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Climate Change & Sustainable Economic Growth

Climate Change & Sustainable Economic Growth. Participants – Introduce themselves Background

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Climate Change & Sustainable Economic Growth

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  1. Climate Change & Sustainable Economic Growth Participants – Introduce themselves Background • The Bill will create a framework for action until 2050 – this is a long-term framework and will, hopefully, outlast this and many future administrations and, therefore, other single initiatives currently in place. • The Bill can serve as a vehicle to introduce measures in the future. We may not need these measures and we cannot anticipate the exact measures which will be needed, but using secondary legislation in the future can allow government to react quickly to changing circumstances while still ensuring parliamentary scrutiny. REMINDER: All discussions will be recorded though non- attributable To find out more: http://www.scotland.gov.uk/climatechangebill

  2. Workshop 1a Questions: Setting Emissions Budgets What factors should be taken into account when setting emission budgets? • Thinking within your sector: • What is the capital life span of your infrastructure & how many years in advance do you need to develop low-emissions infrastructure? • How many years in advance should emissions budget periods be set in order to provide sufficient time for businesses to develop infra-structure and business planning? • How long should each budget period be set for and why (i.e. to which cycle: EU Emissions Trading Scheme – 5 years, moving to 8 years in 2012, UK carbon budget periods – 5years, Scottish Parliamentary cycle – 4 years, spending review periods – 3 years)? • Further Questions: • Should there be an interim target and, if so, how should this be set? • Is there anything unique to Scotland, or particular Scottish regions, which needs to be taken into account in the Bill? If so, how?

  3. Workshop 1a Notes: Setting Emissions Budgetsfor further information, see section 6 of consultation document What is “Emissions Budgeting”? • An “Emissions Budget” refers to the aggregated quantity of emissions which are permitted during a specified period. • Examples of emission-intensive infrastructure include: fuel refining, transport & energy production. The Setting & Duration of Budgets • The later cuts in emissions are made, the greater they must be to have the same effect, they will also be more expensive. • It is the total amount of greenhouse gases emitted over a particular time which causes climate change, rather than the amount of emissions in any single year. An emissions budget would therefore need to last several years to allow for annual fluctuation. • It is hoped that longer term emissions budgets may provide certainty for businesses and encourage investment and innovation. Information regarding lead-in times for capital replacement can help inform how far in advance budgets need to be set. Participants may want to think about - • Type of infrastructure that they currently have & plans for future development • Examples of infrastructure lifespan: vehicles-7yrs, office building-20yrs, power plant-25yrs • Examples of how business can develop low-emissions infrastructure include increasing energy efficiency, reducing water consumption, vehicle procurement.

  4. Workshop 1b Questions: Setting Emissions Budgets What factors should be taken into account when setting emissions budgets? • Additionally: • Is there anything particular to your sector which needs to be taken into account when setting the level of budgets? • How long should each budget period be set for and why (i.e. to which cycle: EU Emissions Trading Scheme – 5 years, moving to 8 years in 2012, UK carbon budget periods – 5years, Scottish Parliamentary cycle – 4 years, spending review periods – 3 years)? • Please note: emissions figures are produced with an 18-24 month delay • Should the Government be allowed to borrow from the following budget period to cover unexpected shock rises, if so what should be the limit and why? • Further Questions: • Should there be an interim target and, if so, how should this be set? • Is there anything unique to Scotland, or particular Scottish regions, which need to be taken into account in the Bill? If so how?

  5. What is “Emissions Budgeting”? An “Emissions Budget” refers to the aggregated quantity of emissions which are permitted during a specified period. Factors which could be taken into account when setting budgets include economic growth, technological progress, business competitiveness or social impacts. Banking and Borrowing Banking and borrowing would allow the Scottish Government to carry unused emissions over to later budget periods or allow it to bring forward emissions allocations from future budget periods. This would provide a means of allowing for unexpected rises in emissions. For example, rises may occur because of abnormally cold winters, or the temporary shut down of a nuclear power plant; increasing the reliance on fossil fuels. Banking would likely incentivise the Government to over perform. Borrowing will allow the Government to correct unexpected spikes at the end of a budget period. However, unlimited borrowing may reduce certainty for business Participants may want to think about - Unusual or business specific demands/ constraints e.g. certain type of waste, seasonal or annual differences in energy use/demand, traditional manufacturing techniques etc. Workshop 1b Notes: Setting Emissions Budgetsfor further information, see section 6 of consultation document

  6. Workshop 2 Questions: Helping business meet the climate change challenge With an emphasis on devolved areas, what can the Scottish Government do to help business tackle climate change? • Additionally: • Is there any legislation, including regulations, which need to be amended to help business tackle climate change? • Is there any legislation, including regulations, which is preventing business from tackling climate change? • Are there any incentives which the Government can provide to help business tackle climate change? • Further Questions: • Is there anything else the Bill can do to help sustainable economic & business growth?

  7. Workshop 2 Notes: Helping business meet the climate change challenge Changes to legislation and regulation • Government, particularly local government, may want at some stage to introduce variable changing in order to incentivise action on climate change by business. This would mean higher charges for less climate change friendly options, products or behaviours. For example, varying parking rates depending on level of vehicle emission. • Alternatively, there may be charging regimes which currently create perverse incentives which are enshrined in statute but which might be usefully altered or repealed. • Perverse incentives emanate from policies or practices that induce unsustainable behaviour. This may occur as an unanticipated side effect of policies designed to achieve other objectives. Participants may want to think about – • Waste • Transport (staff commuting, delivery, business travel) & Parking • Planning • Capacity for local/site specific renewable energy • Energy efficiency • Building standards / modernisation

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