Green economic opportunities that bridge the rural / urban divide Bridging the rural urban divide through green economic opportunities for the Greater Birmingham Local Enterprise Partnership 25th January 2011 Dr Simon Slater Executive Director [email protected] sustainabilitywestmidlands.org.uk Who we are We are the sustainability adviser for the leaders of the West Midlands. – Government recognised ‘sustainability champion body’ for West Midlands – Our Board is private sector led and cross-sector representative – We are a not-for-profit company, that works with our members in the business, public and voluntary sectors. Our role is to act as a catalyst for change through our: – policy advice to leaders – developing practical cross-sector solutions with our members, and – share success through our communications. Overview 1. The Sustainability Challenges & Vision 2. Low Carbon Economy Risks & Opportunities 3. Low Carbon LEP Priorities & Implications 4. Conclusions The West Midlands Sustainability Challenges – The Productivity Gap - £15 billion per annum compared to UK average – productivity & long-term unemployment – The Carbon Gap – additional local measures need to meet national targets - focus on transport, waste, decentralised energy, energy efficiency – Quality of Life Gap – health inequalities – gap of 10 years of life expectancy between different places in region. – Marketing Gap – poor promotion within and outside region of good sustainability practice – but changing – Leadership Gap – varied understanding on sustainability as overall framework for action, business often ahead of public sector, sub-regional governance ‘unfinished & uncertain’ Our Vision By 2020 businesses and communities are thriving in a West Midlands that is environmentally sustainable and socially just. By 2012 our leaders are clear on what this looks like, have set milestones and their organisations are making strong progress. ‘Low carbon vision’ begins to set out what is possible now in terms of energy, transport, construction, demographic change to reach 2020…just add leadership and next steps Results by 2020? • Improve economic productivity by 30 percent through increased resource efficiency, innovation, business creation, and social enterprises tackling long-term unemployment. • Reduce greenhouse gas emissions by 30 percent through decreasing direct emissions within the region, reductions through the supply chain, and the deployment and export of solutions. • Reduce the healthy life expectancy gap from 10 to 6 years between the best and worst performing areas within the region. Overview 1. The Sustainability Challenges & Vision 2. Low Carbon Economy Risks & Opportunities 3. Low Carbon LEP Priorities & Implications 4. Conclusions Defining the Low Carbon Economy • There is no official government definition of a low-carbon economy so the West Midlands produced its own, definition : “ An economy that produces goods and services of increasing value while reducing the associated greenhouse gases in their production, use and disposal…” West Midlands Economic Strategy Connecting to Success, page 89 • Embraces the region’s strengths in engineering, science and technology to deliver low-carbon solutions to national and international markets. Sectors by level of potential exposure to carbon constraints on operations in the West Midlands Exposure of LEP area to high energy prices & carbon legislation Local Authority Area % of employees at risk Birmingham 36.3% Solihull 40.7% Staffordshire 38.6% Worcestershire 33.5% WM average 37.1% (Stoke 46% - Telford 32%) Source: SWM / WMRO, Summary of Low Carbon Economy Studies for the West Midlands (July 2010 Low carbon opportunities in the West Midlands Low carbon opportunity sectors Opportunities for low carbon ‘decarbonisation’ or ‘diversification’ within LEP area Local Authority Area Public services Environment goods & services Transport manufacturing & communications Other manufacturing e.g. metals, electrical equipment Birmingham H M H H Solihull H M Staffordshire H M H H Worcestershire M Food & drink manufacturing Construction H M H Source: SWM / WMRO, Summary of Low Carbon Economy Studies for the West Midlands (July 2010) Note H = Industry has highly significant presence in sub-region and M = Industry has significant presence. H H Low Carbon Economy Risks & Opportunities for LEP area Productivity vs Jobs • High productivity sectors are low risk, but around 37% of employment is within sectors at risk from energy costs and carbon legislation Decarbonisation vs Diversification • 75% of employment opportunities are producing existing products and services more efficiently – especially public services • 15 % of employment opportunities are around diversification or growth into - manufacturing of building products, transport, energy / efficiency, waste reprocessing, agri-food Urban vs Rural • Urban areas biggest potential driver of regional low carbon markets – but good practice & supply chains often in rural areas Overview 1. The Sustainability Challenges & Vision 2. Low Carbon Economy Risks & Opportunities 3. Low Carbon LEP Priorities & Implications 4. Conclusions WM Priorities – to deliver jobs, carbon, resilience, cost reduction • Leadership & marketing - Development and coordination of initiatives to stimulate low carbon jobs, skills & perception change. • Housing - Retrofitting existing housing stock and buildings • Public spend - Public sector sustainable procurement • Transport - Improved low carbon transport choices such as active travel or flexible working • Waste - Infrastructure for diverting commercial and industrial waste from landfill • Energy - Decentralised energy networks expanding from regeneration schemes • Green space - Improvement of environmental infrastructure, such as parks, rivers, and trees, to increase resilience to climate change, job creation, and health outcomes. Birmingham - Summerfield Eco-Village Summerfield Eco-Village is the largest eco retrofit to date in the UK with 330 houses. Expected to reduce annual household fuel bills by £150 per annum and provide 60% of energy needs onsite. Forms basis for Green New Deal pilot in Birmingham for 5,000 houses. Implications of Priorities for LEP • Leadership & marketing - Development and coordination of initiatives to stimulate low carbon jobs, skills & perception change. – Important across whole LEP area, but who will lead? • Housing - Retrofitting existing housing stock and buildings – Investors will be interested in large urban areas, how will rural areas with dispersed off-grid communities and high rates of fuel poverty benefit? Staffordshire - Whittington and Fisherwick Environmental Group Whittington and Fisherwick Environmental Group in Staffordshire won the Green Community Heroes Rural award 2009 for encouraging residents, businesses and community organisations to understand the causes and consequences of climate change, assistance in lowering their carbon footprint and creating a low carbon community. Implications of Priorities for LEP (cont) • Public spend - Public sector sustainable procurement – Which areas of spend will drive demand for new green products and services e.g. travel, construction, food and drink, green space maintenance? • Transport - Improved low carbon transport choices such as active travel or flexible working – How will home and flexible working not lead to a continued move from urban to rural areas? Solihull - Elmdon Park Elmdon Park, Solihull, has been awarded Green flag status after Solihull MBC used expert advice to become more sustainable throughout the park by reducing energy use and pollution and improving conservation and the natural resources. Implications of Priorities for LEP (cont) • Waste - Infrastructure for diverting commercial and industrial waste from landfill – How will the benefits of rural areas treating urban waste flows be realized? • Energy - Decentralised energy networks expanding from regeneration schemes – Investors will be interested in large combined heat and power networks. How will more rural solutions also be delivered? • Green space - Improvement of environmental infrastructure, – Key opportunity to link areas through ‘green travel corridors’ and ‘care / food / fuel farms?’ Overview 1. The Sustainability Challenges & Vision 2. Low Carbon Economy Risks & Opportunities 3. Low Carbon LEP Priorities & Implications 4. Conclusions Conclusions • Uneven coverage of green economic priorities for LEP urban and rural areas • Common areas are where urban area provides clear driver for demand which can be partly supplied or linked to rural areas: – Food and drink – Waste & energy – Green Infrastructure • All this requires clear leadership & willful individuals Find the new Low Carbon revolutionaries in the LEP area How? - talk to a green leader, swm member, join a local green business club or network Keep in touch Subscribe to monthly e-newsletter Become a member Submit good practice Invest in developing new cross-sector solutions Dr Simon Slater Executive Director [email protected] sustainabilitywestmidlands.org.uk
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