What is the low carbon economy?

The low carbon economy has increased its importance in recent years, but do you know what it means?

A low carbon economy is one where businesses deliver their products and services while, at the same time, they reduce their level of carbon emissions.

A question I’m often asked is ‘which are the sectors included in the low carbon economy?’.

However, it is not easy question to answer. The definition shows that the low carbon economy is not a list of sectors, but a distinctive characteristic that crosses over a wide range of sectors. As long as businesses achieve reductions in their carbon emissions, they are part of the low carbon economy.

In this sense, the low carbon economy is much more than just the traditional environmental products and services such as energy generation or electric cars.

The Observatory recently published a report about the Low Carbon Economy in the West Midlands. The research found that:

  • The low carbon economy can deliver opportunities across a wide range of business sectors, not just to those seen as being in the ‘traditionally’ environmental technologies sector.
  • The sectors with clear opportunities in the West Midlands include: Non-​metallic mineral goods; Automotive & transport equipment; Metals & metal products; Construction; Environmental Goods & Services; Food & beverages; Transport, storage & communications; and Public services.
  • Businesses can benefit from the low carbon economy in two ways: diversify into new low carbon products or become more efficient in their current processes (decarbonise).

The West Midlands has an important manufacturing legacy and businesses in this sector are already taking part in the low carbon economy by increasing their efficiency related to processes, resources, utilities and waste.

Evidence supporting this is presented in Measuring Performance – Environment Survey 2009, a report produced by EEF.

The survey asked about environmental issues across manufacturing companies in the UK. The survey identified that businesses are increasingly aware of the benefits to gain by adopting resource efficiency improvements.

Key findings include:

  • Manufacturers are adopting a range of environmental strategies mainly around recycling, reduction of business waste and energy efficiency improvements
  • Manufacturers have reported cost savings from adopting environmental strategies

The low carbon economy can be the vehicle with which the West Midlands can achieve economic growth without compromising our natural environment. Would you like to take part in it?

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One Response

  1. To learn more about the recent resarch project, ‘Growth into a low carbon economy in the West Midlands’, you can listen to John in two slidecasts on the Observatory website. In the first, John summarises the research project for the region; in the second he explains how the research links to local authorities in the West Midlands.

    You can watch/listen to the slidecasts here:

    http://www.wmro.org/standardTemplate.aspx/Home/OurResearch/Lowcarbon/Growthintoalowcarboneconomy

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