On 13 November 2009, SJ Berwin hosted a seminar, which was organized by the Japan Society with The Japanese Chamber of Commerce and Industry in the UK, to address the UK's response to climate change and to consider the challenges and opportunities for businesses arising out of the UK's transition to a low-carbon economy.

The seminar was chaired by Professor David Cope of The Parliamentary Office of Science and Technology.  The panellists were Angus Evers (Partner and Head of Environment at SJ Berwin LLP), Jonathan Bryers (Partner at Carbon Trust Investments), Adrian Fox (Supply Chain Manager at the Marine Estate of The Crown Estate), Louis Turner (Director of the Asia Pacific Technology Network), and over 100 delegates.

The panellists considered a wide range of issues concerning the merits of the UK's response to climate change and how well placed the UK is in the cleantech/renewables sector compared with other countries such as Japan.  The prevailing view was that the UK remains an attractive target for investment, with ambitious statutory targets for reducing greenhouse gas emissions and generous incentives for renewables.  However, overall it was felt that greater long-term stability is needed in policy-making to enable investment decisions to be made.  The planning system came in for some criticism for holding up onshore renewables projects, but it was pointed out that supply chain issues and grid connections have also delayed such projects.

Funding issues aroused a great deal of debate, with panellists expressing views that a combination of public and private sector support and incentives have placed (and will continue to place) the UK in a strong position relative to other countries, and that new initiatives, such as the proposed adoption of feed-in tariffs next year, would reinforce this position.  However, other views were expressed that more must be done to reduce the barriers to entry that start-ups in the cleantech sector face.  In particular, start-ups need more help from the public sector in getting across the so-called "Valley of Death", from having a tested idea to having a marketable product. 

The UK's position in cleantech was contrasted with that of Japan, who was noted to be a market leader in a number of cleantech sectors.  However, it was pointed out that Japan's pre-eminence is under threat from South Korea and China, whose cleantech sectors are showing rapid growth.  The level of public sector support available in Japan was also praised, with one example quoted being the Japan Export Credit Agency's underwriting of political and delivery risks for Clean Development Mechanism projects under the Kyoto Protocol.  The far greater level of funding of cleantech science and technology at Japanese universities compared with British universities was also singled out as a significant difference between the UK and Japan.

The issue of the security of energy supplies generated some heated debate.  Whilst negotiation of long-term pricing arrangements for resources such as natural gas or oil may, at an early stage, be beneficial for both parties, as resources become more scarce, the relative strength of the parties may alter and increasing concerns over security of supply may emerge.  Such concerns have a strong influence on decisions to develop new technologies and to improve and develop existing technologies.

With the Copenhagen summit only three weeks away, the prospects of an international agreement being reached at the summit inevitably cropped up in the debate.  There was general optimism that progress towards an international agreement would be made, although most of those present felt that it was now unlikely that the international community would be able to agree a binding legal agreement and that such an agreement would have to come later.  However, it was noted that there had clearly been a dramatic change in public attitudes towards climate change since the Kyoto summit in 1997.

A final topic which elicited strong views from those attending the seminar was that of nuclear power.  The issue of whether the power sector favours nuclear power over clean coal was raised, as was the issue of whether the nuclear industry should be subsidised through incentive mechanisms in the same way as renewables.

The seminar provided a useful forum for both Japanese corporates and UK cleantech/renewables sector players to debate the future of the low-carbon sectors in both countries and to explore the investment opportunities available.  Investors now clearly recognise cleantech/renewables as a business opportunity and a long-term value driver with a myriad of investment opportunities including clean fossil fuels, energy efficiency, green buildings, smart grids, solar power, water treatment and low-carbon vehicles.