New research has been published highlighting the impact of impending EU and UK climate change legislation on businesses.  It calls for regional economies to plan for a new legislative and policy agenda and then manage the transition into a low carbon economy.

The report Mini-Stern for Manchester, from business advisory firm Deloitte, was commissioned by Manchester Enterprises, the city’s economic development agency, on behalf of the Association of Greater Manchester Authorities’ Economic Development and Environment Commissions. The aim of the report is to inform the city region’s environment strategy. It is the first of its kind in the world and highlights the regional dimension of climate change policy and how cities and regions will contribute to this emerging agenda.

Phil Woolas MP, the Government Minister of State for the environment described the report as “globally ground breaking” and said: “Climate Change is an important issue for us all and businesses have a significant contribution to play in the climate change agenda.

“The report emphasises that if businesses make changes in response to the Government’s drive for more renewable energies and take advantage of the opportunities to improve their energy infrastructures they could become more competitive, which would benefit the region’s economy.”
 
The report assesses the impact of forthcoming legislation on the Manchester City Region and the North West and how it will change economic priorities and alter market conditions.  As with HM Treasury’s Stern Review on the Economics of Climate Change, one of the report’s key findings is that the benefits of strong, early action on climate change will outweigh the costs. 

Manchester: £21 billion cost of a ‘do nothing’ scenario
It finds that a ‘do nothing’ scenario could cost the Manchester City Region £21 billion over the next 12 years. The cost for the entire North West region could be up to £70 billion. On the other hand, by responding effectively to the opportunities stemming from the climate change agenda, the city region could position itself as a leading international centre for climate change technologies and services.

It presents Manchester with a stark choice: either to innovate and adapt their industries or to reduce output in order to reduce emissions. It also highlights how such innovation could have significant economic benefits.

Rashid Bashir, a senior economist in Deloitte’s consulting practice and one of the report’s authors said: “Although dubbed a ‘mini-Stern’, our report’s starting point is that of impending legislation rather than assumptions about the effects of climate change. The report identifies the need for strong leadership and the careful use of public policy intervention tools to assist and promote economic growth in the context of an emerging new low carbon economy.  The support of the business community will be vital and a consistent policy approach that reduces market uncertainty is essential.”

Sector specific strategies
Deloitte’s report also calls for the development of sector specific strategies for those with significant legislative threats such as transport and manufacturing. Attention should also be focussed on supporting those areas where economic growth will be strongest in the coming years.

Manchester Enterprises and the Association of Greater Manchester Authorities (AGMA) are already taking actions to respond to the report and its implications through the Manchester Climate Change Agency. Deloitte is being consulted on the implementation of the report’s recommendations.

A copy of ‘Mini-Stern’ for Manchester can be found here: www.deloitte.com/uk/ministern

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country's leading professional services firms.
Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, whose member firms are legally separate and independent entities.  Please see www.deloitte.co.uk\about for a detailed description of the legal structure of DTT and its member firms.