Climate deal highlights low carbon agenda

RECENT extreme weather conditions have cast the spotlight on the energy and environment sectors.

In this region there has been the devastating flooding in Cumbria and Lancashire, while further afield there has been unprecedented weather across Europe and in the US too.

Policymakers and business groups like the CBI agree that something needs to be done on climate change, and late last year a deal was struck at the Paris Summit, which aims to hold global temperatures to a maximum rise of 1.5C above pre-industrial levels, staving off the worst effects of global warming.

Some 200 nations took part in the negotiations. They agreed to reduce emissions, promised to raise $100bn a year by 2020 to help poor countries adapt their economies, and accepted a new goal of net zero emissions by later this century.

As the dust settles on what politicians insist was a historic agreement, it is worth reflecting on what this means in our region.

According to the latest North West Growth Review from Grant Thornton, there are a multitude of opportunities around the low carbon agenda for businesses here.

Paul Scully, partner at Grant Thornton in Manchester said: “The North West has a thriving energy sector, which includes second and third tier suppliers to global oil and gas industries. These include engineering businesses, making valves and other components, specialist recruiters and transport/logistics firms.

“Minds will be turning to new opportunities, changes and threats. From an investment perspective, the narrative around the low carbon sector should get stronger. The translation of the geo-political and regulatory climate into products and services – and ultimately jobs – will certainly speed up.”

Scully says there is evidence that society is embracing the need to move towards a greener future: “It’s interesting to note that the number of visits to electric car charging stations in Greater Manchester, for instance, doubled in the past 12 months. There were 3,411 charging sessions in December 2015 compared to 1,732 a year earlier.

“Longer term, oil companies will have to evolve or face their valuations being revised and, in turn, becoming less attractive to major institutional investors.”