RESPONSE TO THE WEST MIDLANDS REGIONAL ASSEMBLY'S CONSULTATION ON DEVELOPING A CLIMATE CHANGE ACTION PLAN - SEPTEMBER 2007

May we first state that business recognises that climate change is an issue that must be faced. The economic implications of climate change have been clearly demonstrated by the Stern Review and both the private and public sectors have a responsibility to address issues arising from climate change.

Therefore our response to this consultation should be taken in the vein that business is willing to play its role in full recognition that climate change can provide new business opportunities as well as threats to the regional economy if we do not take action.

This submission is divided into three sections. These are:

• Institutional Issues
• Biofuels
• Business Opportunities

Institutional Issues

While we support the aim of bringing different targets together from a range of regional strategies and place them in one document, we do believe that the announcement of the Government's intentions to change regional structures as a consequence of the Sub National Review has to be taken on board.

Therefore, the focus for the further development and implementation of this action plan needs at some point to be transferred to the Regional Development Agency in recognition of the new responsibilities it will take on and the fact that the Agency is developing the UK's first low carbon regional economic strategy.

Clarification is also needed on the role of Energy West Midlands or any possible successor body with the development of the action plan. Business played a positive role in the development of Energy West Midlands but the continuing uncertainty about its future needs to be addressed if there is to be full clarity in the implementation of the action plan. Business must be at the heart of the policy making process on energy issues.

We would also call on the action plan to be clearer as to how regional targets in the action plan would relate to local targets to address climate change such as with the Birmingham Climate Change Action Plan. We believe this clarification is essential if needless duplication and confusion is to be avoided.

Business has supported the thrust of the Regional Energy Strategy, in particular how business opportunities must be the key driver to ensure a sustainable energy base in the region.

Biofuels

Biofuels are key to helping address climate change.

In July at the Royal Show in Stoneleigh, automotive manufacturers and the National Farmers Union came together to discuss the potential development of biofules.

The Institution of Civil Engineers claim that 50,000 hectares in the West Midlands region could be devoted to bio-fuels.

This is an energy source that could be ideally suited to the West Midlands region – with 80% of the region devoted to the rural economy.

The Food and Farming Team of Advantage West Midlands – based in Worcester – with Marches Energy Agency - has produced a highly recommended report in June 2005 which clearly lay out the potentially large biomass opportunities for business.

The potential for a long term sustainable biomass sector in the West Midlands is considerable. Regional agencies could consider capital grants and other policy changes to establish the infrastructure development for the growth of the sector – a key role if the region is to take practical action to address climate change.

 Business Opportunities

Business opportunities are key to delivering business engagement with the challenge of climate change.

We believe that the step changes, as indicated in the action plan, can go even further to address these challenges.

For instance, the Government's recently published Energy Review highlighted the ambition of the carbon emissions trading scheme. The review conclusions including the following statement:

"Consider whether more sectors – and more greenhouse gases – should be included (in the carbon emissions trading scheme) in order to maximise opportunities for significant cost effective carbon savings. Such consideration should take into account, among other factors, the technical potential to reduce emissions, the costs of abatement, the regulatory burden on industry and the impact on sectors already in the Scheme".

This could prove to be a positive outcome for the regional business community, especially for SMEs. Instead of fears of yet another tax on businesses this could be a profitable new market for all firms.

However, too many businesses across the region have not been given technical or even introductory advice as to how carbon emissions trading can assist their businesses.

This lack of knowledge is combined with widespread business concerns that the Carbon Trust is not fully meeting the needs of businesses in terms of energy efficiency advice.

Therefore the West Midlands Business Council would encourage business support services to provide advice and support on carbon emissions trading and energy efficiency issues. Not only would this assist with the productivity of businesses but it would also address the environmental needs of the region in reducing reliance on carbon based energy which contributes to climate change.

Another area of business opportunities relate to climate change. Environmental technologies have become a growth area in the region – and its relevance to alternative forms of energy generation proving to be very important.

Advantage West Midlands has played a key role in this work and this should be recognised.

In particular, however, we would propose that the action plan should address proposals in the Black Country Study which are currently before the Secretary of State for Communities and Local Government for the development of environmental technologies in the Black Country, including in the Hill Top area of West Bromwich.

Whether its' contaminated land, the need to turn waste into energy, recycling goods or a host of other environmental technologies, the Black Country has been at the forefront of this developing sector.

The Black Country also has the basis for expertise in developing manufacturing components for the energy market as a whole – including the nuclear energy sector if the Government goes ahead with this option following its' energy review.

In consultation with the Black Country councils, a detailed planning paper on an integrated waste strategy has been produced, covering the joint needs for the area, for the next thirty years. Much work has been completed in detailing the opportunities presented by existing and proposed legislation. What emerges clearly is the capabilities of West Midlands based companies to take forward such opportunities in areas such as Renewable Energy, Waste to Energy, Waste reclamation and remediation, innovative uses for recyclates into many different markets.

In the Black Country, there are plans for the provision of a hot pressing facility, which will enable locally grown rape seed to be pressed to produce a viable supply of oil for the local production of bio-diesel. This will supplement the ever increasing supply of bio-diesel being produced throughout the West Midlands from used vegetable oil.

Conclusion

This draft action plan can make the difference on the ground to help the region respond to climate change.

However, the needs of business must be addressed directly if the region is to practically respond to the challenges that lie ahead.