Category Archives: Green economy

Resource efficiency will improve UK competitiveness

Paul Ekins (c) SERI polfreeThis post is by Professor Paul Ekins OBE, director of the UCL Institute for Sustainable Resources, University College London.

There are many reasons to increase resource efficiency in an economy like the UK’s. Among them are the need to reduce pressure on natural resources in a world with growing populations and economies; to reduce the vulnerability to imported material’s supply shocks and price volatility; and to avoid the environmental impacts of natural resource extraction, even where they occur outside the UK.

But perhaps the main reason to improve resource efficiency in current economic and political circumstances is to improve the UK’s national competitiveness.

Most natural resources come at a financial cost. Using less of them in relation to economic output reduces costs to firms and makes them more competitive. More competitive firms can more easily win in markets at home and abroad. Increasing exports, while reducing our resource imports, benefits the UK’s trade balance.

There are substantial opportunities for increasing resource efficiency across most sectors of the economy, and convincing evidence that it will deliver macroeconomic benefits. These are the main messages from the UN Environment’s International Resource Panel report, Resource efficiency: potential and economic implications, of which I was the lead author. Commissioned in 2015 by the G7 governments during the German Presidency, resource efficiency remains a major theme running through the Italian G7 Presidency this year. The governments of the world’s largest economies are, it seems, increasingly paying attention to the evidence that higher resource efficiency can deliver economic, environmental and resource benefits.

The report also highlights that intelligent public policy is required for these benefits to be delivered. Market forces by themselves will get some of the way there, but there are numerous constraints to increased resource efficiency, which are well documented in terms of both their existence and how they can be addressed by government action. The UK has, in the past, been something of a pioneer in relevant policies, such as landfill taxation, support for industrial symbiosis and legislation for extended producer responsibility. But the appetite for such progressive measures appears to have diminished in recent governments.

It is time for that to be rekindled. The Industrial Strategy green paper contains the odd welcome reference to resource efficiency, but there is little sign that the concept is at the heart of government thinking. One remedy would be for BEIS and the Treasury to give as much attention to resource productivity as they do to labour productivity, to signal that resource efficiency should be a key consideration across all government policy. That really would signal seriousness of intent to make the UK more competitive by adding more value to the materials which overwhelmingly the UK has to buy from abroad.

Industrial strategy fit for the future: perspectives on building a competitive UK economy’ brings together the views of seven respected thinkers from politics, business, trade unions and academia on the kind of economy the industrial strategy should be building and the role low carbon and resource efficiency can play.

Green Alliance set out the case for low carbon and resource efficiency to be the key underpinning principles of a modern industrial strategy, in a short report and animated infographic.

Low carbon development is a chance to rebalance our economy

1507TUCPNowak072This post is by Paul Nowak, deputy general secretary of the TUC.

Climate change is the biggest challenge facing the planet. But, for many working people, it can seem a remote issue; one not directly related to their everyday lives. That’s why the TUC is keen to draw the links between tackling climate change and some of the other major themes of our campaign work: rebalancing our economy; investing in the UK’s physical and social infrastructure; and ensuring working people are not asked to pay the price for Brexit.

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Industrial strategy and clean growth must go hand-in-hand

Carolyn Fairbairn WEF versionThis post is by Carolyn Fairbairn, director general of the CBI.

Technology is changing the world around us at an unprecedented rate. The Internet of Things, the sharing economy, 5G and autonomous vehicles will all change the way we live and work. At the same time, Brexit is going to have a profound impact on our politics and the way the UK works and trades with Europe and the rest of the world.

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We are approaching a critical tipping point for investors

Committee on Climate Change portraits - 24/9/08.This post is by Baroness Brown of Cambridge DBE FREng, chair of the Committee on Climate Change’s Adaptation Sub-Committee. It is written in a personal capacity.

We are approaching a climate change tipping point, one that I am eagerly awaiting. With all of the political changes going on in the UK and around the world, I just hope this one doesn’t get delayed. Read more

Industrial strategy: where UK and US economic plans diverge

Fotolia_96263802_M.jpgTheresa May recently launched the centrepiece of her domestic agenda: the UK’s industrial strategy. After six months of commentary on the parallels between the phenomena that led to the Brexit vote and US election result, it is useful to reflect on the differences that are starting to emerge. A quick read of the green paper appears to show that May is charting a very different course on industrial strategy from the one now being advocated on the other side of the Atlantic. Significant differences are the approach to resource productivity and the attitude to growing low carbon markets. Read more

What the government can learn from Jaguar Land Rover about staying competitive

Thijaguar-xe-3_paul-gravestock_flickrs post first appeared on BusinessGreen.

The government’s hasty commitment to shield the automotive industry from the worst effects of Brexit demonstrates two things: the political importance of the car industry and the challenge that the industry faces in a post-Brexit UK. Tariff-free access to the single market is important for complex manufacturing, but it won’t make British industry any more competitive on its own. So what else can the government do? One thing would be to scale up a proven strategy and work with businesses to increase resource productivity.

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From the rose garden to the referendum: six years leading Green Alliance

PDW_6349.jpgRunning Green Alliance often feels like bare back horse riding. It requires a constant appetite for danger, good balance and lots of trust. You don’t have the padding of a large public membership to keep you stable, but if you channel the support and ideas of the sector you get an exhilarating ride. Read more

What the steel crisis can teach us about Britain’s new industrial strategy

Steelmaking workshopThis post is by Green Alliance’s Dustin Benton, head of energy and resources, and Jonny Hazell, senior policy adviser.

Forget the theory: the first test of Britain’s new industrial strategy will be how it handles the steel crisis. Steel used to be the sign of an advanced manufacturing nation, and it still provides the sort of skilled employment outside London that Theresa May has promised to protect. It’s at the heart of the debate about exporting carbon emissions and Brexit Britain’s industrial future. The world will inevitably draw lessons from how it is handled.

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Five things you should know about industrial strategy

crossrail tunnel_Flickr No.10_cropIndustrial strategy is back.  It featured in Theresa May’s Birmingham leadership speech as one of the economic reforms necessary “to get the whole economy firing”.  As prime minister, May has followed through by elevating the former Department for Business Innovation and Skills’ competitiveness remit ‘to develop a long term industrial strategy’ to the title of the new Department of Business, Energy and Industrial Strategy (BEIS). Read more

Prime Minister May needs a bold plan to protect Britain’s environment post Brexit

British landscape in SummerBritain may be a divided nation but the environment is one thing we all still share. The loss of 40 years of EU environmental agreements will have a detrimental effect on the quality of our rivers, our fields and our lungs. Want to develop a new container port on that estuary? Wait for the European habitat law to go and then you only have to convince the Treasury to overrule guidance by Natural England. Live in an air pollution hotspot? Move out or suck it up, because current British legislation won’t protect you. Read more

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