Funding and resources

People around the world are tackling economic uncertainty, climate change and energy security at the same time.

As Lord Stern put it at the launch of the Centre for Climate Change Economics and Policy in January 2009: ‘We face a major economic crisis and we face a still bigger climate crisis and by thinking through clearly and carefully, and acting quickly, we can respond to both of them at the same time’.

The challenge - and priority - is to take action on climate change in a way that increases the overall sustainability of the places where we live. Only fundamental changes to the way in which we plan and design our neighbourhoods, towns and cities will create resilient places - and provide for a high quality of life in the face of a changing climate.

The high cost of inaction

Significant climate change is inevitable as a result of the greenhouse gases already emitted. The 2006 Stern review on the economics of climate change confirmed that ‘mitigation - taking strong action to reduce emissions - must be viewed as an investment, a cost incurred now and in the coming few decades to avoid the risks of very severe consequences in the future.’

The UK’s vulnerability to extreme weather and flooding has been highlighted over recent years. Summer 2003 brought 3,000 additional heat-related deaths and the summer floods of 2007 caused loss of life, great hardship especially for poorer communities, and in excess of £3 billion of insured damage, with huge disruption to the economy.

UK Climate Impacts Programme (UKCIP) tools are designed to help people assess climate impacts and adapt to them.

Benefits of taking action

Improving the energy efficiency of our buildings will deliver cost savings through reduced energy bills and potential income from energy production.

Costs will be minimised if climate change and sustainability are factored in at programme inception rather than bolted on later.

For example Andy Nolan, head of environmental strategy at Sheffield city council, told a gathering of energy and built environment experts in January 2009 that the city intends to scrutinise every pound they spend to ensure they get maximum return in terms of efficiency and CO2 saved. The council sees this as a corporate priority and opportunity to address pressing health, inequality and regeneration issues alongside climate change.

Importance of whole life valuation

The traditional cost-benefit analysis approach to assessing projects frequently underplays the social and environmental costs and benefits that can be accrued. Often options that mitigate and adapt to climate change are considered too costly in comparison to the bulk standard approach. Planning and design for sustainable development means taking into account the wider costs and benefits linked to a scheme over its lifetime i.e. whole life valuation.

The Royal Institute of British Architects (RIBA) are producing guidance on whole life assessment for low carbon design as part of their climate change toolkit.

Role of local authorities

At the site and neighbourhood scale, local authorities can mobilise funding streams such as warm front and the carbon emissions reduction target (CERT) to support the design and management of public buildings, regeneration projects and improvements to the existing building stock.

Rising energy costs and the carbon reduction commitment encourage local authorities to consider the value of mitigation, particularly in their own operations. Local authorities are well placed to investigate funding mechanisms to meet the upfront costs and maximise the environmental, economic and social benefits that can be achieved through working at a community level. This is already being demonstrated in the city of Copenhagen, for example, and in the UK by local authorities in Woking and Southampton.

More broadly, local authorities and their local strategic partners need to ensure their spending supports progress on climate change and sustainability. Placing the climate change mitigation and adaptation agenda at the heart of procurement, regeneration, housing, estate and asset management also provides essential support and stimulus to local economies.