Despite fears to the contrary, the recession may be the catalyst for environmental policy to have greater pre-eminence. A rapid transition to a greener economy, far from having been marginalised by the financial crisis, is more essential than ever for our future prosperity.
That is the view of a coalition of leading companies and environmental organisations. The influential, if eclectic, Aldersgate group includes public sector organisations, including the Environment Agency and regional development agencies, MPs and environmental campaigners, as well as construction companies, financial and accountancy firms, utilities firms, BT, the Institute of Civil Engineers and businessman Peter Jones.
In its Green Foundations 2009 report, the group says the government should steer the UK economy onto a more sustainable path, both financially and environmentally. Environmental regulation is essential for recovery and UK competitiveness. "Far from being an indulgence that would damage competitiveness, the low-carbon economy is an essential component of the economic recovery," says chairman Peter Young.
But boosting competitiveness, through implementing cost-effective environmental measures, will require the environment and climate change departments to take the lead. "The political will has been found to stabilise the banking crisis. Now we need that same political will to tackle the twin challenges of climate and energy security," says Elliot Morley MP, former environment minister and Aldersgate member.
Flood defences are a problem as extreme weather is likely to become more common. A joint survey by the Local Government Association and the Department for the Environment, Food and Rural Affairs found that although councils are keen to take a stronger leadership role in preventing floods, many still feel under-funded and under-staffed.
The 2007 floods cost the economy an estimated £3bn. But 18 months on, of the 257 councils in England surveyed, 60% do not have sufficient funds to fulfil their flood risk responsibilities, around a quarter have had difficulty recruiting and retaining technical staff and 55% do not have partnership arrangements with water companies to combat flooding. Some money has been allocated for this purpose. In its response to Sir Michael Pitt's review last summer of the 2007 floods, Defra announced that more than £60m will be invested in the priorities identified, with £34.5m set aside for the action plan and a further £27m of funding coming from other budgets. A £7.7m flood forecasting and alert centre will be created, jointly run by the Met Office and the Environment Agency.
The Met Office will also receive an additional £500,000 to improve the computer modelling used to forecast heavy and localised rainfall and the Environment Agency will get an extra £8.5m to improve flood prediction and mapping.
Local authorities will get £15m to coordinate and lead flood management plans, having already been promised £136m to assist those in greatest need, repair infrastructure and help schools and businesses to get going again. But Paul Bettison, chairman of the environment board of the Local Government Association, says it won't be enough to ensure villages, towns and cities are properly protected.
The government has accepted all Pitt's recommendations on better flood warnings and rescue arrangements. There will be a £5m grant scheme for installing flood protection measures in homes and more money for rescue boats and crews.
A priority for the government this year will be improving awareness of flood risk. According to a recent survey by the Environment Agency, more than two million people who live in flood-prone areas of England and Wales are not aware of the risk. Of the 1,033 at-risk households surveyed, only 9% had found out how to stay safe if their home flooded, while only 3% had a "flood kit" of copies of insurance documents, torch, bottled water and other essentials.
The Department of Energy and Climate Change, meanwhile, has promised £12m to fund an expansion of biomass heating and combined heat and power. Grants of up to £500,000 will pay for up to 40% of the difference in cost between a biomass boiler and its fossil fuel alternative. The intention is to move many public sector buildings over to greener energy.
