A Fabian Environment Seminar 

Monday 27th September 2010, Manchester

This joint Fabian Society and National Grid roundtable seminar met at the 2010 Labour Party Conference. Its purpose was to address the challenges of making progress towards a low-carbon economy in the current fiscal climate. The seminar, which took place under Chatham House rules was chaired by Alan Whitehead MP, and was joined by Malcolm Wicks MP, Janine Freeman (National Grid) and David Norman (WWF).

The discussion began with the immediate challenges presented by the objective of meeting the 2008 Climate Change Act’s target of cutting carbon emissions by 80 per cent by 2050. If we are to meet this challenge there will have to a ‘revolution’ in individual behavior, with individual carbon emissions needing to fall from approximately 10 tons per person annually to just two tons.

To reach this goal, it is crucial that there is wide public understanding and support for the target, and individuals need to understand how changes in their personal behaviour can help achieve the target. Yet recent political and economic developments present a serious challenge to attempts to change individual behaviour. The recent stories emerging from the scientific community – for example, the apparent manipulation or suppression of certain data – have created a favourable environment for climate change sceptics.  At the same time, the fiscal crisis has undermined public support for climate measures, such as green taxes or the ‘greening’ of the home, which hit the pocket of the consumer.  

However, if we do not reduce demand for carbon based energy then the economic cost to both society and the consumer will be far greater in the long-run: the alternative strategy, if we are to meet the 2050 target, is to develop and rely upon very expensive technologies, such as carbon capture and storage or a new generation of nuclear plants. As we increasingly come to rely on imported energy, there will be the economic cost of high energy prices and serious implications for the security of energy supply (over and above climate change concerns). Another key challenge for a sustainable green economy is the development of a coherent carbon pricing mechanism. A realistic energy policy will need to rely on carbon fuel, to some degree and in some circumstances, for several decades. As such, a common ‘price’ for carbon needs to be agreed across Europe, and ideally internationally. 

There was a consensus amongst the panel that the failure to pursue green technologies would be a missed opportunity for the British economy. At present, Britain has an ‘incomparably strong comparative advantage’ in the international market for green technology and energy, especially in on and off-shore wind technology. One speaker expressed the hope that, with the right development and support, Britain could thus become a net exporter of energy by 2050. In the discussion  that followed, however, familiar and longstanding concerns were raised about the challenges faced by the British energy industry. Of particular concern was the lack of skilled British labour, able to drive forwards the development and application of new technology in Britain.

Another key concern was the uncertainty that suppliers felt characterized the national energy strategy of Britain. Developing the infrastructure most appropriate to the chosen energy mix of the next few decades will require long-term planning and very significant financial investment. Some of the participants in the seminar felt that, at present, that there was too much uncertainty to justify the necessary level of commercial investment; both in terms of the energy mix that Britain will ultimately choose to adopt, and in the nature of the planning regime that will regulate the construction of the necessary infrastructure.

The consensus of this roundtable was that the 2050 target was both necessary and achievable, but that there are serious threats and obstacles that must be overcome, and that as well as concerted government action there must be a revolution in individual behaviour. The extent to which governments must impose rather than just encourage such behaviour remains to be seen.

This event was kindly supported by National Grid.