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caps have been tightened and emissions are falling.Early adopters are vital to the success of anypioneering product, pushing forward innovation in themarket place. The United Kingdom launched theworld's first domestic emissions trading scheme inApril this year. The Carbon Reduction CommitmentEnergy Efficiency Scheme (CRC) targets mid-sizedbusinesses and organisations that fall below theemissions threshold for inclusion in the EU ETS. As aresult of the EU's early adoption of emissions tradinglessons have been filtered into UK product, with thepurchase rather than allocation of carbon creditsensuring caps were less likely to be inflated.These early adoption schemes will deliver the lessonsthat will drive confidence in the success of aninternational scheme. As the body that administers andregulates CRC, we at the Environment Agency have toensure that it is backed up with a robust and effectiveregulation that is measurable, reportable and verifiable.The evidence of climate change remains. Glaciers areretreating. Weather patterns around the world arebecoming more erratic and more extreme. The mostintensive rainfall ever experienced in England over a 24hour period fell on Cumbria last November, causingtragic consequences of severe flooding. We cannot say for certain that these things - or indeedthe intense heat recently experienced in Australia, orthe droughts in Kenya - are caused by climate change.But we can see with our own eyes that the climatic,weather and temperature trends are changing, and weknow that these hitherto exceptional events are likely tobecome more frequent over coming years. Here in England and Wales, the Environment Agencyworks at the very point where people's lives intersectwith environmental change. We help people preventand cope with flooding, environmental degradation,water depletion, and pollution. And in our day to daywork we can see small things that are happening, allaround us. Damselflies and dragonflies are beingfound much further north than before, as they movewith the warming climate. Our yearly water testing over20 years has shown an average rise in temperature inour rivers of 0.6 degrees. These are small signals, butlike the canary in the mine, they foretell greater dangerin the future.If we can hold the average global air temperatureincrease to 2°C we have a chance of surviving more orless intact. But if it ends up being 4°C or more, theimpact on population, water resources, sea levels,agriculture, weather patterns, biodiversity, and thequality of human life across the world, will be severe. The world's environment agencies must be ready.Ready with capacity in human, technical and financialterms to deliver transparent, robust regulation of theemissions reduction measures the world badly needs.n044SUSTAINABLE BUSINESS

BIOGRAPHYRt Hon Lord Chris Smith has been Chairman at theEnvironment Agency since July 2008. He waseducated at George Watson's College, Edinburgh,and Pembroke College, Cambridge, where he took adouble first in English. He was a Kennedy Scholar atHarvard and completed his Cambridge PhD onWordsworth and Coleridge in 1979. He was a LabourCouncillor for Islington Borough for five years andChairman of Housing from 1981 to 1983. In 1983he became MP for Islington South and Finsbury. Heserved on the Environment Select Committee until1986 and sponsored a Private Member's Bill, theEnvironment and Safety Information Act, in 1988.In 1992 Chris Smith joined the Shadow Cabinet asShadow Secretary of State for EnvironmentalProtection, and two years later moved to Heritage,then Social Security and Health. When Labour cameto power in 1997 he became Secretary of State forCulture, Media and Sport, and Chairman of theMillennium Commission. He returned to the backbenches after the 2001 election, took a prominentrole in opposing the war in Iraq, and stood down fromthe House of Commons in 2005. Immediatelyafterwards he was created a life peer, taking the titleof Lord Smith of Finsbury, and took his seat in theHouse of Lords in July 2005. SUSTAINABLE BUSINESS045Main Picture: Lord Smithwith Huw Irranca-DaviesMP, Waterways Minister,and Sarah Ayton, goldOlympian, at the EnjoyingWater launch