The government's vision that sets out the policy landscape over the next decade must specify actions as well as warm words
The notion that climate change can present business opportunities is old news. The debate is moving on. With unprecedented private and public sector funds pouring into environmental projects around the world, business leaders are asking which country is leading the green economy race and which markets offer the most attractive returns at least risk.
While the UK's economy has strong green foundations on which to build, it is rapidly losing ground to developing nations and other competitors. This trend is directly related to aggressive regulatory and fiscal policy packages that countries are putting into place, such as China's new five-year plan that seeks to underpin a "clean revolution" in its economic development.
Ministers recognise that the UK must do better and have recently announced a plethora of policies aimed at taking the handbrake off. These include reforms to the energy market and frameworks to incentivise energy efficiency in homes and businesses.
The central message is that green growth is not just about boosting traditional environmental technologies but the transformation of the whole economy.
Policy-makers increasingly recognise that green growth is relevant to all industries. This will be reflected in the next few days when the government publishes its vision, entitled Enabling the Transition to a Green Economy, for how it can work together with business. Aimed at corporate decision-makers, it will set out the policy landscape over the next decade, including the likely economic impacts and implications.
At its heart, the vision seeks to boost the confidence of senior business executives to invest in going greener. This should be welcomed and is a step in the right direction. Businesses are increasingly perplexed by the wide range of overlapping regulations, perverse incentives and endless acronyms. A beginners toolkit will help time-pressured sustainability professionals get their heads round the green policy labyrinth and help sell business strategies to the board.
Nevertheless, actions speak louder the words. Regulation is required to address market failures where actors who damage the environment do not bear the costs of that damage. What matters is the effectiveness and ambition of environmental policies rather than raising awareness about them.
The biggest test of the vision will be whether it can genuinely increase policy certainty. Will it provide businesses with the confidence to accelerate the greening of their operations? Can it reassure investors that there won't be some nasty policy shocks or ministerial U-turns in a few years time? What can be put in place now to ensure that the next government wont change course?
Above all, the vision must play its part in a broader green growth strategy that is the envy of the world. This is vital if the UK is going to gain share in emerging markets and build competitiveness through adopting more resource efficient practices. Get this right and the prize is more jobs and greater prosperity in a resource-constrained world.
While the UK's economy has strong green foundations on which to build, it is rapidly losing ground to developing nations and other competitors. This trend is directly related to aggressive regulatory and fiscal policy packages that countries are putting into place, such as China's new five-year plan that seeks to underpin a "clean revolution" in its economic development.
Ministers recognise that the UK must do better and have recently announced a plethora of policies aimed at taking the handbrake off. These include reforms to the energy market and frameworks to incentivise energy efficiency in homes and businesses.
However, in the global sprint towards sustainability, legislation alone will not be enough. In a recent report the Aldersgate Group sets out the case for a comprehensive green growth strategy. The report argues that the strategy should include robust regulation to reduce polluting activities and policies that address market barriers (such as access to bank finance and reforming planning laws). It also argues there should be incentives to accelerate growth in dynamic sectors where the UK has the skills base and know-how to succeed on the global stage.
Policy-makers increasingly recognise that green growth is relevant to all industries. This will be reflected in the next few days when the government publishes its vision, entitled Enabling the Transition to a Green Economy, for how it can work together with business. Aimed at corporate decision-makers, it will set out the policy landscape over the next decade, including the likely economic impacts and implications.
At its heart, the vision seeks to boost the confidence of senior business executives to invest in going greener. This should be welcomed and is a step in the right direction. Businesses are increasingly perplexed by the wide range of overlapping regulations, perverse incentives and endless acronyms. A beginners toolkit will help time-pressured sustainability professionals get their heads round the green policy labyrinth and help sell business strategies to the board.
Nevertheless, actions speak louder the words. Regulation is required to address market failures where actors who damage the environment do not bear the costs of that damage. What matters is the effectiveness and ambition of environmental policies rather than raising awareness about them.
The biggest test of the vision will be whether it can genuinely increase policy certainty. Will it provide businesses with the confidence to accelerate the greening of their operations? Can it reassure investors that there won't be some nasty policy shocks or ministerial U-turns in a few years time? What can be put in place now to ensure that the next government wont change course?
Above all, the vision must play its part in a broader green growth strategy that is the envy of the world. This is vital if the UK is going to gain share in emerging markets and build competitiveness through adopting more resource efficient practices. Get this right and the prize is more jobs and greater prosperity in a resource-constrained world.
This article first appeared on the Guardian Online on 4th August 2011 and was written by Andrew Raingold. Andrew is executive director at the Aldersgate Group, an alliance of leaders from business, politics and society that drives action for a sustainable economy and he gave a talk at Southend on Sea Borough Council's 'Funding a Green Future 2011'.
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