How to revolutionise other industry sectors through a magic metric
A practical guide for policy-makers. So how do we get beyond the car sector?
Below is a brief guide to creating transformational change within a sector or product category based on the concept of FPT.
1. Do an LCA in order to understand the main environmental impact of that sector or product category (e.g. food, buildings, chemicals, electricity, etc.).
2. Develop a common metric based on the full lifecycle impact or at least on the main impact area.
3. Establish a long-term goal stating what performance is required by when. This can be a fixed value or variable in order to increase competition.
4. Establish minimum performance required and ban underperform- ing products (you might get some World Trade Organization issues but there are always ways around it).
5. Create a system where industries pay penalties for underachieving and/or tax credits for overachieving. That encourages industries to compete and innovate. 6. Mandate visibility of the common metric on all promotional materials.
7. Enable and encourage national taxes, whereby the products with more environmental impact pay more and products with less impact pay less (variable product tax).
8. Enable local regulation that gives ‘incentives’ to products with less impact (e.g. what free parking and free congestion charge is doing for the cars).
9. Support and enable data intermediaries to be creative and do their job to help consumers make sense of the data.
10. Release the power of public procurement and buy only products that achieve certain performance levels.
11. Encourage equally the power of corporate procurement.
12. Award with the EU Ecolabel those products that demonstrate more than 50% impact reductions over the average product.
13. Sit and relax – the market usually delivers (but you need to tell the market what you want).
Let’s look at the building sector and try to apply this thinking (in a very simplistic way):
a) Magic metrics could be kWh/m2 and kg of embodied CO2/m2 (I will focus on the first one).
b) Set up a minimum European standard of, let’s say, 100 kWh/m2 for new buildings in 2020.
c) Give the EU Ecolabel to new buildings under, let’s say, 50 kWh/m2.
d) Give tax discounts to new buildings under, let’s say, 50 kWh/m2.
e) Facilitate licences/permits to the super-performing buildings (e.g. fast track or no permit required).
f) Existing houses pay variable rate of stamp duty and local council tax according to their energy rating (would encourage retrofit more radically than green deal type of approaches).
g) Government would commit to the strongest standard for new buildings and would retrofit existing government buildings to a minimum standard.
h) Mandatory energy ratings displayed in every public and private building including offices, retail, etc.
This is a back of the envelope approach that does not take into account the fine details such as the differences in building types such as domestic, office or retail, but it gives an idea of what the magic metric approach can deliver.