Local Carbon Budgets briefing for MPs and councillors

							December 2009

Briefing

Local carbon budgets
Friends of the Earth’s Get Serious About CO2 campaign is calling for all councils to do their bit to tackle climate change. Local Government is crucial to delivering climate solutions. Councils have a huge say in local emissions and are best placed to understand their communities’ interests. But most local authorities are just not doing enough to help meet our national climate commitments. There is now broad support (including national government, the Local Government Association, the Energy Savings Trust and the Carbon Trust) for councils having local carbon budgets. If correctly designed and implemented, Friends of the Earth believes local carbon budgets would be an effective mechanism to support local carbon reduction and provide a secure framework for low-carbon investment and innovation. Government is currently developing how local carbon budgets would work. This briefing summarises how Friends of the Earth believes local carbon budgets should be designed and implemented.

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1. Why councils must do their bit to tackle climate change
Urgent and ambitious action internationally, nationally and locally is demanded if we are to tackle climate change and build a sustainable, resilient low-carbon future. In the UK, the Climate Change Act 2008 is a milestone in systematically addressing the problem. All sections of government are now addressing how they will contribute to ensuring we meet are targets and national carbon budgets. To meet our national carbon reduction targets and budgets – which all political parties backed – every local authority will have to do its bit, making reductions locally that are broadly equivalent to national targets. The scope for a few councils to make additional reductions that compensate for others doing less is limited – the depth of the cuts required means all areas need to act.

2. Councils aren’t doing enough
Local authorities have a vital role to play in cutting carbon. They can have a big say in how we plan our communities, how we power and heat our homes, and how we travel around our local area. They are well placed to deliver and shape action to cut carbon. Although there has been inspirational leadership from some councils, most are simply not doing enough. A response on a wholly different scale is needed. The Audit Commission, responsible for monitoring local authority action on climate change, noted1 in October 2009 that “few areas have developed ambitious long-term strategies to drive CO2 reductions”. Only two-thirds of authorities have signed up to National Indicator 186 (which measures per capita emissions reductions in the local area) and the Audit Commission added that “reductions will be needed in all areas, including the 50 that have not yet agreed LAA targets”. The national 2020 target of a 34 per cent reduction will be toughened to a target in the region of 42 per cent2 following an international deal on climate change. Even a 42 per cent cut carries an unacceptable – greater than 50 per cent3 – risk of a two degrees world temperature rise. So, all local emissions reduction plans should commit to cuts of at least 40 per cent by 2020. Independent research for Friends of the Earth from modellers Carbon Descent shows that meeting 40 per cent reductions by 2020 within different types of local authorities – urban, rural etc. – is entirely possible within the local authority area, based on a combination of local and national effort.

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Lofty Ambitions, The role of councils in reducing CO2 emissions, Audit Commission, December 2009

www.auditc-ommission.gov.uk/SiteCollectionDocuments/AuditCommissionReports/NationalStudies/20091021loftyambitions.pdf

The Committee on Climate Change recommended an ‘intended’ target of 42% UK emissions cut by 2020 following an international deal. Building a low-carbon economy - the UK's contribution to tackling climate change, December 2008, Committee on Climate Change www.theccc.org.uk/reports/building-a-low-carboneconomy 3 Corrected transcript of evidence to the Environmental Audit Committee on Carbon Budgets: http://www.publications.parliament.uk/pa/cm200809/cmselect/cmenvaud/c616-iii/c61602.htm

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Indeed Birmingham, Manchester, Durham, Plymouth, Islington, Camden, Bristol, Harrogate, Harrow and Haringey have all signed up to a 2020 emissions cut target of at least 40 per cent and are putting in place plans to make these reductions happen.

3. Councils benefit by taking action
The Stern Review4 and the Committee on Climate Change’s first report5 made clear that taking strong action on climate change will cost far less than the costs of weak or delayed action, and will offer significant benefits. Friends of the Earth research6 shows that over 70,000 jobs could be created in local areas as councils make the emissions cuts needed. This figure refers to the installation of home energy measures alone, excluding the manufacture and transport of the materials involved. A low-carbon local economy would also see local benefits of reduced energy bills, greater resilience to fluctuating energy prices, and the avoidance of high-carbon infrastructure that will be a growing financial burden.

4. How local carbon budgets would work
The Government is still deciding how local carbon budgets would work. Friends of the Earth thinks local carbon budgets should place a cap on emissions in the whole local authority area and be: For all councils – not just those currently prioritising action Set in line with the science, and local circumstances (with advice from new Technical Advisory Bodies and the Committee on Climate Change) Supported by national government including more and better-coordinated financial support, and technical advice Use high quality and accessible data – for robust measurement of emissions cuts, and accountability for local people Timed in line with national carbon budgets – with five-year budget periods and transparency on annual progress Reducing emissions in the local area would require both local and national government action. This approach is the one currently used by local authorities in meeting National Indicator 1867 commitments (per capita emissions reductions in the area). It is also the best practice model used world-wide following London’s 2007 Action Today to Protect Tomorrow8 climate change action plan.

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The Stern Review on the Economics of Climate Change, Lord Nicholas Stern, October 2006 www.sternreview.org.uk 5 Building a low-carbon economy - the UK's contribution to tackling climate change, December 2008, Committee on Climate Change www.theccc.org.uk/reports/building-a-low-carbon-economy 6 http://www.foe.co.uk/resource/press_releases/green_jobs_councils_get_serious_25062009.html 7 Explanation of climate National Indicators, Department for Energy and Climate Change http://decc.gov.uk/en/content/cms/what_we_do/lc_uk/loc_reg_dev/ni185_186/ni185_186.aspx 8 Action Today to Protect Tomorrow – the Mayor’s Climate Change Action Plan. Ken Livingstone, November 2007 http://www.london.gov.uk/mayor/environment/climate-change/docs/ccap_fullreport.pdf

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This means the local carbon budgets for a local area must reflect the potential for emissions reductions from policies which are: In the direct control of the local authority – for example, local public transport or the greening of the authority’s own estate Within the influence of the local authority – such as national programmes that are delivered locally, or the actions of businesses or third parties within the local area Not directly controlled or influenced by the local authority – for example fuel duty or Energy Performance Certificates regimes Setting a local carbon budget which reflects the impact of both local and national policy ensures a clear link to national carbon budgets and policies to reduce carbon. Accountability is strengthened by understanding to what extent each tier of Government has the responsibility for helping to reduce emissions within the local area. The budget would therefore help local people understand the performance of their council and compare it to neighbouring authorities– allowing them to hold their elected councillors to account.

5. Local carbon budgets would provide the certainty needed
Local carbon budgets would clearly define what local authorities and national government must do to deliver emissions savings in the area. Local authorities would set out how they would influence national policies in the area to maximise savings, as well as what they would do on their own. The policies of national Government would therefore also need to be understood in terms of their impact upon local emissions. This clarity would provide: A greater degree of certainty that national budgets would be met by defining the contribution expected from both local and national Government. If efforts to meet national carbon budgets were failing, there would be greater clarity as to who was failing to deliver the necessary policies allowing further steps to be taken. Certainty for local businesses – risk would be reduced by business and investors knowing what is expected of them, what support will be available, and what the long-term market for local green goods and services will be. For example, a Local Transport Plan which contains a clear long-term focus on public transport or cycling provision would affect where businesses locates offices or outlets; a decision to favour certain types of eco-building or fitting of renewables through the planning regime would help developers propose the best buildings possible; businesses would know if there is long-term commitment locally for projects like Combined Heat and Power (CHP). Clarity for local people – a long-term carbon reduction pathway, coupled with accessible and transparent emissions data, would mean citizens could hold their council to account, and compare action between areas.

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6. Why financial incentives alone aren’t sufficient
The case has been made that financial incentives alone could drive local action on climate change; or for financial incentives for emissions reduction above a nominal minimal level of performance. But if councils are to make their necessary contribution to meeting our national climate commitments, then we will need both to incentivise local authorities to act, and to set local goals for emissions cuts. Ultimately tackling climate change is a matter of reducing emissions by the level scientists say is necessary. We therefore have to measure and plan those emissions – we cannot simply offer a selection of incentives and hope they add up to the right reduction. Money is important as a pre-requisite for action, and more money can incentivise more action. But the availability of money alone clearly isn’t a sufficient driving-force – for example, loans available to local authorities and other local public sector bodies through the SALIX scheme, which funds carbon reduction through ‘invest to save’ programmes, had not at the time of writing been fully taken up. A range of factors, in addition to money, are drivers for action by local authorities: Legal requirements to meet nationally-set aims (as in National Indicators on child protection) are important. Transparent comparisons with other local authorities motivate elected representatives and senior officials. Electoral pressure from voters motivates elected councillors. Moral leadership, inspired by the case for urgent action and the benefits for local people, has been important driving force in many leading councils. A suite of policies, combined with a local emissions-reduction goal is needed to ensure the necessary level of emissions cuts is made.

7. Conclusion
The most successful local authorities in 20 or 30 years time will be those that grasp the climate change challenge and take steps to plan and systematically implement solutions to slash emissions and mitigate the impacts. Local carbon budgets can provide the certainty needed for meeting national emissions commitments, local business investment, local government planning, and transparency and accountability for local people. The idea builds on demonstrated best practice of local government managing emissions cuts, and is rapidly growing in support. But to meet the challenge, they have to be implemented in the right way: be for all councils; set in line with the science and local circumstances; with more financial and technical support for councils; using high quality emissions data; and delivering year-on-year cuts.

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8. The Get Serious About CO2 campaign
Following the success of Friends of the Earth’s Big Ask campaign for the Climate Change Act – which introduced the world’s first binding national emissions targets – we’ve launched a new campaign, Get Serious About CO2, to ensure that every council does its bit to tackle climate change. Over 75 local Friends of the Earth groups are working to mobilise public support in their communities for more action on climate change by their council. They are working with their council for the adoption of an emissions reduction target for the area of at least 40 per cent by 2020, and for a climate change action plan to show how the cuts will be made. At a national level, we are campaigning for more money and support for local authorities to get on with action to cut emissions, and for local carbon budgets to ensure that every council does its bit to tackle climate change. We are calling on Members of Parliament and councillors to write to John Denham MP, Secretary of State for Communities and Local Government to support the model of local carbon budgets we have suggested in this briefing. This is an important opportunity to shape local carbon budgets, and we hope you will support the ideas outlined in this briefing.

9. Information
To find out more about local carbon budgets or the Get Serious About CO2 campaign, please visit www.foe.co.uk/getserious Or contact Liz Hutchins, Friends of the Earth campaigner Direct line: 020 7566 1728| Mobile: 07957 145996 | Switchboard 020 7490 1555 Email: liz.hutchins@foe.co.uk | Web: www.foe.co.uk

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