Hot issues: manufacturing, materials, and environment unit newsletter. Issue 31: November 2007

High Level Group on Competitiveness, Energy, and the Environment (HLG-CEE)

Towards a Global Low Carbon Economy Conference

The work of High Level Group for Competitiveness, Energy and the Environment concluded on 27 November 2007 in Brussels, with the ‘Towards A Global Low Carbon Economy’ Conference. The Group was established in February 2006 for a two year period.

The Conference, which was reported in the Financial Times on Wednesday 28 November, successfully brought together senior executives and policy makers from industry and the public sector. Most European countries were represented, with executives also attending and participating from China, India, USA, Japan and elsewhere.

The Conference formed some clear messages for the European Commission to take forward to the climate change discussions in Bali. The main ones included: Industrial Sector Agreements as a way to drive technology and emission reductions, Support for further development of the Carbon Market, a push for Carbon Capture and Storage along with other low carbon and energy efficiency technologies and development of adequate Financial and Risk Sharing packages for technological deployment.

Conference attendees were given all five reports produced by the HLG and were told that the Group would be reconvened for a special meeting in a year’s time to check on how the recommendations were being implemented by the Commission through its policy initiatives.

Enterprise Commissioner Gunter Verheugen explained that there would be some specific project work taking place over the next year, some of the Group members would be invited to monitor, one of which would be an industrial pilot sector approach to address climate change.

The HLG Documents can be found at the web link below.

High Level Group website

http://ec.europa.eu/enterprise/environment/hlg/hlg_en.htm

Commission on Environmental Markets and Economic Performance (CEMEP)

CEMEP report launched by the Prime Minister on 19 November 2007

The Commission on Environmental Markets and Economic Performance (CEMEP) was established by Gordon Brown as Chancellor of the Exchequer in November 2006 in the light of the Stern Review on the Economics of Climate Change. Its remit was to advise Government on how the UK could make the most of the potential economic benefits of the transition to a low carbon, sustainable economy.

The Commission report

The report sets out the analysis that underpins the Commission’s consideration of environmental markets, the approach it recommends to developing policy, and how business should respond to its recommended framework. The report then goes on to describe the actions that the Commissioners believe should be taken by Government, business and others to drive investment and innovation in environmental markets in the UK.

• Executive summary (PDF 60 KB)
• Full report (PDF 500 KB)

The Government is considering the findings of the Commission and will be responding in early 2008. A Green Business Summit will be hosted in the New Year, by John Hutton, the Secretary of State for Business Enterprise and Regulatory Reform.

The report launch

The Prime Minister launched the report during his major speech on Climate Change and the Environment. A major expansion of renewable energy and the launch of a competition to build one of the world’s first carbon capture and storage (CCS) plants were among the measures set out in the speech.

BERR’s Secretary of State, John Hutton, said: The direct link between tackling climate change and long-term wealth creation is now beyond doubt. The business opportunities, once fully unlocked, will be vast.

Pioneering low-carbon technologies, including renewables, CCS and – subject to our decision – new nuclear, will help secure diverse future energy supplies while tackling climate change. In a global market, the UK’s expertise in developing these technologies will also open up business worth billions.

The CEMEP recommendations will be central to helping the Government give business the long-term certainty they need to invest in the development of cost-effective solutions to environmental problems.

The prime minister also announced extra support through the Renewables Obligation for tidal lagoons and barrages below one gigawatt capacity.

The CEMEP report describes how the threat of climate change will stimulate investment in new technologies and innovations, helping to transform existing sectors of the economy and creating entirely new industries.

The report estimates that the overall added value in the low-carbon energy industry could by as high as $3 trillion a year worldwide by 2050, employing more than 25 million people. CEMEP identifies a need to create a clear and credible environmental policy framework and for more support for innovation – in particular, it recommends greater use of public sector money to create ‘lead markets’ for new products.

REVIEW OF THE MANUFACTURING STRATEGY AND CREATION OF THE MINISTERIAL ADVISORY GROUP

The Government is committed to a manufacturing strategy which meets the changing demands of the sector and has decided that the Forum format should be updated to coincide with a reassessment of manufacturing policy.

BERR Secretary of State, John Hutton, announced on 22 November the formation of a Ministerial Advisory Group (MAG) to build on the success of the Manufacturing Forum which it will replace. Mr Hutton said:

UK manufacturing has a crucial role to play in helping us accelerate to a low carbon economy.

There are many new and exciting technologies available for the UK to take advantage of, including on and offshore wind power, LED lighting, fuel-cell powered vehicles, carbon capture and storage, biomass, microgeneration, wave and tidal technology.

In the UK, thousands of new green collar jobs could be created by the potential in wind power alone - from around 8,000 now to more than 27,000 in 2020.

Our refreshed strategy will ensure Government is doing all it can to assist UK manufacturing compete globally and take advantage of exciting new markets.

MAG will be chaired by Stephen Timms, Minister of Competitiveness, and comprise a small group of high level representatives from CBI, TUC, EEF, RDAs and the Technology Strategy Board (TSB). The refreshed manufacturing strategy will look at how the Government can help UK industry take advantage of opportunities presented by tackling climate change whilst ensuring that the UK is at the forefront of developing a low carbon economy and manufacturing will be key to developing new green technologies. MAG will engage with industry through regional events and focus groups and will consult other organisations when specialist knowledge is needed. This will enable it to assess existing policies and stimulate new ideas to inform BERR’s understanding of modern manufacturing.

We will keep you informed in this newsletter of the strategy as it develops highlighting key opportunities to feed into the debate.

British Business Commits to ‘Do What It Takes’ to Tackle Climate Change – CBI Task Force Report

British businesses are committed to do what it takes to tackle climate change but the UK effort will only succeed if it becomes an urgent, shared national priority for companies, consumers and the government, a groundbreaking new report launched on 26 November.

For the first time, senior representatives from every major sector of British business have come together to assess the challenges posed by climate change and to identify the actions necessary to tackle them. The CBI Climate Change Task Force report is the culmination of ten months' intensive work by 18 Chairmen and Chief Executives from some of the UK’s biggest companies, under the independent chairmanship of BT Chief Executive Ben Verwaayen.

Analysis developed specifically for the report by consultants McKinsey shows the UK's carbon reduction targets for 2020 are likely to be missed but that 2050 goals, whilst stretching, can be achieved at a manageable cost - provided a greater sense of urgency is now adopted. It identifies priority areas for action that would put the UK back on track to meet its targets by 2030. The report explains how business will play its part, and commits the CBI to continue to play a leading role, both nationally and internationally.

The report says that firms will have fundamentally to change their business models to meet consumers’ and society’s needs in an era of climate change. The Task Force says the longer we wait the higher the cost will be - but that if we act early, the cost for each household can be limited to around £100 a year by 2030.

It stresses that alongside the risks, the shift to a low carbon economy offers the UK a unique opportunity to develop innovative environmental technologies of the future and prosper in new, multi-billion-dollar world markets - but only if research funding is better co-ordinated and prioritised.

Ben Verwaayen, Task Force Chairman, said:

Today the CBI Task Force has demonstrated its commitment to tackling climate change. This is a call to action to the wider business community whose support we need, an offer of partnership with government, and a commitment to empower consumers. They are key to any solution because of their power to demand environmentally friendly goods, and their influence on government as voters.

We need to support the consumer with better information and more choice. We have to involve our employees and we must report transparently our own carbon footprints. This is not just a challenge, it is also the chance to become leaders in a new low carbon economy. In business, in government, as consumers and citizens we are all part of the solution.

Richard Lambert, CBI Director-General, said:

This report makes clear that in the future, businesses will have to be green to grow. To manage their costs and to maintain the trust of their customers, they will need to build carbon management into their corporate DNA.

To get to a secure future, both environmentally and economically, we also need the Government to build on the leadership role it has already carved out on climate change. Critical decisions need to be taken now if we are to have a chance of hitting our emissions targets, let alone achieving tougher ones.

It must see through legislation that allows low carbon power plants - of all types - to get through our planning and regulatory systems, and it must keep the pressure on our international partners to commit to agreements that deliver a robust world price for carbon.

And, with most taxes and regulations designed for the old economy, it must oversee a fundamental redesign that gives businesses and consumers the incentives to do the right thing - avoiding at all cost the temptation to rake in more revenue, which would be seen as a fundamental breach of trust.

But this is a story of opportunity as well as risk. With the right focus on R&D, we can be at the forefront of new low carbon technologies that will power the world economy. We don’t have to return to the dark ages or live joyless lives to cut our carbon footprints - we just have to learn, together, to do things differently, with carbon becoming a new currency in our economy.

CBI Climate Change Report

CBI Climate Change  Report Summary

CCTF Factsheets

Emissions Trading Scheme

The EU Emissions Trading Scheme is a community-wide scheme established for trading allowances to cover the emissions of greenhouse gases from permitted installations. Several sectors are captured by the scheme such as steel, cement, chemicals and glass, as are any combustion plants that have an aggregated thermal input of over 20MW. Phase I of the Scheme runs from 2005 to 2007 and Phase II from 2008 to 2012.

The European Commission (EC) is currently undertaking a review of the scheme to look into ways of improving the scheme post 2012. They have held stakeholder meetings with representatives from Member States, industry and NGOs, to discuss their priorities for the review, namely: scope; robust compliance and enforcement; harmonisation and increased predictability; and linking to other trading schemes around the world. A Climate Change and Energy package is expected to be published by the Commission on 23 January 2008 which will outline their linked proposals for the EU ETS review, renewables and greenhouse gas burden sharing. Government expects to go out to a full twelve week public consultation on the proposals in Spring 2008. Defra and BERR will be continuing their joint bilaterals with sector associations throughout this period.

A successful Stakeholder Event was held at the Jurys Hotel in Great Russell Street on October 25 2007. There were over 100 participants and Government, industry and NGOs were all well represented. Hilary Benn and Malcolm Wicks took the opportunity to address the audience and emphasised their commitment to EU ETS as the main way of effectively limiting emissions in the most cost effective way.

Work is also continuing on the proposed inclusion of aviation into EU ETS. Responses to the March to June 07 consultation will help develop a UK negotiating position as the proposal progresses through the various legislative stages. More information on aviation inclusion in the EU ETS can be found on DEFRA’s website.

European Commission EU ETS Review

http://ec.europa.eu/environment/climat/emission/review_en.htm

DEFRA website: Aviation and the EU ETS

www.defra.gov.uk/environment/climatechange/trading/eu/future/aviation/index.htm

For further information please contact: Jessica Cull (MME)

jessica.cull@berr.gsi.gov.uk

CCPO Recent and Upcoming Events

Recent Events: The Climate Change Projects Office (CCPO) has been involved in several events since the last edition of Hot Issues. In September, over 300 local participants attended a Clean Development Mechanism (CDM) trade mission in Colombia, Costa Rica and Panama. The CCPO also had a stall at this year’s Carbon Forum Asia in Singapore (6-7 November). And at the end of November, 10 UK companies joined CCPO on a CDM trade mission to Peru and Ecuador and took part in 1-1 meetings with local companies, and a lunch with the Peruvian Vice Minister for energy.

Upcoming Events:
CCPO will host a side event at the UN negotiations in Bali, jointly with the Carbon Markets Association, on Friday 7 December 07. The event will focus on creating successful partnerships for the development of Clean Development Mechanism projects and is open to anyone attending the UN negotiations.

• The next CCPO trade mission on CDM will be to Vietnam and Thailand, 21-29 January 08. It will visit Hanoi, Ho Chi Minh City and Bangkok. Contact CCPO for more info.
• CCPO will run a joint climate change trade mission to Japan with UKTI, 4-8 February 08. UK companies are invited to join the mission.
• CCPO will have a booth at Carbon Forum America in San Francisco, 26-27 February 08. UK companies are invited to exhibit alongside CCPO as a UK group arrangement.
• CCPO will also be undertaking a review of its activities and running a stakeholder workshop on 16 January 08. More information will be available on the CCPO website shortly.

For information on CCPO events:
Simon.Kelly@berr.gsi.gov.uk or Vicky.Elliott@berr.gsi.gov.uk or Jed.Jones@berr.gsi.gov.uk

CCPO website: www.berr.gov.uk/sectors/ccpo/index.html

General enquiries: ccpo.enquiries@berr.gsi.gov.uk

Town and Country Planning (Environmental Impact Assessment) (England) (Amendment) Regulations 2007

www.communities.gov.uk/publications/planningandbuilding/towncountryplanning

Consultation on the implementation of the revised Bathing Water Directive

This consultation invites your views on proposals for implementing the revised Bathing Water Directive, 2006/7/EC, in England and Wales.

Whilst you are invited to comment generally on the implementation proposals in the consultation document, the costs and benefits of the proposals identified in the Impact Assessment and the draft Regulations, questions have been included on a number of specific issues. In particular, the Government would welcome views on:

• the number and type of bathing waters where measures should be taken to improve the water quality;
• the development of a prediction and discounting system; and
• the development of public information for beach signage.

www.defra.gov.uk/corporate/consult/bathingwaters/index.htm

Standard Rules and Guidance for the Introduction of the Environmental Permitting Regulations

This consultation seeks views on the first sets of standard rules that the Environment Agency (EA) intend to make available when the Environmental Permitting (EP) Regulations are due to come into force in April 2008. They cover 28 low to medium risk activities that currently require a waste management licence, such as waste transfer stations and civic amenity sites. The EA are also consulting on associated documents - risk assessments, guidance on standard rules and permit templates.

The EP regulations will streamline and combine the existing Waste Management Licensing and Pollution Prevention and Control regimes. One of the most important changes will be the introduction of standard rules and standard permits.

Before the EA can introduce standard rules for a particular activity they must consult on a set of draft standard rules and this is the first such consultation. The EA will take account of the consultation responses and publish the standard rules on their website before the regulations come into force. Standard rules define how the operator must carry out the activity, for example by limiting the types of waste that can be brought onto the site.

www.environment-agency.gov.uk/yourenv/consultations/1853050/?version=1&lang=_e

Consultation on our proposed Environmental Protection charges for 2008/09

The EA review their charging schemes annually to ensure they are recovering their costs, and that their charges are as fair as possible. The EA consult with stakeholders before they make any changes to their schemes and their responses then form part of the submission to the Department for Environment, Food and Rural Affairs for approval in consultation with the Welsh Assembly Government and HM Treasury.

The EA are launching their annual charges consultation which sets out our proposals for the following charging schemes from the 1 April 2008:

Environmental Permitting (replacing Waste Management Licensing and Pollution Prevention and Control)
Radioactive Substances Act Regulation (RAS)
EU Emissions Trading Scheme (EU ETS)
Integrated Pollution Control (IPC).

Despite our estimate that inflation and new regulatory duties will increase our costs by 4.7%, through our ongoing efficiency savings the EA have kept the baseline increase to charges to 3.4%. This is below the current Retail Price Index of 3.8% (National Statistics, July 2007).

In addition the EA are proposing to introduce a new Environmental Permitting (EP) scheme to reflect the forthcoming Environmental Permitting Regulations. The EA also plan to introduce Release 1 of the Unified Charging Framework to support the new EP scheme.

The EA are also proposing a range of technical amendments, mostly as a result of the proposed EP scheme, but also to their RAS charges.

www.environment-agency.gov.uk/yourenv/consultations/1859693/

Implementing the new Machinery Directive 2006/42/EC in the United Kingdom - A Consultation Document

This consultation seeks the views of businesses, manufacturers, retailers, producers and enforcement authorities on a set of draft Regulations to transpose Commission Directive 2006/42/EC1 (the revised Machinery Directive henceforth referred to as ‘2006/42/EC’) into UK law. 2006/42/EC will regulate the placing on the market, and the putting into service, of machinery across the United Kingdom and the European Union, as currently undertaken by Commission Directive 98/37/EC2 which it replaces.

The new Directive aims to provide greater clarity than the old directive, e.g. with a new definition of the core concept of ‘machinery’ and in the dividing lines between itself and the Lifts and Low Voltage Directives. Another significant change is the introduction of a quality assurance conformity assessment module as an option for relevant manufacturers. Some of the other changes are described below but, in general, the new directive follows the same principles as the old one - the changes are largely a question of tidying up acknowledged flaws in the old directive and addressing some of the difficulties that have been experienced in making it work properly in practice.

www.berr.gov.uk/consultations/page41465.html

Consultation on the Review of the Home Energy Conservation Act 1995

HECA places a duty on all Local Authorities with housing responsibilities to develop plans resulting in the significant improvement of energy efficiency of residential accommodation in their area.

Defra has undertaken a review of HECA, as implemented in England, to assess its continued success in delivering improvements in energy efficiency and options for the future.

www.defra.gov.uk/corporate/consult/heca/index.htm

Consultation on an amendment to the Textile Products Regulations 1986 and the replacement of the Textiles Products Regulations 2006

www.berr.gov.uk/consultations/page41660.html

Consultation on Local Authority Environmental Regulation of Industrial Plant: 2008/09 Fees and Charges

www.defra.gov.uk/corporate/consult/localauth-plantfees08-09/index.htm

Summary of Significant Water Management Issues

This is our second River Basin Planning consultation under the Water Framework Directive.

This consultation sets out what we believe are the most significant issues that face each River Basin District. These issues are raised early in the process to give you time to consider how best to address them. The information and proposals may affect you, your environmental interests or your business, and we want to know what you think.

www.environment-agency.gov.uk/yourenv/consultations/1830617/?version=1&lang=_e

Manufacturing Advisory Service (MAS)

The Manufacturing Advisory Service (MAS) plays a major role in providing UK manufacturers with the practical support they need to improve productivity and achieve success in an increasingly competitive global economy.

MAS owes much of its success to the strong partnership between BERR, RDA s and other key stakeholders who provide access to free (for SMEs) practical review from professional experts. More than a third of firms have gone on to take up in-depth project work with the service at a subsidised rate, enabling them to achieve a competitive edge through adopting global best practice in manufacturing.

From April 2008, MAS will offer a greatly extended range of help and advice covering;

• Operational efficiencies beyond the shop floor to all aspects of manufacturing companies activities;
• Promoting innovation through implementing best practice in development and commercialisation of new products;
• Strategic planning and skills development;
• Sourcing materials, services and technology;
• Improving the performance and operation of the supply chain;
• Improved resource efficiency in both energy and waste

You can register with the national website to receive a regular e-newsletter in order to find out about recent news and forthcoming events involving MAS.

DIRECTOR
Robert Sullivan
0207 215 1474
robert.sullivan@berr.gsi.gov.uk

Manufacturing

Energy and Environment Policy

Sector Knowledge & Innovation

Deputy Director
Keith Avis
Manufacturing Strategy
0207 215 1455
keith.avis@berr.gsi.gov.uk

Deputy Director
Terry Martin
Director
Energy Policy
0207 215 1102
Terry.martin@berr.gsi.gov.uk

Deputy Director
Brian Greenwood
020 7215 1298
Brian.Greenwood@berr.gsi.gov.uk

Stuart Barthropp
Senior Policy Advisor, Manufacturing Forum
020 7215 1898
Stuart.Barthropp@berr.gsi.gov.uk

Dominic Scullard
Energy/High Level Policy/BCB
020 7215 1018

Dominic.Scullard@berr.gsi.gov.uk

Sandy Grom
Assistant Director- Non-ferrous Metals, Engineering, Composites
020 7215 2963
Sandy.Grom@berr.gsi.gov.uk

Russell Kerr
Senior Policy Advisor- Manufacturing Forum
020 7215 1296
R.Kerr@berr.gsi.gov.uk

Jessica Cull
Senior Policy Advisor
Energy and EU ETS
0207 215 4121
Jessica.cull@berr.gsi.gov.uk

Simon Greaves
Sector Knowledge Manager
simon.greaves@berr.gsi.gov.uk
Tel: 0113 3412720

John Mackay
MAS – 4
020 7215 5629
John.Mackay@berr.gsi.gov.uk

Vicky Elliott
Climate Change Projects Office
Team Leader
020 7215 1608
Vicky.elliott@berr.gsi.gov.uk

Nick Morgan
Assistant Director, Materials IGT,
Innovation coordination
0207 215 1105
nick.morgan@berr.gsi.gov.uk

Sue Hawker
MAS
020 7215 3849
Susan.hawker@berr.gsi.gov.uk

Jed Jones
CCPO
Climate Change Projects Advisor
020 7215 3748
Jed.Jones@berr.gsi.gov.uk

Robert Quarshie
Deputy Director
Technology
0207 215 1563
Robert.quarshie@berr.gsi.gov.uk

Simon Kelly
CCPO
Business Communications Advisor
020 7215 1321
Simon.Kelly@berr.gsi.gov.uk

Adrian Hallett
Assistant Director
EIAG and Commission on Environmental Markets and Economic Performance
020 7215 1624
Adrian.Hallett@berr.gsi.gov.uk

Trudie Mansfield
Assistant Director
Environmental industries and
Commission on Environmental Markets and Economic Performance
020 7215 5863
Trudie.Mansfield@berr.gsi.gov.uk

Central Team

David Williams
Senior Policy Advisor Environmental Issues
020 7215 1357
David.Williams@berr.gsi.gov.uk

Senior Policy Advisor
Environmental industries
Vacancy

Cliff Salole
Secretariat
0207 215 5855
cliff.salole@berr.gsi.gov.uk

Paul Turner-Smith
Policy Advisor
Environmental industries and MME Communications
020 7215 1055
paul.turner-smith@berr.gsi.gov.uk

Judith Williams
MME Administrator
0207 215 6517
judith.williams@berr.gsi.gov.uk