Innovation Report Proposal 5.37
We will start by examining how environmental regulations can be
designed and implemented to secure the desired environmental outcomes
in a way that does more to promote innovation and business
opportunities. A project team, led by DTI in partnership with the
Department of the Environment, Food and Rural Affairs (Defra), the
Cabinet Office, Department for Transport (DfT) and the Environment
Agency (EA), working in consultation with business and other
stakeholders, including Non-Governmental Organisations (NGOs), will
start by looking at three areas: implementation of the Integrated
Pollution Prevention and Control (IPPC) Directive; eco-design of
products; and vehicle emission regulations.
Context
The Innovation Report proposed that we should examine how
environmental regulations can be designed and implemented to secure the
desired environmental outcomes in a way that does more to promote
innovation and business opportunities.
The three projects chosen were devised and carried out with three objectives in mind:
- To study existing regulations affecting the industries concerned;
- To ascertain what aspects of these regulations encourage innovation
and what factors tend to act as barriers to innovation; and
- The key aim of environmental regulation is to improve the environment.
Progress to date
This was a DTI-led project with cross-departmental input from the
Department of Environment, Food and Rural Affairs (Defra), Department
for Transport, Cabinet Office, HM Treasury and the Environment Agency.
Consultants Arthur D Little Ltd were engaged to conduct the research
and deliver a report.
The study focus included the UK, Europe, Japan and US and passenger
cars and trucks - but not motorbikes or non-road vehicles - during the
last 20 years. There was an in-depth review of industry and academic
literature and interviews with key individuals across a range of
organisations, including manufacturers such as Toyota, MG Rover and
Shell. Finally, there was also consultation with industry associations,
such as the European Automobile Manufactures Association, the
International Automobile Federation and the Institute for European
Environmental Policy.
The study's main recommendations for making emission control regulation more 'innovation-friendly' in the future are:
- A clearer long-term vision for vehicle emissions reduction would foster greater confidence among manufacturers to innovate.
- Regulations should be set with reasonable timescales and should continue to use a 'phase-in' approach.
- Regulations should set clear limits that provide some element of
challenge for manufacturers to achieve - this may require changes to
the way in which the impacts of new policies are assessed.
- Regulators in the UK and in Europe must continue to avoid
technology-following regulation and should provide clear long-term
outcome-based objectives.
Next Steps
With the three pilot projects now completed, the common strands of each set of findings will be drawn together to form a set of clear recommendations. The results will form the central theme for wide-ranging consultation with industry stakeholders.
A workshop discussion was held in early April 2005 with key industry representatives and Government departments. The outcome from this event can be read here.
Further publicity events will follow on from this consultation.
The results of the three studies will feed into a new project to embed 'innovation-friendly' policy-making across government.
Further Information
Dr John Cockaday
Department of Trade and Industry
151 Buckingham Palace Road
London SW1W 9SS
Telephone: 020 7215 1012
E-Mail: john.cockaday@dti.gsi.gov.uk |