Climate Change: Terms of Reference

We want Britain to take a more effective lead in helping the global community shape the collective solution that is required. The lesson from Tony Blair’s premiership is that leadership on this issue cannot come solely through words, as opposed to action. We want Britain to prove that you can reduce carbon emissions without losing economic advantage or sacrificing quality of life. This is not a choice between the economy and the environment.

In fact, we believe that there is significant economic advantage to be gained from being at the vanguard of a low carbon future. Prove this conclusively in Britain and we will transform the sense of urgency and ambition surrounding the negotiation of the necessary international agreement to reduce our collective carbon footprint. Our Policy Group wants to explore how a Conservative Government could seize that opportunity. 

Our work will focus on the key stakeholders:-

• Those helping us understand the science and economics of climate change

• The general public

• The business community

• The politicians

OUR LINES OF ENQUIRY

1. First – we want to confirm whether we are taking full advantage of our intellectual capital to a) advance global understanding of both the science and economics of climate change and b) stimulate necessary innovation.

2. Second– we want to explore how we can build consensus in society around high-impact actions to reduce greenhouse gas emissions. The level of engagement by the general public will shape the behaviour of the business and political communities that serve them. This will involve us looking at a number of issues:

• How engaged are the public with the climate change risk and their ability to do something about it?
• What instruments have Government used to inform and change behaviour? How successful have they been? What are the key lessons learnt?
• Does the tax system price positive and negative externalities in a coherent and effective way? Does the polluter pay?
• What can we learn from overseas?
• What are the key personal actions that will make a difference and how powerful are the incentives in place today?
• The role of public spending and procurement. Do we have our spending priorities right?
• The role of planning policy and use of land in the battle to reduce emissions. 

3. Third– we want to look at current attitudes within the business community. Do we need to do more to engage UK business with the risk and opportunity tied up in climate change? If so, what is the most effective role for Government?

In particular we want to explore the role of technology:

• How big is the economic opportunity around the development of low carbon technology and the promotion of greater efficiency in the use of resources?
• Do we have the technology available now to deliver 2050 targets?
• What is the role of Government in making these technologies more affordable?
• How effective are current market instruments in stimulating innovation and emission reductions? In particular how effective is emissions trading in setting a credible long term price for carbon?
• How effective are the range of incentives in place for companies to reduce emissions?
• How relevant and effective is the current structure of environmental regulation in the face of climate change risk?
• How big is the opportunity to improve environmental standards of key products at an acceptable cost?

 There is no national solution to climate change and so:

4. Fourth – we will look at the international political process. Are we on track to achieve an effective agreement on collective action? Is there a case for a change of approach? This will involve us looking at:

• The attitudes of the main players.
• The lessons learnt from the last twenty years.
• The role and effectiveness of multilateral organisations and groupings.
• Examples of best practice.
• The opportunity to accelerate the transfer of new technology.
• The best way to build on the Kyoto framework and widen participation in the collective process.
• The opportunity to reduce vulnerability through better integration of sustainable development policies.
• Attitudes towards conserving and enhancing known carbon ‘sinks’.

IN CONCLUSION
Our process will be open to all. We are prepared to be radical. Our thinking needs to be long-term. We expect our recommendations to be rooted in the six essential principles which David Cameron set out in his speech on Meeting the Challenge of Climate Change (21/4/2006 in Norway):

1. International partnership
2. The need for targets as well as technology
3. A belief in ‘green growth’
4. An acknowledgement of the role of markets
5. Political consensus
6. A spirit of shared responsibility

Our hope is that our recommendations will be compelling enough to play a role in developing the cross-party consensus that this long term challenge requires.