The business community demands the British government does more to tackle climate change, including sending clear signals to internationalย markets.
Ed Miliband must show leadership on the international stage on the issue of climate change in order to deliver sustainable business and appear electable, the shadow minister for energy and climate change Jonathan Reynolds MP was warnedย today.
Carmel McQuaid, Head of Sustainable Business at retailer Marks and Spencer, explained that British companies depend on foreign rival corporations meeting the same climate change standards and so governments must play a central role in providing clear signals to theย market.
The financial crisis of 2008 has made it even more important that firms can make a business case to their boards and shareholders, she argued. Companies need to make long-term investments without governments making sudden changes to tariffs andย regulations.
McQuaid was speaking alongside the shadow minister at a fringe event held this morning in the Global Development Hub in Central Manchester where hundreds of Labour delegates are meeting for the autumnย conference.ย
Sunny Hundal, the writer and activist, explained that Miliband faced a โPutin problemโ, because he was yet to prove to the British public that he would be able to stand up to international leaders on issues like trade and climateย change.ย
And Mark Goldring, chief executive of Oxfam Great Britain, said the Labour party must present a clear and compelling case to take action to prevent the people of Bangladesh facing an ever worsening fate of floods andย starvation.
But Reynolds kept to the party line, arguing that Labour had to deliver on domestic policy in order to gain respect among international leaders and could only โbring people with usโ by delivering immediate benefits through policies like energyย efficiency.
Caroline Flint, the shadow secretary of state for energy and climate change, will tomorrow announce that the Labour party, if elected, will insulate five million homes across Britain to reduce the use of fossil fuels while also reducing the amount spent by families on heatingย bills.
Internationalย Agreements
McQuaid explained that M&S was still working towards its 2007 โPlan Aโ commitment to become carbon neutral, but the economic crisis has meant board members and shareholders must understand how climate change could impact business – disrupting the firmโs supply chains – before making the necessaryย investment.
Moreover, there are serious concerns that British companies taking a lead on climate change would end up at a commercial disadvantage unless international leaders set the agenda and governments act to create a level playingย field.
โThe challenge I have from the business community – and our chief executive has said it – is that there is no point being a leader if no one follows,โ she said. โThatโs why we believe the international negotiations are absolutelyย essential.โย
If only a few companies become carbon neutral, they would have to meet the costs while their rivals would ultimately benefit. โThatโs called freeloading in market economics,โ sheย argued.ย
โWe donโt become too inward facing because we have an election. Itโs vitally important more people join in from otherย countries.โ
Beyondย Unhelpful
She added: โWhat resonates with M&S customers is they expect us to do what is right with regards to people in our supply chain. They do not want to wear a dress or eat a cake if they know people have suffered in our supplyย chain.โ
But, she warned, any signs of uncertainty among political leaders could prove catastrophic.ย โWe are at risk of losing all the hard work for the last 20ย yearsโฆ
โThe constant changes to tariffs and budgets have been beyond belief unhelpful. Weโre about to sign a contract and then a tariff changes and two years of work are down theย drain.โ
Hundal reinforced the message that international statesmanship was essential. He looked forward to the United Nations Climate Change Conference opening in New York in the coming days and also the Conference of the Parties negotiations in Paris in Novemberย 2015.
โOn Tuesday when Ed Miliband gives his speech to the Labour conference, David Cameron is going to be in New York standing next to Barack Obama and Ban Ki-Moon and theyโre going to do a deal almost behind the scenes about how they deal with Paris and where Britain stands with regards to climateย change.ย
โThey will be taking pictures, but what is the UK government saying on this? And what is Labour saying on this? To me this is still not clearโฆ this is almost a dereliction of duty. Given Ed Milibandโs strength as an environment minister, why is Labour still not doingย enough?โ
The Putinย Problem
He added: โEd still cannot get elected unless he deals with the โPutin problemโ on the international stage – can this guy stand up and project British strength to someone like Putin? This is not so much about policy but our standing and the image we project onto the world. Is Ed the man to doย that?โ
The Labour party should make a commitment to regulating tracking and using nuclear power as a bridge to a low carbon economy, he argued. The Liberal Democrats will, in the eight months leading to the general election, use environmental issues to try and rebuild trust with its coreย constituency.ย
Reynolds has recently visited Bangladesh and was mindful of the international ramifications of British government action on climate change. But he insisted that, in the current economic climate, voters would only support environmental measures that also brought financialย benefits.ย
โEnergy efficiency is the bit of climate change people can get into because it has an immediate benefit and energy poverty is among the most important issues of our day,โ he told the Labour party delegates and charityย workers.ย
Wageย Packets
โEd was popular and well received as secretary of state for the environment and so people want him to say and do more. But the issue that will decide the next election will be how people feel about their wage packets and the economy – but that does not mean that climate change and Paris will not be a central part of our foreignย policy.ย
โIt is easy to say things internationally and even sign international agreements, but delivering it domestically is absolutely essential,โ he argued. โThis is not about international conference or agreements between leaders. We need a policy mix on the ground that has tangible benefits forย people.โ
Meanwhile, the Green Party, he argued, had failed to gain credibility. โThey canโt take the public with them. You canโt say to the public letโs close down the economy and have massive unemployment. This is about bringing people with us and that absolutist approach will not workโฆ the Greens, because of their opposition to nuclear, could not challenge climateย change.โ
Reynolds said government ministers, including Ed Davey, the Liberal Democrat secretary of state for climate change, and Tory Amber Rudd, were genuinely concerned about environmentalism. But he attacked Eric Pickles, the secretary of state for community and local government, George Obsorne, the chancellor, and the recently sacked environment minister Owenย Paterson.
He said: โI donโt doubt the personal commitment of people like Amber and Ed and if you invite them to the party, thatโs great. But then you realise they have also brought Pickles, and Osborne has driven the car and until recently Paterson would be hiding in theย boot.โ
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