Cost or Opportunity?
In a recent Parliamentary debate on the Climate Change Bill Lord Puttnam compared “the dominant energy interests” who argue that hasty commitments to tackle climate change will be economically catastrophic to those who 200 years ago opposed the abolition of slavery. As he pointed out the abolition of the slave trade, in fact, was not only morally right but allowed Britain to leap forward economically.

Many business leaders have long realised that a move to a low carbon economy is not only environmentally essential but brings huge opportunities – even the CBI in its recent report called for a shift to a world where carbon becomes the new currency, and highlighted the UK’s unique opportunity to prosper in these key markets of the future.
The Climate Change Bill can be seen as the official UK launch of this new low carbon economy. A statutory framework requiring radical cuts in carbon emissions inevitably leads to policies covering all sectors of the economy – as housebuilders struggling to come to terms with zero carbon houses are already finding out.

What is the Climate Change Bill?
The Bill will put into statute the UK’s targets to reduce CO2 emissions by 60% by 2050 and 26-32% by 2020, on 1990 levels. It will introduce a system of five-yearly carbon budget, starting in 2008, to meet the long-term targets – a carbon budget will place a limit on CO2 emissions over a specified period of time. In order to provide a degree of certainty for businesses, the Bill will require the Government put into statute three five-year carbon budgets at a time.

The Bill will establish a Committee on Climate Change, which will independently assess how the UK can achieve its emissions reduction targets. The Committee will advise the Government on issues such as the level of carbon budgets; whether or not to make use of the banking or borrowing measures; and the extent to which carbon budgets should be met by domestic emissions reductions versus emissions reductions purchased overseas.
The Bill will introduce powers to make it easier to implement new trading schemes as well as consolidate, and extend trading schemes. The first of these domestic schemes is the Carbon Reduction Commitment (CRC) – a new mandatory cap and trade scheme, under which some 5,000 large non-energy intensive organisations will be required to purchase sufficient allowances either from the auction, the secondary market, or via the safety valve to cover their annual energy use CO2  emission.

Implications for Business
The Climate Change Bill marks a major step forward in the rigour and scrutiny of efforts to tackle climate change and all sectors of the economy are inevitably going to have to contribute. Buildings are already in the front line of climate change policy with the requirement for zero carbon homes by 2016 perhaps the most radical piece of policy in place. By focusing on the main areas of emissions the Bill will inevitably lead to tougher standards for commercial buildings and push Government to tackle existing buildings.

The building sector can, therefore, expect sustained pressure for lower emissions in homes and commercial buildings; new build and renovations. 2020 is a key target point in the Bill and a drive for zero carbon commercial buildings for that date is being put forward.
The mechanisms are already in place for the independent Climate Change Committee to ratchet up the targets in the Bill. Those industries that try to defend the status quo will find a statutory framework makes lobbying to resist change much more difficult. For those that recognise the demand the Bill brings for new products and services the opportunities are huge.

The gun for the start of the low carbon economy has been fired – its time for businesses to ensure they are in the race.
The Environmental Industries Commission is having a conference on the 24 April. “The Climate Change Bill: Implications for Business”

u www.eic-uk.co.uk/ccb.cfm