Five priorities for a post-Brexit economy

Matthew Farrow
03 April 2017

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With the pace of events around Brexit about to quicken significantly, it’s a good time to consider where environmental issues stand within the Brexit big picture and the government’s plans for a post-Brexit economy, says Matthew Farrow.

In terms of Brexit specifically, while the planned Great Repeal Bill was a welcome start, I see five priorities for urgent action.

First, we need a much clearer commitment from the prime minister to world class environmental standards. The current mantra, that “we will be the first generation to leave the environment in a better place than we found it” to my mind doesn’t cut the proverbial mustard. Taken literally, it means what?  That the Government would be happy if NOX levels in our cities were slightly lower in 20 years’ time than today?  If recycling rates in 2030 were 45%?  If CO2 emissions were down another 10% on today’s numbers?  

Divorced from the steady strengthening of green standards and policies that EU membership provided, we need a much more specific set of ambitions with some credible thinking as to how they will be met.  My hope is that the long-awaited 25 Year Environment Plan will provide this, or at least be a solid first draft.  My understanding is that it has been signed off by Defra ministers and is awaiting clearance at Number Ten.  We need it published by the time Article 50 has been triggered to provide reassurance both to the public and to the investors who drive the green economy forward.

Second, we need to give careful thought as to how to avoid the risk of so-called ‘zombie legislation’, where simply ensuring that specific legislation is carried over into UK law is not sufficient to enable the actual implementation of the policy.  

Third, we need to develop and build a consensus around UK-specific targets in a range of environmental areas. At EIC we have recently called for a debate on targets for England for recycling for 2025. Our thinking is that we are struggling to meet the existing 2020 EU-set recycling target and what is more important for the industry is what the ambition is for the following decade. EU targets such as those in the circular economy (CE) proposals have to compromise between what would be appropriate for member states such as Germany and Austria, whose recycling rates ae already over 60%, and those such as Cyprus which have not yet hit 20%. So while we might decide simply to copy the CE targets, it’s worth doing in England what Wales and Scotland have done and considering what would be a genuinely ambitious but also credible target that would be relevant to the public and help business and local authorities plan.  

Fourth, while the vast majority of EU environmental law should be kept as it is, there are some examples where the original regulations were poorly drafted or not especially effective in a UK context. An example might be the separate collection provisions of the waste framework directive, or the Energy Savings Opportunity Scheme where the current EU regulations generate process with limited outcomes and need strengthening. Let’s use Brexit as an opportunity to revitalise such areas of policy.

Lastly, many of the EIC members I talk to in the environmental sector are very concerned about the risk of skills shortages following Brexit as immigration controls are tightened. The UK environmental goods and services sector is very much an international one and there are many citizens of other EU countries working within it, ranging from air quality modelling specialists in large consultancies, laboratory technicians at environmental laboratories and energy management equipment installers working for property developers.  Of course, many non-environment sectors have concerns as well, and ministers need to be aware of the full range of skill areas where radical restrictions on EU migration could have implications.

As well as managing the implications of Brexit, we also need to look at how we best make use of any opportunities that might come our way. One such is the government’s revived enthusiasm for an industrial strategy. The environmental sector is bigger than pharmaceuticals or aerospace, has great export potential and creates jobs across the UK. It is also vital to delivering the government’s other objectives. We won’t be able to build the planned million new homes and avoid destroying the green belt unless we scale up our land radiation sector and focus on brownfield sites.  

So, the environmental sector certainly deserves a place in any industrial strategy worth the name.

Matthew Farrow is director of the Environmental Industries Commission, the leading trade body for environmental firms.