Select Committee on Environmental Audit Minutes of Evidence


Memorandum submitted by National Industrial Symbiosis Programme (NISP)

SUMMARY

  1.  The landfill tax is the key policy to provide the incentives needed to business to reduce the waste it produces, and limit its environmental impact. Investment of revenues to support increased SCP have been shown to be successful and a substantial increase in this tax together for support to business to make necessary change will deliver further benefits.

  2.  The amount of waste still being sent to landfill is alarming and greater increases in landfill tax are needed to support market and business changes needed to reduce its impact on the environment.

  3.  Government has already set in place strategies supported by fiscal instruments to penalise landfill and energy use. Although there is recognition of the problems of impending water shortages more needs to be done to reduce water consumption by business.

ABOUT NISP

  4.  The National Industrial Symbiosis Programme (NISP) is an innovative business opportunity programme delivering triple bottom line, environmental, economic and social benefits across the UK. NISP's mission is to effect long term cultural change in business.

  5.  As a holistic programme, NISP impacts across the entire resource hierarchy, delivering environmental benefits by encouraging the adoption of more ecological principals through practical implementation of Industrial Symbiosis by business. NISP has attracted international attention and is cited as an exemplar programme of eco-innovation by the European Commission. NISP's support has also been sought by the State of Illinois to advise on setting up a similar programme in the USA.

  6.  NISP has diverted more than 1.13 million tonnes of waste from landfill in the first 18 months of operation. NISP has also reducing over 1.33 million tonnes of CO2 emissions, saved over 1.89 million tonnes of virgin materials, reduced industrial water use by over 1,133,347 tonnes, and eliminated more than 425,000 tonnes of hazardous waste.

  7.  Engaging industry from across the UK the programme has generated more than £39 million in additional industry sales, saving businesses up to £47 million and being instrumental in securing private investment in reprocessing and recycling facilities to the tune of £33 million.

  8.  All figures are independently and externally verified and relate to actual achievements within the first 18 months. Many of these outcomes will have ongoing cumulative benefit for years to come, and such persistence impact figures, available upon request, include for example cost saving to industry of over £145 million.

  9.  NISP views its remit as being central to the Government's Strategy on Sustainable Consumption and Production (SCP).

  10.  NISP has a Local Government Liaison role and led the consortium that worked to found the Local Government BREW Centre which encourages and disseminates best practice in business waste management and infrastructure planning.

  11.  Peter Laybourn, is Director and creator of NISP. He was originally inspired to create NISP after first hearing from Andy Mangan at the US BCSD about by-product synergy programmes operating in the Gulf of Mexico. At this time, he was working as a sustainability consultant with Shell Exploration and Production. After graduating from university in 1977 with a degree in Economics and Ecology, Peter spent 18 years in the aerospace manufacturing industry as contracts and commercial manager at GEC Marconi, Smiths Industries and Meggitt Aviation & Marine. After completing a second degree in environmental management, he went on to work as environmental co-ordinator for a local authority, where he helped to set up an Eco-Management and Audit Scheme and an energy efficiency charity. Using his wealth of expertise, Peter has also put together two widely recognised national educational programmes—Energy Matters and Education for Sustainable Development.

LANDFILL TAX

  12.  The experience of NISP suggests that Landfill Tax is an effective environmental policy in achieving its aim. The return of some portion of the tax through Treasury via Defra BREW to UK Business and Industry has enabled NISP to provide a world leading programme across the UK delivering significant value for money to both business and Government.

  13.  We welcome the statement by the Government that consideration will be given to the case for steeper increases in the tax from 2008.

  14.  A continuation of investment in Defra BREW funding derived from landfill tax would also enable greater co-ordination of policy development and action by government.

  15.  Increasing the amount of landfill tax will also result in the following:

    —    Strengthening the markets for recycled materials by alerting business to possibilities of alternate uses for those materials and resources currently discarded to landfill.

    —    Encourage increased production efficiencies.

    —    Encourage eco-innovation in order to design out production and end of life wastes.

    —    Provide further social return through job creation and retention.

    —    Act as a driver for investment in new technologies.

    —    Act as a driver for UK business to develop its global competitiveness in environmental technology markets.

    —    Have beneficial impacts on other environmental indicators such as greenhouse gases, water use, pollution, hazardous wastes, use of virgin materials, water use etc.

    —    Assist in knowledge transfer, adoption of best available technologies and increase innovation (a study by Birmingham University on 125 NISP case studies showed that 75% included innovation, 50% involved best available practice and 20% involved new research).

  16.  The Industrial Symbiosis approach has already demonstrated the potential for a strong return on any Government investment of landfill tax through Defra BREW in so far that capital programme support is not required per se in order to secure private investment. If business is given the right economic signals and the opportunity to both identify and embrace innovative solutions, it is able to find the capital.

  17.  We also expect, as a result of the Companies Act 2006, to see business taking a greater interest and responsibility for the environmental impact of their activities, through reporting and increased director responsibility. Action by government in respect of landfill tax would send a clear signal to business and strengthen the impact of the Act.

MEETING THE PRODUCTIVITY CHALLENGE

  18.  The Pre-Budget Report proposes that there be greater flexibility in the land use planning system to ensure that it contributes to economic growth while delivering wider sustainable development goals. NISP believes that there is a need to communicate that resource efficiency is an economic growth sector supported by a planning framework to attract in potential players.

  19.  In order to meet the aims and targets proposed by the Government's Waste Strategy Review and the Landfill Directive, new facilities will need to be built and new technology encouraged. There needs to be an adequate infrastructure to help businesses with all their reduction, recycling, reuse and re-manufacturing ambitions. Effective strategic and spatial planning is critical to enable the infrastructure to be built that will contribute to SCP.

PROTECTING THE ENVIRONMENT

  20.  The Government has said in the Report that it is committed to the principles of sustainable development but that economic growth need not be at the expense of the environment.

  21.  NISP has been able to demonstrate that a cross sector, business opportunity approach to resource management can deliver economic growth as well as environmental benefits. We recognise that rising levels of waste together with water scarcity and water quality are long-term challenges and welcomes the recognition that businesses and government—both local and national as well as individuals have a role to play in meeting the challenges. Within its own activities, NISP helps businesses reduce the amount of water they use. To date the emphasis by government has been on energy and waste reduction, and on the reduction of water use in homes.

  22.  We believe that there are further opportunities to reduce water usage by business through wider adoption of the Industrial Symbiosis approach, recognising the important role that the approach will increasingly play in the more sustainable management of natural resources.

January 2007





 
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