Global UK Position in Sustainability Enforcement - Essay Example

UK Coal Global UK Position in Sustainability Enforcement United Kingdom is one of the world’s greatest emphasizers on the need for sustainability among a majority of businesses. Additionally it is also evident that the European Union and its various carbon tax and carbon minimization restrictions deem the world of coal as a doomed energy source. Coal is a nonrenewable resource of energy, and the need for conservation of the environment which has been largely emphasized by UK government demands that an alternative source of energy be found. Sustainability has been largely supported by the UK government and this being the case the dependence on coal, no matter how high it currently is, the government is largely opposed to it and is thus seeking alternatives to clean energy sources. Sustainability in the United Kingdom is one of the most respected nation in terms of sustainability financing and enforcement. The government has strongly established a need for establishment of sustainability oriented energy sources. Through this assessment the government has reduced its funding to the development of coal mines with the proposition that there is a need to establish a new way for the various energy plants to commence projects that are less intensive on the coal mining. The UK government, similar to the US government has decided to cut down its financing to coal exploration in developing nations unless in rare cases where there are no alternatives (Engineer 2). The funding that the government accorded to developing nations was estimated to be as high as $500 million since 2007. The UK government also is responsible for over 40% of the construction procurement in the nation and is currently emphasizing on the need for all organizations in the country to adapt to sustainability and environment conservation (Hall & Purchase 205). One of the ways through which the government has been able to emphasize on the need for sustainability is through the routine elimination of funding accorded to the coal industry, and shifting these funds to other project such as the Fracking and mining of methane gas that is trapped within the ground (Pearce 36). The value of investment in seeking sustainable sources of energy within the country amounts to over £ 110 million (Modern Power Systems 8). The government funding which has been directed to other energy producing interests shows with a great level of resilience the need for organizations to not only focus on the growth of energy blindly, but rather to invest in new sources of renewable or less pollutant energy. Current Attitudes toward Sustainability Coincidentally, sustainability is not only a debated topic but rather one that has been embraced by a majority of the citizens in the country. Globally, sustainability has also been highly respected and emphasized but the action to ensure that it is attained has been relatively minimal. The public, though inclined to sustainability in the energy sector for instance, has done too little in the past few years pertaining to the topic of sustainability. Old habits die hard, but the need for recycling, using cleaner energy and reduced pollution for instance through reduced used of personal vehicles has been greatly emphasized in UK with London being the leading city to take efforts to reduce environmental degradation. Pertaining to the issue of sustainability enhancement as presented by Kythreotis (2010) is the emphasis of sustainability by the public especially in terms of environmental degradation. The establishment of Local Strategic Partnerships by private investors and private companies to emphasize on the need for sustainability has resulted in increased awareness of the need for sustainability for the organization. Local strategic partnership in addition to the various voluntary groups and activities supporting sustainability in the country has increased and their interest in these groups has resulted in positive outcomes in their quest. Additionally, most of the technologies that are being developed in the country are not only inclined to increase efficiency as was the previous case. New technologies are all oriented on sustainability, reduced energy consumption and other suchlike inclusions which thus stimulate the sustainability in the country. Corporate initiatives in supporting sustainability and enhancing technologies that are energy efficient such as the development of electric cars and the development of solar energy as a key source of energy in most industries and manufacturing plants. Such technologies that have been developed include the compressed air plants, pumped hydro, lithium ion batteries and other suchlike considerations. Government Regulation Currently, the leading source of energy in the energy sector is the coal industry (Coal International 5). As such, the government’s legislation in the industry is thus limited to hasty decisions. Without the coal industry, the government would lead to power insufficiency. However, the government has regulated its energy industry through the imposition of carbon taxes, which thus limits the production of most companies making them seek new sources of energy. For instance, one of the ways through which most organization have altered their production processes is the modification of their various plants to ensure that they are not coal-fired with the impositions presented by the government against coal. Government regulation has also been limited through the reduced investment and funding of these projects with the consideration of alternative sources of energy. The coal industry is highly lucrative and one of the most respected in the industry. For instance, reduced funding of coal miners within the country and in developed countries where the organization was majorly investing in a bid to reduce the over-dependence on coal. For the organization in question, UK Coal, the leading producer of coal in the industry, the government has reduced the funding and investments that it remitted to this organization which has relatively crippled its productivity. However since the government has understood the need for sustainability and the essentiality of coal in the industry, during its energy policy reform, the government emphasized on the need for establishment of the industry in ways that better improve the coal industry. The investment in clean coal has also surged since the modification of the energy policy of the country. Clean coal is the use of coal to produce electricity, this thus reduces the emissions of gases, which shows that the government has already decided to burry’ the coal industry, despite the level of success and the energy it produced for the country. The decision that has already been made by the government to reduce the investment in the coal industry, while seeking alternative sources of energy has largely reduced the exploration of coal. Effect on Industry UK coal is the leading producer of coal in the industry. One of the ways through which the organization has slowly been shifting its focus of the coal industry despite its lucrative nature is the imposition of new strategies on seeking alternative ways to serve energy. The organization is currently fighting for survival through the sale of several of its plants to other organizations. UK Coal PLC has been rumored to be seeking liquidation. UK Coal has also undergone too much loss in the past few years. One of the firm’s plants, Daw Mill colliery burned to ashes back in March 2013, costing the government over £ 100 million of equipment, £160 million in losses of coal that was in the mine before the fire menace and £35 million in increased costs (Rankin "UKs largest coal producer seeks voluntary liquidation"). UK Coal has been largely suffering from the changes in the industry and despite the organization being the highest producer of coal in UK and a sizeable portion of European market, has been largely affected by the coal-evading trend adopted by the government and most organizations as well. Other coal miners in the industry are slowly being closed for instance, Maltby colliery which was closed in April 2013 (Thomond "The closure of Maltby colliery – in pictures"). The closure of several Collieries within the country has been as a result of the organizations understanding that the future of coal is limited in the country, with the government, through its legislation and its changes in investment trends. Additionally, the change of the industry from being the key producer of energy to being a substitute source of heat to generate electricity has equally affected the price of coal. Clean coal mines have been less lucrative as compared to the direct sale of coal which has thus been regulated by the government. Clean coal is less pollutant and equally less lucrative which has thus seen a majority of these coal mining companies’ success levels reduce marginally. In the past 15 years, the various organizations and miners have been shifting from their main industry. Additionally, this has also seen a majority of the organizations venturing into diversification I other industries with the potential of coal as a source of energy marginally reducing and depreciating. The original 40% of energy which was produced from coal has substituted by 40% from electricity (Seddon "The long, slow death of the UK coal industry"). As such, the demand of coal as a source of energy is marginally reducing not only due to sustainability policies but also due to the low energy generation from coal, despite its former popularity. Major Challenges and Opportunities The worldwide need to seek alternative sources of energy has not only limited the influence of coal as a source of energy but has slowly crippled its market. Electricity has been one of the biggest challenges to stimulated growth of the organization. Electricity is not only cleaner than coal but is also more reliable as compared to the latter. Electricity is one of the biggest contributors to energy in the world. This has seen more electricity generation methods being developed ranging from geothermal power plants, HEP and the infant but resourceful source of electricity being nuclear energy. Another key challenge that the industry faces is the limited growth or future. The future of the world is shifting from coal to more reliable and renewable sources of energy. This shift has crippled the future of coal greatly and thus most coal miners have slowly accepted the facts that there is a high likelihood that coal as a source of energy is rapidly decreasing. The lack of future prospects for the industry is a key challenge that most organizations have been battling. The future of the coal industry has not only been limited by the government but also by consumer preferences. With the world increasing awareness on the need for environmental sustainability and reduced pollution has stimulated the growth of alternative sources of energy, which are more marketable as compared to coal. Another key challenge facing the industry is the limited scope of energy generated through coal. Compared to its competition, electricity, coal can only be used in several areas and is limited too few issues. Currently, electricity has a more promising future and can be used in virtually any given industry. For instance, one of the several advantages that electricity has over coal is the fact that every industry that needs energy is developing models that can slowly incorporate electricity. The automotive industry for instance has developed electric vehicles. Additionally, electricity can be generated through a variety of ways as listed above which thus makes it more reliable as compared to coal. The coal industry reached its maturity and peaked in the 1980s and its expansion has thus been marginally reduced in the past few years thus showing that the once great industry is slowly getting buried (Bowers & Neville "Parts of UK Coal may be nationalised after colliery fire closes pit"). Coal has peaked in the developed nations alone. For the developing nations and the underdeveloped nations, whose generation of electricity generation methodology is limited, coal still has a rich market. Additionally, the developing nations still lack sufficient energy making them a rich opportunity for UK Coal and for other miners in the developed nations. As such, before throwing in the tile and closing shop, these organizations needs to consider the new market and consider exporting coal to these organizations or equally establish power plants in the developing nations, with Africa presenting a rich investment opportunity due to its urgent need for energy maximization. Potential Options for Future Sustainable Development Sustainability in the industry of coal is bound to end and as such most Coal mining organizations need to consider producing power through the use of other means. The approach of adopting more energy alternatives in the generation of power would be of significant influence to a majority of the organizations in this industry. The future of sustainability, unlike was the case a few years ago, is much brighter. Coal companies needs to focus on their sustainability as well if they are oriented to survive in the industry for a few more years. UK Coal for instance, is one of the worst affected companies by the reduced market for coal and the need for clean coal. Regardless, the organization needs to join the trend and produce energy using the remaining coal deposits on mining sites it had already commenced working on. Owing this to the equipment they own and the fact that completely ignoring the possibility of producing more electricity than electricity generation companies that use other approaches for instance will only lead to massive losses. The organization has embarked on selling most of its plants, but with the industry being less optimistic, the purchase price would be very low and thus, since the organization is already in Rome, all that is left is emulating the romans. If the world demands other forms of energy, the organization should be willing to venture into provision of energy through the use of other sources. Work Cited "Coal Reigns In UK Energy Sector." Coal International 262.1 (2014): 5. UK Legislates Coal Firing Emissions Loophole." Modern Power Systems 34.1 (2014): 8. Pearce, Fred. "Beyond Fracking. (Cover Story)." New Scientist 221.2956 (2014): 36-41. Hall, Mark, and David Purchase. "Building Or Bodging? Attitudes To Sustainability In UK Public Sector Housing Construction Development." Sustainable Development 14.3 (2006): 205-218. PR, Newswire. "Technologies for Sustainability (Technical Insights)." PR Newswire US 13 Jan. 2014: Regional Business News. Web. 29 Apr. 2014. UK Pledges To Stop Funding Overseas Coal Power Stations." Engineer (Online Edition) (2013): 2. Kythreotis, Andrew. "Local Strategic Partnerships: A Panacea For Voluntary Interest Groups To Promote Local Environmental Sustainability? The UK Context." Sustainable Development 18.4 (2010): 187-193. Bowers, Simon. & Neville, Simon. Parts of UK Coal may be nationalised after colliery fire closes pit. The Guardian, 12 May 2013. Web. April 30, 2014. < http://www.theguardian.com/business/2013/may/12/uk-coal-nationalised-ministers-fire-pensions > Rankin, Jennifer. UKs largest coal producer seeks voluntary liquidation. The Guardian, 1 May 2013. Web. April 30, 2014. < http://www.theguardian.com/business/2013/may/01/uk-largest-coal-producer-voluntary-liquidation> Christopher Thomond. The closure of Maltby colliery – in pictures. The Guardian, 11 April 2013. Web. April 30, 2014. < http://www.theguardian.com/business/gallery/2013/apr/11/closure-of-maltby-colliery-in-pictures> Seddon, Mark. The long, slow death of the UK coal industry. The Guardian, 11 April 2013. Web. April 30, 2014. < www.theguardian.com/business/2013/apr/11/slow-death-coal-industry> Read More