The Economics of Renewable Energy - Economic Affairs Committee Contents


Memorandum by Natural England

EXECUTIVE SUMMARY

    —  Natural England recognises that climate change represents the most serious long term threat to the natural environment. We believe that there is an urgent need to reduce greenhouse gas pollution if we are to avoid potentially catastrophic impacts on the natural environment. A particular challenge is the necessity to move towards becoming a low carbon economy, as this will entail the need to develop clean energy supplies, whilst ensuring that the natural environment is not irreversibly damaged by such developments.

    —  We therefore support Government's ambitions for increased renewable energy generation. In pursuing the European Union's 2020 renewable energy target, we would stress that the full impact on the natural environment must be considered alongside the wider contribution towards reducing greenhouse gas emissions.

    —  There will be different impacts on the natural environment from different options available to deliver on the renewable energy target. That is why Natural England is calling for the Government to undertake a strategic assessment of the relative environmental impact of different renewable and clean energy development options, for the United Kingdom. We believe that that this comprehensive assessment will inform better long term policy making and provide greater certainty for investors and developers.

    —  The current evidence base available to inform decisions about sustainable energy developments is largely based on predictions of the immediate impacts of any development on the existing natural environment. This evidence base is developing as the deployment of sustainable energy technologies proceeds and the actual impacts are monitored. The evidence base around the cumulative impacts of sustainable energy infrastructure in particular, needs significant development. There is also a need to expand this evidence base to also consider how the natural environment is likely to change in the face of climate change.

INTRODUCTION

  1.  Natural England is a statutory body created in 2006 under the Natural Environment and Rural Communities Act by bringing together English Nature and parts of the Rural Development Service and the Countryside Agency. Natural England has been charged with the responsibility to ensure that England's unique natural environment, including its flora, fauna, land and seascapes, geology and soils are protected and improved.

  2.  Natural England's purpose, as outlined in the Act, is to ensure that the natural environment is conserved, enhanced and managed for the benefit of present and future generations, thereby contributing to sustainable development.

RESPONSES TO SPECIFIC QUESTIONS

Question 1:  How do and should renewables fit into Britain's overall energy policy and how does it compare with other countries?

  3.  Natural England believes that there is an urgent need to put in place climate change mitigation measures. We therefore support the uptake of renewable energy generation for electricity, heat, cooling and transport in the UK, particularly sustainable energy developments which minimise impact on the natural environment and optimise their contribution to the reduction in greenhouse gas pollution.

  4.  We believe that it is essential that the Government undertakes a strategic assessment of the options for delivering renewable energy targets, and their direct and indirect impacts on the natural environment. This should be coherent with the Government's work on a land use strategy, and be undertaken before any renewable energy policies are put in place. This will avoid developing renewables in inappropriate places where there could be adverse effects on the natural environment and in doing so help to streamline the onshore and offshore consenting process.

Question 2:  What are the barriers to greater deployment of renewable energy? Are there technical limits to the amount of renewable energy that the UK can absorb?

  5.  Natural England is aware, through its own role as a statutory adviser on most renewable energy developments, that delays in the on and offshore renewables consenting process can be caused by a lack of information on the environmental impacts of renewable energy technologies and energy cropping. In order to avoid such hold ups, it is crucial that all the environmental implications of renewable energy options are assessed at an early stage in the development process.

  6.  We believe that the potential cumulative and in combination impacts from competing pressures on land and sea are one of the largest barriers facing large scale development generally. Renewable energy development in the UK must be strategically assessed in the context of its cumulative impacts on the natural environment.

  7.  The current evidence base available to inform both on and offshore decisions about renewable energy developments is largely based on predictions of the immediate impacts of any development on the existing natural environment. We note that there is large variation in the environmental impacts, depending on the location and the risk of cumulative impacts and these must be taken into consideration by taking a more strategic approach to environmental assessment of the renewable energy options. The evidence gathered from the current piecemeal approach to energy development is inadequate to address this.

  8.  Government also needs to take full account of the entire environmental and social costs and benefits across the full life cycle of renewable energy generation (including crop production, infrastructure manufacture, generation, transport, transmission and end-use) when appraising alternative options for renewables.

  9.  Natural England is currently developing guidance and spatial locational mapping for both onshore wind and energy crops, to focus development and cropping towards those areas that we believe are more appropriate. We are aiming to identify broad areas of search for larger scale onshore wind energy infrastructure and crops for energy production.

  10.  Natural England will provide its advice on the implications of any proposed sustainable energy infrastructure development based on our statutory functions and include an assessment of:

    —  the impact of the infrastructure on the existing features of the natural environment;

    —  the changes to the existing features of the natural environment that will occur as a result of climate change which is already locked in;

    —  the potential for the infrastructure development to contribute to improving the resilience of the natural environment to further climate change; and

    —  The contribution of the infrastructure to reducing greenhouse gas pollution.

Question 3:  Are there likely to be technological advances that would make renewable energy cheaper and viable without Government support in the future? Should, and how could, policy be designed to promote such technological advances?

  11.  Government policy should promote technologies with minimal adverse impacts on the natural environment and that demonstrate significant greenhouse gas savings.

  12.  We therefore stress that all renewable strategies and policies should be designed so as to include a strategic environmental assessment and cumulative impact assessment for all emerging and new technologies, with a full carbon life cycle analysis of the development and ancillary infrastructure.

Question 6:  How do the external costs of renewable generation of electricity—such as concerns in many affected rural areas that wind farms and extra pylons spoil areas of natural beauty—compare with those of fossil fuels and nuclear power? How should these be measured and compared? Is the planning system striking the right balance between all the different considerations?

  13.  We believe there is a need to weigh up the environmental impacts of renewable energy generation against the longer term environmental benefits of mitigating climate change. This requires an assessment of the impact of renewable energy infrastructure on current features of the environment and the contribution that it might make to reducing greenhouse gas emissions. Such assessments also need to factor in the potential changes to the environment as a result of climate change and to assess how the development might contribute to enhancing the resilience of the natural environment to climate change.

  14.  Without a strategic assessment of all the available options in the energy mix, taking into account the cumulative impacts in the context of climate change, the external costs of negative impacts on the natural environment cannot be fully assessed.

Question 8:  How do the costs and benefits of renewable electricity generation compare to renewables in the other key forms of energy consumption—transport and heating?

  15.  Natural England believes that an increase in renewables in each of the energy generation sectors will be needed to meet the Government's climate change and renewable energy targets. Energy of all types must be sustainably produced, distributed and used and have taken into consideration all the environmental benefits and costs through relevant strategic assessments and environmental impact assessments.

Question 11:  What are the costs and benefits of the present generation of biofuels? Will there be a second generation of biofuels and, if so, what are the estimated costs? What are, or are likely to be, the carbon emission impacts of first and second generation biofuels, and what are the other relevant environmental effects?

  16.  Natural England believes the sustainable production of bioenergy for both electricity, heat and transport fuels could form an integral part of the Government's renewable energy strategy and contribute to reducing greenhouse gas emissions. An increase in first generation biofuels production and use, however, has the potential to create sizeable direct and indirect environmental costs associated with increased crop production, particularly overseas. We urge that robust sustainability criteria and reporting measures should be implemented with appropriate targets as swiftly as possible. It is imperative that these are in place before an increase in the production and use of biofuels is encouraged.

  17.  Second generation biofuels will vary in their cost and benefits depending on the feedstock used and technology implemented. Further support is needed in this area to encourage new and emerging low or zero carbon technologies which have minimal or no adverse impacts on the natural environment.

17 June 2008



 
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