Defra Env. Bill Targets, Macro-eco Analysis of Pathways for Increasing Res Pro

Description

Aim Overarching aim: To provide a macroeconomic assessment of a set of high-level pathways for driving improvements in resource productivity in England to 2050. Achieving this overarching aim will require developing or utilising an existing macroeconomic model to deliver scenario analysis based on a shortlist of policy interventions provided by Defra and modelling outputs from a multiregional input-output model. This analysis will support planned consultation and decision-making related to targets being scoped in the area of resource efficiency and waste reduction under powers sought through the Environment Bill. It is not expected that a detailed economic appraisal is feasible for each intervention, but rather a lighter-touch analysis across a range of scenarios is sought. Background Environment Bill Targets Once in place, the Environment Bill (EB) will give the Secretary of State the powers to set long-term, legally binding targets across the breadth of the natural environment. On the 19th of August 2020, Government released a policy paper setting out an initial suite of potential targets and the process for developing these. Within the area of resource efficiency and waste reduction, targets are being explored to drive improvements in material resource productivity (the market value of aggregate economic output in England in relation to primary raw material consumption (RMC)) and reductions in residual waste (defined as waste sent for incineration – including for energy recovery - or landfill). Outcome-based targets provide flexibility in how they might be reached, & it is therefore the route or pathway that society takes in attempting to reach a given target which will define its overall economic impact. Pathways for improving national resource productivity will consist of real-world changes in consumer behaviour, infrastructure, production processes & business models. Regulation is the means through which Government seeks to realise these changes