With climate change and energy security clearly emerging as the greatest challenges facing UK and international governments for the twenty-first century, the energy, environment and sustainable development agenda is now a top priority. The UK government’s carbon reduction pathway to 2050 has very significant implications for the policies, practices and support provided by the public sector to encourage economic development and regeneration, as does the Energy White Paper (May 2007), Carbon Emissions Reduction Target (CERT) from 2008-2011, and the Carbon Reduction Commitment (CRC) from 2009, which will bring large organisations (like banks, supermarkets and local authorities) into a bespoke emissions trading scheme (ETS) complementing the European ETS.
The obligation policy brings could potentially be converted into ‘first mover’ opportunities for businesses and the economy as a whole. As identified by the Stern report, climate change brings with it huge challenges but also significant business opportunities. SQW is committed to expanding our services to central, regional and local clients to meet these challenges and opportunities.
Our services include:
- environmental policy and regulation research
- business development programmes and cluster and sector development – for example developing and researching the energy and environmental technologies industries; we also work together with our sister company, Oxford Innovation, to provide business support to start-ups and SMEs
- economic development research and strategies – for example we can provide specialist advice on low carbon growth and on building in climate change mitigation and adaptation
- valuing the environment and economic impact studies – our team includes trained environmental and transport economists and we have undertaken groundbreaking research over the past 20 years on the economic impact effects of new roads, buildings, air routes, cycle infrastructure, landscapes and national parks
- improving public services – exemplifying sustainable development approaches is important for the public sector and we can advise on sustainable procurement, developing regional or local sustainable development frameworks and on mainstreaming sustainable development
- performance management and evaluation – developing performance management frameworks and undertaking evaluations of programmes and interventions aimed at improving sustainability
- rural and urban regeneration – closely linked to the sustainable development agenda and critical to its success.
SQW Energy is a newly-created division of SQW Group, alongside its sister companies SQW Consulting and Oxford Innovation. We are currently expanding SQW Energy to become the UK’s foremost energy and carbon management advisory business, providing critical, strategic advice to national and international clients in a rapidly changing economic landscape. Working with the energy industry, public and private sector organisations and NGO’s we help clients to understand and address issues in the following areas:
- energy market design and regulation
- energy technology strategy and policy
- carbon assessment and management.
We have marked the launch of our new Viewpoint Series of publications with a ‘thoughtpiece’ report on Carbon reduction – obligation and opportunity, which discusses how public sector bodies can both implement carbon reduction obligations and support sustainable economic development.
Examples of SQW projects
The value of Carbon Abatement Technologies (CATs) for the UK
SQW, working with AEA Technology, carried out a quantitative economic analysis for BERR of the UK Carbon Abatement Technologies (CAT) sector in terms of its current value and future opportunities. The analysis was based on desktop research (literature review and data analysis) and stakeholder interviews.
Independent assessment of the Carbon Trust’s Future Impact Estimation methodology and tool
SQW was appointed to carry out an independent assessment of the Carbon Trust’s Future Impact Estimation methodology and tool, being used to assess the additional impact on carbon dioxide savings from the Trust’s business and technology support activities. We reviewed the two key parts of the FIE methodology, namely project-level estimation of the potential carbon ‘prize’ for each technology / concept backed and, secondly, estimation of additionality afforded by the Carbon Trust intervention.
Exploring the relationship between environmental regulation and competitiveness
SQW was commissioned by the UK Department for Environment, Food and Rural Affairs (Defra) to gather and analyse evidence on the impact of the design of environmental regulation on competitiveness. Specifically, the work examined productivity impacts and identified what forms of regulation are most likely to stimulate innovation. SQW conducted a literature review followed by a series of case studies that involved a combination of desk-based investigation and evidence gathering from a range of stakeholders in case study areas.
Cost benefit analysis of sustainable public procurement
This study, also undertaken for Defra, involved cost benefit analyses of a sample of public procurement initiatives in order to evaluate their efficacy as a policy tool. Our approach comprised two phases, the first of which was a scoping study to review available literature and identify existing sustainable procurement initiatives appropriate for case study research. We drew up a long list of 10-20 examples, to include examples of timber and food procurement, examples in the UK, wider EU and internationally, and where certain criteria for undertaking the cost benefit analysis have been fulfilled. The second phase comprised detailed cost benefit analyses of six specific cases.
European Structural Funding for East of England – Operational Programme for the Regional Competitiveness and Employment Objective 2007-2013 – focused on low carbon economic growth
SQW was commissioned to prepare the Operational Programme for the East of England for the Structural Fund Competitiveness and Employment Objective for the period 2007-2013. In discussion with the Steering Group we agreed the principle theme of the Programme as “low carbon economic growth”. The Programme had to have a strong evidence base, and some difficult choices had to be made regarding content in order to ensure the Programme focused on supporting practical measures to support low carbon growth. The process of Programme preparation included substantial consultation and a series of workshops with different stakeholders around the region.
Using fiscal incentives to reduce household and business carbon emissions
SQW was commissioned by the Local Government Association to research into using fiscal incentives at local authority scale to reduce household and business carbon emissions. We examined possibilities in relation to buildings, transport and waste, with particular emphasis on the use of Council Tax and various transport incentives and charges. The research included identification of existing good practice in the UK and internationally, and made recommendations based on the greatest potential impacts.