Breaking the links between Growth and Environmental Impact

1. Breaking the links between Growth and Environmental Impact Sara Eppel Head of Sustainable Products and Consumers Defra

2. Summary • Impacts and policy context • Policy solutions: what’s on, what’s off • Current activity, future opportunities • Questions

3. Impact = Population x Affluence x Technology, Not the whole story, but startling..... Scenario 1 (on trend): Means carbon content reduction from 768gCO2 /dollar spent today, to 36gCO2/$ spent ie 21 times lower than the average carbon intensity today. Scenario 3 (world at EU prosperity level): 768 down to 14gCO2/$ spent – 55 times lower Prof Tim Jackson Prosperity without Growth? SDC 2009

4. Context: UK consumption GHG emissions increased by 15% from 2000-2008 Territorial emissions refers to emissions from UK territory, and are reported under the United Nations Framework Convention on Climate Change (UNFCCC). Producer impacts refers to impacts associated with the activities of UK citizens. They differ from territorial impacts in that they include impacts from international aviation and shipping and some activities of UK citizens abroad; and exclude the corresponding activities of non-UK citizens in the UK. Consumer impacts includes all global impacts in the production of goods and services that are consumed by UK domestic final consumption. This differs from producer impacts by including import related impacts and excluding export related impacts. Direct emissions are those directly emitted by use of fossil fuels in the home and private motoring.

5. UK consumption GHG emissions are.... So this data shows, for example the global GHG impacts of a shirt you buy in the UK eg making the fabric in India, manufacture in Thailand, packaging in Turkey, and UK retail emissions resulting from UK demand for goods & services, assigned to the country and sector which produced them. • Details of the new data • The data consists of 57 products and 113 countries and is from 2004, which is the most recent trade data available through the GTAP database. • All figures are expressed as CO2e and in kilotonnes (kt). Due to the nature of the modelling and the international trade data available, all figures should be treated as estimates and used with caution • As these figures are based on trade data direct household emissions are excluded, for example, emissions from household transport or heating. • As emissions are allocated to final consumption, food eaten in restaurants is allocated to the hospitality sector rather than to food production or agriculture, and so on.

6. Breakdown of UK Consumer CO2e Emissions (2004) 54%

7. Total UK GHG Consumption Emissions, split by sector (2004 data in kilotonnes CO2e) Due to the nature of the modelling and the international trade data available, all figures should be treated as estimates and used with caution

8. The individual products with the highest emissions (2004 data in kilotonnes CO2e) These 15 products make up over 75% of the UK’s GHG consumption emissions. NB This graph excludes public administration, which is not disaggregated further and therefore shows far larger emissions than products where data is available in more detail. Due to the nature of the modelling and the international trade data available, all figures should be treated as estimates and used with caution

9. Top 15 emitting countries / world regions (excluding the UK) (2004 data in kilotonnes CO2e) UK Emissions = 385,812 kt CO2e Due to the nature of the modelling and the international trade data available, all figures should be treated as estimates and used with caution

10. Analysis of top emitting countries • The top 15 emitting countries / world regions account for nearly 70% of the total emissions associated with UK imports. • The emissions that occur in China alone are higher than all the direct emissions from UK car use. • Evidence suggests that in 1990 65% of the emissions from UK consumed goods and services occurred in the UK. By 2008, this has reduced to 45%, a dramatic shift in a very short timescale.

12. So what are we doing about this?Coalition Government policy approach • Less regulation – new is very difficult, old are being re-examined for effectiveness and streamlining • More behavioural approaches – as alternatives to regulation; as ways of making existing regs work, and nudging change • More action by business: seen as business making the right contribution to public policy goals • Updating our evidence base

13. We use a mix of policy interventions to change behaviour at key stages of the business supply chain, in international forums, and through Government programmes (Wrap) Guidance/enabling Footprinting methods , supply chain transparency, new business models, awards. Regulation/standards EU product standards, Ecolabel, producer responsibility Investment local infrastructure (Wrap), Instruments to incentivise green products, support 3rd sector initiatives Distribution and retail End of life Raw materials Consumer use Production International protection, and business support EU SCP Action Plan, UNEP collaboration projects (Marrakesh, Rio+20), Palm Oil, Consumer information ‘A-G’ labelling, Direct Gov, Framework for Sustainable Living, partnership orojects with business and civil society Voluntary agreements Product Roadmaps, Courtauld, hospitality sector, construction waste, on min product standards Public procurement Govt Buying Standards, timber, 25% energy, water, waste cut in Greening Govt Commitments

14. Measure and manage – enabling change Supply chain – measure and manage: • Carbon footprinting (revised PAS 2050, Guidance • Product Category Rules for food groups, open-source access (Wrap led Products Research Forum, with Courtauld signatories) • Potentially do Guidance on water footprinting as different methodologies undermine confidence in results.

15. EU wide Regulation Eco Design and Energy Labelling Directives • 11 energy using products minimum performance standards: saving 7MtCO2/yr by 2020, and almost £1Bn off consumer electricity bills; further 12 products in progress • Extended to Energy Related Products • 2012 review of EcoDesign Directive – potential big opportunity for waste prevention criteria Ecolabel Directive • Ecolabel for differentiating the most environmentally friendly products: 1700 products, some major players eg Johnson’s Paints, cleaning products, personal care.

16. Government purchasing leadership • Government buying standards (GBS) • 60 products and services • Top 15% of the market • Embedding into new CO centralised contracts for facilities management, fleet, furniture • ICT GBS 30% more efficient than current Energy Star • Must meet VFM requirements, whole life costing assessed for Impact Assessments; buy less. • Savings of £40M/yr from Fleet GBS, £7M furniture etc.

17. Voluntary action with business: Roadmaps, responsibility deals http://defra.gov.uk/environment/consumerprod/products/index.htm • REVIEW EVIDENCE • Look at both the • impacts of product across lifecycle and • - current interventions. • Evidence reviews published: • MILK • CLOTHING • TVs • WCs • PLASTERBOARD • WINDOWS • CARS • DOMESTIC LIGHTING • ELECTRIC MOTORS • FISH AND SHELLFISH ENGAGE STAKEHOLDERS Discuss and agree the evidence with stakeholders from across the product lifecycle Extensive stakeholder engagement: MILK CLOTHING PLASTERBOARD WINDOWS FISH AND SHELLFISH WCs ELECTRIC MOTORS Initial stakeholder engagement but no furtther action: TVs CARS DOMESTIC LIGHTING ACTION PLAN and Implementation Develop a plan for improving product sustainability. Action plan published: MILK – now DAIRY CLOTHING PLASTERBOARD WINDOWS WCS ELECTRIC MOTORS Not yet published: FISH AND SHELLFISH

18. Environmental change Situational factors Influencing human behaviour Behavioural factors Stimulating citizen demand, a behavioural approach. Understanding the factors that influence us: Experience Infrastructure Norms Attitudes Culture Social networks Beliefs Geography Habits Self-efficacy Institutional framework Values Identity Social learning Access to capital Awareness Knowledge Information Altruism Leadership Perceptions

19. We know why people are acting and why they are not – the evidence shows... • Not all sustainable behaviours are motivated by environmental concerns – some act to avoid wastefulness, to feel good, to make cost savings or be a little frugal • There is a disconnect between the small actions and the big issue • People desire feedback on progress and validation – they want to know they are doing the ‘right’ things and progress is being made

20. Key principles to inform behavioural approaches We will if you will • Make the ‘right’ choices easier – co-design and partnership delivery involving Government, business, communities, and civil society can address the barriers to uptake, be more effective, and provide a mandate to help ‘green’ lifestyles incrementally • Leading by example and consistency are core foundations - demonstrating government and business are acting themselves as well as enabling others to act is critical. People don’t view policies in isolation - demonstrating consistency in national and local government policies can show the importance of the issue Start where people are • Encourage people to see sustainable lifestyles differently - understand how people feel about current behaviours and ‘desired’ behaviours. Make the links to what different groups care about – go beyond environmental concern – and across lifestyles No single solution • Multiple measures at multiple levels – design a package of measures to enable different groups to act. Development is informed by our understanding of what is more likely to work; of why people act and why they do not; and of people’s responses to different interventions

21. Influencing behaviour, we have: • Published the Framework for Sustainable Living– to help organisations understand what sustainable living looks like, and to shape their campaigns/behavioural interventions • Funded pilot projects eg Greener Living Fund • Partnership projects with business (we are open to new ideas or projects business would like to develop with us) • Funded Action Based Research projects to test innovative approaches to influencing behaviour

22. In summary • Supply chain measurement and action essential • Requires joint action by Govt and industry • Voluntary action can be facilitated by Govt, but industry must be ambitious for change • Business can help stimulate consumer demand for more sustainable products – civil society campaigns can be helpful! Thank you