Hill+Knowlton Strategies

We’ve moved from Movember to December pretty quickly, but I thought it was worth sharing the highlights from Team Danger! High Voltache (that’s us in the London Energy and Industrials team)  as we embarked on some hair growing efforts in the name of promoting men’s health.

With two MoBrothers and many MoSisters we managed to raise £204 to support a good cause.

You can check out the highlights (with many a shameful photo) here.

“I’m afraid the truth is that these events are always very bad and perhaps the worst of all the duties of a PM,” Harold Macmillan records in his diary in 1962. The Conservative Prime Minister had removed a third of his cabinet, including his Chancellor, earlier in the evening. In his infamous ‘night of the long knives,’ Macmillan had decided to be bold and brutal in equal measure. Most reshuffles, like this week’s change of hands, are less dramatic affairs.

Before picking his or her new team, the Prime Minister will be conscious of the under-promoted, the over-promoted, those who want to move and those who refuse point blank. They will want to promote their allies, but will be mindful of providing too big an opening for potential rivals. They then need to factor in policy considerations. Industry will surely be in uproar if the new Secretary of State is moved along again.

No wonder ex-Prime Minister’s bemoan reshuffles in their memoirs some years after the dreaded deed.

This week’s reshuffle started on Monday night and wrapped up earlier this morning with the appointment of the last handful of junior ministers. Personnel changes will of course continue over the next few weeks as ministers appoint special advisers, and the allocation of responsibilities are eventually divided up. DECC now has its full ministerial team in place following the appointment of ex-BIS Spokesperson in the Lords, Baroness Verma, last night. She replaces Lord Marland as Parliamentary Under-Secretary of State.

While the massed ranks of the political commentariat pore over this week’s shake-up, interest in the departments responsible for green growth has been relatively muted. What then might the reshuffle mean for the Government’s green growth agenda? Do the slew of ‘pro-growth’ announcements from Numbers 10 and 11 this week feed that agenda?

For my view on these questions please click here:

http://www.hkstrategies.co.uk/sites/default/files/HK%20_Strategies%20_Energy_and_Industrials_Going%20For%20Growth.pdf

As we anxiously wait for DECC’s blue print for reforming the UK’s electricity market it seems an opportune moment to question the likely prospects of the Government’s other (potentially) game-changing ambition for the country’s energy market.

When passed by Parliament, the Energy Act 2011 provided for the most comprehensive energy efficiency scheme ever to be introduced in the UK. While it took the Green Deal another nine months of legislative scrutiny for Parliament to sign-off the last of the accompanying regulations, the scheme, is now ready to hit the market this autumn.

The deal, described by the Coalition Government as “a flagship piece of legislation, which will deliver energy efficiency in homes and buildings across the land,” seeks to deliver a mass energy-efficient retrofit to the UK’s properties. From this autumn, households and business properties* will be able to borrow funds for energy-saving home improvements (cavity insulation, solar PV, heating controls etc) with repayments collected through their gas and electric bills.

It was introduced in the context of rising fuel poverty, legally binding carbon emission reduction targets, and criticisms of existing energy efficiency schemes.

Encouragingly the aims of the scheme and the principles underpinning the Green Deal received broad cross-party support. Sure, Labour moaned at the Government’s overreliance on secondary legislation (making it harder for Labour to have a say) and the Liberal Democrats’ called for more consumer protection measures (which they got). But opposition to the Green Deal never amounted to much more than a whimper. By recent parliamentary standards this was definitely a ‘consensus bill’.

So why then after all the good intentions and good will is the Green Deal on course to flounder?

The answer lies in the likely outcome to one of the first questions raised over the scheme: what would the interest rate for the initial loan be? Alongside the public’s awareness of the scheme, the loan’s interest rate will be a key driver of consumer take-up.

Ministers have now proffered 7.5 per cent as the most likely rate. This is worrying for two reasons. 1.) This high ‘commercial’ rate will determine that certain technologies will not qualify under the “golden rule”, whereby the loan repayments made by the homeowner must be less than, or equal to, the savings on their energy bill; and 2.) with rates as high as 7.5 per cent potential participants of the scheme are likely to question the attractiveness of the investment. How many people will be prepared to pay perhaps 7.5% interest for up to twenty-five years for improvements that, if they pay up front instead will cost significantly less? To retrofit an average sized home enough to lower bills probably costs around £10,000 but will cost £23,000 over the life-time of the deal. It was perhaps ominous that a number of potential Green Deal providers lost interest in the scheme when modelling showed that at 7 to 9 per cent interest rates, energy bill savings after repayments were likely to be relatively modest.

To be fair to DECC, who recognised the problem from the beginning, ministers have managed to extract £200 million out of the Treasury with the aim, apparently, of throwing it at early participants of the scheme in the form of ‘cash-back’. But as Alan Whitehead MP has dryly asked: what happens when the cash-back runs out?

The possibility that the Treasury would back Caroline Flint’s proposal to use the Green Investment Bank to help push the interest rates down were scuppered when her counter-part, the Green Deal Minister Greg Barker, said the proposal amounted to a “subsidy” that would cost tax-payers the earth and “stifle competition” in the process.

A sign that the Government has caught on to the scale of the challenge came earlier this month when DECC announced its intention to cough up for a multi-million pound national communications campaign to promote the scheme to the public. At a time when the government has cut its communications budget in half, this development is significant – not least because the Government had hitherto said it was the role of the private sector to sell the scheme to the general public.

Faced with the imminent launch of a flag-ship policy the sign-off to an expensive marketing campaign suggests that the Government has recognised that it must play a significant part in driving up awareness of the energy efficiency scheme. Ministers know they need to secure sufficient levels of public engagement to ensure that the scheme remains a viable project after any initial spurt of public take-up.

So it appears the national communications campaign has its work cut-out. Not only will the general public need to understand the intricacies of the financing mechanisms better, consumers will want to know the scheme will deliver lower bills and reduce emissions before they let anyone near their attic.

Despite the scheme’s noble intentions there is a real risk that the chance to transform Europe’s most inefficient housing stock may be passed up.

Is there light at the end of the pre-legislative tunnel?

For those who fear for the Green Deal’s viability but want more demand-side measures in the UK’s energy policy armoury it might – just might – be worth looking to the current draft energy bill for some of glimmer of hope. Tucked away neatly in the preamble to the draft legislation you can find the Bill’s only demand-side mention:

“We are currently reviewing the potential for incentivising further demand reduction in the electricity sector. This work will report over the summer, in time to fit legislative time tables, should it be required”.

Fingers crossed then.

* Since then the government has positioned the scheme as an almost exclusively domestic scheme but it is open to businesses who wish to participate.

Although we were bewitched by the glorious pomp and ceremony surrounding the Queen’s Speech today (I particularly liked the tour of  John Bercow’s magnificent bed chamber on the BBC) we did capture the key mesaures for the energy sector and the intial reaction of stakeholders and the media.

Key Bills announced:

• Energy Bill

• This is the Bill which will implement key elements of the EMR package
• The aim of the Bill is to enable large-scale investment in low-carbon generation capacity in the UK and deliver security of supply, in a cost-effective way.
• The Bill will cover three of the four main elements of EMR:
  • Introducing a feed-in tariff with Contracts for Difference (FiT-CfD), a system of low-carbon generation revenue support. The Government’s hope is that the FiT-CfD will provide more certainty of revenues for low-carbon generation and make investment in clean energy more attractive;
  • Introducing an Emissions Performance Standard (EPS) to prevent construction of new coal plants which emit more than 450g/kWh (the most carbon-intensive form of electricity generation);
  • Introducing a capacity mechanism to ensure security of supply, making sure there is sufficient reliable and diverse capacity to meet demand.
• The fourth element, a Carbon Floor Price, has already been legislated for through last year’s Finance Bill.
• The Bill will also create an independent, industry-financed statutory regulator, the Office for Nuclear Regulation, and enable the sale of the Government Pipeline and Storage System (GPSS) (currently a Ministry of Defence asset). The GPSS is a network of pipes and storage depots serving defence installations – see map here: http://www.linewatch.co.uk/pipeline_network.php

• Enterprise and Regulatory Reform Bill

• A wide-ranging Bill covering competition, employment disputes, directors’ pay and regulatory reform.
• It will also establish the Green Investment Bank in law, and equip it with the powers it needs to operate.

Initial stakeholder reactions

1. Business

CBI

John Cridland, CBI Director-General, said: “The test for this Queen’s Speech is whether it will help businesses to grow. Two Bills stand out for me: energy and regulatory reform. The first should help, but the jury’s out on the second.”

On energy: “Let’s be clear, electricity market reform is about keeping the lights on. Business investment in low-carbon will only happen when the detailed market framework is in place. Today’s announcements are an important stepping stone.”

Trade associations

Renewable Energy Association

Gaynor Hartnell, Chief Executive of the Renewable Energy Association – “Four years ago David Cameron said that we can’t afford not to go green and nowhere is that truer than the energy sector. Energy investors are demanding a strong policy framework in support of renewables and a decisive shift away from fossil fuels – so this Bill simply has to deliver. “While it is great that the Government have accepted the principle of legislating for carbon emissions; the way it is currently drawn up simply won’t work. You are not on a diet if you allow yourself 5,000 calories a day. You shouldn’t be surprised if it has no effect.”

UK Green Building Council

Paul King, Chief Executive of the UK Green Building Council – “By reforming regulation of the electricity market, the Government will be able to reduce uncertainty about the future returns from the tens of billions of pounds that must be invested, and will boost the confidence of the private sector. Private investors will also welcome plans to include the establishment of the Green Investment Bank in the proposed Enterprise Bill. However, the Government should recognise that it will slow down investment by the private sector, and hence hinder growth, if it delays giving the Bank powers to borrow.”

Environmental NGOs

The Climate Group

Mark Kenber, Chief Executive of The Climate Group- “Let’s be clear, electricity market reform is about keeping the lights on. Business investment in low-carbon will only happen when the detailed market framework is in place. Today’s announcements are an important stepping stone.”

Political

DECC

As part of her speech the Queen announced that the Government will propose reforms to the electricity market. These reforms will be laid out in the Energy Bill, scheduled for publication on 22 May. Commentating on the forthcoming Energy Bill, a DECC spokeswoman said: “This is crucial legislation. The Energy Bill would reform the electricity market to keep the lights on and emissions down in a more cost-effective way, while reaping the economic benefits.  It is designed to provide investors with long-term certainty and incentives to invest in low-carbon. We will shortly publish a draft Bill for pre-legislative scrutiny, to enable swift passage of well-considered legislation this session. This legislation would reach the statute book by 2013 so that the first low-carbon projects can be supported under its provisions in 2014”.

Caroline Lucas, MP, Green Party

“This is of immense importance to project developers in renewables, as the measures it puts in place will eventually replace the Renewables Obligation. Many of the projects in development now are working to a timescale that takes them into the new regime, and they need to know the detail as soon as possible. If all works as intended, it should make project development less risky and means that the public pays no more than it needs to for green power.”

Academics

Grantham Research Institute on Climate Change and the Environment at London School of Economics

Professor Sam Fankhauser, co-director of the Grantham Research Institute on Climate Change and the Environment at London School of Economics

“We recognise that mechanisms to encourage investment in low carbon electricity generation are necessary, but the cost to the consumer should be the Government’s overriding concern when they are negotiating contracts.

“Transparent and robust processes must be put in place to ensure value for money. Badly- designed policies like the Carbon Price Floor, the Green Deal and the smart meter rollout could cost the consumer billions, it is imperative that this is not allowed to happen with electricity market reform.

WWF

Margaret Ounsley, Head of Public Affairs at WWF-UK, said “There is much that is encouraging here, with legislation to help green the power sector, and to protect our precious rivers and streams; we now just need to make sure that what is being suggested will work.”

Commenting on the Energy Bill, Keith Allott, Head of Climate Change at WWF-UK, said: “Reform of the UK energy market should be one of the Government’s highest priorities. Backing jobs and investment in the renewable energy sector is also a golden opportunity for growth that the government should be grabbing with both hands.”

Initial media reactions

• The Financial Times, Kiran Stacey

Business forms heart of Queen’s Speech

David Cameron and Nick Clegg have pledged to make the UK “one of the most business-friendly countries in the world”, as the Queen outlines dozens of new bills set to dominate the next session of parliament.The prime minister and deputy prime minister said in a statement: “We will continue to extend opportunity in our economy – with an enterprise and regulatory reform bill that will make Britain one of the most business-friendly countries in the world.” They added: “[There will be] a banking reform bill that will clear up the regulatory mess and protect our economy and Britain’s families from the sort of risky activity that led to the recession.” The enterprise bill will encourage employers and employees to go through conciliation rather than legal tribunals as the government looks to help relieve businesses of the burden of some of employment law. The moves fall far short of those advocated by Adrian Beecroft, the Tory donor and venture capitalist, who has said there should be no right for employees to claim unfair dismissal. The bill would make shareholder votes on directors’ pay binding but again falls short of some more radical proposals, which would have forced companies to achieve a 75 per cent majority to approve pay packages.

• BusinessGreen, James Murray

‘Legislation to enable launch of Green Investment Bank also confirmed in annual agenda for next year of parliament’

Setting out her government’s agenda for the next parliamentary year, the Queen said the government would bring forward an Energy Bill that will “propose reform of the electricity market to deliver secure, clean, and affordable electricity, and ensure prices are fair”. She also confirmed plans to introduce legislation that will enable the launch of the government’s promised Green Investment Bank, and plans for a draft water bill to better manage water resources and rivers. There had been reports, strongly denied by the Department of Energy and Climate Change (DECC), that the Energy Bill could be delayed or downgraded as the coalition sought to make room for alternative legislation, such as controversial reforms to the House of Lords. However, the bill was included in the speech as expected and is now set to be put before Parliament in the coming months. The speech did not confirm the precise timetable for the next wave of bills and as such speculation will continue over when the Energy Bill will be finalised, although DECC sources have revealed they remain confident it will be formally published before the end of the calendar year.

• Edie Energy

Queen’s Speech promises commitment on GIB, EMR and water resources

The commitment to introduce legislation to ‘establish’ the GIB is in line with business secretary Vince Cable’s announcement in March this year that the new bank will be headquartered in Edinburgh and that it will be “in a position to be fully operational this Autumn”. The timetable for the GIB to achieve full borrowing status, however, is scheduled to take until April 2015, a date which, even then, is subject to public sector net debt falling as a percentage of GDP. The EMR commitment upholds a previous Government pledge that it would legislate for the key elements of this package in the second session of this Parliament, starting in May 2012. The intention is to ensure that such legislation reaches the statute book by spring 2013, allowing the first low-carbon projects to be supported under its provisions ‘around 2014′. There has, of course, been growing impatience in some industry sectors with the slow progress of the EMR process, including a warning given to Emily Bourne, head of the EMR programme team, when she addressed the Scottish Renewables annual conference in Edinburgh in March this year. Simon Christian, UK managing director of ScottishPower Renewables, said at the time that uncertainty over EMR was effectively blocking projects timed to start beyond 2017, due to future revenue uncertainties. The Queen’s Speech declaration on EMR today, however, went no further that to confirm that legislation would be introduced to “deliver secure, clean and affordable electricity and ensure prices as fair”. The commitment on water resources was equally brief, committing to the publication of a draft bill to “reform the water industry in England and Wales

In the broadest sense, this year’s Budget reaffirmed two points: that green policy remains relatively low on the Treasury’s priority list, and that the Treasury is determined to keep oil and gas at the heart of UK energy policy for the foreseeable future.

Backing for renewables was warm, yet qualified – Osborne highlighted the key role for renewables, while making it clear he will also keep an eye on the cost to consumers through energy bills. This, combined a review of the Carbon Reduction Commitment and a trail of new planning rules due next Tuesday will do little to alter views of where George Osborne ranks the green agenda…

A package of tax breaks aimed at stimulating investment in the North Sea should go a long way to healing the rift between the Government and industry caused by last year’s tax raid. Taken together with strong support for gas and the signals were all positive for the oil and gas industry.

Welcome to Hill+Knowlton Strategies’ regular update on key European regulatory developments that will directly impact businesses in the energy sector.

This edition of the H+K Strategies Brussels Energy Newsletter looks that the energy priorities of the new Danish Presidency of the EU Council of Minsters and the energy roadmap 2050.

Read on for the latest developments, impacts and opportunities surround these issues in Europe.  

Danish Presidency of the EU Council – Energy Priorities

Latest Developments

On 1st January, Denmark assumed the rotating presidency of the EU Council of Ministers, taking over from Poland for a period of six months. As holder of the Council Presidency, Denmark is responsible for setting the agenda for intergovernmental discussions and leading the negotiations with the other EU institutions. At the same time, however, its priorities are closely linked to the European Commission work programme for 2012.

While the ongoing Euro-area debt crisis will continue to preoccupy meetings of heads of state and government, at ministerial level the Danish government intends to advance its agenda of a responsible, dynamic, green and safe Europe. Indeed, energy issues form a substantial part of the Green Europe focus area, with many policy proposals which were introduced in 2011 still on the table and at crucial stages in their negotiation.

First, the proposed new energy efficiency directive, intended to set a common framework to promote energy efficiency across the EU, is a major priority, with the Danish Presidency aiming for an agreement before the end of June. This ambition may be thwarted by delays in the European Parliament adopting its position due to the vast number of conflicting positions being put forward by MEPs, while the national delegations in the Council have proposed limiting the scope of the public building renovation requirement to buildings owned by central governments.

The proposed infrastructure package is the Presidency’s second priority, where it will work for the development of an effective and intelligent transmission network, so as to enable the integration of large-scale renewable energy into the EU’s energy supply. The proposed new legislation will enable a streamlined mechanism for identifying cross-border “projects of European interest”, within a set of strategic corridors and priorities, which will benefit from a shorter permitting period and streamlined administrative procedures. Third, negotiations on the proposed regulation on the safety of offshore oil & gas activities will be a further focus of the Presidency. As an oil and gas producing nation, Denmark has a clear interest in this proposal, particularly as it seeks to extend the regulatory approach of the North Sea nations to all European waters. While it is fairly unlikely that an agreement be reached before the summer, the Presidency will work to ensure that discussions get off to a good start and seek to make its mark building on the expertise which comes from decades of exploration and production in Danish waters.

All this is set against the backdrop of the debate on deepening the EU’s CO2 emissions reduction targets. Discussions over a possible move to a 30% target for 2020 (up from 20%, compared to 1990 levels) were put on ice under Poland’s presidency, due to that country’s objections to such a move given its high share of energy-intensive industries and reliance on coal. While Denmark has traditionally been supportive of stricter emissions targets, the new Presidency has mollified its stance in order to garner Polish support for a draft resolution on the Commission’s recent roadmap to a low-carbon economy in 2050. The text now before national delegations refers to the fact that if the EU achieves its 20% energy efficiency objective in 2020, then 25% emissions cut may be possible, without referring to this as a target. The Danish presidency has similarly been careful to ensure that references to deeper cuts between 2020 and 2050 are portrayed as possible milestones, rather than explicit targets. This debate will also feed into attempts to find agreement on endorsing the 2050 Energy Roadmap (see article below).

Impact & Opportunities

The six-month Presidency term is an important opportunity for Denmark to present itself as an influential EU Member State capable of assuming leadership in a new institutional set-up (since December 2009, the European Council has a permanent president chairing the meetings of the 27 heads of state and government, which clearly weakened the role of the EU Council Presidency). This is especially important given that Denmark is a small country which remains outside the Eurozone, and is one of the few EU states to currently have a left-of-centre government in the current climate of economic austerity. While the sovereign debt crisis in the Eurozone is dominating EU strategic decision-making, Denmark will be keen to push forward on the above energy objectives, not least because the investments required to deliver energy effi¬ciency improvements and infrastructure connections are seen as a means to create jobs and growth.

Energy Roadmap 2050

Latest Developments

On 15 December 2011, the European Commission adopted the “Energy Roadmap 2050” Communication which explores the challenges posed by delivering the EU’s objective of 80- 95% decarbonisation by 2050, while ensuring at the same time competitiveness and security of supply. The sectoral roadmap is one of several that follow the Commission’s all-sector “Low carbon economy roadmap”, released in March 2011, which compares a scenario of global action with a unilateral scenario.

The analysis set out in the long-awaited Energy roadmap explores five scenarios created by different combinations of the four main decarbonisation routes – renewables, energy efficiency, nuclear and carbon capture and storage technologies (CCS) and contrasts these with a ‘business-as-usual’ approach.

In outline, the projections include a scenario in which the EU improves its energy efficiency, enabling renewables to provide 64% of electricity consumption by 2050, and a ‘high renewables uptake’ scenario where they would provide 97% of electricity consumption, with nuclear power and coal almost eliminated from final energy use. A third scenario would see no energy source preferred, with each competing on a market basis. Decarbonisation would instead be driven by carbon pricing.

The two other scenarios explore a “low-nuclear” scenario where coal power plants using carbon capture and storage (CCS) technology make up the difference along with renewables and a scenario with the highest share of nuclear energy at 18%, which would still be a decrease from today’s 20%. Inclusion of a sixth scenario, which combined energy efficiency and increased use of renewables, was being urged by the Commission’s Climate Action department. This was, however, opposed by Energy Commissioner Günther Oettinger, on the grounds that such a scenario can only be considered after Member State support for the proposed new energy efficiency directive becomes clear.

All in all, the roadmap finds that, although the decarbonisation routes would demand large upfront capital expenditure until 2030, by 2050 investment costs would be roughly the same owing to increasing fuel costs. Continuing current policies would bring total energy system cost to 14.6% of European gross domestic product (GDP) in 2050, roughly the same as the other scenarios. This compares to the 10.5% of GDP spent in 2005.

However, according to Mr Oettinger, the final configuration is likely to be a mix of the projections, following a debate with a wide range of stakeholders. As a result, he expects to “achieve clarity with investors” on what future strategies are worth pursuing by 2013 or 2014 at latest. He expressed his wish for the adoption of a new EU binding renewables target for 2030 by 2014 to give low carbon investors long-term certainty. The roadmap currently suggests a renewables share of about 30%.

The roadmap is more careful in its wording and, arguably, less ambitious in its scope than previous leaked drafts. The final version stops short of recommending targets, a key source of controversy, while it recognizes that EU Member States and investors need milestones.

While some Commission officials expressed criticism over the Roadmap’s lack of ambition, Green groups praised the roadmap’s demonstration that a high uptake of renewables would come at little extra cost compared to a business-as-usual scenario. But they maintain that the Commission has purposefully underestimated renewables potential.

The Danish Presidency of the EU Council is to prioritise the reaching of an agreement between Member States on endorsing the Roadmap, although discussions are likely to be impeded by disagreements between Member States over interim targets to 2050.

Impact & Opportunities

The debate over further targets and milestones for the years to 2050 will be a key element of continued discussions around the Roadmap. An earlier draft said that “further renewables targets for 2030 could be an option since Europe is currently on the right track to achieve the targets for 2020”. In the same paragraph, which has since been scrapped, interim targets on CCS and energy infrastructure were envisaged as a possibility. But the roadmap says that the modelling for these scenarios is dependent on a global climate deal, which could be many years away. The Commission consultation on a post-2020 renewable energy strategy, running from 6 December 2011 until 7 February, has been an opportunity for stakeholders to voice their views on whether there is a role for further renewable targets and the findings will feed into the discussions. The upcoming Communications on CCS (by the summer) and energy technologies (in Q1 2013) should also be closely monitored.

 Industry in general has been strongly pushing the need for regulatory certainty and clarity over whether there will be further targets, in order to be able to make necessary investments, a point which is readily accepted by Commissioner Oettinger. The coming months will therefore offer the opportunity to make such arguments to policy-makers, and to offer suggestions as to what the policy framework should look like post-2020.

In the Energy and Industrials team we are partial to some tech prowess, especially if that technology is geared towards saving energy, saving money or looks particularly nifty (remember those Back to the Future self-lacing shoes Mr Chris Pratt lusted after?).

Detailed here you’ll find just a few of the weird, wonderful and stylish energy-saving or sustainable products and gadgets that I find quite snazzy.

Cardboard fun



You might not be able to use it outside, but hopefully cardboard furniture which is 100 per cent recyclable will soon be all the rage. From beds to work seats all you have to do is fold it together and voilà!

Sun in  a jar

Solar-powered lights have always been popular for guiding people up garden paths the world over  but not many people have ventured to using them indoors which is why I like this next product; the Sun Jar. Just sit it on your window sill during the day when you’re at work and then use in the evening when you come in.

Speakers

Personally I love these acoustic iPod speakers which are made from reclaimed wood and old instruments; let’s face it they would look great on anyone’s mantelpiece.

Keeping warm (yes that is a picture of Matt Damon in a ’slanket’)

From my days living in a drafty student house it was either a choice of wearing a blanket around the house at all times or trying to find an inexpensive way to save heat. After exhausting all the usual tips (foil behind radiators, draft protectors on doors) we found the most effective product we used was window insulation glaze. It costs around six pounds and is basically sticky backed plastic for your windows which really does work!

These are only some of the products I have come across recently but it is clear to see that eco and sustainable goods are a growing market with websites dedicated to selling everything from homemade wind turbines to recycled cushions made from plastic.

So, it seems there will be an announcement tomorrow morning on whether the Energy Secretary Chris Huhne will be prosecuted. This bring to an end months of speculation over allegations that Huhne asked his former wife to take speeding points on his behalf.

Nick Clegg has already made it clear that if charged, Huhne will have to step down, prompting speculation on who will replace him on the energy and climate change brief. The quota of Liberal Democrat ministers will of course need to be maintained, narrowing it down somewhat. Junior business minister Ed Davey appears to be the front runner, with junior Foreign Office Minister Jeremy Browne and former Treasury Secretary David Laws also mentioned in passing.

The Coalition Government has been under fire recently for backsliding on environmental policy, with even key initiatives such as the Green Investment Bank, feed-in tariffs and the Green Deal falling victim to a strong Treasury keen to keep public spending to a minimum wherever possible.

Of the three contenders named above, two contributed to the Orange Book of 2004, widely regarded as the manifesto of the right wing of the Liberal Democrats. If tomorrow does mark the end of Chris Huhne’s cabinet career, all eyes will be on his successor for any hint that the ‘greenest government ever’ is not living up to its name…

Hill & Knowlton will be hosting a breakfast meeting next month (November 2nd) on the future for the UK nuclear industry.  

Organized by the British American Business Energy and Law Forum, the event will welcome an expert panel including Tim Yeo MP and Keith Parker from the Nuclear Industry Association.  Discussion will look at likely domestic demand in the decades ahead, the financial challenges inherent in major nuclear projects, the policy environment for the nuclear sector in a period of rising energy and carbon costs as well as renewed safety concerns about the sector in parts of Europe and Asia, and, the opportunities for UK businesses in overseas markets for developing and supporting nuclear projects.

If you wish to register, you can do so here, or contact the Energy and Industrials team in London.

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.