'Towards a low carbon economy’ – Discussion Paper

A response from the
Scottish Council for Voluntary Organisations

Catriona Prebble

Green Agenda Officer

Scottish Council for Voluntary Organisations
15 Mansfield Traquair Centre,
15 Mansfield Place, Edinburgh EH3 6BB

Email: Catriona Prebble@scvo.org.uk

Tel: 0131 556 3882

29 June 2010

Introduction

The Scottish Council for Voluntary Organisations (SCVO) is the representative body for the voluntary sector in Scotland which itself comprises approximately 45,000 organisations involving around 137,000 paid staff and 1.3 million volunteers. The sector manages an income of £4.4 billion.[1] As a significant player in the Scottish economy, SCVO therefore welcomes the opportunity to comment on behalf of the sector on the Scottish Government’s paper ‘Towards a low carbon economy’.

SCVO is supportive of the Scottish Government’s world-leading 2009 Climate Change (Scotland) Act, which identifies the need for action to be taken both to mitigate against and adapt to climate change, and we would like the voluntary sector to be supported to make its contribution, along with all other sectors, to address the targets set.

1. Does this document sufficiently communicate the vision, drivers and implications of a low carbon Scottish economy? How could this be improved?

We feel that the paper’s focus on large-scale initiatives means that many potential opportunities are missed. An important source of solutions for a low carbon economy will be found at a smaller scale or at community-level where the third sector leads the way. These approaches offer multiple outcomes; they simultaneously build greener energy, achieve greater public buy-in and help strengthen community fabric. These ideas are expanded in the section on drivers below.

We are concerned that the underlying philosophy of the vision appears to be based on perpetuating an economic system for economic growth’s sake, rather than for genuinely sustainable ends. We believe the term ‘sustainable economic growth’ ultimately contains a contradiction. Building a low carbon will ultimately mean doing less in a world of finite resources. To lower carbon emissions levels to those cited in the Act requires more than the adoption of innovative technologies, or driving through efficiencies. It demands a fundamental change in the way we work; cultural, social and economic. Rather than seeking continual growth, our vision needs to aspire to a quality of life, indicated by well-being rather than GDP. Within this vision, appropriate growth measured by the GDP contribution of promising low-carbon industries should be a means to an end rather than an end in itself.

The paper refers in Figure 1 ‘Dimensions of a low carbon strategy’ (p9) to the policy drivers identified to proceed to a low carbon economy. We offer our comments to each of these in turn. One overall comment however is that a lot of attention is given to the development of new low carbon technologies, but there is not enough on the role or implications for existing businesses and organisations and how they can make the transition.

POLICY DRIVERS

Renewable energy and heat

SCVO supports efforts to expand Scotland’s renewable energy capacity and to benefit from the country’s endowment of natural resources as a means of producing low carbon energy. However, we are wary of the use of some renewables installations to provide quick fixes to achieve targets, whilst jeopardising the chance of much wider-reaching and longer term benefits being achieved. In cases where communities have been closely involved and/or taken ownership of renewables installations, such as Gigha, Eigg and Fintry, it is clear that the benefits from local energy generation are reinvigorating communities, as the financial gains are re-invested back including, for example, building new affordable housing, or improving insulation.

There is potential for community renewables to provide for further services, such as supporting village shops and post-buses, the loss of which are otherwise leaving rural communities isolated and depleted. Significantly, renewable energy generation also offers benefits for urban communities, not least as an effective means to address fuel poverty. These are low carbon opportunities which can add exponentially to the dynamism and resilience of communities and, given the state of the public purse, the capacity for such community initiatives to provide services will be vital. It is essential therefore that in the move towards renewable energy, ‘equity and fairness’, as referred to in Principle 7[2], are fully adhered to in the adoption of all technologies.

In the case of biomass energy, Scotland’s woodlands provide a relatively untapped source of fuel for heat which represents an important carbon neutral opportunity. But such material should be prioritised for small-scale local use, providing an alternative to expensive fossil fuels. There are encouraging examples of community facilities, such as swimming pools and housing projects, benefiting from biomass heat installations, and the expansion of community woodlands offers further opportunities to build on this. It is not sustainable to grow commercial timber crops for burning in large-scale biomass electricity plants. This deprives local users of a local fuel resource, distorts timber prices and discourages use of timber as a building material. In addition, such plants are still reliant for economies of scale on significant quantities of imported feedstock thereby increasing dependence on potentially unsustainable global markets.

Incentives to encourage growth in micro-renewables for electricity and heat are welcome and we recognise the associated potential job opportunities they bring. Uptake of these technologies is currently dependent on individuals’ ability to make an initial investment which, effectively, denies access to poorer individuals. We believe that the development of combined heat and power and district heating systems would allow for more equitable distribution of renewable energy and we would be keen to see incentives for these. This could benefit low cost housing developments as well as helping to address fuel poverty. Decentralisation of energy supply will also strengthen community resilience to the wider effects of climate change and energy price hikes.

As the development of large-scale, off-shore commercial renewable installations become operational, there will be an opportunity to build a fund, similar to the Fossil Fuel Fund, which could be specifically used to provide energy efficiency support where it is most needed. This would ensure that benefits from Scotland’s natural resources are returned to local economies through targeted support and with an ultimate outcome of healthier and wealthier communities.

With regard to Scotland’s expanding research and development capacity into low carbon technologies, SCVO would be keen to ensure that our (UK) commitment in the Copenhagen Accord[3] is honoured, by assisting developing countries in their own efforts to overcome and adapt to the effects of climate change through finance and technology transfer.

Energy efficiency

SCVO supports the Scottish Government’s initiatives to encourage energy efficiency but without a step change in activity, public demand on energy supply (including renewables) will simply continue to rise. Fundamental to achieving greater efficiency is changing attitudes and promoting understanding of our finite resources: for greater levels of efficiency to be achieved, more regulatory direction will be required. The retro-fitting of buildings is key to reducing carbon emissions, enhancing well-being and relieving fuel poverty and, importantly, also presents a significant opportunity for job creation. The roll-out of smart meters could contribute similarly and we envisage there being a role for third sector organisations to help in achieving this.

Sustainable transport

In the development of new technologies, it is important that there is assurance that the needs of the majority are addressed. With respect to transport, the reference is largely to the transition to the electric car. Whilst the developments to enable a switch from petrol to electricity-powered vehicles is welcome, this represents a continuation of ‘business as usual’ in terms of promoting the use of and reliance on personal vehicles – the impact on electricity demand (including renewables targets) to supply electric cars will be enormous. Further, current prototypes have only limited range which favours urban dwellers (who have alternative options) and also favours those with access to off-street parking facilities for charging. If electric cars are incentivised, there is a danger that rural dwellers for whom there is often no public transport alternative and for whom journeys by car are generally longer and essential will be disadvantaged. In the decarbonisation of the transport system, we would like to see a preference for electrification of public transport and community vehicles, together with investment in railways, and a focus on active travel (walking/cycling), all of which would provide a more sustainable, equitable and healthier solution.

Zero waste

SCVO supports efforts to be more creative with ‘waste’ products and for the need to consider the life-cycle of all products and how these can best be maximised. Indeed, this is an area where third sector organisations, through social enterprise, have successfully sought innovative solutions for re-use and recycling, as exemplified by the range of members of the Community Recycling Network Scotland. The proposal to develop more opportunities for recycling plastic, as described, would be welcome, although the goal would be ultimately for a move away from oil-based products.

Plans for innovative solutions need to take into account the source and supply of the raw materials if Scotland’s zero waste policy is to be achieved. In the example of developing anaerobic digestion for renewable energy generation, careful thought needs to be given to extent to which such facilities are developed: they may offer an interim solution for energy generation but, except in the case of agricultural materials, the feedstock for such facilities will ultimately run out.

To date, there has been limited discussion of water use, yet this will become an increasingly important issue – even for Scotland – and the carbon associated with processing water is considerable. Therefore more accurate metering, a public better informed of its responsibility to water use and cost, and the development of grey water facilities, would all contribute to lower carbon provision.

Carbon capture and storage

Carbon capture and storage (CCS) is not yet a fully proven technology and whilst its potential is encouraging, we would caution against placing too much reliance on its development and investment at the expense of more immediately available alternative low carbon technologies. CCS does not represent an actual reduction in carbon emissions, but rather a means for ‘off-setting’ and diversion from the atmosphere.

Land use

Optimising land use through multi-purpose use and securing a greater degree of self-sufficiency, especially in food production will be important, as well as taking advantage of opportunities to sequester carbon. There is growing public interest in small-scale land productivity and many third sector organisations are promoting opportunities for allotments, community gardens, tree-planting etc. This includes seeking to ensure that derelict and/or land pending development is opened up for use. Whilst such initiatives appear small-scale, there is a momentum building which could collectively have a considerable impact on carbon emissions at a local level, including through reduced food miles, travel etc. SCVO is keen to see barriers removed from access to underused public sector assets so that they can be made available for communities and third sector organisations seeking to pursue low carbon activities, e.g. development of a renewable energy project, use of land for food production.

2. Section 2 identifies a range of low carbon economic opportunities based on Scotland’s key strengths and opportunities and aligned with growing global market opportunities and domestic regulatory and legislative drivers.

a. Are there significant additional opportunities that should be addressed by the Low Carbon Strategy?

Much attention in the paper is given to the opportunities for big business and research institutions, yet we believe that the transition to a low carbon economy will be dependent on the actions of many smaller organisations too. There is an issue of both scale and the sectors involved. Voluntary organisations have, of necessity, been operating on a low carbon basis for years and a wide range are already actively involved in initiatives which are pursuing low carbon activities. Many of these organisations operate at grassroots level, which makes up over 2/3rds of Scotland’s 45,000 known voluntary organisations. We do not believe that the discussion paper takes adequate account of the role which the third sector can play in contributing solutions to a low carbon economy.

The sector’s values and its core objective of strengthening communities go beyond achieving quantitative targets for low carbon emissions to deeper and longer-lasting changes in attitudes and values. They reflect a more holistic goal of the sustainable lifestyle which will be necessary to build up resilience and adapt to climate change. Thus small-scale ventures, such as community renewables, may not only achieve low carbon energy generation, but also address concerns about future energy security, financial security and the capacity of a community to deal with change, so resulting in a series of virtuous circles.

b. in the light of the Government’s objective of accelerating Scotland’s rates of productivity and economic growth, which are the opportunities of greatest economic potential within a global context? Which opportunities should we focus on in the short- to medium-term?

Much has been made recently about supporting local markets and reducing our reliance on imported goods. A key example of this is the local food debate. The Third Sector and co-operatives are a leader in Scotland in campaigning for and supporting the development of local food within the context of sustainable development. We need to build sustainable local markets in Scotland wherever this represents a carbon saving and potential for building community resilience.

However, we also need to support sustainable markets in other countries, particularly in developing countries. The Third Sector is also a pioneer of sustainable development abroad through, for example, the Fair Trade movement. Some products have a better carbon outcome if imported from abroad when the carbon embedded in the transport of these goods is offset by the lower carbon embedded in the manufacture and can play a key role in maintaining sustainable livelihoods. Clearly a balance needs to be struck between carbon reduction, supporting local markets and supporting sustainable markets abroad.

3. Already, many sectors and businesses are actively exploiting low carbon market opportunities. But an effective transition towards a low carbon economy requires much greater awareness, activity and collaboration. How should the Scottish Government and wider public sector join up to best support business to exploit low carbon opportunities?

Overall, the Scottish Government needs to give clear and unambiguous messages about its priorities. This is specifically relevant to major infrastructure developments and transport initiatives. The public must understand what the key objectives are and how they are to be achieved. Businesses must understand where they will get support and be enabled to plan for the future based on long-term policy, not short-term initiatives.

The Carbon Reduction Commitment (CRC) currently targets relatively large businesses but it is recognised that the threshold for CRC is likely to fall in future years resulting in more and more organisations being required to account for their carbon. For Scotland’s many smaller businesses and voluntary organisations that are not currently regulated under the CRC, it is not clear how they will be encouraged/enforced to adopt low carbon procedures or what restrictions their current operations will face. Awareness of the implications of the need to address carbon management amongst smaller organisations needs to be raised in order for them to put in place appropriate processes, acknowledging that support will be needed to help them do so.

Achieving a low carbon economy will depend significantly on the participation of all organisations, businesses, and individuals – including the third sector. It is disappointing that the third sector – and voluntary organisations in particular – are not better represented on the 20:20 Climate Change Delivery Group. There needs to be promotion and greater understanding of the opportunities for small businesses and third sector organisations in pursuing low carbon objectives, as well as recognising the potential solutions they present.

Public procurement policy can provide an effective ‘stick’ for selecting out low carbon products and reflecting a preference for a carbon, rather than a cost, value. Where a supplier is required to provide a product life-cycle analysis, this can be used to influence behaviour and operating models right along the supply chain, linking private, public and third sector organisations. The example of housing associations which have recognised the value of Scottish timber as a sustainable, plentiful and local resource, and successfully constructed homes of innovative design using a material which locks up carbon for the long term and offers excellent insulation properties, highlights the potential for supporting local businesses and communities as well as providing jobs.

Reference is made in the paper to the Scottish Low Carbon Finance Project and the benefits of bringing together diverse interests of asset owners exploring themes around about partnerships, joint ventures and investment innovation. The third sector must be included in these discussions.

4. Building on the recent National Economic Forum discussion, how should the Scottish Government, in partnership with the wider public sector, research base and investment community, help increase the level of innovation, investment and skills support to match the scale of opportunity in low carbon markets?

We need a clear message of the Government’s long-term view for supporting the low carbon economy. It is fundamental that support now for innovation, investment and the skills base is based on a clear routemap outlining how these will result in incentives, programmes and priorities towards a low carbon economy.

There is need to ensure that opportunities are opened up to community-scale initiatives and not just large-scale projects. There is concern, for example, of cases where a community group which has installed renewable energy technologies has then been denied access to the grid, seemingly in favour of larger, commercial energy suppliers. There must be parity of esteem and equal opportunity for small projects. It must also be assured that pioneers and innovators of low carbon technology are not discriminated against, as in the case of those who installed domestic micro-generation ahead of Feed-In Tariffs and are now receiving a lower rate of subsidy.

There needs to be assurance of high standards so that organisations know what to aim for, and confidence that those standards will be enforced. The raising of building standards presents an opportunity through a greater use of sustainable materials combined with a higher standard of skills in the construction industry to make significant improvements to the insulation and sustainability of housing and so reduce emissions.

There also needs to be assurance that initiatives, whether for training and skills, or incentives, are thought through for the long-term, and that successful schemes are prolonged, not changed for the sake of change. Support for greater collaboration between organisations and the upscale and/or replication of ‘what works’ may help to achieve this.

The opportunity to diversify financial instruments which strengthen the low carbon economy through investment in projects and companies with ‘green’ objectives is also welcome. A number of institutions – Triodos and Unity bank, the Cooperative – have been operating such models for some time and for these to become mainstream will be important in shifting the balance away from a focus on short-term returns to recognising the value of investment for sustainability. New models such as ‘social investment bonds’ should also be explored. Access to such finance will be particularly important for the development of community assets.

The introduction of financial incentives and/or penalties must be carefully balanced and co-designed with those from our most vulnerable communities who are least able to adapt. The Third Sector can facilitate this dialogue.

5. How should the Scottish Government and its partners coordinate their activities to ensure that innovation, investment and skills support is aligned effectively?

A more detailed breakdown of the cited 130,000 existing and potential green jobs will be needed in order for partners to understand and respond to the areas of opportunity. All sectors will need to work together with skills councils, government and service users to identify the gaps in the skills required to achieve a low carbon economy with a commitment to the long-term. In addition to the high level research capabilities required to develop new low carbon technologies, there will also be a need for a significant increase in practical skills, such as qualified electricians, plumbers, energy auditors etc, to put into practice the actual adoption of low carbon initiatives, such as the installation of smart meters. Such a skills programme can be complemented by customised employability schemes.

The Third Sector has a major role to play in developing green employability. The Third Sector Future Jobs Consortium, which delivers for the Future Jobs Fund in Scotland, has to date placed 177 out of 1294 individuals into job roles identified by their employers as 'Environmental or Recycling'. Many others have been placed within 'green' organisations in supporting roles such as Volunteer Development Officers. This highlights the role which the sector can contribute by promoting skills, green jobs and investment in the low carbon economy.

To date, support for carbon management has been targeted largely at private sector organisations, e.g. through the Carbon Trust. The Energy Savings Trust provides assistance to community groups actively pursuing low carbon activities but there has been little dedicated support available for voluntary organisations themselves. SCVO is working to build capacity amongst its members in this area but we would like to see more attention given to the needs of the third sector by Scottish Government and in the collaborative work led by Skills Development Scotland.

In conclusion, SCVO welcomes the proposal to shift Scotland to a low carbon economy. But we are clear that it will require the participation of all sectors, of all scales, to participate in order for this goal to be achieved. The third sector has a key role to play and its involvement has the capacity to enable and enhance the transition process. By investing in community level action, whether through renewable energy, asset transfer or recycling initiatives, the shift towards a low carbon economy is taking place and it is bringing people with it. Significantly, it also has the potential to bring with it an extensive range of benefits: the opportunities to address fuel poverty through community renewables, to build self-sufficiency through turning derelict land into production, or turning ‘waste’ products into new goods through recycling. It is an innovative and creative sector whose values offer a means to find sustainable community-based solutions, not simply low carbon ones.

References:

Government Consultation document: 'Towards a low carbon economy’ – Discussion Paper

http://www.scotland.gov.uk/Resource/Doc/307022/0096528.pdf

Scotland’s Voluntary Sector Statistics 2010, SCVO

http://www.scvo.org.uk/evidencelibrary/Home/ReadResearchItem.aspx?f=asc&rid=1078