10 Takeouts from UK's new Clean Growth Strategy

The UK Government’s new Clean Growth Strategy was launched last week to generally positive reviews. Having read the whole Strategy over the weekend here are 10 observations on it – be very clear this is not meant to be a systemic dissection of the Strategy, just ten things that stand out as particularly relevant to business.

1.      Industrial Strategy: There can be only one

Firstly, the central truism that the Strategy recognises, the UK cannot have an Industrial Strategy and a totally separate Clean Growth Strategy, they have to be one and the same thing, with a clear link to Green Growth and the positive opportunities to grow jobs and exports. The National Productivity Investment Fund, technical education and sector deals are all vital to this joined up approach.

2.      Better for all: Better for planet, people and business

The CGS also more than nods to the clear benefits that cleaner (low carbon) growth has for society as well as the planet. For example, acknowledging the costs to the NHS of cold and damp homes (￡760m pa) and the very obvious opportunities to reduce air pollution by shifting away from fossil fuelled mobility. Similarly the joined up worlds of low carbon and circular economy are referenced (food waste) albeit not quite enough. It’s good to see a factual outline of the net reduction in domestic consumers’ bills from low carbon action to date. Money in the pocket when people are feeling their wallets are under pressure.

3.      Efficiency: No longer the Cinderella of Low Carbon action (1)

There is a welcome focus on efficiency (the best energy is the type you never need) for both business and domestic homes. We need to make sure we provide systemic support for the 100,000s of SMEs that populate the UK economy, helping them save money as well as exploit new pathways to growth. And good to see the focus on landlords, commercial and domestic, many of whom can work very much harder on the premises they own. Welcome too, the proposed joint Industrial Decarbonisation and Energy Efficiency Action Plans, so much more can be achieved by joint action by a whole sector rather than focusing on the ‘usual suspects’ who always take a lead.

4.      Land use (forests and farming): No longer the Cinderella of Low Carbon action (2)

The CGS also looks beyond industrial emissions and sees the potential for action on land use. Good to see the importance of growing tree cover surfaced, particularly for farming, with England having the potential to grow tree cover from 9.8% to 11% of land area with 11 million trees planted over 180,000 ha. Similarly BREXIT presents opportunities to encourage farmers to reduce the use of petroleum based fertilisers, improve soil management, invest in small scale renewables and explore how they can be paid for ecosystem services, locking up carbon in the soil.

5.      Green finance: Play to your strengths

The UK, through the City of London, is a world leader in conventional finance and now has the opportunity to lead on Green Finance (as does the world of law and professional services). There is some evidence that this is beginning to happen but the finance sector as much as Government needs to seize the initiative or see other global centres of expertise emerge as the world economy re-calibrates to a greener pathway. A price on carbon is needed that is visible to the whole economy, driving engagement and innovation by all companies. And like so many aspects of the CGS, the Green Finance Taskforce can be a tick box exercise or it could be a game changer, our collective responsibility to make sure it’s the latter.

6.      International Leadership: Let’s not take our foot off the pedal

The UK Government rightly recognises the vital role that it is playing on an international level. From the investment of its Aid Budget (DFID) in the developing world (resilience and new energy systems) to the power of diplomacy, for example in agreeing COP21 and the work in Kigali to bring HFC refrigerants under the phase out umbrella of the Montreal Protocol. The continued importance of collaborative innovation through Mission Innovation is referenced, particularly for CCS and the need for further action to tackle deforestation. The increasingly important role of China and India in both climate diplomacy and action is also noted. And overt reference is made to the inherent risks arising from the US pull out from COP21. Which collectively reinforces the need for the UK to stay at the top table of International Climate discussions for reasons of Soft Power and hard economics.

7.      Green Great Britain Week: It’s not just about science, it’s about people too

Great to see reference made to the need for mass engagement across the economy via a Green GB Week. It’s vital that we build mass carbon literacy and ultimately action beyond a few Government Departments, Utilities and Big Businesses. Whether it’s the take-up of EVs, community action on small-scale renewables, changing diet or the support for on-land solar and wind, many more people need to understand why we need to change our way of life; that change is possible; and, crucially, change is better for them personally. So GGB Week is an important concept but it cannot literally be one week! It has to be a multi-year engagement platform that works with the grain of peoples’ lives, through the communities they live in; religions they belong to; sports clubs they support; brands they buy; interest groups they are members of. And to get mass engagement we need to recognise that a small number of solutions will be totemically important, for example building ‘one of the best EV charging networks in the world’.

8.      Rebalancing UK Economy: An economy that works for all

The current UK economy faces significant economic imbalances between London/SE England and the rest of the nation. The new, low carbon economy can be constructed from scratch to create more of a balanced model that works for all. It’s early days but the East Coast’s support for Offshore wind; Scotland’s work on renewables and the circular economy; the Midlands and NE England on EVs all show promise. But we need to keep attentive to how the investment and benefits of the CGS are distributed evenly and the Devolved Administrations need to be involved in every aspect of the CGS. As do local councils. For example via the UK100 Network, currently 70 councils committed to using 100% clean energy by 2050.

9.      Cross Government Integration: ‘Joined up Government’

It was intriguing to work through the roles and responsibilities of Government Departments for the CGS in the appendices. Crude totting up suggested BEIS top with 50; DCLG 6; Defra 18; Treasury 6; and Transport 12. Too much for BEIS, too little for others? Defra’s 25 Year Environment Plan was noted particularly as an enabler of turning the CGS into reality. And some reference is made to the importance of public sector carbon footprint and energy costs (￡570m pa for the NHS) as well as the potential for the public sector to lead the shift to EVs. Crucially note is made of cross department steering for the CGS and these words must become reality (the phrase ‘re-instate a Clean Growth Inter-Ministerial Group’ is telling), the UK Government needs to be carbon (and sustainability) literate in total, not just through BEIS. A little like the Sustainable Development Commission once aspired to do!

10.  Committee on Climate Change: And most important of all a Strategy must become a Plan

Finally, what everyone would recognise, a Strategy is not a Plan! Whilst most of the right words have been written down in mostly the right order, the CGS will only be as good as its implementation. And not just implementation because the CGS will need updating too as our understanding of the science, economics and technology associated with climate change improves and we develop the confidence to address issues such as air travel and diet. A good CGS will go through several iterations and in any democracy where the hues of political power do shift we need an objective, long term view to support this evolution.

The Committee on Climate Change therefore becomes doubly important in holding the Government to account for the ‘devil in the detail’ that must enfold in the years to come. So good to see the launch of the CGS preceded by the re-appointment of Lord Deben as chair of the CCC. There is a huge need for the CCC to hold us all to account for delivering the CGS!

So, overall, and noting the current very complex political backdrop, the CGS looks like a job initially well done. And whilst we all need to encourage Government to make the CGS a reality so we as businesses need to be very, very clear – we too have to step up to the mark and do at least as much as politicians to create the low carbon economy that we all need to prosper.

@planamikebarry