The Decarbonisation Effect: Powering the Future Growth of the South West

Recently, Chamber UK and JBP Associates held a Future of the Economy Seminar in the South West, sponsored by NatWest, to explore the potential of decarbonisation in driving economic growth in the region.

Chamber UK, in collaboration with JBP Associates, hosted a Future of the Economy Seminar in the South West. With NatWest as the headline sponsor and additional support from Hargreaves Lansdown, Hydrogen South West, Future Leap, and Burges Salmon, the event aimed to explore how the South West can harness the potential of decarbonisation to invigorate its economy.

Key topics included developing a comprehensive green economic blueprint, securing financing for decarbonisation initiatives, positioning the region as a leader in environmental technology, and implementing necessary policies. The seminar also addressed removing barriers to high-performance decarbonisation and establishing the skills and supply chains needed to support sustainable economic growth in the South West.

Three Unstoppable Forces: Market and Tech, Policy and Regulation, and the Circular Economy

James Close, Head of Climate Change at NatWest, delivered a compelling keynote speech highlighting the significant strides in decarbonisation efforts in cities like Bristol and Glasgow. He showcased successful collaborations between public and private sectors, underlining NatWest Group’s crucial role in providing finance, tools, and insights for this transition. Close acknowledged the immense challenges posed by climate change and the urgency required to address them, advocating for action over perfection.

He identified three key drivers of change: market and technology, policy and regulation, and the real economy. He highlighted the rapid advancements and cost reductions in renewable energy technologies, alongside increasing commitments to phase out fossil fuels.

Establishing a Greenprint for a Decarbonisation-Powered Regional Economy

The first panel discussed the importance of energy transition, energy security, and skills in the region’s decarbonisation efforts, as well as the need to accelerate regional decision-making and the importance of private-public partnerships and regulatory changes.

The panelists included:

• Richard Bonner, Marketing Director Building and Places, Atkins Realis; and Chair of the West of England Local Enterprise Partnership
• Carmen Peacock, Chair, CBI South West Regional Council and Regional Head Corporate and Institutional Banking, South West and South Wales, Lloyds Bank plc
• Grace Millman, Senior Energy Analyst, Regen
• Jessica Valentine, Director of Responsible Business, Business West
• Paul Coles, Chief Executive, South West Business Council
• Julian Miller, Business Development Manager, Ameresco
• James Cooke, Deputy Director, Western Gateway

The speakers stressed the need for accelerated regional decision-making. Despite progress towards a zero-carbon economy, challenges in skills development and the necessity of private-public partnerships and regulatory changes were acknowledged. Emphasis was also placed on removing barriers to speed up decarbonisation and embedding sustainability into regional industries.

The next steps suggested involved leading efforts on energy transition and security, planning, grid considerations, and skills development. Accelerating decision-making processes by identifying opportunities for large-scale projects to attract major companies was also suggested to be prioritised in order to advance the region’s decarbonisation goals.

Financing the Decarbonisation Transition in the South West

The next panel emphasised the importance of sharing information and structures to streamline processes and reduce timelines. There was a focus on the need for confidence in decision-making, acceleration in emerging technologies, and radical collaboration among all parties involved.

Additionally, de-risking strategies for offshore wind projects using finite element analysis modeling were discussed, along with the potential for leveraging UK capabilities in simulations for offshore wind projects. The panelists included:

• Edward Rowberry, Chief Executive, Bristol and Bath Regional Capital
• Phillip Bate, Head of Banking, Triodos
• James Close, Head of Climate Change, Nat West
• Jim Ayton, Technical Director, Energy Transition and Commodities, Lloyds Bank plc
• Paul Wilson, Chief Business Officer, Connected Places Catapult
• David Tansley, Practice Senior Partner, South West and Wales, Deloitte
• Emma Wall, Head of Investment Analysis and Research , Hargreaves Landsdown

The key takeaways included the importance of sharing information to streamline processes and reduce timelines. Confidence in decision-making, accelerating emerging technologies, and fostering radical collaboration were also highlighted.

Concerns about technology risks led to discussions on de-risking strategies for offshore wind projects using finite element analysis modeling and leveraging UK capabilities in simulations for these projects. Reducing uncertainty through data modeling to improve risk assessment was discussed, along with the need to empower regions with proper authority, leveraging local knowledge and efficient governance structures to enhance project outcomes.

Skilling up to Support Decarbonisation:

The next panel focused on the region’s progress in developing a workforce with green skills, highlighting challenges such as lack of incentives and the need for industry to create jobs for the transition.

There was an emphasis on collaborations and initiatives to upgrade teaching spaces, design new courses, and engage with industries to drive an increase in higher technical skills. The importance of industry-led apprenticeships and collaborative efforts between sectors with skill shortages and local colleges to address the skills gap effectively was also highlighted. The panelists included:

• Jo Watson, South West Area Director, Association of Colleges
• Julia Gray, Principal and Chief Executive, City Bristol College
• R Donna Connor, National College for Nuclear and Strategic Partnership Director, Stellafield
• Stephen Bashford, Strategic Director, Economy and Sills, West of England Combined Authority
• Professor Palie Smart, Associate Pro Vice Chancellor, Global Civic Engagement, University of Bristol
• David Crew, Director of Business Growth and Partnerships, Weston College

The next steps suggested included designing apprenticeship programs in collaboration with employers to ensure a sustainable workforce supply and focusing on staffing needs. Additionally, the idea of developing a national industrial strategy centered on net zero, with an emphasis on incentives and funding flexibility for skills development, was highlighted.

Establishing the South West as the Hotbed for Decarbonisation-Led Technical Innovation

The final panel discussed the importance of innovation in achieving the 2015 net zero target and boosting the region’s economy, with a focus on offshore wind programs and repurposing turbine blades for new products.

There was also emphasis on supporting fintech startups and scaling them up, with a focus on social and governance aspects alongside technical innovations. Additionally, the significance of investing in innovation clusters at scale rather than spreading resources thinly across numerous new initiatives was highlighted. The panelists included:

• Paul Coles, Chief Executive, South West Business Council
• Matt Studley, Co-Director of Bristol Robotics Labs
• Jo Dally, Strategic Partnerships Director, National Composites Centre
• Mike Paton, Director, Engine Shed
• Stuart Harrison, Direco, FinTech West

The next steps outlined included exploring ways to destigmatize failure within the innovation community through investment funding and government support, and focusing on building and investing in large-scale innovation clusters to better support and nurture the innovation community.

This event was joined by Curia’s Industrial Strategy Research Group subscribers, who get privileged access to all our events. To find out more, or to become a Research Group subscriber, please email info@politicsuk.com.

This is just one of the articles that features in the new edition of Chamber’s parliamentary pre-election journal. To gain access, please visit: www.chamberuk.com/newsletter.