The environmental economy - RSPB

environmental
the
economy
Yorkshire Forward
Victoria House
2 Victoria Place
Leeds LS11 5AE
Tel. +44 (0)113 3949 600
Fax. +44 (0)113 2431 088
www.yorkshire-forward.com
of Yorkshire and Humber
2002

CONTENTS
FOREWORD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
THE ENVIRONMENTAL ECONOMY OF YORKSHIRE & THE HUMBER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1 WHAT IS THE ENVIRONMENTAL ECONOMY? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2 CURRENT SIZE OF THE ENVIRONMENTAL ECONOMY OF YORKSHIRE AND THE HUMBER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1 THE ENVIRONMENTAL INDUSTRY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.2 LAND BASED INDUSTRIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.3 CAPITALISING ON A HIGH QUALITY ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3 RECOMMENDED ACTIONS FOR ACHIEVING FUTURE GROWTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.1 THE ENVIRONMENTAL SECTOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3.2 LAND BASED INDUSTRIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.3 CAPITALISING ON A HIGH QUALITY ENVIRONMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
3.4 THE ENVIRONMENTAL ECONOMY AS A WHOLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
4 FURTHER WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

FOREWORD
The Yorkshire and Humber region has a wealth of stunning countryside and a rich and unique heritage. The environment is a major asset,
from the uplands of the Pennines and the moors, to the rolling wolds, the vales, coasts and watercourses. This mosaic is the reason for
a thriving tourist industry, and the variety of land uses which together help offer a quality of life that attracts businesses and people to locate
in the Region.
This is a key time to identify what the environment can and does contribute towards the Regions’ economy. The environment is not
a restriction to our economy, but a major source of income and employment and it should be recognized as such and as an area for
potential growth.
This study aims to evaluate the economic benefit of the natural and built environment and the potential growth areas in the region.
Only by recognizing and quantifying these, may the true economic value of the Region’s environment be given the recognition that it deserves.
This is a forward-looking document – one which not only recognizes the value of this asset, but a document which identifies potential.
This is a marvelous opportunity to clearly identify the value of the regions environment in social and economic terms, which will help in
attracting investment, assist those seeking funding and will inform other strategic documents and influence regional policy.
THE ENVIRONMENTAL ECONOMY OF YORKSHIRE AND THE HUMBER
The environmental economy is a dynamic and growing part of the economy of Yorkshire and the Humber, which generates approximately
71 000 jobs and three percent of the region’s Gross Domestic Product (GDP). This makes it comparable in size with other important
sectors such as wholesale activities and bigger than mining, energy and water supply (14 000 jobs), and agriculture, forestry and fishing
(19 000 jobs).
It covers a wide range of growing activities, including:
• Businesses supplying environmental technologies and services;
• Environmental and resource productivity improvements in industry;
• Rural businesses relating to environmental improvements and food and non-food products, such as agri-environment schemes and
organic farming;
• Tourism and leisure businesses that which are dependent on the quality of the region’s natural and historic built environment.
Strong market drivers within the public and private sectors provide significant opportunities for developing these activities which will help
to create new jobs in Yorkshire and the Humber, diversify our industrial base, invigorate rural economies and accelerate progress towards
sustainable development in the region.
This summary presents the main findings of a study undertaken by regional partners, which for the first time has quantified the contribution
of the environment to the economy of Yorkshire and the Humber. It also identifies opportunities for growing the environmental economy and
Pam Warhurst
presents opportunities for regional partners to accelerate this growth.
Deputy Chair Countryside Agency
Yorkshire Forward Board Member
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The Environmental Economy of Yorkshire and Humber
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1 WHAT IS THE ENVIRONMENTAL ECONOMY?
The ‘environmental economy’ involves a range of activities which are dependent on the region’s natural environment and historic heritage,
or which are involved protecting or improving the environment. These activities have been grouped under three sub-headings:
‘The Environmental Industry’:
• Businesses supplying environmental technologies and services – eg recycling and waste management, air pollution control,
wastewater treatment, contaminated land remediation, environmental consulting, energy management, renewable energy and cleaner
technologies;
• Environmental improvements in industry which help businesses generate cost savings and enhance competitiveness;
2 CURRENT SIZE OF THE ENVIRONMENTAL ECONOMY OF YORKSHIRE AND THE HUMBER
Analysis shows that some 71 000 jobs in Yorkshire and the Humber are directly related to the environment (Table 1). These jobs represent
some three percent of total employment in the region and are clearly significant when compared to employment in other sectors.
Activities in the environmental economy generate approximately three percent of total regional Gross Domestic Product (GDP) – (£1.52 billion
out of a regional total of some £55.45 billion). The environmental economy of Yorkshire and the Humber also compares well with other English
regions (see Figures 1 and 2).
Table 1: Current Employment in the Environmental Economy
Employment in the Environmental Economy
• Public sector environmental posts in organisations such as the Environment Agency and English Nature;
• Voluntary sector organisations involved in environmental improvement and physical regeneration activities, such as the Groundwork
of Yorkshire and the Humber:
The Environmental Industry:
Employment (FTE)
Trust and Wildlife Trusts.
Regeneration of Land Based Industries:
• Environmental improvements in land based industries such as agriculture and forestry, agri-environment schemes, organic farming,
regional produce and sustainable woodland management.
Capitalising on the Quality of the Environment:
• Tourism and leisure businesses which are dependent on the region’s natural environment and historic heritage; and
• The role of the environment in helping to attract investment and contribute to the quality of life in Yorkshire and the Humber.
For the first time, the contribution of these activities to the regional economy has been quantified in a study commissioned by the Countryside
Agency, Yorkshire Forward, British Waterways, English Heritage, English Nature, the Environment Agency, Forestry Commission, Groundwork
and the National Trust.
Private sector environmental suppliers 20 450
Environmental management jobs in Industry 638
Public sector environmental posts 4 532
Environmental infrastructure 2 010
Environmental jobs in academic institutions 700
Environmental consultancy 280
Environmental jobs in the not for profit sector 650
29 260
Land Based Industries (provisional figures):
Environmentally beneficial farming 2 538
Fisheries 1 340
Organic farming 205
Environmentally beneficial forestry 100
Regional Produce 3 000
7 183
Capitalising on a High Quality Environment:
Tourism employment based on the quality of the environment 35 000
Total 71 443
FTE = Full Time Equivalent jobs.
Source: The Environmental Economy of Yorkshire & the Humber
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The Environmental Economy of Yorkshire and Humber
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Figure 1
Comparison with other regions: GDP (£m)
2.1 THE ENVIRONMENTAL INDUSTRY
1800
1600
1400
1200
1000
800
600
400
200
EGS Sector
Land Based
Capitalising on HQE
Total
2.1.1 Businesses Supplying Environmental Goods and Services
The environmental industry of Yorkshire and the Humber is an important, dynamic and fast growing sector that includes leading UK and
international companies active in growing environmental markets throughout the UK and overseas.
It employs an estimated 29 000 people and comprises a large number of businesses, involved in the manufacture and supply of a very wide
range of environmental technologies and services including:
• recycling and waste management;
• air pollution control;
• water supply and wastewater treatment;
• contaminated land remediation;
• environmental consulting;
0
Yorkshire &
the Humber
West
Midlands
North
West
North
East
East
Midlands
• environmental monitoring and instrumentation;
• energy management;
Source: ERM estimates
• renewable energy;
• sustainable construction; and
• cleaner technologies and processes.
Figure 2
Comparison with other regions: Jobs
120000
100000
80000
60000
40000
EGS Sector
Land Based
Capitalising on HQE
Total
Table 2: Summary of Employment in the Yorkshire and Humber Environmental Industry
Number of Employees Output (GDP) £ million 2
Businesses Supplying Environmental Goods and Services 20 450 1 £511
Environmental Academic Institutions 700 £25
Environmental Infrastructure (Construction Related Employment) 2 010 £50
Environmental Consultancy 280 £7
20000
Environmental Management in Industry 638 £17
0
Yorkshire &
the Humber
West
Midlands
North
West
North
East
East
Midlands
Public Sector Organisations 4 532 £81
Not for profit organisations 650 £9
Total 29 260 £700 million
Source: ERM estimates
Source : Consultants Estimate
Note 1: Based on Joint Environmental Markets Unit (JEMU), DTI data.
Note 2 Based on GDP per head figures ranging between £15,000-£25,000 per head.
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The Environmental Economy of Yorkshire and Humber
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The market for environmental goods and services in the region has been estimated at £511 million; however the overall contribution of this
Figure 4: Environmental Posts in Local Authorities
sector to regional GDP is estimated at £700 million – implying the region’s EGS sector exports significant business outside of the region.
Figure 3 indicates the composition of the EGS sector in GDP terms, showing that waste water treatment is the largest sub-sector of the
7%
1%
regional environmental industry, comprising 41 percent of the total. Other strengths are in areas such as waste management and
3%
Waste Management
environmental consultancy.
Figure 3: Contribution to Environmental Goods and Services Sector (by percentage of total EGS output)
16%
30%
Air Pollution
Wastewater Management
Noise
13%
13%
Air Pollution
LA21
Biodiversity
1%
4%
Cleaner Technologies
3%
Landscape
13%
7%
Waste Management
Monitoring
8%
Energy
Contaminated Land
8%
Water Treatment
Consultancy
Energy
Contamination
8%
6%
Source: Y&H region LA21 Forum Survey
18%
Other
Academic institutions in the region are also active in the environmental sector and employ approximately 700 staff in activities relating to the
environment. Examples are provided in the table opposite.
41%
Source: Yorkshire & Humber Environmental Economy Study
The public sector in the region is estimated to employ approximately 4 500 staff whose jobs are related to environmental management.
A breakdown of these jobs is presented overleaf.
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Table 3: Examples of Environmental Academic Courses across the Yorkshire and Humber Regions
Institution Course Description
University of Bradford MSc Local Sustainable Development Critical examination of how sustainable development is shaping
policy and strategy with consideration to practical delivery at
the local level.
University of Leeds Multimedia Environment Foundation Over 300 students per year with interactive elements and
Course
feedback. Looking to involve industrial partners in wider
applications.
University of Sheffield Renewable Energy and Sustainability A graduate research programme focussing on the development
of renewable energy technologies and their contribution to the
social, economic and environment spheres.
Sheffield Hallam University Environmental Management for An MSc course that sets environmental issues within the context
Business and Commerce
of business decision making, a feature which distinguishes it
from most other environmental masters degrees.
Strong Drivers for Future Growth
Significant potential exists for expansion of the environmental industries in Yorkshire and the Humber over the next decade – both through
market opportunities in the UK and overseas.
The UK market for environmental goods and services, for example, is currently worth approximately £14.8 billion and is forecast to grow to
£21 billion by 2010 (JEMU, 2002). The highest rates of growth are forecast in sub-sectors such as waste management, contaminated land
remediation, renewable energy and cleaner technologies and processes. Global environmental markets are currently worth US$515 billion and
are forecast to grow to US$680 billion by 2010 (see Figure 5).
A range of strong regulatory, policy and socio-economic factors is driving future growth. These include:
• EU regulations such as the Landfill Directive, the End-of-Life Vehicles Directive (ELV) and the Waste Electrical and Electronic Equipment
Directive (WEEE 1 ) (see below);
• National policies such as the UK Waste Strategy 2000 and its targets for increasing waste recycling, the UK Landfill Levy, brownfield land
reclamation targets (60 percent of new housing to be on reclaimed land), the Climate Change Levy and UK renewable energy targets which
aim to address climate change; and
• Growing commitment amongst industry to improve environmental performance, and increase resource efficiency.
University of Hull Estuaarine and Coastal Science Study includes carrying out fieldwork and original research;
Management
the theory of management; and the role and responsibilities of
statutory agencies and bodies involved in managing these
environments.
University of Hull Environmental Policy and Management This interdisciplinary programme provides students with a good
grounding in understanding and evaluating environmental policy
and prepares them for a career in environmental management,
regulation or research.
Source: Yorkshire Universities and University Web Sites
Drivers for the waste management industry:
Landfill – The EU Landfill Directive contains targets to: reduce biodegradeable municipal waste going to landfill to 75 percent of 1995
level by 2010, 50 percent of 1995 level by 2013 and 35 percent by 2020. Co-disposal of hazardous and non-hazardous wastes will be
banned, as will the landfill of tyres (whole tyres by 2003, shredded tyres by 2006). Landfill of liquid wastes, infectious clinical wastes
and explosive or highly inflammable wastes will also be banned.
Recycling and Recovery – Targets set by the Government will require local authorities to increase recovery and recycling or
composting of waste sent to landfill. Recovery should reach 40 percent by 2005 and 67 percent by 2015; recycling or composting
should reach 25 percent by 2005 and 33 percent by 2015.
Other regulatory drivers – Other regulations driving growth in the recycling industry include: the Draft End-of-Life Vehicles Directive
(implementation expected in 2007) which requires 80 percent of vehicle weight to be recycled by 2007; the Packaging Waste
Regulations; and the Waste Electrical and Electronic Equipment Directive (WEEE) expected to be implemented in 2006.
1
WEEE = Waste Electronics and Electrical Equipment Directive.
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Figure 5: Global Environmental Markets to 2010
800
700
2.2 LAND BASED INDUSTRIES
Activities in land based industries such as agriculture and forestry which aim to bring environmental improvements, or which are based on the
quality of the environment, generate or help to sustain nearly 7200 jobs in Yorkshire and the Humber.
Market Size (US$ bn)
600
500
400
300
200
100
Given the lack of statistical information on wider environmental/land management employment in agriculture, this is probably a very
conservative figure. Taken together, these activities play an important role in sustaining and diversifying rural economies and communities
in the region. A summary of employment in land based industries is presented below.
Table 4: Employment in Environmentally Friendly Land based Industries
Activity
Employment
Agri-Environment Schemes 2538
0
1990
Source: JEMU (2002)
1995 2000 2005 2010 2015
Organic farming 205
Regional produce 3000
Fisheries, Leisure etc 1340
Cost Effective Environmental Improvements in Industry
Better environmental management in industry will assist companies to meet environmental regulations, reduce costs and increases
competitiveness. It is estimated that there are some 640 posts supporting environmental management in industry in Yorkshire and the
Humber. Initiatives carried out by Business in the Community across the region demonstrate that companies can make significant cost
Environmentally Beneficial Forestry 100
Total 7183
Source: ERM estimates
savings by adopting environmental good practice. Such initiatives can and are being implemented by companies of varying size and from
different sectors.
Regeneration – Contaminated Land Remediation and Landscape Services
The region contains the highest amount of derelict land and buildings in England (3850 ha) being some 20 percent of the national total.
The remediation of these sites is a precursor to economic investment and prosperity and is a key principle within the Government’s Urban
White Paper. Until derelict and/or contaminated land is brought back into use it remains a wasted resource. Organisations and businesses
involved in remediation therefore have an important role to play in the regeneration of land, particularly, in the Objective 1 area and ‘postindustrial’
landscapes.
Significant Potential for Wider Take-Up:
The Government’s Envirowise programme has demonstrated that waste can cost an average manufacturing company four percent of its
turnover per year and that environmental best practice can reduce these costs by as much as a half. With total turnover of manufacturing
industry in Yorkshire and the Humber of £14.5 billion, this indicates that industry could, in theory, reduce costs by £290 million through the
Case Study – The Moorland Regeneration Programme
The Moorland Regeneration Programme in North York Moors National Park is one of the largest co-ordinated programmes of moorland
management in the country, aiming to benefit the local economy, community, wildlife and landscape.
50 000ha of the North York Moors is isolated heather moorland, where traditional business raising sheep and shooting grouse have
suffered from sheep ticks and bracken. The economic decline on the moors also risked having long-term negative effects on the
nature conversation.
‘The Moorland Group’, a partnership between private interests (landowners, shooting tenants and farmers) and conservation interests
(the National Park Authority, English Nature and National Trust) has been successfully working on reversing the economic and
environmental decline of the moorland. By controlling bracken, burning and cutting heather and setting up a programme for treating
sheep for ticks the programme achieved a 7.5 percent decrease in lamb mortality on the moors, which is the equivalent of some 2000
lambs. The strong partnership developed between the farmers and conservation bodies continues to work together for the benefit of
the moors and the local economy.
adoption of environmental best practice – thereby significantly enhancing industrial competitiveness.
Environmental Enhancement and Conservation
An estimated 350 people are employed in conservation activities in Yorkshire and the Humber. In addition, approximately 3000 volunteers work
on environmental conservation and enhancement projects in the region.
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Case Study – Manor Farm
The 163 ha Manor Farm uses integrated crop management to reduce production costs while creating habitats for wildlife. The farm
is purely arable, growing cereals, winter oil seed rape and winter beans.
Three to four percent of the least productive farmland was withdrawn from agricultural use and turned into wildlife habitats.
The spending saved on pesticides and herbicides which had previously been used on the land withdrawn from agricultural use
resulted in a two to three percent increase in overall profitability within the first year. On average, the farm saved £36 per ha on
reduced chemical use. Benefits to the biodiversity were an 800 percent increase in the skylark population and three species of
butterflies returning to the farm.
2.2.1 Opportunities for Growth
Regional produce is an area with significant potential for growth and it provides an important link between rural enterprises and the wider
food industry cluster within the region. The region has a relatively small number of speciality food producers (190 companies) at present but
many of these companies have high profiles inside and beyond the region.
Regional produce can have positive environmental impacts when reducing the miles that food is transported, so-called ‘food miles’, whilst
permitting farmers to create an added value product. The local nature of the products mean they are well suited to permit changes in the
conventional distribution chain, often allowing farmers to re-establish direct (or at least much closer) links with consumers.
The increasing demand from consumers for high food quality and safety is evident from the success of farmers’ markets and regional products
like those Protected Designation of Origin (PDO) registered products in the region. Swaledale cheese and Swaledale Ewes cheese both already
have PDO status and an application has been made for Hawes Wensleydale cheese. Grimsby Smoked Fish and North Riding Damson Cheese
are both seeking registration as Protected Geographical Indications (PGI) products.
Case Study – The Three Ridings Coppice Group
At least 21 farmers markets currently operate in the region and six more are planned.
The Three Ridings Coppice Group is a co-operative set up in 2000 as a limited company of six independent Yorkshire based coppice
workers, employing a total of nine people to further the common aims of its members such as sharing machinery, equipment and
work, marketing and promotion of products and services.
Three Ridings Coppice Group also supplies charcoal, thatching and firewood and develops unique decking, furniture, pergolas, screens
and fencing for gardens and outdoor areas. The co-operation and sharing of orders, marketing, new ideas and moral support have
helped the group compete more effectively and strengthen its position in this rapidly developing market.
Opportunities in Organic Food
The market for organic produce in the UK grew by 35 percent to £980 million in 2001 and is forecast to reach £1.2 billion in 2002
and £1.8 billion by 2005. This would make Britain Europe’s largest market for organic produce. The UK organic baby foods market is
now valued at £55 million – representing 40 percent of all baby food sales – compared with 23 percent in 2000.
Case Study – The Yorkshire Pantry
The Yorkshire Pantry is a regional association for food and drink producers and processors from North, South, East and West Yorkshire
with more than 100 members of all business sizes offering an extensive range of quality products for the retail, wholesale and
catering trades.
The group provides members with a tailored package of business support and marketing services designed to promote the range and
quality of Yorkshire produce both within the region and beyond. Group activities include a range of trade development initiatives,
business skills training, information services, PR retail and catering promotions.
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2.3 CAPITALISING ON A HIGH QUALITY ENVIRONMENT
2.3.1 Tourism
Environmentally motivated tourism accounts for an estimated 35 000 jobs in the Yorkshire and the Humber region and generates an estimated
annual contribution of £640 million to regional GDP. (In expenditure terms the figure is some £1.25 billon). In 2000 some 52 percent of visits
to regional attractions were to sites classified by the English Tourism Council as cathedrals and churches, country parks, farms, gardens,
historic houses, other historic buildings and wildlife attractions. This amounted to an estimated 9.3 million people visiting an environmental or
2.3.2 Film and Media
It is clear that film and media activity can have a double impact on the regional economy. The first and most direct impact occurs when filmmakers
spend money in the local community during the production of the film or programme. The second impact, which is prevalent in the
case of the well known television serials made in the region (eg Emmerdale and All Creatures Great and Small) and major feature films that
are commercially successful, is that of tourist spending in the region generated when visitors are encouraged to visit having seen the region
on television. Data from the Yorkshire Screen Commission indicates that between 1997 and 2001 nearly £43 million wash spent in the region
by film-makers, generating the equivalent of some 350 person years of work for local crew.
heritage site in the region (English Tourism Council). Other data from the Yorkshire Dales and North York Moors National Parks suggests more
than 15 million people visit the Parks, while many more visit the region’s impressive range of other free sites including woodlands, rivers and
canals and coastal areas.
Survey data amongst holiday makers indicates that a large proportion of respondents claim to be motivated by walking and hill walking (up to
60 percent for short walks, and 30 percent for walks over two miles), while field study and outdoor swimming motivates 19 and 17 percent of
visitors respectively.
Analysis of supply chains suggests that in rural areas in particular much economic activity is focused on tourist attractions, with evidence
from some sites following the foot and mouth disease outbreak of 2001 suggesting that bed and breakfast takings fell by some 75 percent
during the ‘closure’ of the countryside.
2.3.3 Quality of Life and Inward Investment
Quality of life is linked closely with the quality of the environment, crime rates, living costs, health care, and a wide range of social and
economic issues. Rogerson (1997), in a national survey which included fourteen locations in Yorkshire and the Humber, found that 56 percent
of respondents rated pollution levels as a ‘very important’ contributor to quality of life, while 33 percent rated the scenic quality of the area as
being ‘very important’ to quality of life.
Linked to environmental quality and the socio-economic variables which influence quality of life is inward investment, which is both influenced
by and can influence environmental quality. The case study below helps illustrate the links between these factors.
Case Study: Fountains Abbey and Studley Royal Water Garden
Acquired by the National Trust from North Yorkshire County Council in 1983, Fountains Abbey and the adjacent Water Garden were
declared a World Heritage site in 1987. The 822 acre (333ha) estate, open daily, offers visitors historic buildings, a mediaeval deer
park, elegant ornamental lakes and a range of education programmes and special events. Owned and maintained by English Heritage
in partnership with the National Trust, the site has undergone extensive restoration and repair since 1983. In 2001, some 49 staff
were permanently employed, a figure that usually more than doubles during peak season. Annual expenditure on staffing is in the
region of £450 000, with an additional £475 000 being spent on goods and services relating to the maintenance and operation of the
site. A large amount of this spending stays in the local economy; some 75 percent of staff live in the local post code area, and an
estimated 80 percent of operation and maintenance spending takes place locally. Capital expenditure on conservation projects of
up to £10 million is earmarked for future investment projects.
Case Study: Victoria Quays, Sheffield
The Sheffield and Tinsley Canal passes through Sheffield’s industrial heartland and terminates at Victoria Quays. The canal and
Victoria Quays have been restored and improved since 1991, with a total investment of some £34 million generating up to 750 person
years of construction related employment. The investments have been focused on the canal towpath and a number of nineteenth
century buildings of considerable architectural value located around the Quays. Outputs thus far include a total of 177 000 square feet
of office accommodation provides up to 200 full time equivalent (FTE) net additional jobs and leisure facilities including a hotel and
pub providing 35 net additional jobs. British Waterways estimates show that in 1995 the six kilometre stretch of canal from Tinsley to
Victoria Quays attracted 286 000 visitors, 13 000 anglers and 18 000 cyclists. Expenditure by these visitors is estimated to support
around five jobs (FTE). The improvements have also meant that the canal and its banks can once again offer a high quality natural
environment supporting a wide range of flora and fauna.
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3 RECOMMENDED ACTIONS FOR ACHIEVING FUTURE GROWTH
In order to achieve the growth potential in the environmental economy, the following actions are recommended. These have been identified
through consultation with regional organisations and businesses. Recommendations are presented for the EGS sector first, then for land based
industries and finally for activities dependent upon a high quality environment.
3.1 THE ENVIRONMENTAL SECTOR
Key features of this co-ordinated regional approach include developing a strong network of regional and sub-regional support providers and
strong representation of businesses in this network. Developing and supporting the regional EIF will be a key factor in this, as will continued
involvement from existing business support groups such as the Small Business Service, Business Links, the Yorkshire Purchasing Organisation
and Trade Partners UK. Potential support activities should include general business support (eg providing advice on grants, access to finance
and export opportunities), support for start-ups, spin-offs, diversification towards the EGS sector and in networking.
These support actions could be delivered under a number of programmes in the region, including action plans to deliver regional and subregional
economic development strategies; cluster development programmes; the regional skills action plan; and innovation programmes.
3.1.1 Environmental Goods and Service Businesses
The environmental industry in Yorkshire and the Humber is a strong and growing sector with good prospects for future growth. In the light of
opportunities, barriers to growth and business support needs, the following recommendations are made to facilitate the sector’s development.
The establishment of an Environmental Industries Federation (EIF) membership body will be crucial in initiating a structured programme of
support for the EGS sector in the region. This work could include the following:
• a survey of the sector to establish its training and business needs;
• a survey to assess its support needs in terms of R&D support, export assistance and access to finance;
• development of a regional action plan for the sector to be co-ordinated by either Yorkshire Forward or the Environment Agency with
funding being given under the Structural Funds; and
• the development of a “portal” for the sector to provide co-ordination of advice/information on funding, training and business issues and
facilitation of access to relevant provider organisations.
A second key initiative which offers an opportunity for the development of the EGS sector is a cluster study of the sector, which will provide
support for the long term growth and competitiveness of environmental industries in the region. We envisage Yorkshire Forward playing a
leading role in the co-ordination of the cluster, which ultimately will benefit existing companies, allow diversification into the sector and
encourage the establishment of new suppliers, including spin-offs from academic or industrial R&D.
These recommendations build on a number of initiatives already being introduced in the region and on actions already being taken in other
regions. Their objective is to provide sound business support to environmental suppliers in Yorkshire and the Humber with the aim of
promoting the growth and competitiveness of new and existing environmental suppliers (including spin-offs from academic research), and
helping companies in ‘proximate’ sectors, such as mechanical engineering or metal fabrication, to recognise opportunities and diversify into
environmental markets.
Co-ordinated Regional Approach
In delivering the support, and to make best use of available resources, it is essential to have a co-ordinated regional approach which will
help to:
• provide a clear strategic framework for environmental business support activities, targeted towards company needs and future market
opportunities;
Developing the EGS Sub-sectors
Waste
The area of waste management and recycling is expected to experience considerable growth over the next five years because of government
policy commitments such as the Waste Strategy 2000. To capitalise on developments in this sub-sector, we recommend that local authorities
adopt a more co-operative approach towards waste disposal. At present, authorities compete between each other to obtain the cheapest price
for waste collection. An alternative would be the implementation of a combined purchasing approach between authorities. This joint
contracting approach will help provide the economies of scale necessary to establish recycling infrastructure as well as provide additional
stability in the market for recycled materials. This could be implemented by one or more individuals being appointed by the Regional Assembly
to liaise with local authorities and waste contractors.
We also recommend that existing waste exchange clubs in the region be replicated. Innovative, not for profit groups operating in this area
could be supported with the business acumen skills of larger companies (in particular with regard to marketing and business planning), and
their work expanded to increase recycling in the region. We recommend that the lead partner should be Yorkshire Electricity (in its capacity as
chair of Business in the Community), with technical support from the Green Business Network, which has experience in facilitating such
programmes.
The region has significant land resources currently derelict or in need of remediation and there is continued potential for growth in areas such
as site investigation, landscape design, contracting and contaminated land remediation. Yorkshire Forward and local authorities are helping to
drive regeneration forward and they and the Regional Assembly should enhance their roles by ensuring that best environmental practice for
new buildings is promoted. This can be done by ensuring that Regional Planning Guidance and Local Plans reflect current best practice as
promoted by the Building Research Establishment. Yorkshire Forward, local authorities, the Regional Assembly and the Objective 1 and 2
programmes can also contribute by ensuring that quality landscape improvements are an integral part of overall site preparation.
Renewable Energy
GoYH should build on the regional renewable energy study and ensure that the sub-regional and regional renewable energy targets are
monitored and subsequently evaluated. Local authorities should be encouraged to help achieve targets through local planning systems and
funding programmes. Coupled with renewables, GoYH should play a key co-ordination role along with energy agencies such as that at Kirklees,
in order to increase energy efficiency in domestic properties. This will be consistent with local authorities’ statutory role under the Home
Energy Conservation Act (1995).
• provide a clear action plan of support activities which sets out objectives, targets, priorities, responsibilities and performance indicators;
• avoid duplication of effort amongst support providers;
• provide a clear, easily accessible support structure for businesses.
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Procurement
Local purchasing networks have the potential to stimulate the local economy whilst also reducing pollution and environmental damage caused
by unnecessary transport and shipping. We recommend that a regional environmental purchasing policy be established to integrate the work of
the Yorkshire Purchasing Organisation with environmental and ethical purchasing policies that are already in operation in some organisations
in the region. A co-ordinating body should be set up comprising purchasing officers from the main public sector organisations led by GoYH.
This group will then be responsible for agreeing and producing a regional Environmental Purchasing Policy indicating suppliers and products
with a local and environmental emphasis.
Not for Profit Organisations
We recommend that the not for profit sector, which has been undertaking valuable environmental, social and economic work in the region’s
communities, should be encouraged to do so through further funding and knowledge sharing. The establishment of Environmental Business
Exchange Programmes would allow marketing, business development, quality management and other expertise to be disseminated into the not
for profit sector from the private sector. Leaders for moving this initiative forward would be the Regional Voluntary Sector Forum, Business in
the Community, Objective 1 and 2 and Yorkshire Forward.
3.2 LAND BASED INDUSTRIES
As recognised in the Rural White Paper, the rural economy of Yorkshire and the Humber, in common with other regions, faces significant
changes and challenges relating to declining farm incomes, the possible likely expansion of the European Union and changes in the financial
support for agriculture.
It is important that businesses in the land based sector are encouraged and supported to diversify into a broader range of activities which
benefit the environment as well as bringing economic and social benefits. There is every indication that this is already beginning to happen,
but there is scope for accelerating and deepening this process. The changes that the agricultural sector faces, which will make farmers more
likely to examine alternative income sources, create an opportunity for improvements to be made to the environment, economy and community
facilities in rural areas.
As a result of consultations with key organisations in the region, the following actions are suggested to assist four key areas in this sector:
organic farming and regional produce; environmentally friendly farming, the development of energy and non-food crops and sustainable
woodland and forestry management.
3.2.1 Organic Farming and Regional Produce
While the demand for organic foods continues to grow faster than supply, the rapid popularisation of farmers markets indicates that consumer
demand continues to be buoyant in the market for regional produce too. Practical actions to enhance organic and regional produce markets
need to address supply side deficiencies with training among the predominant needs.
Training of producers and processors is critical if quality produce meeting consumer expectations is to be successfully marketed. There is a
role for the Soil Association, LANTRA and potentially LEAF to ensuring that effective training is provided in production, processing, pricing and
marketing. We also recommend establishment of a Regional Forum (as proposed in the Northern Organic Development Strategy) to play the
role of setting standards, promoting good practice and facilitating co-operation between operators in the sector. Quality counts too in respect
of the reliability of supply and examples of clusters (eg in lamb production) already exist to help ensure that farmers and other suppliers can
provide output at the right time. There is scope for the National Farmers Union and Yorkshire Pantry to encourage expansion of such initiatives
further in the region.
A regional forum could also assist in the integration of environmental considerations in the production and processing of food and drink.
Regional experience has demonstrated that significant cost savings have been achieved from integrated crop management on farms and waste
minimisation and energy saving initiatives in the food processing sector.
Looking at demand, the organic and regional produce markets could be boosted further through the systematic public sourcing of organic
food, via the promotion of an environmentally and locally based purchasing policy among public organisations including schools, hospitals,
staff restaurants and museums. Such a scheme could usefully be developed and lead by the Regional Assembly and Yorkshire Purchasing
Organisation with the involvement of GoYH, education authorities and others. There is a chance too to capitalise on the opportunities available
to promote locally produced food to tourists: these initiatives should be sponsored by Yorkshire Pantry, site owners and the Yorkshire Tourist
Board.
Linked to the issue of sales to tourists is the question of Yorkshire’s PDO and PGI products. Yorkshire’s strong regional identity and the
existence already of such products in the region suggests to us that an analysis of the economic benefits of establishing more such products
should be undertaken.
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3.2.2 Environmentally Beneficial Farming
Future growth of many environmentally positive land based business activities is dependent on the availability of public funds. These have
been increased significantly under the ERDP meaning that more farms are looking for advice and information about diversification from
traditional farming techniques. Related to this, we have identified a need to:
• Increase awareness among the region’s farmers of agri-environment schemes and opportunities to develop their businesses through the
vocational training and rural enterprise scheme of the ERDP;
• Streamline and improve co-ordination of existing agri-environment schemes and simplify scheme administration when the next national
review comes;
• Increase flexibility of schemes to ensure that good proposals do not go unfunded because funding guidelines are too rigidly adhered to;
• Expand on afforestation as an efficient social, economic and environmental regeneration tool on derelict land sites. There are very good
examples of projects of this type (eg following colliery closures in South Yorkshire) but because of the region’s industrial legacy there is
scope to expand the model. Lead organisations should be GoYH, Yorkshire Forward and the Forestry Commission, with land owners such
as Yorkshire Water and local authorities also being key players;
• Promote supply chain integration and wood product clusters to enhance quality and reliability of supply as well as economies of scale
from (for example) sharing machinery. The most appropriate organisation to lead on this would be either the Forestry Commission and/or
Yorwoods;
• Carry out a study identifying the economic potential of wood-related business opportunities on a regional and sub-regional level, to
facilitate farm diversification and add value to the sector. Such a study could be instigated and lead by the Woodlands Trust, South
Yorkshire Forest Partnership, White Rose Forest or Yorwoods.
• Improve guidance to farmers on funding availability, including reduced paperwork and a one-stop contact, the latter provided by existing
networks such as the Farm Business Advisory Service.
To increase uptake of environmentally beneficial farming more demonstration farms in organic farming and whole farm management
techniques (in line with the Manor Farm project) should be encouraged. NFU could play an important role in brokering contacts to farmers.
The development of whole farm environmental action plans, assisting farms in improving economic and environmental performance can also
be further enhanced, based on the solid experience of the National Parks and work undertaken by FWAG in the region.
3.2.3 Development of Energy and Non-Food Crops
There are a number of initiatives that should be taken in the areas of energy/non-food crops to encourage their development and provide
diversification opportunities for farmers wishing to complement their existing business. Among the opportunities are:
• Support and promote the introduction of small-scale biomass plants;
• ‘kick start’ the wood heat market by implementing the technology in schools, hospitals and other public buildings where (for example) old
boilers need replacement. Local Authorities and Yorkshire Forward can be instrumental in creating additional demand whilst enhancing
local economies;
• promoting and supporting local infrastructure through planning regulations and through transferring experience of successful renewable
energy projects throughout the region; and
• encourage the development of local energy service companies and provide capacity building among local suppliers.
3.2.4 Sustainable Forestry and Woodland Management
Much has already been achieved in the Region in generating economic and social benefits from environmentally beneficial forestry activities.
The following actions are recommended in order to help build on these achievements:
• Increase public procurement of certified wood products. This should be orchestrated by local authorities, the Forestry Commission and
Yorwoods to help increase the market for wood products from sustainably managed resources;
• Promote sustainable woodland and forestry management by raising awareness and providing training. This could be lead by the Forestry
Commission and Yorwoods. Training and information should also be provided to farmers where appropriate through Farm Business
Advisory Groups;
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3.3 CAPITALISING ON A HIGH QUALITY ENVIRONMENT
Work demonstrated that there are a number of actions which could be taken to realise growth among activities which capitalise on a high
quality environment. Our recommendations fall under three main headings: tourism, inward investment and quality of life. These are
addressed below.
3.3.1 Tourism Based on a High Quality Environment
Further developing sustainable tourism has the potential to contribute to objectives such as tackling rural poverty and assisting the
development of market towns. Tourism initiatives must however be sustainable and to encourage this, public sector funding organisations
should require that a sustainability appraisal be carried out on publicly funded tourism projects prior to their implementation. Yorkshire
Forward already uses sustainability appraisals and this experience should be disseminated to other regional partners. Meanwhile tourist visits
during the off-peak season should continue to be encouraged by the Yorkshire Tourist Board and others. Such an approach helps to spread
peak visiting times from Easter and the summer to other less popular times of the year, facilitating greater sustainability.
• Encourage the participation of people in health related activities, such as walking and cycling, contributing to better health and
fitness levels and greater environmental awareness (responsible organisations to include English Nature, local authorities and Department
of Health);
• Integrate health impact assessments into sustainability appraisals – good practice to be disseminated by Yorkshire Forward;
• Encourage the provision of environmental work schemes for socially excluded people, using successful examples of operations already up
and running. Encouragement should be facilitated by providing funding and taking into account the wider benefits of contracts being
fulfilled in this way when assessing tenders from such organisations;
• Encourage provision of amenity land and green space, using forestry, planting initiatives and landscaping to transform derelict and
underused land and capitalise on the environmental, economic and quality of life benefits realisable through doing so; and
• Continue the regeneration of the region’s river and canal assets under the management of British Waterways, riparian land owners and
with assistance from local authority planning departments and funding agencies.
Attention also needs to focus on transport issues. A contribution towards sustainable tourism could be made through a major effort to increase
overall public transport quality. This has now become urgent in the region and extends well beyond the single issue of tourism. While large
scale improvements and/or investment in such issues may be beyond the scope of regional organisations, operations such as the North York
Moorsbus can be encouraged. Indeed, the region’s National Parks could be used as trial areas for rural/integrated transport initiatives that if
successful could be rolled out to the rest of the region.
Turning to the presentation of sites, attractions and the region themselves, we recommend that the following actions are taken:
• Improve interpretation at sites to attract tourists and encourage them to stay longer. While responsibility for this lies with site owners such
as the National Trust, English Heritage and other owners, it can also be developed by community groups and act as a focus for rural
enterprise. Training should initially be facilitated by Yorkshire Forward and the Yorkshire Tourist Board;
• ‘Signposting’ or links and networks between attractions should be encouraged; signposting should also be extended beyond pure tourism
into local/regional products such as food and drink to capitalise on the distinctiveness of the region; and
• Invest in environmental and tourism infrastructure along the region’s coastline and provide more support for rural, coastal and marine
communities to manage and develop the economic potential of their tourism and heritage assets.
Finally, there is scope for revenue generating leisure activities such as scrambling, quad biking and other motorised pursuits to be based in
brown field areas close to or in urban centres (rather than in more prestine surroundings). Leading partners in promoting such initiatives
should be Yorkshire Forward, local authorities and when identified, land owners themselves.
3.3.2 Inward Investment and Quality of Life Based on a High Quality Environment
The following actions are recommended in order to enhance the way in which the quality of the region’s environment can help to attract
investment, skilled personnel and enhance quality of life in Yorkshire and the Humber:
• Development of business parks in the region, from the three broad models ranging from simple landscaping to the more ambitious
sustainable growth park model. Such initiatives are already underway through the actions of Groundwork, Yorkshire Forward and Urban
Mines and should be encouraged and developed further. Attempts should also be made to ensure environmental best practice in terms of
building design and landscaping is implemented on development projects;
• Disseminate examples of best practice widely through organisations such as Business in the Environment so that successful components
of the business park model can be replicated elsewhere;
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3.4 THE ENVIRONMENTAL ECONOMY AS A WHOLE
As well as the recommended actions for specific parts of the environmental economy of Yorkshire and the Humber, it is also recommended that:
• The environmental economy should become a core component of strategies and action plans to deliver economic development and
regeneration in Yorkshire and the Humber – at regional and sub-regional levels – thereby helping to promote regional progress towards
sustainable development;
• Yorkshire Forward and regional partners should examine how they can incorporate actions to promote growth in the environmental
economy in the process of revising the Regional Economic Strategy, as well as in action plans to deliver the strategy and other regional
plans and future action programmes for clusters/sectors of relevance;
• Sub-Regional Strategic Partnerships should incorporate actions to promote the environmental economy in their sub-regional economic
development strategies and action plans;
• Local Strategic Partnerships and Local Authorities in the region should recognise the importance of the environmental economy in their
local development plans. This needs to be reflected in local authority activities such as regeneration, planning processes, enforcement
of environmental regulations, waste management, energy efficiency and delivery of support and grants to businesses; and
• The Regional Assembly should examine how it can support, add value to and monitor future development and expansion of the region’s
environmental economy.
4 FURTHER WORK
In the course of completing the study, we have become aware of a small number of assignments and research studies that might usefully be
undertaken in the region. These are:
• An analysis of the relationship between quantifiable investment figures and expenditure on environmental improvement works,
which could be undertaken by interested researchers in the academic sector, perhaps funded by bursaries, grants or even a chair
at a regional university;
• A study to examine the economic benefits of establishing more Protected Designation of Origin & Protected Geographical Indications
products within the region;
• The implementation of a cluster study of the regional EGS sector (see EGS recommendations above); and
• A study identifying the economic potential of wood-related business opportunities on a regional and sub-regional level, to facilitate farm
diversification and add value to the sector (see sustainable woodland and forestry management recommendations above).
In addition, there remains a need for improved communications amongst and even within organisations to allow better co-ordination of data
and information. In particular, our research has shown how difficult it is to identify what work has already been carried out in the region.
Though some progress is being made in this respect, establishment of a regional resource that can furnish details of relevant regional
commissioned work would offer significant benefits and should be expedited as far as possible
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NATIONAL TRUST
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