infrastructure through their bills.

Energy storage also tackles the intermittent supply of power from renewables, making our energy supply more secure. Because the wind doesn’t always blow and the sun doesn’t always shine, the supply of electricity from renewables is inconsistent. This makes it hard to ensure that electricity supply and demand are always in balance. There are costs associated with balancing the grid, which can prevent renewables from competing with other forms of ‘baseload’ power generation such as nuclear or gas. Storage, therefore, is an important part of successfully integrating renewables into the electricity grid.

Carbon Trust recently produced a report on energy storage in which they quantified the benefit to consumers of further uptake of storage technologies. They found potential for £2.4 billion per year of savings by 2030, which could translate into a £50 annual reduction in household bills. This fall in energy costs comes from optimising existing generation capacity, and from avoiding building new infrastructure.

Different technologies

There are many different technologies that can provide energy storage. On the one hand, there are mature technologies, such as pumped hydroelectricity, which was first developed in the 1920s. The UK already has 2.8GW of pumped hydroelectricity capacity. It works by pumping water from a lower reservoir to a higher one at times of low demand, and releasing the water through the turbines when demand is high.

On the other hand, there are new technologies, such as lithium-ion batteries, like those found in smart phones. The potential growth of these new storage technologies is significant. Analysis from Citi has found that the price of lithium-ion batteries (per kWh) has fallen from $3,185 in 1995 to $320 in 2011, with further decreases projected.

A number of innovative new schemes have recently been announced that show how companies developing this technology in the UK. Nissan this year launched a new vehicle-to-grid scheme for their pure-electric vehicle, the Nissan Leaf. It will enable owners of a Leaf to sell the electricity that is stored in their car’s battery back to the grid at times of peak demand. Statoil has confirmed that they will build a major storage plant, called ‘Batwind’, next to their planned floating offshore wind farm in Aberdeenshire. It will help to optimise the electricity produced at the site and overcome the problems of intermittency.

Growth in energy storage

The market for storage is growing. Last year, when the National Grid invited expressions of interest for 200MW of grid balancing capacity. Bids from electricity storage alone would have surpassed the quota more than four times over. Bloomberg New Energy Finance predicts that by 2040 there will be a 75% fall in the cost of commercial and residential storage systems and the size of the global market will grow to around $250 billion.

But further measures are needed to unleash the true potential of energy storage. The National Infrastructure Committee recently called for a removal of regulatory barriers to storage to ensure it can compete on a level playing field with electricity generation assets. They identify storage as an area in which the UK can become a global leader. Not only can this be done without subsidies, they claim, but it can have a net positive benefit on consumer bills.

The Energy and Climate Change Committee in the House of Commons today published a report echoing calls for regulatory reform. For instance, energy storage is currently ‘double charged’, once for consuming the energy it stores, and again for supplying that energy back to the grid.

Finally, last year, Bright Blue called for the Government to invest in research and development of new electricity storage technologies. And in our latest report, we call for between 5GW and 6GW of storage capacity to be brought online by 2030 to ensure security of supply during the coal phase-out.

The potential for energy storage is great: government and industry now need to release it.

Phasing out coal for the good of our health

In the lead up to the Paris negotiations, the Secretary of State, the Rt Hon Amber Rudd MP, announced that the Government plans to phase out coal by 2025. Because coal is immensely harmful to health, the UK Health Alliance on Climate Change, which brings together the UK’s major health institutions, strongly supports this move.

We would like to see this proposal enter legislation and for the burning of the major pollutant - coal - to come to an end. Ensuring that this happens would be a major leap forward for climate change and health. As the originator of the industrial revolution, to become the first country to phase out coal and lead the world to act similarly, would be a momentous step to take.

Burning coal seriously affects air quality, human health, and climate change. It produces a number of air pollutants that are harmful to health, including sulphur dioxide, nitrogen oxides and particulate matter. Air pollution from burning coal causes heart disease, strokes, chronic obstructive pulmonary disease, lung cancer and acute lower respiratory infections among children.

Burning coal causes 1,600 premature deaths, 68,000 additional days of medication, 363,266 working days lost and more than a million incidents of lower respiratory symptoms across the UK, costing us up to £3.1 billion each year. Overall air pollution is now officially the biggest public health risk after smoking and kills 40,000 each year in the UK, as shown in the Royal College of Physicians' and Royal College of Paediatrics and Child Health’s report.

Coal plants are one of largest sources of carbon dioxide emissions, the primary cause of climate change. In the UK, coal-fired power plants generate almost 30% of electricity and 17% of all CO2 emissions. Ending the burning of coal is an essential component of the response to climate change and its dangerous impacts. Not only does coal directly affect health through its contribution to poor air quality, but its role in warming the planet also causes adverse consequences for health.

The effects of climate change, already felt in the UK, are worsening. In the UK, extreme weather events like floods and heat waves carry a significant health burden. The death toll exceeded 70,000 in Europe during the 2003 heat wave. Across the globe, climate change alters the spread and distribution of many infectious diseases, exposing new (and often vulnerable) populations to malaria, dengue fever, and cholera. Failing crops, lower grain yields, and increased crop prices from higher temperatures and shifting participation patterns is leading to increasing malnutrition, particularly in developing countries.

Climate change also significantly impacts on mental health. Studies conducted after the 2007 floods in the UK found that flood victims experienced up to a five-fold increase in mental health symptoms. 

Putting an end to burning coal is a major health opportunity. It is arguably one of the easiest measures to reduce climate change and a common-sense, cost-effective public health intervention in its own right. For the Government to deliver on its promise and end the use of coal in the UK would provide the necessary leadership to accelerate the phase-out of coal globally. This is needed to commit to the deal struck in Paris, to keep global temperature change to well below 2°C.

The use of coal, as one of the dirtiest, most polluting and inefficient energy sources, must end if we hope to protect the health of our environment and communities.

Dr Nick Watts is the Director of the UK Health Alliance on Climate Change.

The views expressed in this article are those of the author, not necessarily those of Bright Blue.

Filling the coal mine

Coal will go down as one of the most significant resources in the UK’s industrial, economic and social history. First mined shortly after Roman times, it powered the industrial revolution and moulded the UK into the world’s economic powerhouse through the nineteenth and into the twentieth century.

However, it is not always widely appreciated that UK coal production actually peaked in 1913 and has been in decline ever since. In 1970, coal generated about two-thirds of all electricity, but in 2015 it generated just over a fifth, and government policy is for coal-fired power stations without carbon limiting technology to close by 2025.

By contrast, civil nuclear power is at the exciting early stages of a resurgence, after many years where there was a combination of a dash for gas and lack of investment in the UK’s energy infrastructure. As the 16GW nuclear new build programme gathers pace, Energy Secretary Amber Rudd MP has said that nuclear is “central to our energy secure future”, whilst noting “unabated coal is simply not sustainable.”

Not sustainable because it is a finite, polluting resource which the developed world is turning its back on. The outcome of international climate talks in Paris last year clearly illustrated this trend and showed how countries are working together to combat the growing effects of climate change and air pollution. Nations are now searching for their perfect energy mix to maintain economic growth and security of supply, at the same time as reducing carbon emissions. 

Unfortunately there is no silver bullet for solving the energy mix question, but for many countries coal is no longer even part of the answer. With 80% of our heating coming from gas in the UK, it will continue to play a significant role alongside renewables and nuclear. Interconnectors, demand management and storage technologies will continue to develop too. It is a complex picture, but one which requires a nuanced and balanced response.

The advantages of renewables are clear but, because of their inherent intermittence and with no large scale and low-carbon industrial storage option likely in the foreseeable future, it means nuclear power remains a necessity because it generates the baseload, low-carbon power required to keep the lights on and our economy flourishing.

The drive for secure, reliable and low-carbon alternatives mean the north will also look to another one of its distinguished industries to help provide the energy for the Northern Powerhouse.

Ever since the end of the Second World War, the nuclear industry has provided the north, particularly the north-west, with high-skill, high-value careers. Sellafield, once a secretive munitions site, deliberately hidden from the Luftwaffe, is now a hive of activity with over 10,000 employees on site working to decommission the vast and complicated site. Significant progress has been made in recent years and Sellafield, once seen as a relic of the sector, is being transformed by new innovations in nuclear decommissioning. Skills and expertise, which are nurturing a specialism that is world renowned, are being exported to Japan and into other international markets.

Next to Sellafield, NuGeneration is finalising its plans to build three new reactors to help power the north. Based in Manchester, the joint venture between Toshiba and ENGIE aims to build 3.8GW of new nuclear capacity in Cumbria on its Moorside site. The project will create tens of thousands of new jobs and supply chain opportunities, not only in the north of England but across the UK. It will also generate sustainable careers when operating, and provide surrounding communities with low-carbon, secure electricity for at least 60 years.

Nuclear reactors are nothing new in the north of England. Calder Hall, Hartlepool and Heysham 1 and 2 have powered the north since 1957 and will continue to until at least 2030 when Heysham 2 is scheduled to shut down. Stations which have provided jobs for over a century and avoided the emissions of millions of tonnes of CO2. The potential of small modular reactors, currently under consideration by the Government, presents even greater manufacturing and supply chain opportunities that will benefit industry in the north of England.

While unabated coal continues to decline in its significance as an energy source, the nuclear sector represents a great opportunity for the north – both in complementing other ways of generating electricity as the distinction between electricity and energy demand is eroded, but also in providing long-term, skilled employment in construction, operation and supplying components for those power stations. Nuclear energy is not just a necessity, it is also an opportunity.

Tom Greatrex is the CEO of Nuclear Industry Association

The views expressed in this article are those of the author, not necessarily those of Bright Blue.

Why conservatives should welcome the circular economy

Not many people have heard about the ‘circular economy’, and even fewer know what it means. But, among environmentalists, it’s increasingly talked of as a major new economic trend.

It’s a term that means different things to different people. But the core of the idea is resource efficiency, the idea of reusing and recycling materials, and maximising the economic value of the things that we produce. It is a move away from the linear economic model of ‘make-use-dispose’, and a way to promote sustainable growth in a future of resource scarcity and a growing global population.

Making the circular economy a tangible concept can be hard. In the Green Alliance’s 2015 report on the circular economy, they outlined some of the different examples of circular economy activities. These include:

·      Reusing. Using the finished product for the same purpose as it was originally manufactured (e.g. using a second-hand iPhone)

·      Servitisation. Using assets more efficiently, such as through leasing or short-term service provision (e.g. renting a room via AirBnB)

·      Recycling. Using recovered materials to create new products

·      Biorefining. Extracting useful, valuable material from biowaste

Domestically, ministers at Defra are supportive of the circular economy. In December 2015, the EU Commission published a new action plan on the circular economy, which includes new common targets for EU Member States on waste and landfill use. It’s something that will increase in importance, therefore, in the coming years. This blog will look at some of the evidence around the economic and environmental impact of the circular economy.

Economic

There are significant economic benefits for businesses of cutting waste and being more efficient in their consumption of resources. A circular economy approach can help firms reduce their costs and make them more competitive globally.

Last year, the Green Alliance analysed the impact of the circular economy on employment. They studied the performance of the waste and recycling industry between 2000 and 2010, a period in which landfill declined and recycling rates rose. During that time, employment in the sector increased from 75,000 to 130,000 people, and sales turnover nearly tripled, up from £6.5 billion to £19 billion. They also examined the potential for the whole circular economy up to 2030. They found that there’s the potential for between 54,000 and 102,000 net jobs to be created in that time.

As more resources are consumed and they become scarcer, businesses that rely on natural resources will become more susceptible to price volatility. The circular economy reduces businesses’ exposure to these price risks. The Ellen MacArthur Foundation, an organisation set up to promote the circular economy, has worked with McKinsey to quantify the benefits to businesses of being more resource efficient. They have found that, by reducing the amount of raw materials businesses need, the net material savings across the whole EU could be between $340-630 billion per year.

Environmental

As well as offering economic benefits to businesses, there are advantages to the environment of a circular economy approach. The circular economy recognises that some natural resources are limited. To achieve sustainable economic growth, countries cannot rely on infinite consumption of finite resources.

Many activities associated with the circular economy reduce greenhouse gas emissions, and therefore support efforts to mitigate climate change. For instance, recycling food waste rather than sending it to landfill reduces harmful methane emissions. Through the process of anaerobic digestion, food waste creates biogas, a low-carbon energy source that displaces fossil fuels.

Circular economy approaches can also reduce pollution that is harmful to the natural environment. For example, the Ellen MacArthur Foundation has produced a report on plastics and the circular economy. Eight million tonnes of plastic leaks into the ocean every year, adding to the total of 150 million tonnes of plastic that is in the ocean today. Plastics also represent about 6% of global oil consumption, and is thus a major driver of fossil fuels use. In a circular economy, these environmental impacts could be mitigated through greater recycling, greater use of reusable packaging, and the use of compostable packaging.  

Conclusion

The more the circular economy approach is adopted, the greater the scale of economic transformation is required. For instance, the Chatham House has argued that a circular economy implies the decoupling of rising prosperity with growth in resource consumption. This talk of economic revolution can make conservatives anxious.

The idea of a circular economy, however, shouldn’t be seen in such stark terms. Organisations like WRAP and the Ellen MacArthur Foundation partner with businesses to develop circular economy approaches that increase their profits. It can be a very practical way of reducing inefficient economic activity and improving the natural environment. Conservatives should ignore the hyperbole, and embrace the opportunity that it offers.