Hill+Knowlton Strategies

So, discussions in the main hall were fairly unenlightening – was debate on the fringe any better?

Aside from the seeing the same faces, and hearing the same jokes four or five times over two days, there were some other recurring elements. The overriding message from pretty much all delegates was the need for clear and consistent signals from government – both in terms of policy and support levels – to investors. Sadly, this does not mean we have reached the happy utopia where industry and NGOs agree. For the former, this means a stable price for carbon over the long term, for the latter, this means long-term targets to cut emissions and deploy renewables that are as stringent as possible.

Discussions around renewables and green industries were much more informed and critical than in previous years, with the cost of meeting 2020 targets a particularly contentious issue – unsurprising given the general economic climate. Offshore wind was singled out for most criticism, with a great deal of suspicion expressed over whether the cost of deployment will come down as the government predicts. With regard to the green economy, the claim that it will create new jobs and help the UK through the global recession were also unpicked – that the jobs will not be new (but will simply be moved from other areas of the economy), and that there will necessarily be losers as well as winners as green industries grow.

Arguments around cost fed into one of the more interesting themes of discussion, namely the social ramifications of current energy policy. The cost of meeting 2020 targets is feeding directly into domestic bills, driving them upwards. Since electricity is a necessity, this hits the poorest  hardest, with the label ‘socially regressive’ applied repeatedly to the current strategy on renewables.  With this in mind, there were also calls for initiatives – particularly the Green Deal – to be targeted at the most vulnerable groups in society such as those living in social housing.

Energy Minister Charles Hendry and Climate Change Minister Greg Barker did their best to dispel the gloom, with repeated assurances that the UK is on the right track. Of course as ministers they don’t have much room to say anything to the contrary, but it is hard not to be swayed by two ministers so obviously on top of – and passionate about – their brief.