crc network | implications of the crc for the public sector
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CRC Network | Implications of the CRC for the Public Sector. Guest Speakers' presentations from CRC Network event 07/10/09 The CRC Network connects professionals who will be involved in the Government’s Carbon Reduction Commitment Scheme. It is an independent network, providing a forum for solutions sharing, idea generation, and mutual understanding. By joining the CRC Network, you will gain access to our Discussion Forum where you can connect with other professionals who are preparing for the CRC. View comments, questions and advice posted by others, or create your own posts. You can join at www.crcnetwork.co.ukTRANSCRIPT
www.crcnetwork.co.uk
Implications of the Carbon Reduction Commitment
for the Public Sector
www.crcnetwork.co.uk
Guest Speakers
Introduced by Paula Sussex, Head of Business Consulting, Atos Origin
Jenna Owen – Senior Policy Advisor – DECCOverview and update of policy and legislation
Karen Lawrence – Project Manager – LGiUPreparing for the Carbon Reduction Commitment in local authorities
James Pitcher – Climate Change Manager – TfL London UndergroundCase study for London Underground; strategy, challenges, opportunities Karl Heidel – Communications Manager – NHS Sustainable Development Unit Reducing carbon in the NHS; strategy, challenges, opportunities.
CRC Energy Efficiency SchemeAn overview of the CRC and update on policy
Jenna Owen
07 October 2009
What is CRC?
• CRC mandatory auction based emissions trading scheme which will :
• Incentivise energy efficiency and reduce energy use
• Encourage behaviour and infrastructure change
• Deliver carbon emissions reductions
• Makes use of a cap and trade mechanism• CO2 emissions reduction ensured by cap
• Allows participants to decide where reductions take place
• Revenue neutral to the Exchequer• Designed to avoid overlap with EU ETS and CCA’s
Main changes as of October 2009
1. Single sale of allowances in April 2011
2. Greater flexibility in how organisations participate
3. Increased credit given for early action in second and third years
4. Equivalents of Carbon Trust Standard now recognised under early action metric
5. Technical changes to make scheme more effective and easier to implement
Main changes as of October 2009: Public Sector
1. Definition of Public Sector Organisation finalised:• any organisation designated as a ‘public authority’ under foi/foi(s)
2. Companies with public sector ownership participate with department they are owned by – can be disaggregated
3. All English universities will be grouped with their colleges, however flexibility on the manner of participation is provided
4. Mechanism for changes in the structure of government departments finalised
April 2010
April 2011
Oct 2011
1st Sale takes place
•Participants pay for forecast 2011/12 allowances
• 2011/12 allowances released to participants
•Government holds 1 year of scheme revenue
1st Recycling payments made
•All revenue from April 2011 sale recycled back
•Government holds £0 of CRC revenue
Spot Trading
Jul 2011 Report only for
2010/11
etc
April 2012
Jul 2012 Report on and
surrender allowances for
2011/12Oct
2012
2nd Recycling payments made
• Revenue from April 2012 sale recycled back
•Government holds £0 of scheme revenue
2nd Sale takes place
•Participants pay for forecast 2012/13 allowances
•2012/13 allowances released to participants
•Government holds 1 year of scheme revenue
First year of scheme: 2010/11
Second year of scheme: 2011/12
Third year of scheme: 2012/13
Sales/Revenue Recycling Timing
Performance League Table
• Participants awarded points score for each metric
• Weighted combined score determines position in
Performance League Table
• Weighting of metrics:
Year 1 Year 2 Year 3 Year 4-8
Early Action Metric
100% 40% 20% 0%
Absolute Metric
0% 45% 60% 75%
Growth Metric 0% 15% 20% 25%
Revenue Recycling - 1
• Baseline component– Payment proportional to 2010 CRC emissions– NOT to what is paid at the auction/sale
For example:
Total CRC emissions in 2010: 100 tCO2
Organisation X emissions in 2010: 1 tCO2
= Organisation X receives 1% of revenue raised in sales or auctions
• This is then adjusted by the bonus or penalty
Revenue Recycling - 2
• Bonus or penalty payment based on position in
league table
– Year 1 maximum bonus or penalty of +/-10%
– Year 2 maximum bonus or penalty of +/-20%
– Year 5 maximum bonus or penalty of +/-50%
Timeline
October
Qualification PeriodParticipants with at least one HH settled meter should determine their total HH electricity consumption.
The EA sends out information on
qualification guidance to all
half-hourly billing points
2008 2009 2010 2011 2012 2013
April
July
October April
July
October
CRC EES Scheme begins• Start of 1st compliance year•Start of the Footprint Year
Registration Period
2nd Annual Report due
Allowances surrendered
1st sale of allowances
Footprint Report due
1st Annual Report due
1st Recycling payment
Start of 2nd compliance year
2nd Recycling payment
2nd Sale of allowances
Start of 3rd compliance year
Start of Capped Phase
Government Responsehttp://
www.decc.gov.uk/en/content/cms/consultations/crc/crc.aspx
CRC Web pageswww.decc.gov.uk/crc
www.crcnetwork.co.uk
Carbon Trading Public Sector
Karen LawrenceProject Manager, Centre for Local Sustainability, LGiU
CARBON TRADING COUNCILS
Top 5 actions to prepare for CRC
• Bring together expertise – a CRC team
• Review liability and risk
• Measure and monitor emissions
• Plan to reduce emissions
• Agree a strategy for buying and selling carbon allowances
19 May 2009April 10, 2023 20
April 10, 2023 21
Preparing for the CRC
Strategy, Challenges and Opportunities
James Pitcher, Climate Change Manager
Contents
• Transforming the Tube
• Carbon management
• Energy consumption
• Strategy, Preparation,Challenges, Risks and Opportunities
• Recommendations
London Underground
• Oldest metro system in the world – some parts dating back to 1860s
• Now operates 11 individual lines and serves 270 stations
• Length of network: 402 km / 249 miles • Passenger demand has never been higher
– More than one billion journeys annually
– 3.5 million journeys daily
Transforming the Tube
• Our plan to upgrade our lines will deliver almost 30% more capacity across the network
• Without upgrading the Tube– 40% more crowding at stations– Almost 30% less capacity
compared with today’s service– 10% slower journeys – Cost to the economy: £billions
• The Tube provides one of the most carbon efficient forms of transport
LU carbon management
• Strategic approach to climate change• Carbon and energy management a ‘Top 40’ project• Carbon a Strategic Performance Metric
• Carbon Emissions Reduction Plan• Embedding energy conscious behaviours• Energy efficient and renewable technology• Influencing the supply chain
• High-impact priority areas• Line upgrades• Energy sourcing strategy • Carbon reduction projects across our network
LU energy consumption
• Energy intensive• Largest consumer in London• 0.4% of all UK electricity
• Annual electricity consumption• 1 terawatt hour (TWh) each year• National Grid supply• 15% Good Quality CHP from National Grid
• Total carbon footprint• 750,000 tonnes CO2e• 82% purchased electricity • 68% train services
London Underground Emissions estate
Scope of Transport for London (Parent Organisation)
TfL non transport energy usage is 513,000 MWh per annum
£circa £3m year one outlay
TfL CRC Compliance Strategy
• Organisation• Common leases
• Data collection• Identified metering estate• Highlighted exclusions• Metering strategy developed• Addressing weak points• Considered estimated data
• Data management• Unified CO2 data management system• Ensured storage compatibility across LU• Established central point for collection
• Partnerships• Energy Supplier
Preparation
• Early Action Metrics
• Comprehensive record of emissions• Forecasted and modelled future carbon emissions• Monitor, assess and manage carbon emissions regularly
• Increased awareness• Board level understanding• Engage key stakeholders• Establish administration • Costs included within future business case development• Carbon and energy impacts included as part of all
business cases• Carbon as strategic metric for the business• Staff participation
Challenges
• Franchises and Tenancies• Transport for London has over 3000
tenants• Identifying CRC responsibility for franchises• Assessment of carbon emissions from these sources
• Organisational structure• Large network with many sites• Line Upgrades – large station projects • Complex electricity distribution network and metering estate
• Identifying inclusion• Accurate measurement of ‘transportation’ related emissions• Groundwater pumps, signalling and fans
Risks
• Reputational• Globally recognised brand• Direct comparisons with organisations
in different areas of industry
• Carbon Trading• Public sector trading concerns• Lack of technology
• Administration, audits and fines• ‘Lightly regulated scheme’• Fines system
Opportunities
• Cost Savings• Helps to deliver further savings
• Early Action Metrics• Carbon Trust Standard• Provision of automatic metering (AMR) across LU estate
• Recycling Payments• Internal energy efficiency revolving fund
• Energy Efficiency Projects• Strengthened Business Cases• Low Carbon Station Initiative
Recommendations
• Achieve board-level understanding• Engage staff and identify responsibilities• Establish a unified data management system• Maintain documentary evidence• Ensure CRC cost implications are part of future
business case development processes• Identify carbon as a key performance metric
tfl.gov.uk
Reducing Carbon in the NHS
Challenges
Strategy
Opportunities
NHS Sustainable Development Unit
• “…… at no point will patient safety be compromised by any attempt to reduce carbon since the NHS is there to save lives and improve people’s health.”
The Challenge
• The NHS SDU must take staff through transformational change
• Staff have a duty of care not only to patients but also to the environment
• The NHS has a detrimental impact on the climate – it’s part of the problem and has to be part of the solution
The Scale of the Problem
• NHS has 1.3 million employees
• 4th largest organisation in the World
• NHS budget 100 billion pounds
• 18 million tonnes of CO2 emissions
• 3.2% of total emissions in England
NHS SDU VISION
• An ambassador of sustainability around the World
• Create policy
• Empower staff to make a difference
• CRC – focus people’s minds on reducing energy and carbon footprint
NHS ENERGY
• 22% of NHS carbon footprint is down to energy use
• 4 million tonnes of CO2 a year
• 410 million pounds
Carbon Reduction and the NHS - Strategy
• Briefing to all NHS organisations
• Appoint a lead
• Energy consumption
• Cost benefits
• Financial / reputational implications
Carbon Reduction and the NHS -Challenges
Challenges – Energy Managers Concerns
• Energy managers want either CRC or ETS
• League Tables – worry over whether unfair due to the way the table position worked out
• Introduce trading – introduce the City – introduce artificially high prices
• Capital investment low in financial downturn
Carbon Reduction – Not a threat but an opportunity
• Focus on Energy
• Reduce energy demands
• Save money
• NHS more sustainable
• NHS Fit for the Future
Sustainable Development Unit
• Carbon Reduction Strategy “Saving Carbon, Improving Health”
• By 2015 a 10% reduction on 2007 carbon footprint
• NHS following Government targets
Carbon Reduction and the NHS
• Scheme will ensure climate change issues become a strategic priority at board level
• Enables the NHS to lead the way and help the UK respond to climate change challenge
Reducing Carbon in the NHS
Karl Heidel
Communications Manager
NHS SDU
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