SC(3) CR-R17

Sustainability Committee

Response from Welsh Consumer Council (WCC)

Virginia Hawkins
Sustainability Committee
National Assembly for Wales
Assembly Parliamentary Service
Assembly Offices
Cardiff Bay
CF99 1NA
Email: Sustainbility.comm@wales.gsi.gov.uk

5th October 2007

Dear Colleague,

Inquiry into Carbon Reduction in Wales -Residential Carbon Reduction

The Welsh Consumer Council (WCC) is committed to being the authoritative voice of consumers in Wales by working with consumers and related organisations to present their interests and needs to industry and government in order to generate beneficial change.

We have a long-running programme of work on sustainability issues, including consumer attitudes to sustainable consumption(1) and climate change(2), and the potential benefits of microgeneration to consumers in Wales(3). We welcome the opportunity to respond to this consultation.

The energy we all use to heat, light and power our homes accounts for more than a quarter of the UK’s total carbon emissions i.e. 27% or 153 million tonnes(4). Reducing residential carbon emissions is therefore a significant challenge for both the Welsh Assembly and UK Governments, particularly as many of the required actions will involve a shift in both consumer attitudes and, more importantly, behaviour.

General questions:

Q2. Should the emission reduction target be based on Welsh consumption, or production, or both?

The need to reduce carbon emissions in order to prevent the serious consequences of climate change is a global issue and one which affects us all. It is therefore something that needs to be approached holistically and in the context of the world we live in. To that end for it to be meaningful, any emission reduction target for Wales needs to consider both production and consumption activities.

Challenges & potential ways forward:

Engaging with the public

Welsh Consumer Council research(5) has shown that two thirds of the Welsh population are concerned about the impact of climate change and most believe it could have serious consequences for our life here in Wales. Since this survey was conducted (in 2004), we have seen a notable increase in the number of media stories and commentaries on the impact of climate change so it is very likely this figure will have increased in recent years.

In spite of growing public concern further evidence shows that translating such concern into action is a very different matter. A recent survey by the Energy Saving Trust (EST) (6) found that while over half the UK population now recognises a real link between the energy they use at home and climate change, two fifths (40%) admit to doing nothing at all about it. Clearly more needs to be done to identify and understand the path that leads from awareness to action in order to encourage behaviour and lifestyle changes that will ultimately lead to the required reduction in household emissions.

The findings of the EST survey show that the majority of the population believe governments should be doing more to improve consumer knowledge and awareness of this issue. Most people (80%) wanted to know more about what they can actually do to save energy.

Effective pubic engagement is therefore a key aspect of reducing household carbon emissions and an area where the Welsh Assembly Government, in partnership with other organisations, should be taking specific action. In light of this, the development of a Sustainable Energy Network for Wales, which will act as a 'one-stop shop’ for consumer advice on household energy saving and low carbon lifestyles, is very welcome. We are pleased to hear that in Wales a partial service is likely to be in place by the start of 2008 and hope once the full service is operational that this will bring real progress in relation to many of the issues we have highlighted in this response.

Such issues include the need for:

• better targeted information campaigns: this should include the use of social marketing techniques that start from where consumers actually are, rather than where policymakers think they are or want them to be - such approaches have been used successfully to promote health promotion messages.

For example, the Food Dudes Programme, developed by psychologists at Bangor University in North Wales, is an initiative to encourage and maintain healthy eating habits in children. The programme has been shown to greatly increase and sustain the quantity and range of fruit and vegetables consumed by children, especially amongst those who ate least at the outset. The success is such that in 2006 the initiative was awarded a best practice award by the World Health Organisation (7)

• clearer definitions and the use of simple messages which provide the basic facts surrounding climate change and what people can do to adopt low-carbon lifestyles.

Many of the definitions and terminology surrounding carbon emissions and climate change can be confusing for consumers. In order to properly engage the public on this issue and stimulate them to take direct action the language and terms used need to be clearly defined and universally agreed.

For example, while recognising the complexity and difficulties of measuring the total amount of CO2 emitted throughout a process or lifetime of a product, currently there is no one way to measure a 'carbon footprint’. If only emissions from part of the process or supply chain have been taken into account, this needs to be made clear to the consumer. Failure to do this will not only add to any confusion or misunderstanding, it is also likely to impact on consumer trust and confidence in the claims being made, ultimately leading to further disengagement from this important issue and promoting inaction as opposed to action.

• community-based initiatives which promote learning about sustainable lifestyles: For example, the Women’s Institute 'Eco-Teams’ Project. This initiative involves small groups of WI members meeting to share ideas and work together to learn how to make simple yet effective changes to their household’s lifestyles in order to live in a more sustainable way and save money. Areas for discussion include energy and water efficiency, transport, waste and shopping.

• the promotion of eco-labelling schemes so that consumers can tell which products have the biggest climate impact. However, as with carbon footprints, it is important that any such labelling is clearly defined and universally agreed, and not just used as a marketing tool.

Lessons can be learnt from the front-of-pack signpost labelling schemes being adopted by the food industry and retailers to help consumers identify healthier choices when shopping for food. There are currently two 'competing’ schemes - traffic light labelling (endorsed by the Food Standards Agency (FSA) and many health and consumer organisations) and the Guideline Daily Amount (GDA) scheme adopted by some retailers and food manufacturers. While a consensus has yet to be reached on which scheme is likely to be adopted universally, the debate has led to some agreement that this type of information, presented clearly on the front of a food label, is important in helping consumers make healthier choices. The FSA is currently undertaking an independent programme of research to establish which system consumers find it easier to use.

Policies that facilitate action:

While important, the provision of information is only the foundation block for encouraging behavioural change. Evidence has shown that knowledge will often only prompt us to do one or two things to modify our behaviour, as is the case with recycling, with many people not actively doing anything at all. While even small changes are better than nothing in order to encourage substantial shifts in consumer behaviour Governments need to develop policies that help to facilitate the adoption of more low-carbon lifestyles and make it easier forconsumers to make sustainable choices.

Making homes more energy efficient:

The energy we use to heat, light and power our homes is one of the major contributory factors to household carbon emissions, hence making all homes in Wales more energy efficient is one of the key drivers for emissions reduction. This is an area in which both the Welsh Assembly Government and the energy supply industry have made some progress, with most efforts being directed at vulnerable households through the Home Energy Efficiency Scheme and the Energy Efficiency Commitment (EEC) -the obligation imposed on energy suppliers whereby at least half of the energy savings achieved need to be targeted at low income households. There is however still a lot to be done.

The issue of 'hard to treat’ homes remains a difficult problem which has yet to be adequately addressed. This is an issue of particular relevance to Wales due to the high number of urban properties built before 1920 and the number of poorly constructed rural properties with solid walls (8). Most of the existing advice and financial assistance available under current programmes is being targeted at households whose properties can easily benefit from loft and cavity wall insulation.

In light of this, the Welsh Consumer Council welcome the UK Government’s proposals for the Carbon Emissions Reduction Target: April 2008 to March 2011 (set to replace the EEC), which has been specifically designed to encourage suppliers to undertake more expensive carbon reduction measures in 'hard to treat’ properties.

We urge the Welsh Assembly Government to work with energy suppliers in order that those living in such properties and in most need of financial assistance to make their homes more energy efficient -most notably those living in fuel poverty -will benefit from such proposals.

Roll out of Smart Meters:

We also support the introduction of Smart Meters which would allow consumers to have a greater understanding of their energy use and potentially better control over their gas and electricity bills. While it would appear in the long term the advantages of introducing 'smart meters’ outweigh the disadvantages, the cost of introduction cannot be ignored. Such costs are inevitably going to fall on the consumer.

It is important that: • any introduction is supported by a detailed information campaign on what the meters can offer consumers and their potential role in helping people to budget and become more energy efficient;

• the needs of vulnerable consumers are addressed in terms of the way the information provided by the meter is presented; • industry agrees a 'standard’ Smart Meter (compatible with all individual systems) so that meters can be 'maintained’ by another supplier if the customer decides to switch.

More investment in renewables/ microgeneration:

While microgeneration is not for everyone and many consumers live in unsuitable properties, there is still substantial untapped potential for increasing the take up of such technologies in Wales. Unlocking this potential depends on the twin factors of affordability and accessibility - amongst households who may be amenable to the concept of microgeneration cost is one of the main barriers to take-up.

If microgeneration is to be more widely adopted it needs to be presented as a sensible investment for the consumer. While the technologies are subject to a reduced rate of VAT (5%), payback times are still far too long to make it worthwhile for anyone other than the keenest environmentalists. The cost to the consumer is only likely to reduce when more people buy into the technology or with the help of government subsidies. Renewable energy at the community level has far greater potential for affordability. We believe there should be a Community Renewables Initiative in Wales as there is in England and Scotland.

Currently many consumers don’t relate microgeneration with energy efficiency, however it only becomes meaningful within the wider efficiency context. Therefore it’s important government policies on microgeneration fit into existing energy efficiency policy.

Approached in the right way, research(9) has shown that the presence of microgeneration technologies in a household may encourage a greater engagement with environmental issues in general, making people more open to other energy efficiency measures and further aspects of sustainable living. However this catalytic effect needs to be presented in a way that empowers and engages consumers so they feel they are benefiting and in control.

Sustainable food production & consumption:

As mentioned at the beginning of our response we believe it is important to look at the issue of household carbon reductions holistically. Therefore, while some may consider the following issue to be outside the scope of this particular consultation we felt it important to highlight the significant contribution the food we eat makes to household carbon emissions - taking into account how it is produced, processed, packaged and distributed. Most of us are aware of recent calls to reduce food miles however to get a true picture of the carbon emissions associated with food we need to look beyond the way food is transported and examine every aspect of the food supply chain.

The Welsh Consumer Council has recently welcomed the launch of the Assembly’s 'Welsh Food Debate’ and it’s associated Quality of Food Strategy (September 2007), which aims to develop an holistic 'farm to fork’ approach to food policy. We are pleased to see the inclusion of environmental, fair trade and waste management issues within the strategy.

Over the last few decades both global and European trade and agricultural policies have had a huge impact on food production and distribution, and hence our purchasing behaviour. The growth of the supermarket has also caused a cultural shift in both the way people shop for food and what they eat -to the extent that supermarkets now account for nearly ninety per cent of our grocery purchases.

The dominance of the supermarket has also resulted in many people losing touch with where food comes from. As a result they are less likely to be aware of what impact food prices and year round access to a variety of different products has for both food producers (here and abroad) and the environment.

While it is difficult, if not impossible, to turn the clock back on all global developments in the food sector over the past few decades, if sustainable food choices are to make up an increasing proportion of our food purchases there is a need to re-connect people with the whole food supply chain in order

that they can better understand the environmental, social and economic impacts of their food buying behaviour.

If consumers are to make more sustainable food choices it is important that:

• they are educated on issues such as the food supply chain; seasonality; and the impact food production; processing and distribution currently has on carbon emissions;

• agricultural and waste management policies
• facilitate the purchase of local, seasonal, and fair trade food;
• support the provision of full service kerbside recycling schemes and community recycling facilities;
• facilitate the reduction of packaging on food products and reliance on multiple carrier bags to take shopping home.

If you have any queries about any aspect of this response please do not hesitate to contact me (email: Lindsey@wales-consumer.org.uk: Tel: 029 205 5454 ext: 225).

Yours sincerely,

Lindsey Kearton
Senior Policy Officer

References:

(1) 'High Price to Pay’, Welsh Consumer Council (May 2004)
(2) 'Climate Concern: attitudes to climate change & windfarms in Wales’, Welsh Consumer Council & Friend of the Earth Cymru (September 2004)
(3) 'Powerhouses? Widening microgeneration in Wales’, Welsh Consumer Council (February 2006)
(4) www.energysavingtrust.org
(5) Op cit 2
(6) 'Green barometer: measuring environmental attitude’, Energy Saving Trust (April 2007)
(7). www.fooddudes.co.uk
(8)Fuel Poverty: the state of the nations’, NEA, February 2004
(9)Seeing the light: the impact of microgeneration on the way we use energy’ (October 2005), a report by The Hub Research Consultants on behalf of the Sustainable Consumption Roundtable