| Thank you Bransby. And thank you for inviting me to speak
at the launch of this vitally important strategy for the West Midlands. In
February 2003 we published the Energy White Paper.
This was an unprecented blueprint for the development of UK energy
policy for the next 50 years.
It set out the some of the fundamental challenges facing the UK over
the next few decades:
· The challenge of man-made Climate Change, the effects of which can
already be seen – rising temperatures and sea levels, declining ice and
snow cover.
· In future the consequences of continued climate change could be
catastrophic unless we act now.
· The shift of the position of the UK from being a net exporter of
energy supply to being a net importer, as UK reserves of oil and gas
decline.
As a response the White Paper set out a vision for a revolution the way
we generate and use energy in the UK:
· That involved an ever-increasing shift to smaller scale renewable
forms of energy. We have a vision of communities of the future generating
the energy they used themselves on their doorstep, rather than in large
power stations located miles away.
· We also want to see major improvements in energy efficiency driven by
fundament changes in the attitudes people and businesses have towards the
energy they use - how they purchase and use appliances, houses and office
space.
We all take the energy we use in our day-to-day lives for granted.
But we can’t go on doing so if we are to meet the challenges Energy White
Paper has set us and deliver on its vision.
A central theme of the White Paper was that Government cannot deliver
an energy revolution on its own. We need everybody to get involved in
delivering our new energy future.
Climate change will affect us all in the end. Tackling it will need
action at - international and national, regional and local level.
Action in your own town, and your own living room – where you buy your
electricity from, how efficient your fridge is, how you fill your kettle.
And our changing energy system will offer new opportunities for UK
businesses and to the communities they serve.
Opportunities to be the first to take up new efficiency improvements
and save money.
Opportunities to lead the market in new innovations and the development
of new technologies.
Two years ago, environmental technology industries were worth £16
billion and employed around 170,000 people.
Today, they are worth £25 billion and employ around 400,000 people.
We want to make sure UK universities and businesses take a leading role
in an international energy revolution and gain the economic benefits from
exporting the new technologies that will drive it. Lets keep the jobs in
the UK too!
It is for these reasons that the development of an Energy Strategy
represents a real step forward both for the West Midlands. The Government
has put in place powerful instruments to drive change.
But at local and regional level will be critical to their success.
That is why we stressed the importance of local and regional action in the
Energy White Paper. It is why we and bodies like Carbon Trust and Energy
Savings Trust are working to encourage and support the Regional
Strategies.
The delivery of our national renewables target is backed up in by a
legal obligation on suppliers to supply an ever-increasing proportion of
the electricity from renewable sources.
But we will not get the necessary expansion of renewable generation
without the help of local and regional planners.
They can ensure that the projects are delivered in a way that respects
the needs of local communities.
Government has put in place a range of instruments to support the
uptake of energy efficiency measures in households. This includes an
obligation on energy companies to install energy efficiency improvements
like insulation and double glazing.
But local advocacy in the Regions is critical if we are to really
change people’s behaviour towards the use of energy. To get them to take
up offers their energy suppliers are putting forward.
Government has taken steps to encourage businesses and innovators to
recognise the economic benefits that will arise from the shift to our new
energy future.
The EU Emissions Trading Scheme will set a mandatory cap on emissions
for sectors of industry that make up 50% of UK emissions.
But through their day-to-day engagement with businesses, and their
focus on innovation, Regional Development Agencies will need to play a
crucial role in ensuring businesses recognise the opportunities and take
advantage of them.
Advantage West Midlands have already begun to rise to that challenge.
The regional energy strategy recognises all the opportunities for the
West Midlands that arise from the Energy White Paper’s vision.
Most importantly it places them in the context and needs of the region.
It is right that the region should set itself the objective of being an
exemplar of energy efficiency.
Becoming more efficient in the way we use energy is the most cost
effective way of delivering our energy policy objectives.
Its benefits are universal – so BMW can gain cost savings by increasing
the efficiency of its production processes.
Consumers can save money at home by insulating their time or installing
double glazing or installing a modern hot water boiler for the central
heating or “Standby TV” 60%.
It is also right that the region should focus on finding ways to
exploit its own unique renewable resources.
Whilst it is true that the region does not currently host any major
renewables projects, such projects will arrive eventually, and it is vital
the region explores the opportunities that are available, particularly
from technologies such as biomass and building-integrated microgeneration.
DTI has been able to directly support the development of this strategy
because it recognises its importance.
Its development, drawing together a range of different local and
regional partners, is a considerable achievement.
The key next crucial step is implementation.
If we are all to share in the benefits of the energy future the Energy
White Paper sets out for us, it is important now that the aspirations of
the strategy are followed through into action.
The Government are keen to work in partnership with the Region to help
the West Midlands develop the arrangements it needs to oversee and drive
delivery of its priorities.
But ultimately the will to fully integrate the strategy into local and
regional action and decision-making must be yours.
The strategy is an excellent start. I congratulate you on its
publication and I now strongly encourage you as a region to take up and
drive forward the challenge it presents.
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