Can the Valley tap in to the EU’s green vision?
Mar 3 2009 by Sue Scott, Evening Gazette
The economic downturn, far from hindering the move to a low-carbon economy, should be the lever that propels the region forwards. By SUE SCOTT in Brussels and KELLEY PRICE on Teesside
THE Tees Valley’s plan to build a green path out of the economic crisis gathered pace last month when all five local authority chiefs signed up to a Europe-wide covenant that put them in the same lifeboat, paddling frantically with many of their European collegues.
So far, around 370 chiefs from 30 European countries, have pledged to support the covenant, which binds those towns and cities that subscribe to it to exceed their own goverments’ 20% carbon reduction by 2020 targets.
At a ceremony in Brussels, they solemnly pledged to work together to build a network to improve energy efficiency in urban areas, transport, industry and housing.
The North-east was unique in being the first in Europe to sign up as a region - a clear declaration of intent to tackle global warming head-on, while exploiting the economic opportunities to come out of the green agenda.
To be in with a chance of securing financial support for green projects, the North-east collective must package up its case within a year. But with billions of Euros being brought forward in economic recovery plans and warm overtures from both the Commission and the European Investment Bank (EIB) towards the North-east, there’s a clear incentive to get on with it.
Middlesbrough Council is already one of just six UK Beacon Councils for Tackling Climate Change - and its Mayor, Ray Mallon, is one of the signatories to the Covenant.
Bob King, environmental sustainability co-ordinator with the council, said it made good green sense for the region to present a united front on the European stage.
“The North-east has one representative - it would send mixed messages if we signed up to an environmental commitment and then started flying all our Mayors and council leaders across Europe for meetings when we’re meant to be lowering our carbon footprint.
“Signing up as a region shows the North-east in a good light and demonstrates that we are leading the way in taking our responsibilities seriously. It will also help us to share experiences with other European authorities.”
According to Leo Mallett, business and innovation policy advisor from the North-east England office in Brussels, Tees Valley and its eco partners are particularly well-placed to take advantage of emerging European policy.
“A lot of people say this economic crisis is an opportunity to push forward renewable energy. Things really stepped up when the Commission came up with its energy package last year. Its Strategic Energy Technology Plan shows it is committed to technology that we are already very good at in the North-east.
“The echoes are very good coming out of the Commission. They have been impressed by what they’ve seen.”
Stephen Hughes, North-east Labour MEP, agreed that now was not the time for the region to lose its nerve: “We need to maximise investments in our green energy future now. If you do invest fully and responsibly in that sector we will be strong coming out at the other side of the recession and ahead of the curve.”
Although his colleague in the European Parliament’s Tory tower, Martin Callanan, is sceptical of “all those pots of money out there”, there’s no doubt that, even with a shrinking EU budget, the UK is unlikely to have its hand slapped if it holds it out for green technology funding.
The European Commission has pledged a yearly pot of £13-18m for renewable technology projects until 2013 and the EIB is working with Commissioners to set up a £13.3m grant fund, managed by the Bank, with a particular emphasis on supporting green fuel and hydrogen transport networks. The grants could help with up to 75% of development costs.
Meanwhile, it has said it will provide loans for projects linked to the Covenant of Mayors for energy efficiency and renewables - possibly providing a direct source of funding for district authorities to take local schemes forward.
In 2007, the EIB signed away loans of more than £1.78bn for renewable energy projects Europe-wide. And last year it loaned £2.3bn for urban public transport systems - something that will be high on the Tees Valley City Region’s agenda, if the new grouping is approved later this year.
The North-east’s collaborative approach will be an advantage when bidding for financial support, the EIB says, but there’s no time to lose.
“The grants available are limited, so to an extent it’s first come, first served,” said a spokesperson. “With regards to loans, we are a bank, so the projects we lend to have to be viable. We can provide the know-how, administrative framework and expertise for implementing these schemes, but we are not there to tell people what to do. A well-packaged bid, with a realistic price tag, is likely to receive support.”
