Detta inlägg post publicerades ursprungligen på denna sida this site ;
Date:
Author: Max Lacey-Barnacle, Senior Research Fellow, Science Policy Research Unit, University of Sussex
Original article: https://theconversation.com/how-a-community-focused-vision-for-net-zero-can-revive-local-economies-252955
Across the world, the transition to a green economy is under threat. Growing antipathy towards the costs of tackling climate change, stoked especially by right-wing populists, undermines ambitions to reach net zero emissions by 2050.
In the UK, leader of the opposition Kemi Badenoch recently described achieving net zero by 2050 as “impossible”, stating that it would bankrupt the country. Reform, a major rival to the right of Badenoch’s Conservative party want to scrap the UK’s net zero targets altogether.
A new vision of net zero is urgently needed. To help fund the UK’s transition to a green economy, the UK government seeks to attract private investment from international corporations that are not based in the UK.
The Indian company Tata Group is investing £4 billion in eletric vehicles (EVs) and battery production in the UK. Danish company Orsted has invested £15 billion in UK offshore windfarms in the last decade. French company EDF Energy has invested £4.5 billion in net zero technologies and infrastructure in the UK.
This approach comes with considerable risks. Profits can be extracted out of local economies, which benefits the shareholders of international corporations, not UK businesses.
Ownership can also change between private entities and move even further afield. Last year, Orsted sold stakes in four UK offshore wind farms to a Canadian investment company.
But there’s an alternative that directly strengthens the resilience of the UK’s economy. Community wealth building is a model of economic development that ensures any profits generated from new green industries is recirculated within the local economy.
To make this happen, communities need support from so-called “anchor institutions”. These are large organisations that are “anchored” to their local economy and cannot relocate, because their ownership structure is tied to a particular location. Think universities, hospitals or local government institutions.
Within this approach, anchor institutions procure goods and services from nearby suppliers, so they circulate money locally and strengthen regional supply chains.
This concept originated over a decade ago in the US. It’s since been applied in Canada, Australia, Ireland and the Netherlands.
For the past four years, I’ve been exploring how community wealth building is becoming embedded in the UK’s fast-growing green economy.
UK anchors and the green economy
In north-west England, Preston city council retained the procurement spend of anchor institutions located in Preston city to the tune of £112.3 million in 2020 – £74 million more than in 2012/13.
In Oldham in northern England, the council supported the development of community-led energy plans in two neighbourhoods, Sholver and Westwood. The plans outlined what a decarbonised heat, electricity and transport system would look like for each area. The council launched a website to share energy efficiency advice. The council also helped to set up two local community energy projects.
Oldham Community Power installed solar panels on five primary schools and a community building to reduce their energy bills. Saddleworth Community Hydro have used excess profits from the sale of renewable electricity in 2023 to fund £58,000 worth of local sustainability projects.
witsarut sakorn/Shutterstock
The council in Lewes in southern England have committed to using community wealth building to transition towards net zero. Hundreds of houses have been retrofitted to increase their energy efficiency, with retrofit contracts arranged with local companies. EVs are being used to collect food waste. New sustainable housing is being built by local tradespeople using locally sourced materials wherever possible.
The Lewes Climate Hub hosts community events and green business workshops in a council-owned property. Procurement spend by local anchor institutions has also doubled from £5m in 2020 to £10m in 2024.
In North Ayrshire, Scotland, two municipally owned solar PV farms on council-owned land have generated a £13 million budget surplus. This has been redirected towards addressing fuel poverty by making low-income homes more energy efficient. The council’s new green jobs fund has supported over £1.14 million of investment into 65 businesses to enable a range of sustainability related measures.
Encouragingly, more plans to bring together community wealth building and net zero continue to emerge. In London, partnerships between anchor institutions and community energy organisations could be integral to developing 1,000 community energy projects across the capital by 2030.
Successful scale-up of community wealth building will require strong leadership, political commitments and supporting strategies that align with the green economy. Already, some initiatives are beginning to generate wealth through the green economy and keeping it in local communities, rather than ownership and profits going to distant corporations.
To counter a rising opposition to net zero in the UK, prioritising community-focused visions that revive local economies will be vital.
Don’t have time to read about climate change as much as you’d like?
Get a weekly roundup in your inbox instead. Every Wednesday, The Conversation’s environment editor writes Imagine, a short email that goes a little deeper into just one climate issue. Join the 45,000+ readers who’ve subscribed so far.
Max Lacey-Barnacle receives funding from The British Academy.