Environment

In a global market place where economic competitiveness is key to securing business growth and development, a balance must be struck between environmental concerns and economic development. The British Chambers of Commerce is committed to ensuring that ALL environmental proposals that affect business are workable.

Key issues of concern at the moment are as follows:

1) Climate Change

Background

• The UK's Climate Change Programme was published in November 2000. It details how the UK plans to deliver its Kyoto target to cut its greenhouse gas emissions by 12.5%, and move towards its domestic goal to cut carbon dioxide emissions by 20% below 1990 levels by 2010.
• Britain’s overall output of greenhouse gases is falling, meaning that Britain is still just about on course to meet its Kyoto Protocol target of 12.5%. Emissions of greenhouse gases in total are now 13.4% below 1990 levels, the baseline against which Kyoto Protocol targets are measured.
• Britain's emissions of carbon dioxide, the main greenhouse gas, have fallen by only 5.6% since 1990. Indeed, they rose by 2.2% in the year 2002-2003, and the figure for Carbon dioxide emissions in 2003 is higher than when Labour came to power. The government admits it will fail to meet its domestic target of reducing CO2 by 20% from 1990 levels by the year 2010.

• Climate change is a priority issue that has steadily risen up the international agenda and it is entirely appropriate that steps are being taken to address it. 
• We accept that the business community has a role to play in stabilising and reducing greenhouse gas emissions and we believe that businesses should work in partnership with a range of sectors, including the Government, the devolved administrations, the public sector and the general public, to achieve the reductions set out in the Kyoto Protocol. There is no doubt that economic and environmental concerns do have the scope to be complementary. For example, steps to improve energy efficiency can both lead to reduced carbon emissions and reduced costs for industry.
• It is of concern that some attempts to control polluting behaviour are harming the competitiveness of UK firms. The UK needs to achieve its emissions targets with little or no impact on the commercial viability of business. The resulting cost burden will be counter-productive if it results in the transfer of products, and jobs, to countries where climate change measures are less stringent. This would not help the environmental objectives that the scheme is aiming to achieve.
• It is important to recognise that we are seeing an overall net increase in energy use in the UK, much of which comes from the domestic and transport sectors and not primarily from the industrial and commercial users. In fact many industrial users have already become much more energy efficient. Domestic consumers must share their part of the responsibility for improving energy efficiency.

Background

• The Environmental Liability Directive was adopted on 21 April 2004. The Directive, which comes under the polluter pays principle, is aimed at the prevention and remedying of environmental damage.
• DEFRA is currently considering the Directive with the intention of holding at least two public consultations by the end of 2006, to enable transposition and implementation of the Directive in line with the 30 April 2007 deadline.

BCC Position

• BCC supports the aims of the Environmental Liability Directive,  but has specific concerns regarding aspects of the Directive.

3) REACH - Draft Proposal for the Registration, Evaluation and Authorisation of Chemicals

Background

• The European Commission adopted proposals on 29 October 2003 to establish a new system to regulate the manufacture, import and use of substances - called REACH (Registration, Evaluation, Authorisation and Restrictions of Chemicals). The new regime will also create a European Chemicals Agency. It is expected that the REACH proposals will see some 30,000 chemicals registered in Europe over the next 11 years.

• 
  On 17th November 2005, the European Parliament voted to approve the REACH directive. A number of welcome amendments were made to the text to ease the burden on SMEs. These changes, which included reduced data requirements for small tonnages, a package of measures to help SMEs and a stronger central role for the agency, were very much in line with the BCC's lobbying position.

BCC Position

• The BCC welcome the high-level aims of the proposals, i.e. to reduce the impact of chemicals on the environment and human health and to increase the level of knowledge about chemical interactions. However, these objectives must be delivered through a simple, cost efficient and workable system. The international competitiveness of the EU’s chemicals sector and that of downstream users must be fully appreciated and balanced with other objectives. If businesses move outside the EU as a result of this legislation the environmental and health improvements that REACH seeks to bring about will not have been achieved.

4) WEEE Directive

Background

• The WEEE (Waste Electrical and Electronic Equipment) Directive encourages and sets criteria for the collection, treatment, recycling and recovery of electrical and electronic waste – it affects any business that manufactures, brands, imports, sells, stores, treats or dismantles electrical or electronic products within the European Union (EU).

• The Directive should have been implemented in August 2005. However, it has been delayed due to practical difficulties and a further consultation on implementation is expected this summer.

BCC Position

• The BCC are supportive of the principle behind the WEEE Directive. However, we are aware that there is room for flexibility in the implementation of this directive and are firmly of the view that there should be a minimal regulatory approach that places fewer costs on businesses. BCC cannot support any regulations that place an excessive costs in both time and in terms of administration on business, that ultimately impacts upon productivity and the ability of commerce to expand.

For further information, please contact: -

Gareth Elliott

Policy Adviser
g.elliott@britishchambers.org.uk  
Direct Line: 020 7654 5810
Mobile: 07834 897 607