Written evidence from the Centre for Low
Carbon Futures
The Centre for Low Carbon Futures (CLCF) is
delighted to have the opportunity to make a submission to the
Select Committee's inquiry on Government plans to create Local
Enterprise Partnerships (LEP's).
The CLCF welcomes the proposed LEP's, but our concern
is that separate LEP's may not take a broader Yorkshire -wide
perspective for the scale of projects required to tackle major
issues such as decarbonisation of the power sector. Yorkshire
is a very carbon intensive area, generating circa 20% of UK's
power generation, which means that large scale collaborative projects
to decarbonise the sector and its supply chain are priority objectives
in reaching government targets for emissions reductions. Our Universities
can play a significant role in this reduction, capitalising on
the wealth of research expertise, capital investment and available
laboratory facilities. We have therefore taken the opportunity
to provide Written evidence to assist the Committee, as an academic
network, with reference to the low carbon sector in Yorkshire
and The Humber.
We have used our submission to focus on the
first three of the questions posed and we hope that this submission
is helpful to the Committee's inquiry into the Government's plan
to create LEPs. We would warmly welcome the opportunity to provide
further evidence orally at the Committee's evidence sessions later
this year if appropriate.
INTRODUCTION
The Centre for Low Carbon Futures is an evidence
based research centre focusing on research, development and demonstration
(RD&D) of low carbon innovations. It is a joint initiative
between the universities of Hull, Leeds, Sheffield and York. The
universities have recognised the importance of scale and collaboration
in addressing some key challenges and opportunities and we believe
that it offers an exemplar of clusters working in partnership
which has relevance to the issues raised by the consultation.
Our specific interest, as a University members
group, is related to major investment in low carbon innovation,
and our enabling role is assisting industry through de-risking
the required investment grade finance required for large scale
projects.
EXECUTIVE SUMMARY
— We welcome the proposed LEPs and, individually,
universities are actively contributing to the development of their
"local" LEP.
— It is fully appreciated that the focus
of each LEP may be different, since they will reflect the desire
to target what are regarded as the particular blockages to growth
and employment in any given area.
— Our concern is that critical mass may
be at risk unless there is co-ordinated activity across LEP's.
— Universities are well placed to provide
significant support enabling investment grade finance flows from
industry through de-risking innovation.
— We note that it is envisaged that some
hitherto RDA activities will "re-locate" to BIS and
we have particular interest in how we might work in partnership
with Government to help address the desire to "re-balance"
the economy.
— The Universities in Yorkshire (working
closely with business) see value in replicating the Centre for
Low Carbon Futures collaborative model in respect of both advanced
manufacturing and materials and healthcare technologies and devices—areas
in which Yorkshire's universities have world-leading capability
and in which there is huge commercial opportunity. Such an approach
will complement the LEPs and, in this way, Government will be
able to ensure value for money by leveraging on the strength of
all the Yorkshire Universities, the interdisciplinary collaboration
and the strong ties between all the stakeholders in Yorkshire
and the Humber.
RESPONSES TO
SPECIFIC QUESTIONS
POSED BY
THE COMMITTEE
1. The functions of the new Local Enterprise
Partnerships and ensuring value for money
To ensure value for money, funds should be directed
to areas that present substantial return and maximise private
sector investment. Within Yorkshire and the Humber, investment
in innovation underpinning the development of a low carbon, climate
resilient economy will leverage long term expansion of private
sector jobs and investment and further develop a new Knowledge
economy providing enabling support services to industry. The existing
Leeds City Region Partnership has already identified this as a
priority in its recently-launched Innovation Capital Programme).
This can build on:
— The strength of the Yorkshire Universities
which have a track record in excellent research, innovation and
interdisciplinary collaboration which will be needed to build
the low carbon economy of the future.
— Reinforcement of the ties between the
private sector and academia. Strong ties ensure discoveries made
within our universities are translated into practice, especially
in the field of low carbon innovation. In addition, strong ties
ensure business issues, needs and opportunities are met by engaged
universities. For instance, the Centre for Low Carbon Futures
works on problem-solving, business-led research with business
leaders and the various Yorkshire Universities.
— The Centre for Low Carbon Futures works
with local authorities and other public bodies to assist in the
development of more effective policy interventions for increasing
resilience to and adaptation for climate change. We believe that
the most radical innovation in this, as in other fields, will
be achieved through the three-cornered collaborative relationship
(or "triple helix") of business, government agencies
and the academic community.
2. The Regional Growth Fund, and funding
arrangements under the LEP system
Carbon-intensive energy and heavy manufacturing
are key components of the economy of Yorkshire and the Humber
(note that 18% of the country's electricity generation capacity
is located in this region). This presents a unique opportunity
to assist sustainable development and catalyse private sector
investment into the low carbon area.
One example here, is the potential to establish
a "corridor" for a pipeline carrying CO2 from the carbon
intensive industries out to the carbon storage sites of the depleted
gas fields under the North Sea. This enterprise will involve several
potential LEPs and require specialist research and innovation
that cannot be found within one company or university. As noted
above this is an area where it is difficult to see how individual
LEPs would be able to offer sufficient scale and capacity. It
is also an example of where larger scale intervention will remain
critical if we are to avoid duplication and inefficiency.
3. Government proposals for ensuring co-ordination
of roles between different LEPs
LEPs offer clear opportunities for cost effective
approaches to localised issues by a bottom up approach. However,
it is important that issues such as innovation, inward investment
and infrastructure finance, are addressed at an appropriate scale.
The established collaboration between the Universities
of Yorkshire and the Humber through clusters, such as CLCF enable
increased opportunities to translate research into practice. They
are able to enhance their impact through pooling their expertise
in the low carbon area and aligning their research to priorities
such as carbon capture and storage, offshore wind and bioenergy.
The Universities are already working with the four emerging LEPs
in the region, centred around Sheffield, Leeds, Hull and North
Yorkshire to assemble the critical mass for successful innovation
that may not be possible through a single LEP.
13 August 2010
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