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Indicator 1. Sustainable prosperity

Index of carbon dioxide emissions divided by GDP (1990=100)

Source: Scottish Executive and NETCEN

Notes: Scottish carbon dioxide emissions were first published in 2000 for 1990 and 1995. Scottish emissions data for 1998 and subsequent years are being published annually. The figures shown above have been revised following revisions to both GDP and emission estimates.

The relevance of the indicator

Delivering a sustainable economy means decoupling growth from environmental pressure. In this way we can enhance prosperity while reducing our impact on the environment. In particular we are seeking to reduce the carbon intensity of the Scottish economy.

Detailed definition and source details

This indicator uses data from two sources. The quarterly Gross Domestic Product for Scotland¹ series published by the Scottish Executive is a weighted aggregation of over 250 indices measuring output across the economy. It is produced using a mixture of ONS survey data and other data sources. Carbon dioxide emissions for 1990, 1995, 1998-2002 were taken from the report compiled by NETCEN for the Department for Environment, Food and Rural Affairs (<acronym>Defra</acronym>) and the devolved administrations ².

Trends

The index of carbon intensity of the economy has fallen from 100 in 1990 to 76 in 2002, as a result of increasing Gross Domestic Product ( GDP) and a reduction of emissions of carbon dioxide into the atmosphere (see Indicator 7 for information on carbon dioxide emissions).

Further disaggregation

No further disaggregation is possible.

Target

No target - the absolute value has no significance, but a reducing trend is desirable.

Action

The Framework for Economic Development in Scotland ³ ( FEDS) sets out our vision to raise the quality of life of the Scottish people through increasing economic opportunity for all on a socially and environmentally sustainable basis. Scottish Ministers remain committed to FEDS and the medium and long term principles it describes. They also recognise that the economic and policy contexts, both in Scotland and across the whole world, have changed since the original document was published in June 2000. The Executive is currently revisiting FEDS to take account of any circumstances that have changed, although it is not anticipated that the thinking or the underlying principles will be altered.

Scottish Enterprise has a clear contribution to make to sustainable development with an emphasis on enhanced productivity through improved resource efficiency and new business opportunities in the developing market for sustainable technologies. The Scottish Enterprise sustainable development group has developed a programme of specific actions that reflects this focus and builds on existing Network good practice. The nature of the rural economy has meant that sustainable development has a more established place in Highlands and Islands Enterprise ( HIE) activities and is an important part of not only of the network's business development activities but also its specific 'strengthening communities' remit. A Smart, Successful Scotland: the Highlands & Islands Dimension sets out HIE's strategic approach in these areas and an outline of key sustainable development activities is given on the HIE website ⁴.

We published the Scottish Climate Change Programme⁵ in November 2000 which sets out the measures that will deliver Scotland's contribution to the UK Climate Change Programme, aimed at meeting the UK Kyoto commitment and moving the UK as a whole toward the domestic goal of a 20% reduction in carbon dioxide emissions. The programme is currently under review to consider the scope for strengthening existing measures and for introducing new ones. A revised Scottish Climate Change Programme is due to be published in 2005.

We provide funding through the Scottish Energy Efficiency Office ⁶ ( SEEO) for the Carbon Trust's ⁷ activities in Scotland. The Carbon Trust runs programmes aimed at encouraging reductions in business energy consumption and fostering research into low carbon technology. The Carbon Trust's Low Carbon Innovation Programme ( LCIP) is aimed at assisting the commercialisation of innovative low carbon technologies. This will contribute to reducing the carbon intensity of the economy and assist British businesses to capitalise on the large predicted global demand for such products. The Action Energy Programme provided by the Carbon Trust and managed in Scotland by SEEO provides practical assistance to business and public sector organisations to assist them to reduce energy consumption.

Scotland has tremendous renewable energy potential, which can be developed to benefit jobs and sustainability. Our initial target is to achieve 18% of electricity generated from renewables by 2010. Following a further consultation on our renewable energy policy, A Partnership for a Better Scotland: Partnership Agreement and Building A Better Scotland: Spending Proposals 2005-2008 included commitments to work towards increased electricity generation in Scotland from renewables to 40% by 2020. This long term commitment provides Scottish industry, inward investors and communities with proof of our determination to secure the economic and environmental benefits which an expansion in renewable energy can provide.

We have adopted an ambitious approach to the inclusion of sustainable development in all five European Structural Funds programmes for 2000-2006. A sustainable development advisor has been appointed, and is employed by SEPA and SNH to assist all Programmes. An integrated methodology has been developed for embedding sustainable development in project preparation and appraisal systems, and appropriate training has been provided for those responsible for managing programmes. This has increased the significance of the issue within selection and scoring processes, and is intended to ensure that sustainable development is inherent in projects that are supported, rather than being added on. In October 2004, a one day conference was held to promote the mainstreaming of sustainable development across Scottish European Structural Funds programmes and to highlight best practice amongst programme managers, sponsor partners and project applicants. The conference launched two publications consolidating learning from the sustainable development approach: Linking Sustainable Development to Regional Development, published by SEPA / SNH, and Mainstreaming Sustainable Development in Regional Regeneration, published by the Eastern Scotland European Partnership, which organised the conference. These publications will provide a practical toolkit and guidance for future Structural Funds applications, and have been commended by the European Commission for their contribution to the European Union's sustainable development agenda.

http://www.esep.co.uk/download/sdupdate/susdevpt_mainstream.pdf

http://www.sepa.org.uk/publications/technical/struc_funds/index.htm

The current energy standards for buildings were introduced in March 2002. The improvements made represent a 25% saving in energy terms over the previous set of standards. These standards apply when new buildings are constructed and existing buildings are altered and/or extended. We currently have the most demanding levels of thermal insulation for buildings (including conservatories) in the UK.

A review of the building standards system in Scotland commenced in 2000 and this resulted in the Building (Scotland) Act 2003 and associated secondary legislation. The new system came into effect on 1 May 2005. To enable industry to become accustomed to the new procedures, we sought ministerial approval to allow us to keep technical changes to a minimum. However some of the procedural changes have enabled energy efficiency improvements, in particular when the use of existing buildings change. In our new system we are moving away from simply setting minimum standards for buildings to one that is designed to give good practical guidance.

In March 2005 we commenced our review of the energy standards, with a view to meeting the commitment made in the 'Partnership Agreement'. It is intended to implement the resulting revisions by May 2007. As a part of this review we are looking at ways of encouraging building integrated energy supply systems based on renewable energy ( e.g. photovoltaics and wind turbines), combined heat and power ( CHP) and district/block heating. The review is taking into account any improvements/revisions that will be effected in England and Wales as a result of their current review and the requirement to implement the EU energy performance of buildings Directive ( EPBD). The objective of the EPBD is to promote the improvement of the energy performance of buildings. Several aspects of this Directive are currently met by the Scottish system of building standards, but the concept of energy performance certificates being made available upon sale or rental is new and presents opportunities for energy conservation improvements.

Sustainability is the cornerstone of our forestry policy. We own almost 40% of Scotland's forests, managed by Forestry Commission Scotland, and all of these forests have been independently certified as sustainably managed through a process recognised by the Forestry Stewardship Council. By locking up carbon, forests help to reduce levels of greenhouse gases - thus contributing to delivery of the Scottish Climate Change Programme.

We will implement our commitment to 'assess economic development policies against their impact on targets set through the Scottish Executive's sustainable development indicators', as promised in our Partnership Agreement, a partnership for a better Scotland⁸, published in May 2003.

Footnotes

1 Available on the Scottish Executive website at: www.scotland.gov.uk

2 SL Baggott, L Brown, R Milne, TP Murrells, N Passant, DG Thistlethwaite (2004) Greenhouse Gas Inventories for England, Scotland, Wales and Northern Ireland: 1990-2002 NETCEN, AEATechnology, AEAT/ENV/R/1761 01/10/2004. Available at: http://www.naei.org.uk/report link_php?report_ id=281

3 Available on the Scottish Executive website at: www.scotland.gov.uk

4 www.hie.co.uk/sustainable-development.htm

5 Available on the Scottish Executive climate change website at: www.scotland.gov.uk/climatechange/

6 More information on the SEEO can be found on their website at: www.energy-efficiency.org

7 More information on the Carbon Trust can be found on their website at: www.thecarbontrust.co.uk

8 Available on the Scottish Executive website at: www.scotland.gov.uk

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