Environmental Funders Network 3 rd Retreat 2011 Environmental Change-A Business Perspective.

1. Environmental Funders Network 3rd Retreat 2011 Environmental Change-A Business Perspective. Peter Jones OBE ecolateraljones@btinternet.com

2. THE WASTE & RESOURCES DEBATE. • Supply side = factors “pushing” change from within supply chains • Demand side = factors “pulling” change externally via market and (so called) stakeholder mechanisms • Solutions delivery is based on aligning technology, economics and customer buy-in.

3. Landfill void Planning System EU Regulations Climate chaos Funding appetite Diversion targets Renewable energy Electrical ROCs Green gas feedin tariffs Green Heat FITs Carbon Reduction certificates . Landfill diversion Credits Recyclate Prices The Chinese. Producer Responsibility Supply Push or Demand Pull?

4. ATTITUDE TECHNOLOGY ECONOMICS The Three Musketeers of Policy Implementation

5. 1 tonne bale of waste floc The Resources Hierarchy Value by Financial and Fossil Carbon Tradeoffs • Compost/fertiliser soil fuels • Recycling into new Materials • Pyrolysis to Carbon • Anaerobic Digestion • Gasification/steam turbine • Gasification/internal combustion • Gasification/hydrogen/fuel cells

6. Investment Starts….but are we building the right Kit? • 2013 is now for capacity delivery. • Supply side perspectives have produced a subsidised, annuity yield profile biased toward incineration ,recycling and MRF facilities with high taxpayer exposure. • Absence of coherent carbon pricing has produced high CO2 footprint end processes which defy the CRC.

7. Evaluating the Significant Threat • UK Energy and Fossil sourced Carbon • 70 million tonnes of Gas calorific value of 49 • 60 million tonnes of Coal calorific value of 15 • 70 million tonnes of waste calorific value of 9

8. Market Led Decisions in Scrap Resources • 2010 UK Energy Market £108 Billion as electricity,gas,heat & transport fuels • 2010 Recycling market £1 billion for 15 -20 million tonnes • Composting soils market £0.1 billion for 4 million tes • Weakening sterling.

9. The Lights Go Out??? Source: DTI

10. THE MINISTERIAL VISIONin Waste and Resources. • End of PFI support to de-risking • Private sector Balance Sheets to take the strain – Green Investment Bank • Public Buy-in and Planning • Resource Efficiency • Carbon footprinting and pricing • Electricity Market Reform • Economic Development • Role of Producer Responsibility

11. The DCLG View-Local Government • 33% Savings in real terms by 2014-15 • 26% reduction in Central Funding • 14% drop in Budgets • 30% drop in CAPEX spend in 4 years • Consequences for local delivery….Community Interest Companies…..Courtauld commitments….technology know how dissemination….voluntary agreements.

12. Producer Responsibility-funding disposal at point of sale. • Packaging • Pharmaceuticals • WEEE • Cleaning Products • Nappies • Automotive & Hazwaste • Paints

13. SOLUTIONS-Socio Politics • Advantage West Midlands Locational Analysis Tool across the UK (WRAP) • An On Line Material Flow mapping Database . • Political Leadership focussed on evidenced based OUTCOMES not tinkering with half baked ideas on how to run the sweet counter. • Producer Responsibility • For the public….opportunities not threats in a localism framework with issues around jobs and transparency.

14. Overall location maps for each waste technology - Organics

15. The AWM Regional Route Map • Locate the energy (material/CHP/soils) sinks • They define the energy need • Need defines the technology • Technology defines the ‘fuel’ mix • Fuel defines the logistics • That defines the public message

16. SO………Swift,integrated responses to…. • The Commodities Challenge = energy and raw materials prices • Sterling devaluation • The Communications Challenge=planning infrastructure,large and small. • The Logistics and Collection Challenge • Explaining the Environmental cost transfer • Population growth drivers to consumption.

17. 2012-2013 The Perfect Storm • Landfill Diversion Targets on organics • £100 gate fees • Carbon Reduction Commitment bites • UK Renewables targets & Energy Management Review • Coal fired generators enter CRC and impact carbon prices • 120 fewer Landfills • Ongoing coal and nuclear non replacement – Brownouts • Gas and electrical distribution infrastructure management issues. • Stronger Evidential climate chaos • EU Resource Efficiency and IPP Agenda • 1 billion more Indian and Chinese bourgeoisie • Recession Ends

18. Waste to Resources • Carbon Footprinting • Maximise kinetic Efficiency • Strategic Partnering • No one lead sector • Added value Shift from gate fees to output sales • Public transparency • Paying for end life material solutions at the till.

19. KEY IMPLICATIONS • Supply Chain strategies to manage transfers of externalities costs at a time of inflation. • Producer responsibility & polluter pays. • Technology evaluation ,process evaluation and carbon options. • Societal Gain from pain • Cross sectoral partnering • The Localism Agenda. • NGO – Brand Partnering Issues. • Knowledge Transfer

20. www.ECOLATERAL.ORG.UK ecolateraljones@btinternet.com