Climate change set to cost North East businesses half a billion

Nov 17 2009 by Tony Henderson, The Journal

CLIMATE change is set to cost North East businesses half a billion pounds in 2020, it was revealed yesterday.

The figure emerged as the final draft is due next week of a study which estimates the economic impact of climate change on the region.

The report, by the North East Climate Change Partnership (Climate NE), will be released in January.

The 2020 bill would be mainly made up of higher energy costs and the price of meeting new legislation to cut carbon emissions.

“We have relatively more manufacturing industry in the North East, some of it energy-intensive, and we will feel the pinch of regulation more than in many other parts of the country,” said Paul Mooney, One North East chief economist.

Representatives of businesses, councils and other organisations were reminded yesterday that, set against a 1990 baseline, the North East is required to cut its emissions by 34% by 2020.

The event at Government Office for the North East in Newcastle was part of a week-long programme, Projections in Practice, which is tailored to the region.

It is aimed at equipping delegates with information they need to assess the risk climate change poses to their business or organisation.

Adrian Hilton, of Climate NE, said there would be costs in combating and adapting to climate change in the region.

“But the cost of adapting is small compared to the cost of not adapting,” he said.

There were also business and job opportunities in the changes which would be necessary in the move towards a low carbon set-up.

And John Heywood, head of the rural, environment, climate change and energy team at GONE, predicted: “We can make more than we lose if we get it right and take the opportunities.”

These ranged from making offshore turbines and electric vehicles to fitting out more than a million homes and buildings in the region to make them more energy efficient.

Jonathan Blackie, GONE regional director, said: “Projections in Practice will help organisations assess how their business might be affected by climate-related issues such as flooding, storms or extreme temperature changes.

“It means they can go back and look at what might come their way and plan for a successful future, including taking advantage of some of the business opportunities that a changing climate might bring.”

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