Exploiting Environmental Science Opportunities in the “Green Economy”

1. Exploiting Environmental Science Opportunities in the “Green Economy” Dr Simon Jackman Head of Knowledge Exchange Presentation to CHES – 7 July 2009

2. The green economy What is a successful green economy? Makes optimal use of environmental resources and processes Understands environmental constraints and the process of environmental change Develops and implements technologies and solutions that ensure environmental sustainability Generates wealth whilst preserving social justice

3. The green economy How is this achieved? Adaptation of existing infrastructure (e.g. buildings, transport) Development of existing environmental sectors (e.g. water, resource extraction, waste) Emergence of new technologies and services (e.g. climate services, geoengineering)

4. Current economy Transport Agri-food Environment/ Utilities Infrastructure Water Monitoring Waste management Construction Natural Resource Extraction Low-carbon manufacturing Marine Renewables Climate & Information services CCS & sequestration Insurance Oil and gas Ecosystem services Carbon accounting and trading Nuclear Energy Services

5. Future green economy (2015) Transport +2.4% Agri-food +1.3% Environment/ Utilities Infrastructure Water Monitoring +1.8% Waste management Construction +0.5% Natural Resource Extraction Low-carbon Manufacturing +17.7% Marine Renewables +12.8% Climate & Information Services +7% CCS & sequestration +3% Insurance Oil and gas Ecosystem Services +12.5% Carbon accounting and trading +7% Nuclear Energy Services

6. Where is the UK currentlyworld-leading? Environmental science (second only to US in citation impact analyses) Oil and gas High value consultancy Carbon trading Risk-based insurance services Environmental monitoring Ecosystem services

7. Where could UK businessesgain competitive advantageby exploiting environmental science? Carbon accounting and trading Carbon storage and sequestration Climate services Wave and tidal power Water Geoengineering Agri-food Low carbon manufacturing

8. What is NERC’s role? • Enabling the creation of environmental markets • Financial (e.g. input to carbon accounting and trading) • Technological (e.g. offshore renewables) • Knowledge (e.g. ecosystem services) • Exploitation of environmental science e.g. water treatment systems • Enabling of effective policymaking e.g. climate change bill

9. Water £27 Bn to be invested from 2009 to 2014 on infrastructure and operations by utilities 30 % Water shortage predicted by 2030 NERC research addresses water resources, quality and extreme events EPSRC research develops engineering for water supply, treatment and floods TSB developing an innovation platform, with OFWAT, to support innovation in the sector

10. Insurance Insurance industry turns over £240Bn p.a. UK is world-leading NERC provides environmental data and models that underpin risk management ESRC provides research on economic and social aspects of risk management TSB’s new Financial Services KTN will focus on facilitating the pull-through of products to the market

11. Food and agriculture 2 % of GDP (foot and mouth showed impact on 9 % of GDP i.e. greater vulnerability) Food security is key national issue; 30% shortage predicted by 2030 BBSRC lead on food security with science underpinning the food itself NERC research to understand environmental context with changing environment and water resources

12. Key element of valuing the environment Arising from Millennium Ecosystem Assessment Incorporates Supporting services (e.g. soil formation, water and nutrient cycling) Provisioning services (e.g. fresh water, bio/pharma products) Regulating services (e.g. climate, disease, hazard) Cultural services (e.g. recreation) Requires NERC science linked to ESRC economic and social aspects Ecosystem services

13. CCS, sequestrationand geoengineering Global market for CCS exceeds £50Bn ETI, EPSRC and TSB are developing technologies, mainly for Capture Storage and sequestration are key with NERC-funded strengths at BGS and Universities Exhausted North Sea oil and gas reservoirs show potential for storage Geoengineering for climate change mitigation requires scientific underpinning

14. Renewables Inputs from environmental science to a range of areas: Wave and tidal power Biofuels Geothermal Wind

15. Wave and tidal power UK has 10% of global accessible wave power potential Severn Tidal Barrage would exploit second highest tidal range globally – could produce 5 % of UK electricity Requires a combination of engineered approaches (developed by ETI and EPSRC) exploiting an environmental context (understood through NERC)

16. 50 % of global carbon trading goes through London Emerging market for products based on emissions and environmental data Sophistication from incorporation of Earth Observation data on forests and other mechanisms for carbon sequestration Opportunity for NERC science linked to ESRC and TSB development of fiscal mechanisms and markets Carbon accountingand trading

17. Next Steps for NERC Agree priorities Define the markets and opportunities Roadmap knowledge and R&D needs and identify barriers and hurdles to uptake Define KE requirements and put mechanisms for delivery in place Feed business needs into future science strategies for NERC and other funders

18. Opportunities with TSB “Design for Future Climate” competition – Spring 2010 – Low Impact Buildings Innovation Platform Agri-food Innovation Platform (proposed Autumn 2009) Water Innovation Platform (proposed 2010) Energy Generation and Supply Integrated Delivery Plan

19. Opportunities with TSB Mechanisms Collaborative R&D Proof of Concept funding KTPs (including short KTPs)

20. Environmental Skills Needs Review Aim = prioritisation of investment in skills Identify priority issues in environmental sciences for: • maintaining a healthy research base; • relevant public sector bodies; • key employers. Identify the postgraduate skills required to meet priority issues. Identify gaps/critical postgraduate training needs Would welcome CHES input into the review: khg@nerc.ac.uk Environment Research Funders’ Forum