STRATEGY TEMPLATE

Document Sample
STRATEGY TEMPLATE Powered By Docstoc
					Low Carbon and Environmental Goods and Services
                Sector Strategy


           DRAFT FOR CONSULATION


                 January 2010
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

                                          Table of Contents


1   Purpose of the Strategy .............................................................................. 6
2   Setting the Scene ........... Error! Bookmark not defined.Error! Bookmark not
defined.
  2.1    Sector Definition .................................................................................. 7
  2.2    Policy Context ................................................................................... 10
    2.2.1     Ensuring future economic prosperity.............................................. 10
    2.2.2     Meeting climate and environmental targets .................................... 11
    2.2.3     Supporting Innovation ................................................................. 13
    2.2.4     Skills Development...................................................................... 14
3   Market Analysis ........................................................................................ 15
  3.1    International Outlook ......................................................................... 15
  3.2    UK Market......................................................................................... 17
  3.3    Low carbon technologies in the Northwest ............................................ 18
  3.4    Low carbon technologies in the Northwest‟s sub regions ......................... 19
4   Sector Drivers, Trends and Opportunities .................................................... 20
  4.1    Key Regulatory and Financial Market Drivers ......................................... 20
  4.2    Other Regional Market Drivers ............................................................. 23
    4.2.1     Availability of Regional Resources ................................................. 23
    4.2.2     Sub Regional Activity ................................................................... 24
    4.2.3     Existing Sector Support ............................................................... 25
  4.3    Regional Sector Trends ....................................................................... 27
    4.3.1     Sector Profile.............................................................................. 27
    4.3.2     Exports ...................................................................................... 27
    4.3.3     Inward Investment...................................................................... 28
    4.3.4     Emerging Technology Markets ...................................................... 28
  4.4    Regional SWOT Analysis ..................................................................... 30
5   Identification of Priority Segments for the Northwest .................................... 31
6   Vision and Strategic Framework ................................................................. 35
7   Priority Action Plan ................................................................................... 36
8   Monitoring and Implementation.................................................................. 41
  8.1    Key Performance Indicators ................................................................ 41
  8.2    Key delivery bodies and accountabilities ............................................... 42
  8.3    Governance and control mechanisms ................................................... 42



Appendix 1        Regional Market Sub Sector Breakdown 2007/8
Appendix 2        Summary Segment Profiles




                                                      1
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
EXECUTIVE SUMMARY


The „low carbon‟ economy is universally regarded as a key component of future
economic prosperity and recent Government policy documents such the Low Carbon
Transition Plan and New Industry: New Jobs have laid out the framework for future
development. In order to address climate change Government (and the EU) has put
in place a number of powerful regulatory and fiscal drivers, all of which will provide a
major stimulus to businesses who supply low carbon goods and services.

The term „low carbon‟ has only recently been adopted into common usage and recent
work undertaken by the Dept for Business Innovation has identified a whole range of
businesses that fall within the definition of „Low Carbon and Environmental Goods and
Services‟ (LCEGS) to describe the technologies, goods and services that provide a
range of solutions for environmental problems. This definition includes a number of
emerging low carbon activities such as low carbon transport, carbon capture and
storage and nuclear energy; more established businesses involved with renewable
energy; and mature „traditional‟ environmental goods and services such as waste
management and recycling, water treatment and land remediation.

Low Carbon and Environmental Goods and Services are estimated to be worth some
£106.5 billion to the UK‟s economy; this is a sector with a large economic and
employment impact. Future growth is likely to exceed many other areas of the
economy and the UK LCEGS sector is forecast to increase in value by up to £45 billion
by 20151. Some global markets are also predicted to experience even stronger
growth creating major international opportunities for UK companies.

In the Northwest there are currently 5000 LCEGS businesses, employing 87,000 staff
with a market value for around £10 billion. This represents 10% of the UK sector and
places the NW as a region second behind London/South East. Between 2006 and
2008, the sector in the NW grew by 4.9% compared to the UK average of 3.6%.
There are several supply and demand factors that contribute to this regional
strength:

       Strong natural resources especially around wind and tidal

       Strong legacy industrial legacy in areas such as nuclear; waste/biomass
        processing

       Large population and skill base

       Large industrial manufacturing sector

However, businesses in the region face many challenges to growth not least to fully
understand the new markets presented by the low carbon and environmental
economy. There are many regions in the UK and the world competing to exploit the
new market opportunities and quick, decisive action is required to ensure Northwest
businesses develop a position at the forefront of their markets.

This strategy provides a framework for the support and grow Northwest businesses
within the Low Carbon and Environmental Goods and Services (LCEGS) sector. The
aims are to build on the existing, well established regional capability and resources,
and look to exploit growing and emerging market opportunities for future economic
growth. This will require strong leadership and identifying priority areas where public
sector intervention can add real value. Innovation has also been identified as a key

1
 Low Carbon and Environmental Goods and Services: and industry analysis, Innovas Solutions
Ltd, March 2009, Commissioned by BERR


                                             2
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
theme; only innovative companies will thrive in these fast changing highly
competitive markets.

The starting point for this strategy is an overarching Vision:
In 2020 Low Carbon and Environmental Goods and Services sector is the largest,
industrial sector in the region and the leading LCEGS sector in the UK. The sector is
diverse to support all the requirements of a low carbon economy with segments
which are internationally leading such as nuclear energy and smart grids.

There are three main aims that support this Vision:
   To realise a rate of sector growth of above the national average over the next
    three years by developing the existing portfolio of capabilities and exploiting
    emerging market opportunities;
   To raise the level of innovation activity and increase the rate of successful
    technology transfer from the regional research base; and
   To secure targeted private sector investment in support of regional business
    growth.
These aims will be achieved by the implementation of six key strategic objectives:
1. Strategic Leadership: Provide focused and strong direction for the development of
   the regional sector, specifically emerging markets;
2. Market Development: Identify and develop early markets opportunities and
   provide supply chain development support to facilitate access to markets;
3. Innovation Support: Realise stronger communication between industry and the
   regional research base and improve the rate of technology transfer and successful
   enterprise;
4. Investment: Optimise opportunities for inward investment and successfully
   leverage third party finance for regional projects and infrastructure;
5. Exports: Provide specific and focused support for the development of export and
   internationalisation opportunities amongst the more mature segments of the
   portfolio; and
6. Skills: Attract in high quality candidates to study in the region and encourage
   retention of graduates and skilled labour within the industrial base to develop the
   available talent pool.
Given the diversity of the sector, a key challenge has been to develop regional
priorities for support based upon a number of key criteria:
       Available natural resources;
       Industrial capacity;
       Research capacity;
       Capability to innovate;
       Northwest competitive position;
       Future growth potential; and
       Barriers/market failures.
Based upon this analysis a strategic framework has been developed that is based
upon a hierarchy of support based upon the level of priority with smart grids, solid
state lighting and tidal energy emerging as the top three priorities. Nuclear is also a
priority but this is dealt with in a separate action plan (and low carbon vehicles are
covered in the recent launched Advanced Manufacturing Action Plan. The framework
is summarised as follows;



                                            3
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
    Low Carbon and Environmental Goods and Services Sector Strategic
                        Framework 2010 - 2013

                  INVEST:
    Key strategic priorities in emerging
     markets where region has strong
    knowledge base and potential USP.                                        •Smart
     Focus for development of regional                                        Grids
    proposition as markets mature over                                       •Tidal
            next 12-24 months                                                •SSL

                   BUILD:
     Continue to provide support and                                  • Offshore Wind
   specialist interventions for on-going                              • Biomass (incl. EfW)
   development of market segments of                                  • Energy Management
       regional significance. Ensure                                    in Buildings
      success of on-going initiatives.

                 SUPPORT:
                                                                        Core Portfolio
   Work with segments as appropriate
                                                               (Including Water/Wastewater;
    to optimise growth opportunities.
                                                                  Waste and Recycling; PV;
   Look to identify and elevate future
                                                                 Alternative Fuels; CCS; etc.
        priorities for investment.

        KEY STRATEGIC THEMES:
    Underpinned by specific objectives;         Strategic    Market    Innovation
                                                                                    Investment   Exports   Skills
                                               Leadership    Devel.     Support
        delivered via Action Plan




The success of the strategy will depend on many factors, many external and outside
of the region‟s control however the high level vision is underpinned by a number of
specific outcomes:


                               What Does Success Look Like in 2013?


    Segment               Realistically Achievable                              Aspirational Target


Tidal               Outline consent achieved for one tidal        Demonstration facility up and running,
                    scheme in the region.                         attracting in device developers to the region.

Smart Grids         National demonstration project                A national centre of excellence secured in the
                    secured and operational.                      region and a number of demonstration
                                                                  projects up and running.

Solid State         Public sector procurement programme           Regional companies exporting products to
Lighting            in place to purchase regional SSL             national/international markets. Significant
                    technology.                                   inward investment or regional landmark
                                                                  project secured.

Offshore Wind       One of the region‟s ports has been            Key supply chain manufacturer attracted to
                    allocated as a construction base for          the region.
                    the Round 3 site.

Biomass (incl.      Region‟s wood chip processing                 Significant manufacturer of process
EfW)                capability at capacity supplying              technology attracted into the region.
                    regional biomass needs. Most biomass
                    waste in the region is being utilised as
                    resource.

Energy              Recognition as leading region in the          Region recognised as an internationally
Management in       UK for the production and installation        leading region for the production and
Buildings           of energy management for buildings            installation of energy management for
                    technologies.                                 buildings technologies.

Core Portfolio      Export levels for sector increased to         The region is leading the UK in export
                    above national average.                       activities.
                    The LCEGS sector has grown at its             The LCEGS sector has grown at a faster rate
                    current rate of 1.3% above the                of 2.3% above the national average.
                    national average.




                                                    4
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

A range of actions have been developed that will deliver the vision and these
outcomes. These actions will be delivered by a range of organisations working across
the region, principally Envirolink Northwest, Business Link Northwest, The Joule
Centre for Energy Research and the Energy Innovation Centre.

The Northwest Energy Council will be responsible for overseeing the implementation
of the action plan implementation and monitoring of progress.




                                         5
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation


1   Purpose of the Strategy
This strategy provides a framework for the development of the Low Carbon and
Environmental Goods and Services (LCEGS) Sector in the Northwest region. Its
overarching aim is to ensure that public sector support facilitates the economic
growth of the sector, and that interventions are directed towards resolving issues
emanating from market failure.
The LCEGS sector in the region is well established and has grown consistently over
the past five years providing a solid foundation for future economic growth. The
purpose of this strategy is to identify where the most significant future opportunities
for growth lie, and to define where and how the NWDA should best deploy its
resources to maximise impact.
This strategy has a significant role to play in supporting the draft Regional Strategy
2010 as it will support one of the four proposed strands “capitalisation of
opportunities associated with the move to a low carbon economy”. It will also support
other key areas of policy in the region, specifically the Sustainable Consumption and
Production Action Plan and the Climate Change Action Plan.
This strategy has sought to identify the following:
   Those segments of LCEGS sector that have a credible USP within the context of
    the UK and international market, and represent a significant growth opportunity;
   Opportunities to build on the existing capabilities, assets, support programmes
    and investments in order to make a meaningful difference to the future
    performance of the sector and maximise return on investment for the Agency;
    and
   Interventions where there are perceived market failures and the NWDA can make
    a material impact
   A balanced portfolio of actions that allow for the provision of focused investment
    on a limited number of priority segments that have potential for future high
    growth, whilst continuing to deliver appropriate and high quality support services
    to the core LCEGS sector.
The scope of this strategy does not include oil, gas and coal as these are considered
to be mature industries with limited potential for the public sector to add value.
Nuclear energy and low carbon vehicles are considered within the analysis presented,
as they are part of the LCEGS sector but not in the associated Action Plan. Nuclear
energy is subject to a separate Action Plan, and low carbon vehicles are included
within the Advanced Manufacturing Action Plan.




                                           6
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

2        Setting the Scene

Key Insights:
 The definition of the LCEGS sector has evolved as new market segments have
  emerged and developed. A new definition has recently been proposed that
  includes traditional environmental goods and services, renewable energy
  technologies and emerging low carbon technology and services.
 The low carbon economy is seen, regionally, nationally and i nternationally, as a
  key component of future economic prosperity. National and international policy on
  climate change and innovation support provides the platform to support the
  realisation of regional aims and the creation of “green jobs”.
 The Government‟s recent Low Carbon Transition Plan provides the framework by
  which the UK will meets its target of a 34% reduction in emissions on 1990 levels
  by 2020. A robust and innovative LCEGS sector will be critical to the Northwest
  and the UK in realising this plan.
 The need for a transition to a low carbon economy is reflected in a number of key
  regional strategies and action plans including the Climate Change Action Plan, The
  Sustainable Energy Strategy, and Sustainable Consumption and Production Action
  Plan. In addition, the recent draft of the Regional Strategy for 2010 identifies
  „capitalising on the opportunities of moving to a low carbon economy‟ as one of
  four key strands.
 It is recognized that innovation is fundamental to success and that levels of
  innovation in the UK as a whole need to be increased. Innovation in the region is
  lagging relative to the UK as a whole and the need for increased capacity and
  capability is being addressed via the development of a draft Innovation Policy.
 The attraction and retention of a highly skilled talent pool is fundamental to the
  development of the sector, and is supported by policy frameworks at both a
  national and regional level.

2.1        Sector Definition
The OECD/Eurostat definition of the sector is as follows2:
‘The environmental goods and services industry consists of activities which produce
goods and services to measure, prevent, limit, minimise or correct environmental
damage to water, air and soil, as well as problems related to waste, noise and eco-
systems’
This includes cleaner production technologies, products and services that reduce
environmental risk and minimise pollution and resource use.
Low carbon technologies are those that specifically produce fewer greenhouse gases
than traditional solutions. It includes renewable power generation sources, such as
wind power, solar power, geothermal power and nuclear power, as well as sources
with lower-level emissions such as natural gas and also technologies such as carbon
capture and storage. It is not limited to zero-emissions technologies, but to those
that significantly reduce the amount of carbon emissions relative to traditional fossil
fuels based solutions.
Formal definition of the sector is difficult, and traditional Standard Industry Codes
(SIC) do not adequately capture the breadth and diversity of activities within it. Since
2006, the definition of the „Environmental Goods and Services‟ has been generally
been adopted, based on a report published by the DTI3.




2
    Emerging Markets in the Environmental Sector, prepared for the DTI by UKCEED, Nov 2006
3
    UKCEED, Nov 2006 ibid




                                                                    7
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
However, the market place has evolved rapidly since 2006 with an increasing
emphasis on new and emerging „low carbon technologies‟ that do not fit within the
existing sector definition.
Envirolink Northwest commissioned a piece of work in 2007 to map the sector using a
new definition to include the new and emerging aspects of the sector. Following the
Northwest‟s lead the UK Government has published a revised definition4. This is based
on a hierarchy of 5 levels of segmentation; with Level 5 representing the full supply
chain that is deemed to support Level 1. This methodology was also adopted for a
recent report prepared by the same consultant for Envirolink Northwest, forming the
basis of a sizing and valuation of the Environmental Technologies and Services sector
in the region5. The Level 1 and 2 segmentation is summarized in Table 1.
                                      Table 1
         Proposed Segmentation of Low Carbon and Environmental Goods and
                                  Services Sector


            Traditional                               Renewable Energy                         Emerging Low Carbon
       Environmental Goods                               Technology                              Technology and
           and Services                                                                              Services

    Air Pollution                               Hydro                                         Alternative Vehicle Fuel
    Environmental Consultancy                   Waves and Tidal                               Alternative Fuel
    Environmental Monitoring                    Biomass                                       Additional Energy Sources
    Marine Pollution Control                    Wind                                          Carbon capture & Storage
    Noise and Vibration Control                 Geothermal                                    Carbon Finance
    Contaminated Land                           Renewable Consulting                          Energy Management
    Waste Management                            Photovoltaic                                  Building Technologies
    Water and Waste Water
    Recovery & Recycling

The methodology used to develop this definition has attracted some criticism,
specifically around the scope of activities included in Levels 4 and 5. There have been
suggestions that the segmentation is too broad in scope, resulting in an over estimate
of the size and value of the sector as a whole, as well as individual segments6.
Whilst it is recognised that this methodology is not perfect, at a high level it does
provide a useful framework for the overall segmentation of the sector. In addition, it
is the methodology that has been used consistently in the recent development of
compatible data sets for both the UK and the Northwest region.
It has therefore been adopted as the framework for the development of this regional
strategy document, with the following comments:
       Traditional fossil fuel energy generation technology and services, electricity
        networks and transmission are not included (with the exception of gas networks);
       Nuclear fuel is included within Alternative Fuels, and nuclear decommissioning is
        included within Waste Management;
       The definition of Alternative Fuel Vehicles effectively covers low carbon vehicle
        propulsion; and
       In some instances accurate sizing and definition of supply chains of specific
        interest to this regional strategy requires some manipulation of the data. For
        example, the aggregation of data relating to biomass technology and biomass
        fuel, which currently sits in different parts of the classification.



4
    Low Carbon and Environmental Good and Services: an industry analysis, prepared for BERR by Innovas Solutions Ltd, March 2009
5
    Envirolink NW – Update of Market Intelligence for the Environmental Technologies and Services Sectors, Innovas Solutions Ltd, May 2009
6
    http://www.timesonline.co.uk/tol/news/politics/article6715515.ece




                                                                       8
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
In summary, the data presented within this strategy that is based on these outputs
should be considered within the context of the trends and relative comparisons it
provides, rather than the absolute values presented.




                                         9
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

2.2       Policy Context
This section outlines the policy and strategic frameworks that provi de the context
within which the LCEGS sector currently operates and a key driver for its economic
development. Specific regulatory tools and mechanisms are discussed in Section 4.1.
2.2.1 Ensuring future economic prosperity
The low carbon economy is seen, regionally, nationally and internationally, as a key
element of future economic prosperity.
Implementation of the European Union‟s Lisbon Strategy for Growth and Jobs 7
included the development of an Environmental Technologies Action Plan 8, and the
Commission‟s current consultation on an update of the Lisbon strategy to create an
„EU 2020‟ strategy, whilst acknowledging the need for very focused action at a time
of constrained public finances, notes that resource efficiency and increased
productivity will be key drivers for recovery. It states:

‘the exit from the [current economic and financial] crisis should be the point of entry
into a new sustainable social market economy, a smarter, greener economy, where
our prosperity will come from innovation and from using resources better, and where
the key input will be knowledge.’
The UK Government has developed a „Low Carbon Transition Plan‟ to support the
development of the green economy in the UK and address how greenhouse gas
emissions will be cut by 34% by 20209. This sets the development of a „cleaner,
greener‟ economy at the heart of the government‟s economic plans, providing a key
driver for the future development of the low carbon economy in the UK with some key
goals for 2020:
     More than 1.2 million people in green jobs;
     7 million homes will have benefited from whole house makeovers, and more than
      1.5 million households will be supported to produce their own clean energy;
     Around 40 percent of electricity will be from low-carbon sources, from
      renewables, nuclear and clean coal;
     The UK will be importing half the amount of gas compared to business as usual;
      and
     The average new car will emit 40 percent less carbon.

The Government plans to back businesses in a range of markets and sectors, from
pharmaceuticals to low carbon and plastic electronics. New Industry, New Jobs10
outlines a programme of 40 initial commitments, including:

          Rolling out high speed broadband to give access to virtually all of Britain‟s
           homes and businesses
          Investing and laying the foundations in pre-commercial technologies like
           wave and tidal energy, and electric vehicles
          Adapting Britain’s energy grid to link homes and businesses to the new
           forms of power generation
          Continuing to protect and raise investment in science and research in the
           years ahead
          Spearheading innovation in areas where there are business opportunities
           for future growth
          Anticipating future growth in the economy in areas like low carbon or
           bioscience and ensuring British people have the skills to take part


7
  http://ec.europa.eu/growthandjobs/index_en.htm
8
  http://ec.europa.eu/environment/etap/etap/about_en.html
9
  http://www.decc.gov.uk/en/content/cms/publications/lc_trans_plan/lc_trans_plan.aspx
10
   New Industry, New jobs, April 2009, http://www.berr.gov.uk/files/file51023.pdf




                                                                  10
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
    Intervening, where necessary, to ensure start-ups and young businesses
       have access to the finance they need to grow
    Helping UK companies, especially small and medium sized businesses to
       break into new export markets.

It will see more support for exporters by enhancing the role of UK Trade and
Investment and the Export Credits Guarantee Department. The initiative also aims for
“smarter, more joined-up Government” to create a coherent strategy for modern
infrastructure and networks in Britain.


In the Northwest
The Northwest Regional Economic Strategy current vision for the Region‟s economy is
of one where „productivity and enterprise levels are high, in a low carbon economy,
driven by innovation, leadership excellence and high skills‟11.
The current draft of the regional strategy for „RS2010‟12 identifies four key strands for
future focus, one of which is capitalising on the opportunities of moving to a low
carbon economy. A key element of realising this objective is the provision of support
to the LCEGS sector.
2.2.2 Meeting climate and environmental targets
The development of a low carbon economy in the Northwest is consistent with, and
supported by, policies that aim to deliver on European, national and regional climate
change and environmental goals.




11
     http://www.nwda.co.uk/PDF/RES06v2.pdf
12
     http://www.nwregionalstrategy.com/




                                             11
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

Climate Change
In 2000, the European Union has an established Climate Change Programme, which
has resulted in a number of policy initiatives that support the development of a low
carbon economy, most notably the EU Emissions Trading Scheme13.
Other key European policies includes the Renewable Energy Directive14, which sets
mandatory national targets for the overall share of energy demand that should be
met from renewable sources, requiring countries to produce national renewable
energy action plans. Under this Directive, the UK is expected to meet 15 per cent of
its overall energy demand from renewables by 2020 from its current level of 2.25%
(2008).
The EU Biomass Action Plan, 2005 aims to increase the use of biomass in the EU
member states from 69 million tones of oil equivalent (mtoe) in 2003 to 150 mtoe by
2010. It prioritises three areas for deployment: heat production, electricity production
and transport. The Action Plan reinforces the need for biomass technology R&D,
demonstration and technology transfer through the mechanisms of the EU Framework
Programme and Intelligent Energy Europe.
The recent strategic energy review at the European level 15 resulted in, amongst other
things, a proposed infrastructure package. This includes the development of a
blueprint for a North Sea offshore grid that will interconnect national electricity grids
and also allow for the plug-in of planned offshore wind projects. It also considers the
issue of ensuring that grid development facilitates the achievement of renewable
energy targets.
Nationally, the UK Government has signaled its commitment to a low carbon Britain
through the Climate Change Act16, which sets a legally binding framework for national
carbon emissions reduction and requires emissions to be cut by 80 per cent by 2050.
The Biomass Strategy17; Renewable Energy Strategy18 and the developing Heat and
Energy Saving Strategy19, together with the previously mentioned Low Carbon
Transition Plan, set out the government‟s plans for delivering the reductions required
over the next decade or so. The Government will need to present a National Action
Plan to the European Commission by March 2010 to define how the 2020 target will
be met; it is anticipated that wind and biomass will be key technologies for the UK in
realising this target.
Environmental Performance
Improvements in a wide range of aspects of environmental performance have been
required by international and national legislation that has been introduced and
strengthened over many years. For example, the European Union has developed
policy and legislation to improve wastewater treatment20, water management and
quality21, air quality22, energy performance in buildings, and noise23. UK National
policy also covers the whole range of environmental quality and includes for example
national Air Quality Standards, the Water Act 2003 and the Noise Act 1996. This
policy framework will support the development of the sector generally in the
Northwest.
There are a series of EU Directives that aim to reduce waste production and ensure
that waste is managed properly24. These include the Landfill Directive, the Packaging

13
     Directive 2009/29/EC contains the most recent amendments to the scheme.
14
     Directive 2009/28/EC, 23rd April 2009
15
     EU energy security and solidarity action plan: second strategic energy review. Memorandum from the European Commission
16
     http://www.defra.gov.uk/environment/climate/legislation/index.htm
17
   http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/explained/bioenergy/policy_strat/policy_strat.aspx
18
    http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/res/res.aspx
19
    http://hes.decc.gov.uk/
20
    Directive 91/271/EEC concerning urban wastewater treatment
21
    Directive 2000/60/EC establishing a framework for Community action in the field of water policy
22
    Legislative limits on concentrations of various pollutants, most recently updated and consolidated in Directive 2008/50/EC on ambient air
quality and cleaner air for Europe
23
    Directive 2002/49/EC relating to the assessment and management of environmental noise
24
    See http://ec.europa.eu/environment/etap/etap/about_en.html for more information on these Directives and other waste policy.




                                                                    12
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
and Packaging Waste Directive, the Waste Electrical and Electronic Equipment
Directive, and the 2006 Waste Directive that requires the drawing up of waste
management plans. The current (6th) EU Environmental Action Programme 25 also
includes a thematic strategy on waste26 that aims to simplify regulation and
encourage waste recycling.
The 2007 Waste Strategy for England27 sets out the Government‟s vision for
sustainable waste management. It covers both waste minimisation and better use of
waste that is generated, and includes objectives of:
    Securing the investment in infrastructure needed to divert waste from landfill and
     for the management of hazardous waste; and
    Getting the most environmental benefit from that investment, through increased
     recycling of resources and recovery of energy from residual waste using a mix of
     technologies.
In the Northwest
The need for a transition to a low carbon Northwest is reflected in a number of key
regional strategies and action plans including the Climate Change Action Plan 28, the
Sustainable Energy Strategy29, the Low Carbon Housing and Fuel Poverty Activity
Plan30, the Sustainable Consumption and Production Action Plan31, and the Regional
Spatial Strategy32.
The Northwest‟s Regional Waste Strategy33 aims to „contribute to the sustainable
development of the North West by encouraging waste management systems that will
reduce waste generation, lessen the environmental impacts of waste production and
improve resource efficiency, whilst at the same time stimulating investment and
maximising associated economic opportunities‟.
2.2.3 Supporting Innovation
Government at all levels recognises the need to improve rates of innovation to
compete for the new and growing markets within the low carbon economy.
The European Union has a range of policies and programmes that aim to support
increased innovation across the economy34. Within these, there are a number of
programmes specifically targeting sectors included in this strategy.
The proposed Strategic Energy Technology plan35 includes a series of relevant
initiatives: the European Wind initiative, the European Electricity Grid initiative, the
Sustainable Bio-energy Europe initiative, and the Energy Efficient Smart Cities
initiative36. Also, two of the six identified priorities in the lead markets initiative are
recycling and renewable energy.
One of the three strands of the Commission‟s Competitiveness and Innovation
Framework Programme is „Intelligent Energy Europe‟37, which provides financial
support to projects throughout the EU that are designed to improve market
conditions for energy efficiency and renewable energy.
EU support for research is delivered through framework programmes and the current
(7th) framework programme defines the objective for supported energy research as
„to aid the creation and establishment of the technologies necessary to adapt the

25
   Decision no. 1600/2002/EC of the European Parliament and of the Council, OJEC L242 10/9/02
26
   Communication from the Commission; Taking sustainable use of resources forward: A Thematic Strategy on the Prevention and Recycling of
Waste, COM(2005)666 final
27
   http://www.defra.gov.uk/environment/waste/strategy/index.htm
28
   http://www.climatechangenorthwest.co.uk
29
   http://www.climatechangenorthwest.co.uk/assets/_files/documents/jun_07/cli_1181140886_North_West_Sustainable_Energy_.pdf
30
   http://www.nwdea.org.uk/
31
   http://www.nwda.co.uk/areas-of-work/sustainable-development/consumption-and-production.aspx
32
   http://www.nwrpb.org.uk/whatwedo/issues/environment/?page_id=457
33
   http://www.nwrpb.org.uk/?page_id=129
34
   http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/intm/91989.pdf
35
   Communication from the Commission: investing in the development of low carbon technologies (SET-Plan), COM(2009)519 final, 7 th October
2009
36
   http://ec.europa.eu/enterprise/policies/innovation/policy/lead-market-initiative/index_en.htm
37
   http://ec.europa.eu/energy/intelligent/index_en.html




                                                                  13
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
current energy system into a more sustainable, competitive and secure one.‟ Focus
areas for financial support include renewables and smart energy networks.
In the UK, the government‟s aims for increased innovation are expressed in
„Innovation Nation‟38. In this innovation is recognised as „essential to the UK‟s future
economic prosperity and quality of life‟ and a number of areas for government action
are identified including: the use of public sector procurement and regulation to
demand innovation; ensuring the availability of finance, and increasing use of
Knowledge Transfer Partnerships.
In the Northwest
The Northwest Draft Innovation Policy39 highlights the lagging performance of the
region relative to innovation in the UK as a whole. It aims not only to support
improved performance in innovation across the regional economy but also to develop
a better understanding of the process of innovation outside traditional science-based
areas of activity.
The need for increased capacity and capability to innovate is also recognised in the
region‟s manufacturing sector strategy40 and improvements along the innovation
chain are supported by the Regional Science Strategy41 and Enterprise Strategy42.
2.2.4 Skills Development
„Skills for growth‟43 is the national skills strategy for England. The strategy recognises
the economy-wide benefits of increasing the skills of the workforce and bases national
skills policy on twin objectives: wider and more flexible access to skills training; and
an increased focus on the skills required for key current and future employment.
In addition, a key outcome of the national Renewable Energy Strategy has been the
establishment of the Office for Renewable Energy Deployment:
‘The office will develop UK manufacturing, skills and jobs across all deployable
renewable electricity and heat technologies. In collaboration with key partners
including the Department for Business, Innovation and Skills, Regional Development
Agencies, Devolved Administrations and UK Trade and Investment, ORED will build up
the capability of the supply chain and proactively support investment in
manufacturing’.
In the Northwest
The key principles and issues paper for the developing Regional Strategy 2010
identified the attraction and retention of highly skilled and talented people as a key
challenge.
NWDA are working with Summit Skills44, Cogent45, and Energy and Utility Skills46 on
development of the necessary skills for the LCEGS sector in the Northwest. This
includes work through the Higher Level Skills Partnership to fund new courses that
are designed to meet the needs of the region‟s employers. The development of five
new courses in the LCEGS sector has been funded; postgraduate modules/CPD in
Safety Case Specialist Topics, CPD in Power System Protection Engineering, a
Foundation Degree in Wastes Management, a Certificate of Nuclear Professionalism
and CPD in Fuel and Energy Generation from Waste.




38
     http://www.dius.gov.uk/reports_and_publications%20HIDDEN/~/media/publications/S/ScienceInnovation_web
39
     http://www.nwda.co.uk/pdf/NWReg%20Inn%20Plcy%20-%20Version%202.pdf
40
     http://www.nwda.co.uk/pdf/manufacturing_summary_doc3_final.pdf
41
     http://www.nwda.co.uk/pdf/science%20strategy%2007.pdf
42
     http://www.nwda.co.uk/PDF/NW_EnterpriseStrategy_ExecSummary.pdf
43
     http://www.bis.gov.uk/wp-content/uploads/publications/Skills-Strategy-Summary.pdf
44
     the Sector Skills Council (SSC) for Building Services Engineering
45
     the SSC for chemicals, pharmaceuticals, nuclear, oil and gas, petroleum and polymers
46
     The SSC for gas, power, waste management and water




                                                                 14
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

3     Market Analysis

Key Insights:
 The UK Low Carbon and Environmental Goods and Services sector was valued at
  £106 bn in 2007/8, representing 3.5 % of the global market and placing it 6 th
  internationally behind the USA with 20.6 %. Within the UK, this would place the
  sector between the healthcare and construction sectors in terms of relative
  market size.
 Global trends indicate strong performance and growth in the Emerging Low
  Carbon and Renewable Energy sub sectors at the expense of traditional
  Environmental Goods and Services. This trend is reflected both at a national and
  Northwest regional level within the UK.
 13 segments with an annual value of > £1bn dominate the UK sector. Alternative
  Fuels, Building Technologies, Alternative Vehicle Fuel and Wind lead the pack each
  with an annual market value > £10bn.
 90% of the companies within the sector in the UK are SMEs reflecting its relative
  immaturity.
 The Northwest currently represents 10% of the overall UK market by value (c.
  £10 bn), second behind London/South East.
 The highest value segments in the region mirror those at a national level with the
  exception that Carbon Finance is not currently significant within the Northwest.
 The Northwest sector grew by 4.9% between 2006/7 and 2007/8 relative to a UK
  average of 3.6%.
 The overall UK sector is projected to grow at a rate of 4.7 % in 2008/9 rising to
  6.1 % by 2014.
 In 2007/8, 8.8% of the total regional market value was derived from exports; an
  18 % increase on previous year but lower than the national average.
 The Northwest performs well relative to other UK regions in regard to inward
  investment. In 2008/9 5.7% of the inward investment in the region was in the
  energy and environmental sector, compared to a national average of 2.2% and
  second only to Wales with 13.3%.

This section provides an overview of the global, national and regional markets for Low
Carbon and Environmental Goods and Services based on the definition presented in
Section 2.1 and supporting market data.47 Where market value figures are provided
these data are based on aggregated turnover accrued to businesses in the region
under consideration.

3.1      International Outlook
The global value of the LCGS market reached £3,046 billion in 2007/2008, with Asia
accounting for 38%, Europe 27% and the Americas 30%. The largest individual
markets were the United States (20.6% of the total) and China (13.5%). Other
significant markets include Japan and India (each 6.3%), Germany (4.2%), United
Kingdom (3.5%) and France (3.0%).




47
  All the values presented in this section, unless otherwise stated, are sourced from: Low Carbon and Environmental Good and Services: an
industry analysis, prepared for BERR by Innovas Solutions Ltd, March 2009. Please refer to Section 2.1 for comments on level of confidence
associated with these data.




                                                                   15
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

As discussed in Section 2.1, this overall market can usefully divided into three sub
sectors, traditional Environmental Goods and Services, Renewable Energy and
Emerging Low Carbon activities. The relative value of each of these sub sectors
globally is shown in Figure 1, with Emerging Low Carbon Technologies the largest
with a 47 % contribution.
                                                Figure 1
                                Global market value for Sector, 2007/0848



                                                                                    Environmental Goods and
                                                                                            Services
                                                                                              22%
              Emerging Low C arbon
                     47%




                                                                                      Renewable Energy
                                                                                           31%



These three sub sectors can be broken down into a total of 23 segments, with the top
10 accounting for over 90% of the total market value. Figure 2 shows the
contribution of each to the overall global total of £3,046bn.
                                   Figure 2
 Global market value of largest 10 Low Carbon and Environmental Goods and
                             Services segments49



                                               Biomass
                                                                           Alternative Fuel
                                                  5%
                                                                                 20%
                           Waste Management
                                  5%
                               Photovoltaic
                                   5%
                 Recovery & Recycling
                         7%

                                                                                       Building Technologies
             Water and Waste Water                                                              14%
                      9%



                                Geothermal
                                   10%
                                                                             Wind
                                  Alternative Vehicle Fuel                   13%
                                            12%




48
  Innovas, 2009, ibid
49
  Envirolink Northwest – Update of Market Intelligence of the Environmental Technologies and Services Sectors, Innovas in partnerships with
KMatrix, May 2009 (accompanying spreadsheet document)




                                                                    16
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

The top four segments, Alternative Fuel, Alternative Vehicle Fuel and Building
Technologies all sit within Emerging Low Carbon, and between them account for
nearly 50% of the total market value. Within Renewable Energy, Wind, Geothermal
and Photovoltaic are all significant segments. The majority of the traditional
Environmental Goods and Services segments are relatively small, reflecting the
overall low contribution of the sub sector to total market value, however it is still
significant at £670bn per year and with a growth rate of 3%.

3.2      UK Market50
The UK market for LCEGS reached £106.5bn in 2007/08 accounting for 3.5% of the
global market. Within the UK, this would place the sector between the healthcare and
construction sectors in terms of relative market value.
Adopting the same breakdown as applied in Section 3.1, Environmental Goods and
Services accounted for 21% (£22.3bn) of this total, with the Renewable Energy sector
at 29% (£31.1bn) and the Emerging Low Carbon sector 50% (£53.3bn). These
proportions are similar to the global figures, with the newer Renewable Energy and
Emerging Low Carbon sectors between them accounting for nearly 80% of the total
value. In the UK, there are an estimated 54,835 companies active in the sector,
employing 881,000 individuals. Over 90% of these companies are SMEs.
As Figure 3 demonstrates, there are 13 segments in the UK which individually are
worth more than £1bn per annum. Of these, four segments (Alternative Fuels,
Building Technologies, Alternative Vehicle Fuel and Wind) have an individual annual
market value of over £10bn.
                                Figure 3
Comparative Value of UK Low Carbon and Environmental Goods and Services
                         Segments (£m) 2007/8

      20000
                18570




      15000
                    1295412646

                               11508


      10000                            9285
                                              7974

                                                     6519
                                                            5228 4991
                                                                      4824
       5000                                                                  4463

                                                                                    2553

                                                                                           1208 960   915
         1000                                                                                               747   503   480   468   205   150   120   74
           0
                                         o
                                        al




                                       ce
                              fin g




                                         t
                                        s
                    W the d




                              co g
                          on and




                             Co e
               en at tion
                                        s




                                        c




                                         l
                                        t




                                      ng




                                         l
                                        s




                             st g
                                       el
                                      es




                   llu nit l
                                     en




                                     dr
                           Re ter




                                     ro

                                     da
               Po Mo tro
                                     as
                                    lin




                                    en
                                     in




                                     in
                          na tai



              nt ir P rce




    M me ion rag
                                     el




                                   rm




                                    in
                                   an
                                   fu
                                   gi




                                  lti

  N cap le c Hy




                                  nt
                                  W




                       tio or
                                  fu




                       rg e m
                        an m




                                  Ti
                      rb cyc




                      an ult
                      Ph e m
                                  a




           na Ma vol




                                  L
                                 lu




                                  n
                                lo




                      A ou




                                 o
                               su
                                e




                               W




                               o




                   ta ed
       t e g T ive




                              &
                             ol
                             cl




                              s
                 iv hno




                             g
                            Bi



                             o
                           ag




                             s




                          on
                          te
                           o
                          hi




                         on




                           e
                           n
                          ot




                          d
                         at




                          y
             an Ge




                        av
                      lC
                       ve




                       as

                        d
                      ec




                        n
                     rn




                    an




          nm mi




                     al



                    W
                      t
                    M




                   ne




                   ra
                  Ca
                    e
      Bu Alt e




                    e
                   b




                  nt
                  y




                  a




     se tur
                te




    on wa



    vi Vib
                ry




               le
                 d




               rg
              at
              in




            as
            ve




 Ad Ene




  En Co




  rb ne
          ild




            e
          rn




         W




          n
  En &



         in
        co
        er




      t io




       ro
Ca Re
       ro




      ar
     at

    Re
    Al




    vi
    di




   oi
   W




50
  All the figures in this section and the NW and NW sub region sections are taken from Envirolink Northwest - Update of Market Intelligence of
the Environmental Technologies and Services Sectors, Innovas in partnerships with KMatrix, May 2009




                                                                         17
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

The UK LCEGS sector is projected to grow by 4.7% in 2009/10, rising to 6.1% by
2014. Within these headline numbers, Environmental Goods and Services has
relatively modest growth projections of around 3%, compared with Renewable Energy
between 7% and 8%, the Emerging Low Carbon at between 5% and 6% for the same
years.

3.3    Low Carbon and Environmental Goods & Services in the Northwest
Within the Northwest, the LCEGS Sector is currently worth £10.6bn, consisting of
5,157 companies and employing 86,815 individuals. This represents approximately
10% of the UK in terms of market value, company numbers and employment figures.
These overall figures place the North West in second place in the UK, behind
London/South East.
Figure 4 presents the relative current market value of the Low Carbon and
Environmental Goods and Services segments.
                                 Figure 4
 Comparative Value of Northwest Low Carbon and Environmental Goods and
                     Services Segments (£m) 2007/8


      3000

             2507
      2500

      2000

                    1428 1378
      1500                      1264


      1000
                                       726 685
                                                 572
      500                                              388 380
                                                                 281 278
                                                                           179 151 128
                                                                                         89   85   49   34   21   17   14   12   7
        0
    M m tio fin o
                                W al
                     W oth ing




             e tal Con e
                        in ou t
 Ad En e M tov ass
              an G cy d




                                         g
          ca nta Po nd




                              n s ge
                                         n
                     Te icl ls




            na M ge ic




                                          l
           Co ne ag nt




                      le sto g




                                          l
  rb nm A ted es




                                        g
                                 lo l
                                       es




                    llu on ol
                   am s en




                                         r
             as Ph iom r




                             e tro

                                      da
                              no fue




                                        c
                             Re in




                             n rin
                             on tio

                  ab d tin
                             te m

                              B te




       ro br on yd
                                     tin
                             a ta
                             h ue




       ar en n an

                                     tr
                                      e




                          c o ra
                                    rc
                                   La
                                    gi



                                    cl
                                   W




               nt rgy em




                                  Ti
                        as er




                         an m
                                   a




                         av on
                        an ol




                        tio ito
              pt l C llu




                                  H
                       an sul



                                 ul
                                   f
                                 e
           ild ve ive




                               &
                               c
       Bu ati at


                         ch




                            o
                           e




                           a




                Po M
               in ve




                          ir
                         d




                       rb
                        n




                     an




                     W
           rn er




                     a
                   Ca
           ne re
       tio gy
        te Alt



                  g


                ry




                le
                 d




       Re u
                 t




                e


               w




     vi Vi
     di e r
             ve




          W




           n
  En &



          in
         co



         er




Ca viro




      se
      at
     Re




     on
     Al




    oi
   W




  En




  N




The relative contributions of the regional segments to the market values of each of
the three key sub sectors are presented in Figures A to C in Appendix 1.
Building on the sector profile presented in Figure 4, Table 2 provides a comparative
summary of the relative performance of the top six regional segments on the basis of
value, number of jobs and predicted future growth rate. These data indicate a
decoupling between some of the largest segments today, and emerging segments
predicted to have the highest future growth rates. Wind and geothermal are the only
two segments that appear consistently across all three categories.
Data indicates that the Northwest sector grew in value by 4.9% between 2006/7 and
2008/9, compared to a UK wide figure of 3.6%. Projected future growth rates for the
region is not available, but given the Northwest‟s comparative strength in the higher
growth sub sectors, it is reasonable to expect the region to continue to outperform
the national growth rate.




                                                                    18
    Low Carbon and Environmental Goods and Services Sector Strategy
    Draft for Consultation

                                               Table 2
                             Top ranked segments in the Northwest (2007/8)
                     Value                                No of Jobs                       National Growth Rate
           Sub-sector              £m               Sub-sector            no.          Sub-sector          CAGR
                                                                                                         (2008-15)

         Alternative
                                2,506.84     Alternative fuels*         19,331.00   Carbon finance            8.92%
1        fuels*
         Alternative fuel
                                1,427.92     Building technologies      12,453.00   Wind                      7.48%
2        vehicle
         Building
                                1,378.23     Wind                       11,893.00   Photovoltaic              6.62%
3        technologies
4        Wind                   1,263.93     Alternative fuel vehicle    9,544.00   Wave and tidal            5.84%
         Recovering and                      Recovering and
                                  726.11                                 6,702.00   Geothermal                5.49%
5        recycling                           recycling
6        Geothermal               684.71     Water and waste water       5,170.00   Biomass                   5.23%

    * Alternative fuels includes a contribution of £556 m and circa 4,000 jobs from nuclear fuel.
    In 2007/08, 8.8%, (£939.96m) of total regional market value came from exports,
    representing a 20% increase from the 2006/07 figure of £777.8m. Part of this is
    attributable to a wider sector definition being used than previously, but even with an
    adjustment of £25m to account for this, there was an 18% increase on the 2006/07
    figure. However, this is still low compared to the average UK figure. The top five
    export locations in 2007/08 in descending order were China, Spain, South Korea,
    Hong Kong and Malaysia.

    3.4         Low Carbon and Environmental Goods & Services in the Northwest’s
                sub regions
    The total market value of £10.6bn for the Northwest can be split between its
    respective sub regions as follows:
           Manchester – 38.2%
           Cheshire – 26.8%
           Lancashire – 22.1%
           Merseyside – 9.4%
           Cumbria – 3.5%
    These proportions hold true at for each of the three key sub sectors (Environmental,
    Renewable, Emerging Low Carbon), and across the other measures which are used –
    company numbers and individuals employed. The specific capabilities of the individual
    sub regions are presented further in Section 4.2.2.
    This distribution is broadly in line with the relative contribution of the sub regions to
    regional GVA, with the exception that Cheshire appears to perform significantly better
    in regard to this sector relative to overall GVA51.




    51
         http://www.nwda.co.uk/PDF/RES06v2.pdf




                                                                  19
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

4     Sector Drivers, Trends and Opportunities

Key Insights:
     Cascading down from the national policy framework, there are a number of
      sector specific regulatory and financial mechanisms in place/in development.
      These are key drivers for stimulating demand for, and supporting deployment
      of, new technologies. Key amongst these is the Renewables Obligation, the
      Renewable Heat Incentive, Feed-In Tariffs, the Carbon Reduction Commitment
      (CRC), and the Building Regulations. Increasingly mechanisms are being
      developed to support deployment of emerging markets such as Smart Grids and
      Energy from Waste (EfW).
     At a regional level, the availability of a strong knowledge base, industrial
      heritage, natural resources and a significant population provide important
      attributes to support the on-going development of both supply and demand for
      low carbon technologies. These characteristics are a result of the aggregation of
      the specific resources and capabilities available within each sub region.
     Significant regional sector support exists from early stage research through to
      business growth and internationalisation. It is estimated that c. £18m will be
      spent between 2009 and 2012 on a portfolio of support programmes. These will
      be delivered via a network of credible and nationally recognised delivery
      partners including: Envirolink Northwest, Businesslink Northwest, the Joule
      Centre, the Energy Innovation Centre and the Northern Way.
     Looking forward, the most significant regional growth in the sector is anticipated
      to come from Renewable Energy and the Low Carbon segments. This will require
      a development of regional skill sets to meet the needs of the developing
      markets and inward investors.
     Growth in exports, specifically to exploit opportunities associated with
      developing overseas markets, will become increasingly important for the
      sustained growth of the relatively more mature Environmental Goods and
      Services sub sector.
Fundamentally, development and growth of the LCEGS sector is being driven by the
increasing political and social imperatives associated with climate change, sustainable
development and energy security. These are being reflected at a macro level within
the policy frameworks defined in Section 2.2, although practical implementation and
realisation of the high level objectives relies on a portfolio of drivers impacting the
market at a regional and local level.
This section provides an overview of the key drivers, issues and trends currently
affecting the Northwest sector, and those that may impact on its future performance
and growth. It also outlines the sectors key strengths and opportunities which must
be exploited to ensure continued growth and optimisation of economic impact.

4.1     Key Regulatory and Financial Market Drivers
Across the UK, the market for the uptake and deployment of low carbon and
environmental goods and services is being heavily driven by Government intervention
and regulation. Key amongst these with relevance to the Northwest are:
 Price of fossil fuels and energy security. Ultimately a significant driver for the
  uptake and deployment of low carbon technology is their (lifetime) cost relative to
  incumbent solutions, specifically for applications currently using fossil fuels. Recent
  volatility in the price of oil has begun to alter the commercial landscape in the
  favour of alternative technologies, and stimulated early market demand in some
  niche segments, for example off grid heat biomass. Oil prices are anticipated to
  remain volatile and are unlikely to return to the low of the 1990s. Future trends will
  heavily influence the economic case for new technologies.



                                            20
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
 Large scale renewable electricity generation is currently supported by the
  Renewables Obligation52. This, together with the Renewables Obligation Scotland
  and the Northern Ireland Renewables Obligation, requires electricity suppliers in the
  UK to source a proportion of the electricity they supply from renewable sources. In
  effect, generators can obtain a premium price for renewable electricity. The 2008
  Renewable Energy Strategy 200953 notes that the impact of the policy so far has
  been to increase eligible renewable electricity generation in the UK from 1.8 per
  cent of electricity in 2002 to 5.3 per cent in 2008 and also comments that the UK is
  now number one in the world for installed offshore wind capacity. The 2009
  strategy confirms that the Renewables Obligation will remain the main support
  scheme for large-scale renewable electricity projects and extends the scheme, for
  new projects, beyond its current end date of 2027 until 2037.
 The Energy Act 200854 introduced support for smaller renewable energy generation
  through the Renewable Heat Incentive and Feed-in tariffs:
     - The Renewable Heat Incentive is due to be introduced in April 2011 and will be
     available to a wide range of technologies and scales. The Government is currently
     consulting on the details of the scheme but is thought that it will operate in a
     similar manner to the Renewables Obligation Mechanism.
     - Feed-in tariffs will offer support to renewable energy installations of up to 5 MW
     generation capacity per site55. The Government is committed to introducing the
     tariff from April 2010, and at present is planning to include a fixed payment for
     each kWh generated, whether used on-site or exported into the local distribution
     grid, plus a guaranteed minimum additional payment for electricity that is exported
     to the grid. Technologies covered by the tariff from 2010 are: wind, solar PV,
     hydro, anaerobic digestion, biomass and biomass combined heat and power (CHP),
     and non-renewable micro-CHP.
 The UK Government is committed to ensuring that all new buildings are „zero
  carbon‟ by the year 2016 (for housing) or 2019 (for non-domestic buildings)56. In
  practice this means that the Building Regulations57 requirements are tightening in
  stages up to these dates: for housing, the requirements for the overall carbon
  performance of a new build property will tighten by 25 per cent in 2010, by 44 per
  cent in 2013 and then to zero carbon in 2016. For homes, the changes to the
  Building Regulations will follow the various levels of the presently voluntary Code
  for Sustainable Homes58. The changes will support greater use of both energy
  efficiency and renewable energy technologies.
 Although Building Regulations apply primarily to new buildings, there are also a
  number of regulatory drivers for improved carbon performance in existing buildings.
  The Carbon Reduction Commitment (CRC) is a new cap and trade scheme
  intended to reduce carbon emissions in sectors of the economy not currently
  covered by the European Emissions Trading Scheme (EU ETS) or the UK
  Government‟s Climate Change Agreements (CCAs). It will be mandatory and will
  apply to all organisations outside the EU ETS or CCAs with annual electricity
  consumption greater than 6,000MWh (for example, supermarket chains, large local
  authorities and government departments). The introductory phase of the scheme is
  intended to begin in April 2010. Participants will receive a carbon emissions
  allowance that they must pay for. At the end of a year, their emissions reduction
  performance will be recorded and a league table created. All the revenues from the
  initial sale of allowances will be recycled to participants based on their initial


52
   http://www.ofgem.gov.uk/sustainability/environment/renewablobl/Pages/RenewablObl.aspx
53
   http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/res/res.aspx
54
   http://www.opsi.gov.uk/acts/acts2008/pdf/ukpga_20080032_en.pdf
55
   Installations of up to 50kW will be eligible for the Feed-in tariff only; installations of between 50kW and 5MW will be able to choose between
the Feed-in tariff and the Renewables Obligation
56
   http://www.communities.gov.uk/archived/publications/planningandbuilding/buildinggreener
57
   http://www.planningportal.gov.uk/england/professionals/buildingregs/technicalguidance/bcapproveddocumentslist/ (see Part L, for dwellings
and for buildings other than dwellings)
58
   http://www.communities.gov.uk/planningandbuilding/buildingregulations/legislation/codesustainable/




                                                                      21
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
 emissions plus or minus a bonus / penalty depending on their position in this league
 table59.
 Smaller energy users are subject to a number of lesser incentives, including the
  information contained in Energy Performance Certificates60, financial incentives
  for energy efficiency investments from energy suppliers under the Carbon Emissions
  Reduction Target61 and the Community Energy Saving Programme62 and, in the
  case of local public sector bodies, the carbon-related performance indicators within
  the new performance framework63.
 The main regulatory driver for increased action on waste management and recycling
  remains the landfill tax. The tax aims to reduce waste sent to landfill by making
  waste minimisation and recycling more attractive financially, and is increased
  annually. In the 2007 Budget the Chancellor announced that the rate of increase of
  the tax would be stepped up, with the tax for each tonne of active waste (waste
  that results in emissions) increasing by £8 each year until at least 2010-1164 and
  will be £48/t in April 2010. Alongside this, the development of options for
  recovering energy from waste may be encouraged through the Renewables
  Obligation, described above. For example, anaerobic digestion is one of the
  technologies in the most advantageous band within the Obligation, gaining two
  Renewables Obligation Certificates for every 1MW of electricity generated65.
 In addition to the landfill tax, the Environment Agency‟s Landfill Allowance
  Trading Scheme (LATS)66 allocates each waste disposal authority in England a
  number of tradable landfill allowances, allowing it to landfill an amount of
  biodegradable and municipal waste (BMW) each year. Authorities can trade or save
  (for future years) unused allowances, or borrow credits against future years‟
  allowances. In its first year of operation in 2005/06 the total amount of BMW waste
  was 18.5% less than the credits allocated. As the allocated annual allowances are
  reduced, however, it is expected that the opportunities for revenue creation (by
  selling excess credits) and the possibility of fines and extra expense (if more
  permits are required) will be significant drivers for the continued reduction of BMW
  waste in the medium term.
 The development of a smarter grid is seen as integral to the changes in energy
  supply and use that will be necessary to the transition to a low carbon economy. In
  „Smarter grids: the opportunity‟67 the Government sets out what it sees as the main
  benefits of such grids, including: a more reliable and cost effective system, greater
  consumer control over energy use, and the ability to smooth peaks in demand
  which will result in a more efficient and less polluting system. There are a number
  of UK smart grid pilots underway and the government has recently launched a £6
  million smart grid demonstration fund.
 The Innovation Funding Incentive (IFI) was introduced in 2005 as part of the
  electricity distribution price control programme for 2005-10, managed by Ofgem. It
  is aimed at reversing the decline in R&D activity undertaken by the District Network
  Operators and requires them to collaborate with industry and academia in the
  development of new technologies. Eligible projects are those focused on enhancing
  the technical development of distribution networks. £12.1 m was invested in 2007/8
  and IFI will increase from next year with the addition of the Low Carbon Network
  Fund68.



59
   http://www.carbontrust.co.uk/climatechange/policy/CRC.htm
60
   Introduced as part of the implementation of the European Energy Performance of Buildings Directive.
61
   http://www.decc.gov.uk/en/content/cms/what_we_do/consumers/saving_energy/cert/cert.aspx
62
   http://www.ofgem.gov.uk/Sustainability/Environment/EnergyEff/cesp/Pages/cesp.aspx
63
   National Indicator 185 relates to a local authority‟s own carbon emissions; National Indicator 186 relates to carbon emission s across the
whole local area.
64
   http://www.defra.gov.uk/environment/waste/strategy/strategy07/documents/waste07-strategy.pdf
65
   http://www.berr.gov.uk/files/file49197.pdf
66
   http://www.defra.gov.uk/Environment/waste/localauth/lats/index.htm
67
   http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/network/smart_grid/smart_grid.aspx
68 http://www.ofgem.gov.uk/Networks/Techn/NetwrkSupp/Innovat/ifi/Pages/ifi.aspx




                                                                             22
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
4.2 Other Regional Market Drivers
In addition to the political and regulatory landscape, there are a number of specific
regional attributes and market drivers that need to be considered within the context
of developing the sector strategy. These are considered below.
4.2.1 Availability of Regional Resources
The Northwest has a wealth of existing resources that are fundamental prerequisites
for the development of a strong regional low carbon sector, and underpin the
potential for future growth. Its heritage in oil & gas, engineering and manufacturing
provides a legacy of skills and assets, which together with its natural resources, can
be leveraged for the benefit of the low carbon sector. These include:
   Knowledge Base – the Northwest has strong regional expertise in key areas of
    academic and industrial research and development of relevance to this sector.
    Specifically:
    - Electrical and Power Engineering; e.g. University of Manchester, National Grid
      High Voltage Research Centre; Lancaster University, Manchester Metropolitan
      University, Liverpool John Moores University, University of Liverpool;
    - Marine Engineering – e.g. University of Manchester; University of Liverpool (incl.
      Maritime Environment and Water Systems Research Group); Lancaster
      University (Renewable Energy Group); Proudman Oceanographic Laboratory;
      Centre for Ecology and Hydrology (NERC);
    - Low Carbon Buildings - Salford University, Sustainable Consumption Institute at
      University of Manchester, Concrete and Structural Research at Liverpool
      University, Construction Knowledge Hub (Salford, Lancaster & Liverpool
      Universities).
   Natural resources – the region has some of the best resources for renewable
    power in the UK, specifically:
    - Wind – The UK has 40% of Europe‟s wind resource and the Northwest is
      regarded as one of the most promising regions for offshore wind power. Under
      Round 3 of the Crown Estates concessions, the Irish Sea Zone has been
      identified as having the potential to produce up to 5 GW; Shallow sloping shores
      makes installation and management of farms relatively easy; ports facilities at
      Barrow, Liverpool, Birkenhead and Workington already geared to serving
      offshore energy industry. Significant existing installed capacity and associated
      know-how (652 installed turbines and 2.36 GW);
    - Tidal - 650 miles of shallow coastline and a variety of tidal estuaries with the
      potential to generate 50 % of the regions energy needs. Shallow sloping shores
      makes installation and management of off shore devices relatively easy. Recent
      work by the Joule Centre has identified possible locations for tidal energy
      schemes in the river estuaries of the Mersey, Wyre Estuary, Duddon,
      Morecambe Bay and Solway Firth. These could collectively could provide 5-7 GW
      of capacity;
    - Biomass – The region has the largest supply of biomass in the UK, estimated at
      2 m tones per annum (tpa). This includes waste woodchip but also large
      volumes of clean wood, industrial, commercial and municipal waste streams
      (see below).
   Size of population - the Northwest has a population of around 7 million, making it
    the third largest region in the UK outside South East and London. The absolute
    volume, plus the concentration within the large cities and conurbations of
    Manchester, Liverpool, and Lancashire presents strong attributes in terms of:
    - Waste streams – generation of large and consistent flows of municipal and
      industrial waste streams that require treatment and management, and offer



                                          23
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
     potential for exploitation for power generation and/or heat recovery (energy
     from waste – EfW).
        - Availability of workforce – a large proportion of which is skilled in many of the
          disciplines required to support the development of the sector. This is a
          consequence of the regions legacy of expertise in the manufacturing and
          engineering sectors. In addition, average wages are lower than some other
          regions such as the South East69.
        - Infrastructure – the Northwest has well developed innovation, communication
          and transportation assets to support economic development and facilitate cross
          regional coordination of activities within the sector.
        - Quality of Life – the Northwest is perceived as an attractive place to live, with
          88% of residents claiming to be very or fairly satisfied with the region. There
          are a number of factors which contribute to this perception including the vibrant
          city life, including the strong cultural and sporting scene, the opportunities for
          outdoors activities in the Lake District particularly etc. Large organisations such
          as the BBC are increasingly choosing to situate themselves in the region.70
4.2.2 Sub Regional Activity
Within the context of the pan regional resources described above, each of the sub
regions has specific resources and areas of expertise that are of relevance to this
strategy. These have been identified by each Sub Regional Partnership, and have
then informed the development of their individual renewable and low carbon
strategies. Key areas of expertise are summarized in Table 3.
                                               Table 3
                               Summary of Sub Regional Sectoral Expertise

     Sub Region                                               Key Areas of Activity

Cumbria                    Off shore and submarine engineering capabilities important to offshore wind
                            sector. Key ports of Barrow and Workington
                           Playing an active role in the feasibility studies for a number of tidal projects
                           Deployment of biomass, specifically focusing on community and off grid
                            applications
                           Cluster of photonics companies developing solid state lighting.

Lancashire                 Promotion of the use of wood fuels and supporting the biomass supply chain

                           Advanced engineering expertise of relevance to all sectors

                           Cluster of photonics companies developing solid state lighting

Liverpool City             Strong activity in the development of a tidal scheme on the Mersey and
Region                      development of demonstration facility
                           Significant interest in EfW plants, led by Ineos Chlor and ENER-G; plans for a
                            bio-energy park in Knowsley
                           Local cluster of fuel cells/automotive development

Greater                    Three of the UK‟s major wood reprocessing firms based here with a
Manchester                  processing capacity > 1 m tpa. Also large volumes of other waste streams
                            forming the basis of strong biomass and EfW cluster
                           Strong demand/supply capabilities in Building Technologies

                           Core of expertise in professional services in support of the LCEGS sector, e.g.
                            legal, consulting and finance

Cheshire and               Significant activity in the development of large-scale EfW plants
Warrington
                           Focal point for the development of electrical engineering capability for grid
                            connection, distribution & transmission

69
     Perceptions of England‟s North West, 2008-2009 SQW consulting, February 2009
70
     Perceptions of England‟s North West, 2008-2009 SQW consulting, February 2009




                                                                    24
           Low Carbon and Environmental Goods and Services Sector Strategy
           Draft for Consultation
           4.2.3 Existing Sector Support
           There is a significant baseline of support initiatives for the LCEGS sector in the region
           that provides financial and specialist consultancy support for innovation and
           enterprise in the Sector. The regional budget for those programmes focused solely on
           the regional LCEGS sector between 2009 and 2012 is £25m. In addition there are a
           number of regional programmes that are not sector specific. Key initiatives are
           summarized in Table 4 but exclude those of specific relevance to nuclear power or low
           carbon vehicles which are considered elsewhere.
                                                 Table 4
                             Summary of Existing Regional Support Initiatives

   Initiative                                Scope                                  %     Delivery Agent
                                                                                  share
                                                                                  taken
                                                                                    by
                                                                                  LCEGS

                  Delivery of sector development support to environmental
Cluster Support                                                                   100%    Envirolink
                  technology companies in the renewable energy, energy
Programme                                                                                 Northwest
                  efficiency and water sectors. Sector development activities
                  include trade promotion of regional companies to foreign
                  markets, specialist business support, and promotion of the
                  sector.
                  The LCMDP will help overcome the barriers for the
Low Carbon        development of renewables such as planning, grid                100%    Envirolink
Market                                                                                    Northwest
                  connections and finance and funding, and provide advice
Development
                  and support to businesses and large scale developments in
Programme
                  the region. The aim of the project is to increase the
                  market for renewable energy in the region and to help
                  grow the renewable energy companies within the
                  environmental technologies sector.
                  Provides support to energy intensive industries, particularly
Biomass Work      those that are subject to the EU Emissions Trading Scheme       100%    Envirolink
Programme         or are in a Climate Change Levy Agreement and are                       Northwest
                  already engaged with the Carbon Trust. Assistance is
                  available for the steps in the pre planning permission
                  stages, the aim being to reduce the risk of preparing
                  biomass proposals. Support covers environmental
                  assessments and modelling, equipment assessments, site
                  surveys, gird connections specifications and assistance with
                  capital grant applications.
                  The Waste Project aims to both develop the market for
Waste Virtual     recycled products in the region, through projects such as       100%    Envirolink
Centre of         the Buy-recycled code, and support the development of                   Northwest
Excellence 2      businesses in the sector. Support is offered to the
                  businesses in the sector to help find end markets,
                  assistance with trade promotion and advice and guidance
                  on innovation and the commercialisation of new
                  technologies.
                  The Challenge Fund was offered through a competition to
Climate Change    businesses and the public sector for projects that showcase     100%    NWDA facilitated
Challenge Fund    the use of low carbon or resource efficient technologies.               by Envirolink
                  Envirolink Northwest provided advice and guidance to                    Northwest
                  applicants as well as information on other funding sources.
                  The Northwest Tidal Energy Group is a collection of
Northwest Tidal                                                                   100%    Envirolink
                  developers, academics, industry and environmental groups
Energy Group      interested in the development of tidal energy in the                    Northwest
                  Northwest. Facilitated and chaired by the NWDA, the
                  overall aim is to position England‟s Northwest as a global
                  leader in the exploitation of tidal energy. In order to
                  achieve this the Northwest Tidal Energy Group will: Act as
                  a forum for exchange of best practice and ideas pertaining
                  to the Northwest tidal energy sector; explore the potential
                  for energy extraction, and its likely implications, from the
                  Irish Sea and its surrounding coastline.




                                                               25
              Low Carbon and Environmental Goods and Services Sector Strategy
              Draft for Consultation

                   The project builds on the reputation and skills of EA
Energy                                                                             100%   EA Technology
                   Technology (formerly the research laboratories for the
Innovation         Electricity Council) to identify, encourage and develop
Centre             financially viable innovative technology for the electricity
                   transmission and distribution industry using Innovation
                   Funding Incentive monies from the partner utility
                   companies. The project is delivered by EA Technology on
                   behalf of the NWDA and the partner utility companies.
                   The Joule Centre supports low carbon energy research and
Joule Centre for                                                                   100%   Manchester
                   development projects in the region and promotes the
Energy Research    capabilities of the region‟s university energy research                University
                   capabilities. The Joule centre encourages links between
                   universities and industry in the region by funding projects
                   that involve university and industry collaboration.
                   Innovation Vouchers are designed to help Northwest
Innovation         businesses owners, entrepreneurs and social enterprises to      n/a    NWDA
Voucher Scheme
                   purchase a knowledge provider's expertise to develop
                   innovation and enhance business. Provides voucher of
                   £3,000 and £7,000 to growing businesses and social
                   enterprises and was set up to encourage and make it easier
                   for more people to engage with the knowledge base; in
                   particular universities and FE colleges.
                   The GRAND scheme aims to help entrepreneurs and
Grant for                                                                          16%    NWDA
                   business owners look at the market for and introduce
Research and       innovative products and processes including research trials
Development        and product testing. Designed specifically to support
(GRAND) and        technically innovative projects that have a solid commercial
Carbon             potential. Grants are only available to small and medium
Reduction          sized businesses (those with less than 250 employees) and
Demonstration      turnover of less than €40 million. Grants range from £5,000
Award              to £500,000.
                   An extension of the existing GRAND award to allow SMEs to
Carbon             apply for funding to capital grant support for the              100%   NWDA
Reduction          demonstration phase of product develop for a low carbon or
Demonstration      resource efficient technology.
Award
                   Formerly titled Selective Finance for Investment in England
Grant for                                                                          <10%   NWDA
                   (SFIE), GBI is a form of financial assistance available to
Business           businesses located in Assisted Areas in England to support
Investment         their expansion, modernisation, rationalisation and
(GBI)              diversification.
                   Business Link is the business support, advice and
Business           information service for businesses in the Northwest. It has     n/a    Business Link
Support and        expert advisors for companies in the energy sector and is
Information        targeting companies within the energy sector to ensure they
Service            have access to the wide range of business support products
                   on offer in the region.
                   £2.6 m research fund focused on AC/DC electrical
Northern Wind                                                                      100%   NaREC and
                   conversion, foundation system optimisation; bearing quality
Innovation         improvement; installation technologies.                                Envirolink
Programme                                                                                 Northwest
                   The Northern Way has jointly funding a call for collaborative
Carbon             research project in carbon abatement technology with the        100%   TSB
Abatement          TSB and DECC.
Technology
Innovation Fund




                                                                 26
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

4.3        Regional Sector Trends
4.3.1 Sector Profile
The major trend experienced over the last five years in the Northwest has been the
strong emergence, mirrored globally, of the renewables and low carbon sub sectors to
rival and eclipse the traditional environmental sector on every measure, including
overall market value, number of employees, number of companies, and projected
growth rate.
With regard to the UK‟s Renewable Energy Strategy specifically, a recent report 71
concludes that the demand for renewables arising from the 2020 targets represent
particular opportunities for the Northwest in two areas:
       Biomass - with regional strength coming from the higher than average number of
        waste wood processors and its large quantities of waste wood, much of it from
        Cumbria. The report estimates the total number of jobs within the UK which could
        be created by biomass demand to be around 1,600. This market will be further
        driven from 2010 with the introduction of the Renewable Heat Incentive.
       Tidal - The Renewable Energy Strategy identifies six UK sites which may be
        suitable for renewable tidal energy exploitation. Given that three of these
        (Mersey, Morecambe Bay and Solway Firth) are in the Northwest, this is also seen
        as a strength area. Once again, however, the 2020 demand for tidal energy is
        only thought to be likely to create 750 jobs, a good proportion of which are likely
        to be in and around the Severn Estuary project.
Accompanying this shift is a change and broadening of the skill sets required by the
region‟s employees, putting increasing emphasis on the need for mechanical and
electrical engineering capabilities. As the physical deployment of renewable
technologies will often rely on natural resources not found in urban areas, the
relocation of skilled resources may be required. However, it is likely that many of the
knowledge based jobs associated with professional services such as design,
consulting, finance and legal, will remain in the main urban areas with continued
concentration in cities such as Manchester, Liverpool and Warrington.
4.3.2 Exports
Another key change for the region has been the growth in export opportunities from
developing world markets. Many of these countries, including India and China, now
have to address the environmental impacts of industrialisation and often lack the
necessary domestic skills and technologies. These developments have contributed
strongly to the growth in export led sales that Northwest companies have achieved in
recent years, especially in the relatively mature traditional Environmental Goods and
Services sector where indigenous market growth has been relatively low. However,
regional performance in terms of value of exports is still low compared to other parts
of the UK.
While Asian markets already contribute more to global demand than any other, their
percentage is projected to increase to 2015 and beyond driven by demand from fast
developing countries such as India and China. The speed of growth of these
countries, and others in Eastern Europe and the former Soviet Union, is such that
they are already looking beyond basic service demand, towards investment in cleaner
technologies and more complex approaches to environmental management.
An analysis of the top 30 countries to whom Northwest companies export show that
most are expected to grow their demand for traditional Environmental Goods and
Services by an average of 45% over the 10 years to 2014/15, with some, including
Mexico, Taiwan and Saudi Arabia, expected to register growth in demand exceeding



71
     Economic Opportunities for the NW arising from the Renewable Energy Strategy, Quantum, August 2009




                                                                   27
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
50%. The notable exception to this pattern is the UK itself, whose growth forecasts
are lowest by some margin at 33.69%.72
Within the Renewable Energy and Emerging Low Carbon sub sectors (which are
considered together for the purposes of growth projections), 10 year growth rates are
much higher, exceeding 200% in some cases (Russia and Chile), and in every cases
exceeding 100%. Once again the UK‟s own growth forecasts are relatively low at
110%, although these figures predate the legally binding UK emissions targets to
2020 and associated Renewable Energy Strategy.
4.3.3 Inward Investment
Recent trends suggest that the UK has recently fallen in the rankings for receipt of
foreign direct investment within the sector. Over the period of 2003-7 the UK was
fourth in receipts behind France, Spain and Germany. This is in part a reflection of
the large contribution of investments into solar (34% of total investments), where the
UK struggles to compete with Southern Europe in terms of natural resource 73. Also
Countries such as Germany have supported the creation of a market through feed in
tariffs and it is unclear if the UK feed in tariff will create a large enough market to
stimulate a UK manufacturing base.
In terms of the UK market for inward investment, the Northwest performs well
relative to other regions. In 2008/9 5.7%74 of the inward investment in the region
was in the energy and environmental sector, compared to a national average of 2.2%
and second only to Wales with 13.3%. Inward investment into the regional sector has
been steady and growing, with 49 projects secured over the period of 2004-2009.
Whilst 23 of these projects were in nuclear; seven were secured in Recycling and
Waste Management, four in Wind, and three in Oil and Gas.
Inward investment is anticipated to remain important for the development and
growth of the regional sector. It will play three key roles: support in the development
of critical mass for a particular sector; and addressing key gaps in regional capability
and know how; and provide important investment in new regional infrastructure.
4.3.4 Emerging Technology Markets
Looking to the future, it is anticipated that new, emerging markets will come to the
fore and offer opportunities for the region. Current pockets of expertise and capability
are likely to offer the future foundations for new sector growth, for example:
    Carbon abatement/Carbon Capture and Storage
    New energy efficiency technologies
    Next generation PV
    Fuel cells/hydrogen
    Energy storage
    Biochar, and
    Whitebio.
In addition, there is increasing interest in the development and deployment of
technologies for the mitigation and adaptation to the effects of global warming,
particularly in the developing world countries which are typically most at risk.
Interestingly, these technologies are most likely to be developed from existing
capabilities and know-how that exists within the traditional Environmental Goods and
Services sector where the region has a solid platform, e.g. water engineering and
land management techniques. This may provide future growth in this sub sector


72
   Envirolink Northwest - Update of Market Intelligence of the Environmental Technologies and Services Sectors, Innovas in partnerships with
KMatrix, May 2009
73
   Oxford Intelligence, Renewable Energies, 2008
74
   Source: UKTI




                                                                    28
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
(most likely via international markets), and open up new opportunities for the
development of next generation products and services.




                                         29
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

4.4    Regional SWOT Analysis
An overview of the regional strengths, weaknesses, opportunities and threats for the
Low Carbon and Environmental Goods and Services (LCEGS) sector is summarised in
Table 5. Discussion of the specific strengths and opportunities associated with key
segments is presented in Section 5.0.
                                             Table 5
                                       Summary SWOT Analysis

 Strengths                                               Weaknesses
    Legacy and culture of positioning as a key UK          Limited flexibility in the public sector to take
     energy hub with manufacturing capability                advantage of emerging market opportunities.
    Strong infrastructure and transport network            Lack of a clear proposition in some key
     focused around Liverpool-Manchester corridor            segments on which to develop compelling
     but supported by effective regional network             investment propositions
    Large population (c.7 m) providing strong              No high profile, regional „flag ship‟ project(s)
     indigenous demand for products and services             on which to focus promotional activities
    Large talent pool of high quality graduates and        Poor external perception/branding of some
     skilled labour (specifically engineering)               parts of the region, in particular industrial
    Significant resource base for renewable energy          areas
     generation, e.g. wind, tidal & waste                   Limited knowledge-based infrastructure,
    Core centers of academic expertise relating             particularly in rural areas
     specifically to engineering knowledge and skills       Out-migration of skilled graduates and
     and the Lancaster University Environment                workers; retention of post graduates within the
     Centre                                                  region a key challenge. Anecdotal evidence of
    Presence of keystone industrial players, e.g.           companies struggling to recruit
     Peel Energy, National Grid, Siemens,                   Low levels of exports relative to national
     Pilkington, Electricity Northwest , Baxi and            average
     ScottishPower                                          Limited innovation and exploitation of IP.
    Good spread of capabilities across a broad              (Large foreign owned companies undertake
     range of segments of the LCEGS                          R&D outside the region, and a large proportion
    Well established professional services with             of SMEs do not undertake or exploit R&D; poor
     sector expertise                                        communication between the industrial and
                                                             academic communities.)
    Good quality of life and low cost of living
     relative to other parts of the UK                      Lack of indigenous early adopters for new
                                                             technologies.
    Established and credible regional delivery agent
     in Envirolink Northwest
    Effective regional stakeholder groups including
     North West Energy Council, Northern Way, and
     North West Energy Tidal Group.
 Opportunities                                           Threats
    Growing and emerging markets for low carbon            Strong competition from other Regions across
     technologies supported by national and                  most parts of the sector, especially the East
     international policy                                    Coast and Scotland
    The Climate Change Act and its legally binding         International competition from other countries
     emissions reduction targets to increase                 seeking inward investment for sector
     business certainty and confidence and improve           development, e.g. France, Spain and Germany.
     prospects for FDI                                      Competition for ongoing regional investment
    Exploitation of offshore resources for wind and         from foreign owned companies which decision
     tidal,                                                  making often taken outside the region
    Potential to work with other RDAs to leverage          Sector is still driven by policy and regulation
     complimentary regional assets and skills.               rather than sustainable market pull. There is a
    Exploitation of IFI funding and associated              risk that a change in National Government
     sources of finance from the power generation            could alter the economic landscape.
     industry for the benefit of regional companies         It may be difficult for the region to catch up
    Growing overseas markets offer opportunity to           with UK averages on skills and innovation when
     develop significant export markets, e.g. in             improvements are seen as a national priority.
     traditional EGS segments
    Ensure gain share of significant amounts of
     Government funding likely to be made
     available to support development of key
     markets, e.g. recently for Smart Grids.




                                                        30
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

5   Identification of Priority Segments for the Northwest
Analysis and screening of the Northwest Low Carbon and Environmental Goods and
Services sector has been undertaken to develop a „long list‟ of the potentially most
attractive segments for future support and investment. The critcal factors that have
been considered in this process are:
   Significant regional segment on the basis of current value, number of jobs and
    projected market growth (see Section 3.3). Those selected were consistently
    ranked within the top performing segments for each metric (See Table 1 in
    Section 3.3);
   Realistically represents opportunities for the region to build a strong proposition
    and create value specifically in the fastest growing sub sectors of Renewable
    Energy and Emerging Low Carbon Technologies; and
   Not captured in 1. but which are known to have a credible capability in the region
    and thought to have significant growth potential in high value niche markets.
Nuclear power and low carbon vehicles have previously been selected as priorities for
the region and are covered by other Action Plans.
Table 6 provides a summary of those segments selected and the supporting
justification. Discussions were held with key stakeholders and sub regional partners
to ensure that the selected cohort represented a fair reflection of the core capabilities
and opportunities from across the region.
Further analysis of the selected segments was then undertaken to provide a more
detailed profile of their current level of maturity, the scope of regional representation
across the supply and value chains, their competitive position within the UK, key
barriers to development, growth potential and their relative strengths and
weaknesses. These profiles provided insights into the relative attractiveness of the
regional propositions and highlighted specific future opportunities for economic
development.
A key element of this analysis was the identification of those markets where the
NWDA could intervene to make a material difference, and where potential exists for
the creation of high value, knowledge based jobs.
The outputs from this analysis are presented in Appendix 2 and summarised in Table
7. Nuclear Power and Low Carbon Vehicles have been included in this analysis for
comparative purposes.
Table 8 provides a summary of the barrier analysis with further details are provided
in Appendix 2. The analysis confirms the fact that there are several types of barrier
that are common across a number of segments, specifically market and supply chain
development. In addition, the relatively less mature segments face more barriers,
specifically those related to market intelligence and development.




                                           31
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
                                    Table 6
                 Selection of Regional Segments for Profiling1

   Segment             Scope of Definition                Regional      Growth of                Initial
                                                          Segment       UK market
                                                                                              Justification
                                                           2007/8        2010/11
                                                          (£ value)        (%)


Wind                   Offshore Wind Farm                1.2 bn2        7           Good regional natural resource;
                       Systems and Large                                            legacy of assets and skills in
                       Wind Turbines                                                offshore engineering; national
                                                                                    policy drivers; large market
                                                                                    opportunity

Tidal                  Tidal devices,                    7.2 m3         63          Excellent regional natural
                       generators and                                               resource; strong academic
                       balance of plant;                                            capabilities; presence of keystone
                       assessment and                                               industrial player; national policy
                       measurement;                                                 drivers; large market opportunity
                       support services
                       (tidal stream and
                       tidal range)

Biomass                Biomass equipment                 342m           5           Excellent regional natural
(incl. EfW)            supply plus biomass                                          resource; good indigenous
                       fuel supply;                                                 demand (process heat); large
                       installation, supply &                                       market opportunity;
                       operation of EfW
                       systems & anaerobic
                       digestion; specialist
                       consultants in waste
                       management
                       systems

Energy                 Insulation & heat                 1.1 bn         44          Good combination of local skills
Management             retention materials;                                         across the supply chain; strong
in Buildings           monitoring & control                                         regional and national policy
                       systems, energy                                              drivers; large growth market
                       management, &
                       consultancy services;

Smart Grids            Smart metering &                  n/a            n/a         Strong legacy of skills and assets;
                       grid management;                                             presence of keystone industrial
                       distribution                                                 players; good representation
                       networks;                                                    across value chain; currently
                       transmission                                                 immature market but potential
                       networks; smart                                              for explosive growth over the
                       appliances.                                                  next 10 years driven by
                                                                                    Government policy and
                                                                                    programmes.

Solid State            Lamps, luminaries,                n/a            505         NW sector is significant, and
Lighting               control systems                                              active in UK and international
(SSL)                                                                               markets; large market
                                                                                    opportunity; strong market
                                                                                    growth forecast; opportunity for
                                                                                    first mover advantage.
1. Unless stated otherwise, data sourced from Innovas, 2009

2. Includes on shore wind as not possible to split the data

3. Includes wave as not possible to split the data

4. Ave. of Building Technologies plus Energy Management

5. Optimat, 2009 (growth to 2012)




                                                                   32
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
                                 Table 7
                       Overview of Segment Profiles
    Segment          Industrial      Research   Innovation        Competitive            Available Market         Key Insights
                      Capacity       Capacity    Support            Position
                                                                   within UK
                                                                                       Regional     Exports
                                                                                                  (UK/overseas)


 Offshore                                                         Strong                                          Limited regional
                                                                  competition                                  knowledge base.
 Wind                                                             from East Coast                                 USP limited to
                                                                  & Scotland                                      offshore capabilities

 Tidal                                                            Competition
                                                                                                                Immature market
                                                                  from NE, SW                                     but strong
                                                                  Scotland, &                                     knowledge base &
                                                                  Severn                                          natural resource
                                                                  Strong, best                                    USP focused on
 Biomass                                                          feedstock supply                            feedstock supply.
 (incl EfW)                                                       chain in UK                        (UK)         Where are the high
                                                                                                                  value jobs?
                                                                  No single region                                Good regional
 Energy Mgt                                                       with clear                                   capability/ markets,
 in Buildings                                                     advantage                                       but exports?

 Smart Grids                                                      Lack of data due
                                                                                                             Strong knowledge
                                                                  to immature                                     and industrial base.
                                                                  market                                          First mover?
                                                                  Reasonable but                                  Cluster of specialist
 Solid State                                                      competition                                 capability; potential
 Lighting                                                         international                                   large prize; strong
                                                                                                                  end user demand.
                                                                  50% of UK                                       Strong critical mass,
 Nuclear                                                          supply chain in                             plus large share of
 Power                                                            the region                                      new build

                                                                  Strong                                          Relatively low
 Low Carbon                                                       competition                                  critical mass
 Vehicles                                                         from NE and                                     compared to other
                                                                  Midlands                                        regions

Key:

       Weak regional capability                       Strong and credible regional
                                                      capability across the supply chain

         Regional capability in a few niche           UK leading market position
         areas

                                                 Table 8
                                 Overview of Key Barriers to Development
    Key Barrier                 Offshore        Tidal          Biomass                  Energy           Smart                 SSL
                                 Wind                                                Management          Grids
                                                                                     in Buildings

Policy Framework                                                                                                                

Market Intelligence                                                                                                            


Market
Development:
- Educate/Inform                                                                                                              

- Demonstrate                                                                                                                  

- Early adopter                                                                                                                 
markets

Supply Chain                                                                                                                
Development

Innovation support:
- Tech transfer                                                                                             

- Tech development                                                                                                          

Need for Regional                                                                                          
Infrastructure

Skills availability                                                                                                            

Planning                                                                                 




                                                                33
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation


The outcome of the analysis indicated a classification of the prioritized segments as
follows:
1. Global Markets – where there is a mature and world class proposition and large
associated future growth potential, i.e. nuclear. (subject to separate Strategy and
Action Plan).
2. Emerging Markets - Those where there was perceived to be credible regional
proposition based around a strong knowledge/industrial base; an immature market
with potentially large future international opportunities; and where current market
failures represent an opportunity for the Agency to invest in order to make a
material impact:
   Tidal
   Smart Grids
   Solid State Lighting
   (Low Carbon Vehicles - addressed by the Manufacturing Strategy and Action Plan)
3. Developing Markets - Those where there already exists a developing and well
supported segment in the region, but where opportunities for the future development
of value added jobs and large international markets are unclear. However, the
Agency still has a role to play in continuing to build these markets using existing
interventions and developing specific additional projects as appropriate:
   Offshore Wind
   Biomass
   Energy Management in Buildings.
4. Sustainable Growth Markets – The core portfolio where there is a well established
base in the region, with solid historical performance but relatively low indigenous
growth projections. The Agency has a key role to play in supporting their continued
growth. Future opportunities for growth most likely to come from future emerging
markets and international opportunities and exports, for example:
   Water and wastewater treatment
   Waste management, recovery and recycling




                                          34
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation


6   Vision and Strategic Framework

The ten year Vision for the Sector is as follows:


Vision: In 2020 the Low Carbon and Environmental Goods and Services sector is the
largest, industrial sector in the region and the leading LCEGS sector in the UK. The
sector is diverse to support all the requirements of a low carbon economy with
segments which are internationally leading such as nuclear energy and smart grids.


This strategy has a three year life span starting in 2010 and contains a specific Action
Plan which will be reviewed annually. Whilst it is important that the Agency and its
partners focus on long term goals to ensure the realisation of the strategic vision,
flexibility is required to respond to short and medium term challenges and
opportunities that may present themselves to the sector.
Realising this Vision will require activity and resources to be focused on the following
three aims:
1. To realise a rate of sector growth of above the national average over the next
    three years by developing the existing portfolio of capabilities and exploiting
    emerging market opportunities
2. To raise the level of innovation activity and increase the rate of successful
    technology transfer from the regional research base
3. To secure targeted private sector investment in support of regional business
    growth.
These aims will be achieved via six strategic objectives:
   Strategic Leadership: Provide focused and strong direction for the development
    of the regional sector, specifically emerging markets
   Market Development: Identify and develop early markets opportunities and
    provide supply chain development support to facilitate access to markets
   Innovation Support: Realise stronger communication between industry and the
    regional research base and improve the rate of technology transfer and successful
    enterprise
   Investment: Optimise opportunities for inward investment and successfully
    leverage third party finance for regional projects and infrastructure
   Exports: Provide specific and focused support for the development of export and
    internationalisation opportunities amongst the more mature segments of the
    portfolio
   Skills: Attract in high quality candidates to study in the region and encourage
    retention of graduates and skilled labour within the industrial base to develop the
    available talent pool.
Specific Actions have been identified against each of these strategic objectives and
will be delivered either for the benefit of the sector as a whole, or for prioritised
segments as appropriate within the context of the Strategic Framework presented in
Figure 5.




                                           35
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

                                Figure 5
      Low Carbon and Environmental Goods and Services Sector Strategic
                          Framework 2010 - 2013


                   INVEST:
     Key strategic priorities in emerging
      markets where region has strong
     knowledge base and potential USP.                                   •Smart
      Focus for development of regional                                   Grids
     proposition as markets mature over                                  •Tidal
             next 12-24 months                                           •SSL

                    BUILD:
      Continue to provide support and                             • Offshore Wind
    specialist interventions for on-going                         • Biomass (incl. EfW)
    development of market segments of                             • Energy Management
        regional significance. Ensure                               in Buildings
       success of on-going initiatives.

                  SUPPORT:
                                                                   Core Portfolio
    Work with segments as appropriate
                                                          (Including Water/Wastewater;
     to optimise growth opportunities.
                                                             Waste and Recycling; PV;
    Look to identify and elevate future
                                                            Alternative Fuels; CCS; etc.
         priorities for investment.

        KEY STRATEGIC THEMES:
    Underpinned by specific objectives;      Strategic   Market    Innovation
                                                                                Investment   Exports   Skills
                                            Leadership   Devel.     Support
        delivered via Action Plan




7    Priority Action Plan
Table 9 presents the Priority Action Plan for the Low Carbon and Environmental Goods
and Services (LCEGS) Sector for the next three years, together with suggested action
leads. This Action Plan will be reviewed and updated on an annual basis.




                                                36
    Low Carbon and Environmental Goods and Services Sector Strategy
    Draft for Consultation


                                                                  Table 9
                                       Priority Action for the LOW CARBON TECHNOLOGIES Strategy

    Strategic              Existing          Suggested New Actions               Segment        Lead Body      Opportunities to work
    Objectives            Projects /                                              Focus                         with other teams in
                            bodies                                                                                  the NWDA

Strategic               Northwest          1. Northwest Energy Council to      All            NWDA             Need to work with SCP
Leadership:             Energy Council     take an oversight role for the                                      and CCAP to spot where
Provide focused and     NW Tidal Energy    delivery of the sector strategy                                     markets are being
strong direction for    Group              and ensuring that energy                                            created regionally.
the development of                         infrastructure fit for purpose
the regional sector,                       2. Develop formal Working           Smart Grids;   NWDA
                                                                                                               Work with other sector
specifically emerging                      Groups similar to the NWTEG         and SSL
                                                                                                               teams to identify
markets                                    for Smart Grids and SSL.                                            opportunities for
                                           3. Develop „foresighting‟           Tidal, Smart   Envirolink       diversification
                                           capability to undertake horizon     Grids, and     Northwest
                                           scanning for new emerging           SSL
                                           markets
                                           4. Develop regional database        All
                                           to provide robust evidence                         Business Link
                                           base for future monitoring and                     and Envirolink
                                           development of the sector                          Northwest


Market                  Biomass Work       1. Develop and articulate           Smart Grids;   NWDA             Need to identify parts of
Development:            Programme          regional proposition for priority   Biomass                         the Digital and Creative
Identify and develop                       markets.                                                            and Automotive sectors
                        St Helens SSL
early markets                                                                                                  with an interest in smart
                        project            2. Secure funded regional           Smart Grids
opportunities and                                                                             NWDA             grids and energy
                        Manchester LCEA    demonstration project for
provide supply chain                                                                                           management controls.
                                           Smart Grids
development             Sustainable                                            SSL
                                           3. Develop public sector                           NWDA /           BPS – opportunity to
support to facilitate   buildings policy
                                           procurement support                                Envirolink       develop financial models
access to markets       Business support                                                      Northwest
                                           programme for SSL



                                                                        37
    Low Carbon and Environmental Goods and Services Sector Strategy
    Draft for Consultation


                      provided by        4. Provide continued support      Tidal   NWDA
                      Business Link      for proposed regional tidal
                      and Envirolink     schemes
                                                                           All     All
                      Northwest          5. Build on existing regional
                                         projects as appropriate, e.g.
                                         Biomass Strategy
Innovation Support:   Innovation MOU     1. Review of current innovation   All     NWDA   Potential opportunities to
Realise stronger                         capability and definition of                     work with Advanced
communication                            targeted development to                          Manufacturing team and
between industry      The Joule Centre
                                         realise significant uplift in                    Science and Innovation
                      for Energy
and the regional                         effectiveness in line with                       team
research base and     Research
                                         priorities of this strategy.
improve the rate of                      2. Develop opportunities for      All     NWDA
technology transfer   Energy             closer interaction between the
and successful        Innovation         regional industrial and
enterprise            Centre             academic communities to
                                         encourage more effective
                      GRAND              market led innovation


                      Innovation
                      Vouchers




                                                                     38
    Low Carbon and Environmental Goods and Services Sector Strategy
    Draft for Consultation




Investment:               Investor         1. Market the region to inward      Biomass,         NWDA / NoE   Investment Services
Optimise                  development      investors, particularly in the      Smart Grids &                 NOE team
opportunities for         services         priorities segments.                Nuclear
inward investment                                                                                            UKTI
                          Inward           2. Maximise opportunities for       All
and successfully                                                                                NWDA         SRPs
                          investment       third party financing of regional
leverage third party      service          projects and infrastructure                                       Internationalisation team
finance for regional                                                                            NWDA
                          GBI              3. Strategic planning for use of    Biomass &
projects and
                                           waste resources in the region       EfW
infrastructure
                                           recycling Vs EfW

Exports: Provide          Envirolink and   1. Increased resourcing of          Core Portfolio   UKTI and     Internationalisation team
specific and focused      UKTI trade       sector support for                                   Envirolink
support for the           promotion        internationalisation and export                      Northwest
development of            activity         to appropriate developing
export and                                 overseas markets
internationalisation                       2. Identify early opportunities
opportunities                                                                  Emerging         UKTI and
                                           for export markets for
amongst the more                                                               Technologies     Envirolink
                                           emerging technologies
mature segments of                                                                              Northwest
the portfolio
Skills: Attract in high   Cogent           1. Facilitate dialogue between      All                           NWUA
quality candidates to     Energy and       universities and employers to                                     Business Link
study in the region       Utility Skills   help ensure that developing
and encourage                              skills needs are picked up on
retention of                               and new provision/increased
graduates and                              capacity follows.
skilled labour within                      2. Encourage enrolment of           All
the industrial base                        more domestic students by
to develop the                             „selling‟ engineering courses in
regional talent pool.                      schools and FE colleges on the
                                           basis that they are part of the
                                           new economy, that there will



                                                                        39
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation


                                be increasing opportunities for
                                sustainable careers
                                3. Promote greater                All
                                University/employer links at
                                the undergraduate level to
                                support employer input into the
                                development of undergraduate
                                courses, and potentially to
                                increase the amount of time
                                students spend on industrial
                                placements within their
                                undergraduate degrees.




                                                           40
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

8     Monitoring and Implementation
8.1     Key Performance Indicators
Performance will be monitored relative to the three main aims of the strategy, as
indicated below:
.

                        Aim                                                       KPI


1.   Realise a rate of sector growth of above the       - Annual growth rate (%) relative to sector national
      national average over the next three years          average (currently 4.9 % in 2007/8 relative to UK
      by developing the existing portfolio of             ave. of 3.6 %)
      capabilities and exploiting emerging market       - Total sector GVA
      opportunities
                                                        - Size of the sector measured in numbers of businesses,
                                                          jobs and turnover
                                                        - Export levels (current level of 8.8 of regional market
                                                           value %)

2. Raise the level of innovation activity and
                                                        - Number of new start-ups/survival rates (new VAT
    increase the rate of successful technology            registrations)
    transfer from the regional research base
                                                        - Average salary for the sector

                                                        - Amount of money invested into research in the region
                                                          for both private and public sector.



3. Secure targeted private sector investment in       - Additional funding leveraged into regional projects
    support of regional business growth.
                                                      - No of inward investment projects/jobs created
                                                      (overseas and UK)


To help illustrate the KPIs the following table provides examples of what success
might look like if this strategy achieves all it sets out to by 2013. This strategy aims
to influence and facilitate these process but the public sector is not able to achieve all
the targets without working in partnership with the private sector and academia.


                                  What Does Success Look Like in 2013?


      Segment                 Realistically Achievable                         Aspirational Target


Tidal                  Outline consent achieved for one tidal      Demonstration facility up and running,
                       scheme in the region.                       attracting in device developers to the region.

Smart Grids            National demonstration project              A national centre of excellence secured in the
                       secured and operational.                    region and a number of demonstration
                                                                   projects up and running.

Solid State            Public sector procurement programme         Regional companies exporting products to
Lighting               in place to purchase regional SSL           national/international markets. Significant
                       technology.                                 inward investment or regional landmark
                                                                   project secured.

Offshore Wind          One of the region‟s ports has been          Key supply chain manufacturer attracted to
                       allocated as a construction base for        the region.
                       the Round 3 site.

Biomass (incl.         Region‟s wood chip processing               Significant manufacturer of process
EfW)                   capability at capacity supplying            technology attracted into the region.
                       regional biomass needs. Most biomass
                       waste in the region is being utilised as
                       resource.




                                                      41
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
Energy            Recognition as leading region in the     Region recognised as an internationally
Management in     UK for the production and installation   leading region for the production and
Buildings         of energy management for buildings       installation of energy management for
                  technologies.                            buildings technologies.

Core Portfolio    Export levels for sector increased to    The region is leading the UK in export
                  above national average.                  activities.
                  The LCEGS sector has grown at its        The LCEGS sector has grown at a faster rate
                  current rate of 1.3% above the           of 2.3% above the national average.
                  national average.




8.2   Key delivery bodies and accountabilities

The NWDA has a number of existing projects and delivery bodies as detailed in Table
4. This strategy has not identified a need for a new delivery body or mechanism
more a focus of existing efforts onto emerging market opportunities. Envirolink
Northwest, the Energy Innovation Centre, The Joule Centre for Energy Research,
Business Link, along with the sub-regional partners and local authorities in the region
are essential to the successful delivery of the strategy. The NWDA works in
partnership with these organisations and will continue to do so to ensure existing
resources are aligned to deliver the actions in this strategy.


8.3   Governance and control mechanisms
The Northwest Energy Council will oversee the delivery of the strategy. The quarterly
meetings will receive updates on performance against the Key Performance
Indicators.




                                                42
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation


                              APPENDIX I
         Regional Market Sub Sector Breakdown by Value 2007/8




                                  43
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation

Figure A Relative Value of Environmental Goods and Service Segments in the
                        Northwest (£m) in 2007/08

                  3000



                  2000



                  1000

                                    726            572
                                                                  281             151          128              89
                        0                                                                                                       17              14              12




                                                                                             on
                                                                  t




                                                                              d




                                                                                                                                           g




                                                                                                                                                           l
                                                er




                                                                                                           ng




                                                                                                                            l




                                                                                                                                                        ro
                               g




                                                               en




                                                                                                                            o
                                                                              n




                                                                                                                                          rin
                               in




                                              at




                                                                                                                         tr
                                                                                         ti
                                                                           La




                                                                                                                                                       nt
                                                                                                         lti
                                                          m




                                                                                        llu
                            cl




                                                                                                                        n



                                                                                                                                      ito
                                             W




                                                                                                      su




                                                                                                                                                     co
                                                                                                                     Co
                                                           e
                          y




                                                                         ed




                                                                                      Po




                                                                                                                                  on
                                                        ag
                       ec




                                         te




                                                                                                     n




                                                                                                                                                 on
                                                                       at




                                                                                                  Co




                                                                                                                    n
                   R




                                                     an
                                        as




                                                                                                                                 M
                                                                                   ir




                                                                                                                tio
                                                                      in




                                                                                                                                                ti
                                                                                  A
                d



                                    W




                                                                                                                                l
                                                    M




                                                                                                  l




                                                                                                                                             llu
                                                                  am




                                                                                                                             ta
                                                                                               ta
             an




                                                                                                               ra
                                                   te
                                    d




                                                                                                                                           Po
                                                                                                                           en
                                                                                           en




                                                                                                             ib
                              an




                                                                  t
             ry




                                                 as




                                                               on




                                                                                                           V




                                                                                                                          m
                                                                                          m




                                                                                                                                         e
          ve




                                             W




                                                                                                                                       in
                                                                                                         &



                                                                                                                        on
                                                              C
                          er




                                                                                        on
         o




                                                                                                                                      ar
                        at




                                                                                                      se




                                                                                                                        r
      ec




                                                                                         r




                                                                                                                     vi
                                                                                      vi




                                                                                                                                     M
                       W




                                                                                                   oi
      R




                                                                                                                 En
                                                                                   En




                                                                                                  N
  Figure B Relative Value of Renewable Energy Segments in the Northwest
                              (£m) in 2007/08


             3000




             2000




             1000

                                1264
                                                        685
                                                                           388                380
                  0                                                                                              49                   34                    7
                                Wind              Geothermal           Biomass          Photovoltaic         Renewable               Hydro           Wave & Tidal
                                                                                                             consulting


    Figure C Relative Value of Emerging Low Carbon Segments in the Northwest
                                 (£m) in 2007/08



             3000




             2000



                                2507
             1000
                                                        1428               1378


                                                                                               278                   179
                   0                                                                                                                     85                     21
                             Alternative           Alternative          Building     Energy                     Additional         C arbon               C arbon
                                fuels              vehicle fuel       Technologies Management                    energy          capture and             finance
                                                                                                                 sources           storage




                                                                                   44
Low Carbon and Environmental Goods and Services Sector Strategy
Draft for Consultation
                             APPENDIX 2
                       Summary Segment Profiles




                                  45

				
DOCUMENT INFO