1. Evaluating the UK policy framework for Bio-energy R. Slade (*), C. Panoutsou and A. Bauen The policy context The UK energy system is evolving rapidly; drivers for change include:  Climate change  Market liberalisation  Resource depletion  Infrastructure replacement Nevertheless, high level policy objectives have remained remarkably consistent: “UK policy aims to ensure secure, diverse and sustainable energy supplies at competitive prices 1 ” Bio-energy has the potential to address multiple policy objectives Bio-energy Group, Imperial Centre for Energy Policy and Technology, Imperial College, Mechanical Engineering building 3 rd floor, Exhibition Road, London, SW7 2AZ; www.imperial.ac.uk/icept; (*) email: r.slade@imperial.ac.uk. Initial conclusions In 2003 the UK Government introduced the reduction of CO 2 emissions as a core objective of UK energy policy. Increased use of bio-energy is expected to make a significant* contribution to meeting this objective. An extensive framework of targets, incentives, economic and regulatory instruments is in place to drive the development of the sector; nevertheless, progress is slow. This paper reviews the UK policy framework for bio-energy, proposes criteria by which policy effectiveness may be evaluated and draws initial conclusions. The UK energy sector had been subject to a large number of policy initiatives, originating both domestically and via the EU. Bio-energy policy A basis for evaluation Introduction  External constraints are surmountable  Objectives are unambiguous and agreed  A direct relationship exists between cause and effect  Outcomes are quantifiable; compliance reporting is reliable Preliminary results Notes and references: *The Carbon Trust: Biomass sector review, 2005. estimates that the proportion of UK energy supplied by biomass could increase from 1.5% to 3% in the short term and up to ~5% in the long term ; 1 Runci, P.J., Energy R&D in the United Kingdom. 2000, Pacific Northwest National Laboratory Battelle Memorial Institute ; 2 Adapted from McCormick, J., Environmental policy in the European Union, p142-14, PALGRAVE. Acknowledgements: We gratefully acknowledge the support provided for this work by the joint research councils through their sponsorship of the TSEC-BIOSYS project: Natural Environment Research Council (NERC), Engineering and Physical Sciences Research Council (EPSRC) and the Biotechnology and Biological Sciences Research Council (BBSRC). Incentive schemes target all stages of the supply chain and innovation chain. Multiple organisations are responsible for administration  The bio-energy policy arena is crowded: there is an extensive legislative framework, multiple initiatives, and multiple actors.  With the exception of heat, the coverage of Incentive schemes is comprehensive, but not necessarily optimal from a cost, land use or energy perspective.  Anticipated policy outcomes are poorly quantified: assessing policy effectiveness is thus a major challenge.  Evaluating whether the existing policy mix is sufficient to meet high level objectives requires a whole-systems approach. A wide range of legislation impacts the development of UK biomass sector both driving it forward as well as restricting its development. Policy interactions are complex, subject to rapid change and frequently perceived as giving rise to perverse incentives. Aspects of plant development including: location, biomass production, transport and visual impacts may all be restricted by planning permission. The Pollution Prevention and Control regime, which restricts emissions to air, water and land on a site by site basis may also apply to large conversion plants. Over 17 incentive schemes exist that can be considered to promote bio- energy; regional variations also exist. A basis for assessing policy effectiveness can be developed from studying past successes and failures. Effective policy initiatives are likely to embody the following principles 2 : In addition to the legislation and consultative processes affecting the whole of the renewable energy sector, a number of recent high-profile policy reports have sought specifically to inform and influence the bio- energy policy debate in the UK. These reports include:  Royal Commission: ‘Biomass as a Renewable Energy Source’  UK Government: ‘Non-food Crops Strategy (& progress report)’  Biomass Task Force: ‘Report to Government’  UK Government: ‘response to the Biomass Task Force’  The Carbon Trust; ‘Biomass Sector Review’  Effective co-operation / minimal interdependence between implementing agencies  Adequate time and resources are available  A mechanism exists for enforcing compliance  Implementation should be considered at the same time as policy formation If future UK bio-energy policy is to be effective, evidence of these principles should be manifest in existing policies and the current policy debate. Pre-conditions for successful policy implementation Recent policy reports fail to address all pre- conditions for effective implementation