Environmental Protection and Green Growth

Debate between David Wright and Mary Creagh

Wednesday 26th October 2011 Commons Chamber

[Mary Creagh]

I pay tribute to my right hon. Friend’s role in government. Obviously, the decisions that we made in government paved the way for Mitsubishi and Siemens to think about relocating here. We do not want to drive energy-intensive industries or jobs overseas, because in many cases such industries are contributing directly to green development—for example, the steel that is pressed for offshore wind turbines that are manufactured in the UK. Companies in these industries want transparency so that there is a level playing field, showcasing the best and exchanging knowledge so that they can reduce their costs and their environmental impact. We pay tribute to the companies that have already done that work.

[David Wright (Telford) (Lab)]

I represent the seat that holds the birthplace of industry, and, some would therefore argue, the birthplace of global warming. These things are probably best done locally. Some local authorities have incredibly good partnerships with businesses. My hon. Friend will be aware that Ricoh, the technology company, has its European headquarters in my constituency. It is a fairly energy-intensive company, but it puts over 90% of its waste product back into the industrial process, internally or with partners. That is an example of where an energy-intensive business can do a lot for the environment as well.

[Mary Creagh]

I pay tribute to my hon. Friend for that contribution. I agree that it is very important that these companies now look through the whole of their manufacturing processes. I will deal with the role of waste in a moment.

In July this year, the Aldersgate Group, a collection of charities with large companies such as BT, PepsiCo and Microsoft, commissioned a report that provided an independent analysis of the impact assessment produced by the Department for Environment, Food and Rural Affairs on mandatory carbon reporting. Taking just one of the options—option 3—Aldersgate found that DEFRA had overestimated the total costs by up to £4.6 billion and underestimated the benefits by £980 million. It said that DEFRA’s impact assessment had ignored wider behavioural change, product and service innovation and other strategic advantages from carbon reporting. It also states that DEFRA underestimates the benefits to companies over time, because the DEFRA model assumes that once companies have reduced their emissions in year one, they will not reduce them again over the following nine years. As my hon. Friend the Member for Telford (David Wright) said, large companies such as Ricoh and Tata get very good consultants in every year to see how they can drive down their costs and environmental impact.