roadmap for sustainable defence support...impact and will challenge the way uk defence operates both...

Roadmap for Sustainable

Defence Support

1Roadmap for sustainable defence support

CONTENTS

Section SectionTitle TitlePage Page

Co-authored and co-ordinated by KBR

EXECUTIVE SUMMARY 2

INTENTION 5

CLIMATE CHANGE AND CIRCULAR ECONOMY FOR UK DEFENCE 6

UNDERSTANDING THE SYSTEM OF SYSTEMS IMPACT ON NZ50 8

WHAT CHALLENGES MAY MOD FACE IN IMPLEMENTING NZ50 9

LEGISLATION AND POLICY 10

GLOBAL ISSUE: CLIMATE CHANGE 11

MAIN EMITTERS 12

CARBON MEASUREMENT FRAMEWORK FOR DEFENCE 14

SOLUTION EVALUATION CRITERIA 18

FUNDING AND FINANCING 20

LEARNING FROM INDUSTRY EXPERIENCES – INDUSTRY CASE STUDIES 22

LOW CARBON AND CIRCULAR SOLUTIONS FOR UK DEFENCE 24

LOW CARBON AND CIRCULAR SOLUTIONS FOR FORWARD OPERATING BASES 26

LIVING LABORATORY 28

DEFENCE SUPPORT

ROADMAP 30

RECOMMENDATIONS 32

ANNEX A – Industry trends (as submitted by the contributors) UK Government in NZ50 34

ENERGY EFFICIENCY 34

ENERGY FOR FUELS AND POWER 35

CIRCULAR ECONOMY 36

TECHNOLOGIES 37

BIBLIOGRAPHY 38

1Roadmap for sustainable defence support

CONTENTS

Section SectionTitle TitlePage Page

Co-authored and co-ordinated by KBR

EXECUTIVE SUMMARY 2

INTENTION 5

CLIMATE CHANGE AND CIRCULAR ECONOMY FOR UK DEFENCE 6

UNDERSTANDING THE SYSTEM OF SYSTEMS IMPACT ON NZ50 8

WHAT CHALLENGES MAY MOD FACE IN IMPLEMENTING NZ50 9

LEGISLATION AND POLICY 10

GLOBAL ISSUE: CLIMATE CHANGE 11

MAIN EMITTERS 12

CARBON MEASUREMENT FRAMEWORK FOR DEFENCE 14

SOLUTION EVALUATION CRITERIA 18

FUNDING AND FINANCING 20

LEARNING FROM INDUSTRY EXPERIENCES – INDUSTRY CASE STUDIES 22

LOW CARBON AND CIRCULAR SOLUTIONS FOR UK DEFENCE 24

LOW CARBON AND CIRCULAR SOLUTIONS FOR FORWARD OPERATING BASES 26

LIVING LABORATORY 28

DEFENCE SUPPORT

ROADMAP 30

RECOMMENDATIONS 32

ANNEX A – Industry trends (as submitted by the contributors) UK Government in NZ50 34

ENERGY EFFICIENCY 34

ENERGY FOR FUELS AND POWER 35

CIRCULAR ECONOMY 36

TECHNOLOGIES 37

BIBLIOGRAPHY 38

2 3Roadmap for sustainable defence support

EXECUTIVE SUMMARY

Lieutenant General Richard Nugee, will lead the Ministry of Defence (MoD)’s drive to achieve Net Zero carbon emissions by 2050 (NZ50) and the MoD is likely to be the pathfinder for wider UK Government in NZ50.

Lt Gen Richard Nugee, will lead the MoD’s drive to achieve Net

Zero carbon emissions by 2050 (NZ50) and the MoD is likely

to be the pathfinder for wider UK Government in NZ50. The

renaissance in defence support thinking, chiefly led by the

appointment of a Chief of Defence Logistics and Support

(CDLS), will be the perfect catalyst to enable the MoD to deliver

on the NZ50 mission – whilst improving operational support.

CDLS and ‘support’ is the ‘hub’ in enabling almost every area of

UK Defence – support covers the full spectrum of procurement,

logistics, maintenance and sustainability of the force elements

– from equipment to food, fuel and water. It enables Defence

people, their training and ultimately every type of Operation at

home and overseas. CDLS is at the heart of the Whole Force

and an achievement of NZ50 and sustainable operations will

be impossible without a whole force approach to the challenge.

Sustainment of the force is a fundamental tenet, as such

if reliance on the Supply Chain can be reduced and self-

sufficiency promoted, this would be a key strategic advantage.

The benefit of reducing the pressure on the main supply

routes also frees up supporting force protection assets and

thus reduces the footprint on the ground, resulting in a more

compact and contained force, notwithstanding the reduction

in the carbon footprint.

Generation of energy, fuel, food and water, as far forward as

operationally feasible, would allow the supply chain to focus

on the elements that cannot be manufactured or produced

forwards.

This paper discusses, via a roadmap approach, a set of

initiatives where UK industry believes a tangible contribution to

NZ50 can be made with further analysis by CDLS.

UK Defence industry are investing time and resource into the

following NZ50 initiatives.

4Carbon emissions

4Fuel and fuel substitutes and technologies

4Sustainability through the lens of the circular economy,

recycling, reduction in use, higher performance products

that ‘do more for less’

4Sustainability-Enabling Technologies

Figure 1: Future of UK Defence Figure 2: Future of UK Forward Operating Base

EXECUTIVE SUMMARY

Lieutenant General Richard Nugee, will lead the Ministry of Defence (MoD)’s drive to achieve Net Zero carbon emissions by 2050 (NZ50) and the MoD is likely to be the pathfinder for wider UK Government in NZ50.

Lt Gen Richard Nugee, will lead the MoD’s drive to achieve Net

Zero carbon emissions by 2050 (NZ50) and the MoD is likely

to be the pathfinder for wider UK Government in NZ50. The

renaissance in defence support thinking, chiefly led by the

appointment of a Chief of Defence Logistics and Support

(CDLS), will be the perfect catalyst to enable the MoD to deliver

on the NZ50 mission – whilst improving operational support.

CDLS and ‘support’ is the ‘hub’ in enabling almost every area of

UK Defence – support covers the full spectrum of procurement,

logistics, maintenance and sustainability of the force elements

– from equipment to food, fuel and water. It enables Defence

people, their training and ultimately every type of Operation at

home and overseas. CDLS is at the heart of the Whole Force

and an achievement of NZ50 and sustainable operations will

be impossible without a whole force approach to the challenge.

Sustainment of the force is a fundamental tenet, as such

if reliance on the Supply Chain can be reduced and self-

sufficiency promoted, this would be a key strategic advantage.

The benefit of reducing the pressure on the main supply

routes also frees up supporting force protection assets and

thus reduces the footprint on the ground, resulting in a more

compact and contained force, notwithstanding the reduction

in the carbon footprint.

Generation of energy, fuel, food and water, as far forward as

operationally feasible, would allow the supply chain to focus

on the elements that cannot be manufactured or produced

forwards.

This paper discusses, via a roadmap approach, a set of

initiatives where UK industry believes a tangible contribution to

NZ50 can be made with further analysis by CDLS.

UK Defence industry are investing time and resource into the

following NZ50 initiatives.

4Carbon emissions

4Fuel and fuel substitutes and technologies

4Sustainability through the lens of the circular economy,

4Sustainability-Enabling Technologies

Figure 1: Future of UK Defence Figure 2: Future of UK Forward Operating Base

1 Briefing to CCSIG (2 Mar 20). 2 Set out by Lt Gen Nugee in his draft ‘strategy’ presentation to ADS on 27th May 2020.

3 Jointly Chaired by Def Sp/AH CFD and KBR with attendees from wider MOD and industry

This paper discusses how forces could adapt to being carbon

efficient and, where possible carbon neutral, whilst protecting

operational capability yet sustaining force elements at home

and when deployed overseas.

The paper is structured according to the following focus areas

that the MoD can focus on in order to make NZ50 a reality:

4 UK Defence, Climate Change, Sustainability and a

Circular Economy

4 A System of Systems approach

4 Challenges the MoD faces in achieving NZ50

4 Legislation and Policy Challenges

4 What are the MoD main sources of carbon emissions and

carbon measurement

4 Evaluation of various proposed solutions

4 Potential Funding Options

4 Further Steps – Innovation Initiatives and Trends

The Defence Support intention is to inform, influence and

identify the initiatives that could have the most impact in

supporting CDLS’s contribution for reducing UK Defence’s

emissions and minimizing the carbon footprint – making a

significant contribution in supporting Lt Gen Nugee’s strategy -

ultimately leading to the achievement of NZ50.

Beyond carbon, there are numerous other socio-economic and

environmental impacts which the MoD must manage under

the umbrella of sustainability. There is a need for a strategy

to support the achievement of the Department’s strategic

objectives and the contribution the MoD makes to the UN

Global Sustainable Development Goals.

The further steps element of this paper will consider industry

views on what initiatives the MoD can undertake to make

improvements in order to meet the Government targets in the

following areas:

4 Carbon emissions

4 Fuel and fuel substitutes and technologies

4 Sustainability through the lens of the circular economy,

4 Sustainability-Enabling Technologies

These innovative further steps are discussed at Annex A.

In addition to regulatory requirements (NZ50 pertinent) and

potential operational agility benefits, there is a growing

cost imperative for Defence to adopt a proactive approach

to sustainability. As the industrial sector adapts to a low

or no greenhouse gas emissions market, the production

and availability of equipment, services and fuels that are

greenhouse gas emitters will become rarer and as a result,

their costs will increase. If Defence fails to take advantage and

adapt, the cost of some its primary energy and fuel needs is

likely to become prohibitive as a percentage of the Defence

Budget and become a prime contributor to operational

inability. For example, if automotive platforms with fossil fuel

power trains cannot be sold from 2035, fossil fuels will not be

manufactured in bulk, or at all, and as a result they may be

unavailable in certain regions or prohibitively expensive.

Addressing climate change is now a top priority for the UK

Government. Its NZ50 target, enshrined in the Climate Change

Act, makes a binding commitment based on the science

underpinning the Paris Agreement. The science shows that to

avoid the worst impacts of climate change we need to reduce

global greenhouse gas emissions by about 45% by 2030 and

to net zero by mid Century. The latest HMG Departmental

assessments1 highlight that the MoD contributes around

50% of all departmental emissions. This means that there

is a significant challenge facing the MoD and the Front Line

Commands in becoming net zero emitters.

Furthermore, climate change will have a significant operational

impact and will challenge the way UK Defence operates both

in the home base and when deployed. Defence Support, with

support from the Whole Force, is in a prime position to lead the

MoD’s response to the challenge set by Government

Lt Gen Nugee sees the way forward against four high level

directions of travel or ‘swim lanes’:

4 Climate Change Resilience. The implications of and how to

operate in a climate-changed world

4 Estate Mitigation. The primary vehicle to offset the

irreducible minimum of operational capability emissions in

the short to medium terms

4 Capability Adaptation. Changing how we operate and

procure now and in the future

4 Leadership, Policy and Process Change. Embedding climate

change and sustainability into Defence’s culture 2

The paper proposes a Carbon Measurement Framework for

Defence and where the implementation of alternative fuels

can impact the main emitters without impacting operational

capability. The operational impacts of a circular economy

approach have been analyzed and funding options considered

with a system of systems approach. Legislation and policy

analysis will add clarity to the MoD’s approach. Overlaying

each NZ50 initiative against the Evaluation Criteria proposed by

the paper will allow a prioritisation.

Recommendations:

4 Adopt the full fit for purpose UK Defence Carbon

Measurement Framework.

4Apply Circular Economy Principles to all procurement

4Apply a System of Systems Approach and a Rapid NZ50/

Sustainability Capabilities Office

4Apply Solution Evaluation Criteria

4Investigate further wider commercial industry-dominated

funding and financing initiatives

4Test and Evaluate these initiatives through a Living

Laboratory

4Adopt further the formal collaborative working principles

and frameworks available.

INTENTION

This joint MoD / Industry White Paper, published by the Sustainable Defence Support Sub-Working Group (as part of the joint LOGNET/Defence Support Force Development Board)3 , proposes a roadmap to support CDLS and the Whole Force play a leading role in transforming MOD to achieve NZ50.

We will reform how we live, work and operate, at home and overseas to act on climate change; we will be the vanguard for achieving Net Zero 2050 (NZ50). It requires action today and demands all of us to live in accordance with the values we uphold” –

Lieutenant General Richard Nugee. Presentation to ADS on 27th May 2020.

1 Briefing to CCSIG (2 Mar 20). 2 Set out by Lt Gen Nugee in his draft ‘strategy’ presentation to ADS on 27th May 2020.

3 Jointly Chaired by Def Sp/AH CFD and KBR with attendees from wider MOD and industry

This paper discusses how forces could adapt to being carbon

efficient and, where possible carbon neutral, whilst protecting

operational capability yet sustaining force elements at home

and when deployed overseas.

The paper is structured according to the following focus areas

that the MoD can focus on in order to make NZ50 a reality:

4 UK Defence, Climate Change, Sustainability and a

Circular Economy

4 A System of Systems approach

4 Challenges the MoD faces in achieving NZ50

4 Legislation and Policy Challenges

4 What are the MoD main sources of carbon emissions and

carbon measurement

4 Evaluation of various proposed solutions

4 Potential Funding Options

4 Further Steps – Innovation Initiatives and Trends

The Defence Support intention is to inform, influence and

identify the initiatives that could have the most impact in

supporting CDLS’s contribution for reducing UK Defence’s

emissions and minimizing the carbon footprint – making a

significant contribution in supporting Lt Gen Nugee’s strategy -

ultimately leading to the achievement of NZ50.

Beyond carbon, there are numerous other socio-economic and

environmental impacts which the MoD must manage under

the umbrella of sustainability. There is a need for a strategy

to support the achievement of the Department’s strategic

objectives and the contribution the MoD makes to the UN

Global Sustainable Development Goals.

The further steps element of this paper will consider industry

views on what initiatives the MoD can undertake to make

improvements in order to meet the Government targets in the

following areas:

4 Carbon emissions

4 Fuel and fuel substitutes and technologies

4 Sustainability through the lens of the circular economy,

4 Sustainability-Enabling Technologies

These innovative further steps are discussed at Annex A.

In addition to regulatory requirements (NZ50 pertinent) and

potential operational agility benefits, there is a growing

cost imperative for Defence to adopt a proactive approach

to sustainability. As the industrial sector adapts to a low

or no greenhouse gas emissions market, the production

and availability of equipment, services and fuels that are

greenhouse gas emitters will become rarer and as a result,

their costs will increase. If Defence fails to take advantage and

adapt, the cost of some its primary energy and fuel needs is

likely to become prohibitive as a percentage of the Defence

Budget and become a prime contributor to operational

inability. For example, if automotive platforms with fossil fuel

power trains cannot be sold from 2035, fossil fuels will not be

manufactured in bulk, or at all, and as a result they may be

unavailable in certain regions or prohibitively expensive.

Addressing climate change is now a top priority for the UK

Government. Its NZ50 target, enshrined in the Climate Change

Act, makes a binding commitment based on the science

underpinning the Paris Agreement. The science shows that to

avoid the worst impacts of climate change we need to reduce

global greenhouse gas emissions by about 45% by 2030 and

to net zero by mid Century. The latest HMG Departmental

assessments1 highlight that the MoD contributes around

50% of all departmental emissions. This means that there

is a significant challenge facing the MoD and the Front Line

Commands in becoming net zero emitters.

Furthermore, climate change will have a significant operational

impact and will challenge the way UK Defence operates both

in the home base and when deployed. Defence Support, with

support from the Whole Force, is in a prime position to lead the

MoD’s response to the challenge set by Government

Lt Gen Nugee sees the way forward against four high level

directions of travel or ‘swim lanes’:

4 Climate Change Resilience. The implications of and how to

operate in a climate-changed world

4 Estate Mitigation. The primary vehicle to offset the

irreducible minimum of operational capability emissions in

the short to medium terms

4 Capability Adaptation. Changing how we operate and

procure now and in the future

4 Leadership, Policy and Process Change. Embedding climate

change and sustainability into Defence’s culture 2

The paper proposes a Carbon Measurement Framework for

Defence and where the implementation of alternative fuels

can impact the main emitters without impacting operational

capability. The operational impacts of a circular economy

approach have been analyzed and funding options considered

with a system of systems approach. Legislation and policy

analysis will add clarity to the MoD’s approach. Overlaying

each NZ50 initiative against the Evaluation Criteria proposed by

the paper will allow a prioritisation.

Recommendations:

4 Adopt the full fit for purpose UK Defence Carbon

Measurement Framework.

4Apply Circular Economy Principles to all procurement

4Apply a System of Systems Approach and a Rapid NZ50/

Sustainability Capabilities Office

4Apply Solution Evaluation Criteria

4Investigate further wider commercial industry-dominated

funding and financing initiatives

4Test and Evaluate these initiatives through a Living

Laboratory

4Adopt further the formal collaborative working principles

and frameworks available.

INTENTION

This joint MoD / Industry White Paper, published by the Sustainable Defence Support Sub-Working Group (as part of the joint LOGNET/Defence Support Force Development Board)3 , proposes a roadmap to support CDLS and the Whole Force play a leading role in transforming MOD to achieve NZ50.

We will reform how we live, work and operate, at home and overseas to act on climate change; we will be the vanguard for achieving Net Zero 2050 (NZ50). It requires action today and demands all of us to live in accordance with the values we uphold” –

Lieutenant General Richard Nugee. Presentation to ADS on 27th May 2020.

CLIMATE CHANGE AND CIRCULAR ECONOMY FOR UK DEFENCE

Climate change will continue to compound global social and economic pressures that pose threats to Defence’s ability to meet its strategic objectives.

CASE STUDY: CITY OF TORONTO 4

The need – With annual purchasing contracts amounting to

approximately CAD 2 billion in value, the City of Toronto has

a significant purchasing power that it can use to strategically

drive market innovation. In 2016, the City Council approved the

Long Term Waste Management Strategy and formed a Cross-

Divisional Circular Economy Working Group to apply circular

economy principles to the city’s procurement processes.

The solution – The Circular Economy Procurement

Implementation Plan and Framework (the Framework) is the

City of Toronto’s tool to leverage the city’s purchasing power to

drive waste reduction, economic growth, and social prosperity

through a circular economy approach.

The outcomes – Since inception, the project has launched

the pilot phase and has begun to identify existing circular

procurement activities and integrate new requirements within

call documents.

How does the initiative support the transition to a circular

economy? – The Framework helps the city to drive circular

economy innovation and implementation while generating

a broad range of societal benefits through its procurement

practises.

For example, resource, water and energy scarcity could

increase unrest or trigger armed conflict. The Defence sector is

likely to witness the most extreme impacts of climate change

as Armed Forces personnel are deployed to address these

challenges.

The MoD relies heavily on fossil fuels to enable its operations

and therefore contributes to the issues it is charged with solving.

Reducing these carbon emissions produces the opportunity for

Defence Support to transition to next-generation technologies

that rely on a reduced supply chain - increasing performance,

self-sufficiency and resilience.

In order to meet NZ50 targets in the UK, a fundamental shift is

required to incorporate Circular Economy principles: avoiding

waste by reducing materials in use, using re-usable and

recyclable products, designing for circularity and selecting

higher performance products that ‘do more for less’. This will

require moving away from a linear model of ‘take-make-waste’

to a cycle that regenerates materials. For the MoD, there are

opportunities within the deployed, in-theatre domain.

RAW MATERIALSRAW MATERIALS

CIRCULAR ECONOMY

Figure 3: Circular Economy

4 The Ellen McArthur Foundation https://www.ellenmacarthurfoundation.org/case-studies/creating-systemic-change through-public-purchasing-power

DISTRIBUTION

CONSUMPTIONUSE, REUSE, REPAIR

DESIGN

UFACTU

LLECTION

CLIMATE CHANGE AND CIRCULAR ECONOMY FOR UK DEFENCE

Climate change will continue to compound global social and economic pressures that pose threats to Defence’s ability to meet its strategic objectives.

CASE STUDY: CITY OF TORONTO 4

The need – With annual purchasing contracts amounting to

approximately CAD 2 billion in value, the City of Toronto has

a significant purchasing power that it can use to strategically

drive market innovation. In 2016, the City Council approved the

Long Term Waste Management Strategy and formed a Cross-

Divisional Circular Economy Working Group to apply circular

economy principles to the city’s procurement processes.

The solution – The Circular Economy Procurement

Implementation Plan and Framework (the Framework) is the

City of Toronto’s tool to leverage the city’s purchasing power to

drive waste reduction, economic growth, and social prosperity

through a circular economy approach.

The outcomes – Since inception, the project has launched

the pilot phase and has begun to identify existing circular

procurement activities and integrate new requirements within

call documents.

How does the initiative support the transition to a circular

economy? – The Framework helps the city to drive circular

economy innovation and implementation while generating

a broad range of societal benefits through its procurement

practises.

For example, resource, water and energy scarcity could

increase unrest or trigger armed conflict. The Defence sector is

likely to witness the most extreme impacts of climate change

as Armed Forces personnel are deployed to address these

challenges.

The MoD relies heavily on fossil fuels to enable its operations

and therefore contributes to the issues it is charged with solving.

Reducing these carbon emissions produces the opportunity for

Defence Support to transition to next-generation technologies

that rely on a reduced supply chain - increasing performance,

self-sufficiency and resilience.

In order to meet NZ50 targets in the UK, a fundamental shift is

required to incorporate Circular Economy principles: avoiding

waste by reducing materials in use, using re-usable and

recyclable products, designing for circularity and selecting

higher performance products that ‘do more for less’. This will

require moving away from a linear model of ‘take-make-waste’

to a cycle that regenerates materials. For the MoD, there are

opportunities within the deployed, in-theatre domain.

RAW MATERIALSRAW MATERIALS

CIRCULAR ECONOMY

Figure 3: Circular Economy

4 The Ellen McArthur Foundation https://www.ellenmacarthurfoundation.org/case-studies/creating-systemic-change through-public-purchasing-power

DISTRIBUTION

CONSUMPTIONUSE, REUSE, REPAIR

DESIGN

UFACTU

LLECTION

The initiative may have apparently overwhelming benefits in

the immediate operational environment, however, if indirect

effects in its own supply chain or elsewhere in the system

overwhelm these benefits, then the proposed initiative is

not viable. A systematic evaluation of the system of systems

will allow the MoD to assist future readiness and maximise

opportunities whilst reducing unexpected consequences and

unfunded costs.

A holistic or system of systems approach will be useful in

preparing every area of Defence Support to chart a course to

NZ50 by taking a view of the ‘whole’, by being able to analyse

cause and effect across all DLODs. This evaluation will enable

enduring sustainability decisions across a diverse and complex

organisation such as wider UK Defence. A holistic ‘framework’

for identifying relationships in the circular-economy will assist

decision-makers in building strategies across the next three

epochs by focusing on consolidation and preparedness,

minimising demand and then allowing support structures to be

fitted for a net zero future.

Applying a Systemic Action Enquiry or Systematic Action

Research methodology could provide a robust framework

for examining relationships and patterns of Defence Support

change and facilitate identification of intervention points for

adaptation. The approach will drive coherence ‘horizontally’

across enterprise-wide ‘functions’ to enable Defence to sew the

golden thread of NZ50 through all the capabilities.

The creation of a NZ50 Centre of Excellence within CDLS’s team

that would actively analyse all new procurement decisions

against the operational employment to make sure that every

support solution meets the NZ50 requirements as well as

delivers the operational effect could enable:

4 A Defence-wide perspective for NZ50 – leading

collaboratively across UK Defence supported by frameworks

such as ISO 44001.

4 Identification of opportunities for adaptation before

procurement requirements are finalized

4 The support of inter-operability developments

4 Further strengthening of a NATO commitment to climate

change mitigation and sustainability

WHAT CHALLENGES MAY MOD FACE IN IMPLEMENTING NZ50

The MoD may face a range of challenges throughout their journey to NZ50, which may be realised both at a macro strategic level and a micro level across Front Line Commands. The list below highlights the main challenges that the MoD may face on their journey.

UNDERSTANDING THE SYSTEM OF SYSTEMS IMPACT ON NZ50

Understanding the impact of Defence Support initiatives on climate change requires a holistic or system of systems assessment.

Figure 4: Challenges for Defence

CHALLENGES FOR DEFENCE

Strategy & Vision

Consistency and consequence

of changes across tri-services,

geographical separations and

all lines of development

Behaviours

embedding and

institutionalising sustainable

behaviours and accountability

across all personnel

within Defence

Operational Effectiveness

weighing up sustainability

options vs

operational impact

MOD Estate

scale, age and complexity of

MOD estate

Equipment

operationally key but largest

emitters and inherited legacy

procurement

Technology

keeping up to date with

emerging technology; long

term strategy will incorporate

technology that

doesn’t exist yet

Procurement

Mandating the lifecycle analysis

on the procurement process

and changing

procurement habits

Transition

Managing the mix of old and

new during transition to low

carbon fuels without impacting

capability

The initiative may have apparently overwhelming benefits in

the immediate operational environment, however, if indirect

effects in its own supply chain or elsewhere in the system

overwhelm these benefits, then the proposed initiative is

not viable. A systematic evaluation of the system of systems

will allow the MoD to assist future readiness and maximise

opportunities whilst reducing unexpected consequences and

unfunded costs.

A holistic or system of systems approach will be useful in

preparing every area of Defence Support to chart a course to

NZ50 by taking a view of the ‘whole’, by being able to analyse

cause and effect across all DLODs. This evaluation will enable

enduring sustainability decisions across a diverse and complex

organisation such as wider UK Defence. A holistic ‘framework’

for identifying relationships in the circular-economy will assist

decision-makers in building strategies across the next three

epochs by focusing on consolidation and preparedness,

minimising demand and then allowing support structures to be

fitted for a net zero future.

Applying a Systemic Action Enquiry or Systematic Action

Research methodology could provide a robust framework

for examining relationships and patterns of Defence Support

change and facilitate identification of intervention points for

adaptation. The approach will drive coherence ‘horizontally’

across enterprise-wide ‘functions’ to enable Defence to sew the

golden thread of NZ50 through all the capabilities.

The creation of a NZ50 Centre of Excellence within CDLS’s team

that would actively analyse all new procurement decisions

against the operational employment to make sure that every

support solution meets the NZ50 requirements as well as

delivers the operational effect could enable:

4 A Defence-wide perspective for NZ50 – leading

collaboratively across UK Defence supported by frameworks

such as ISO 44001.

4 Identification of opportunities for adaptation before

procurement requirements are finalized

4 The support of inter-operability developments

4 Further strengthening of a NATO commitment to climate

change mitigation and sustainability

WHAT CHALLENGES MAY MOD FACE IN IMPLEMENTING NZ50

The MoD may face a range of challenges throughout their journey to NZ50, which may be realised both at a macro strategic level and a micro level across Front Line Commands. The list below highlights the main challenges that the MoD may face on their journey.

UNDERSTANDING THE SYSTEM OF SYSTEMS IMPACT ON NZ50

Understanding the impact of Defence Support initiatives on climate change requires a holistic or system of systems assessment.

Figure 4: Challenges for Defence

CHALLENGES FOR DEFENCE

Strategy & Vision

Consistency and consequence

of changes across tri-services,

geographical separations and

all lines of development

Behaviours

embedding and

institutionalising sustainable

behaviours and accountability

across all personnel

within Defence

Operational Effectiveness

weighing up sustainability

options vs

operational impact

MOD Estate

scale, age and complexity of

MOD estate

Equipment

operationally key but largest

emitters and inherited legacy

procurement

Technology

keeping up to date with

emerging technology; long

term strategy will incorporate

technology that

doesn’t exist yet

Procurement

Mandating the lifecycle analysis

on the procurement process

and changing

procurement habits

Transition

Managing the mix of old and

new during transition to low

carbon fuels without impacting

capability

The UK became the first major economy to pass

net zero targets into law. The Climate Change Act

2008 (2050 Target Amendment) sets the target

and requires the UK to bring all greenhouse gas

emissions to net zero by 2050, upgrading the

previous target of at least 80% reduction from 1990

levels.

The MoD’s ability to meet NZ50 will be dependent

on an evolving framework of policy and legislation

that stimulate the changes needed to achieve

carbon Net Zero and wider sustainability goals.

In order to understand where and how to influence

this evolution, it is necessary to first consider the

context in which policy, and ultimately legislation, is

changed. Figure 5 provides a ‘Regulatory Change

Context Diagram’ to illustrate the response to

global issues such as climate change.

The UK has a complex legislative landscape of

carbon reduction policy and regulations designed

to mandate emission reduction obligations. With

the drive towards NZ50, it is fully anticipated that

these policies and obligations will be expanded,

and further legislation will be introduced. It

is recommended that the MoD understand

all existing legislation, not only the policies

applicable to the public sector, but the increasing

requirements mandated upon the commercial and

industrial sectors, where similar frameworks may

be expanded as the Whole Force work towards the

2050 goal.Figure 5: Influence on Defence Policy

LEGISLATION AND POLICY

The UK became the first majoreconomy to pass net zerotargets into law.

KEY EXAMPLE: SINGLE FUEL POLICY

The MoD & NATO Single

Fuel Policy aims to maximise

equipment fuel commonality

using a single battlefield fuel,

which is kerosene based. This

policy acts as a potential barrier

for the introduction of new low or

zero carbon fuels into Defence.

Low or zero carbon fuels would

not only dramatically reduce

greenhouse gas emissions but

have the potential to reduce

or eliminate dependency

on a large supply chain to a

Forward Operating Base (FOB) if

production of Green Hydrogen or

other electro-fuels is performed on

site with renewables. It is likely that

with the adoption of green fuels

by industry and the associated

demand reduction, that the price

of kerosene will increase in the

future.

GLOBAL ISSUE: CLIMATE CHANGE

Defence Strategy

RegulationsReview & Assess

Review & Assess

Influence

Define & Action

Monitor & Progress

Monitor Monitor & Progress

Management FrameworkDefined and Approved

DefenceApplication

Policy DevelopmentPolicy Development

International Legislation / Standards UK Legislation / Standards

Industry / Academia

Ministry of Defence

Defence Capability

Requirements for Operational Capability

UK GOVERNMENT INTERNATIONAL BODIES

Training

Equipment

Personnel

Information

Doctrine

Organisation

Infrastructure

Logistics

Inter-Operability

StandardsPolicy

Capability Requirements

The UK became the first major economy to pass

net zero targets into law. The Climate Change Act

2008 (2050 Target Amendment) sets the target

and requires the UK to bring all greenhouse gas

emissions to net zero by 2050, upgrading the

previous target of at least 80% reduction from 1990

levels.

The MoD’s ability to meet NZ50 will be dependent

on an evolving framework of policy and legislation

that stimulate the changes needed to achieve

carbon Net Zero and wider sustainability goals.

In order to understand where and how to influence

this evolution, it is necessary to first consider the

context in which policy, and ultimately legislation, is

changed. Figure 5 provides a ‘Regulatory Change

Context Diagram’ to illustrate the response to

global issues such as climate change.

The UK has a complex legislative landscape of

carbon reduction policy and regulations designed

to mandate emission reduction obligations. With

the drive towards NZ50, it is fully anticipated that

these policies and obligations will be expanded,

and further legislation will be introduced. It

is recommended that the MoD understand

all existing legislation, not only the policies

applicable to the public sector, but the increasing

requirements mandated upon the commercial and

industrial sectors, where similar frameworks may

be expanded as the Whole Force work towards the

2050 goal.Figure 5: Influence on Defence Policy

LEGISLATION AND POLICY

The UK became the first majoreconomy to pass net zerotargets into law.

KEY EXAMPLE: SINGLE FUEL POLICY

The MoD & NATO Single

Fuel Policy aims to maximise

equipment fuel commonality

using a single battlefield fuel,

which is kerosene based. This

policy acts as a potential barrier

for the introduction of new low or

zero carbon fuels into Defence.

Low or zero carbon fuels would

not only dramatically reduce

greenhouse gas emissions but

have the potential to reduce

or eliminate dependency

on a large supply chain to a

Forward Operating Base (FOB) if

production of Green Hydrogen or

other electro-fuels is performed on

site with renewables. It is likely that

with the adoption of green fuels

by industry and the associated

demand reduction, that the price

of kerosene will increase in the

future.

GLOBAL ISSUE: CLIMATE CHANGE

Defence Strategy

RegulationsReview & Assess

Review & Assess

Influence

Define & Action

Monitor & Progress

Monitor Monitor & Progress

Management FrameworkDefined and Approved

DefenceApplication

Policy DevelopmentPolicy Development

International Legislation / Standards UK Legislation / Standards

Industry / Academia

Ministry of Defence

Defence Capability

Requirements for Operational Capability

UK GOVERNMENT INTERNATIONAL BODIES

Training

Equipment

Personnel

Information

Doctrine

Organisation

Infrastructure

Logistics

Inter-Operability

StandardsPolicy

Capability Requirements

MAIN EMITTERS

All military activity, whether in the procurement of equipment and services, peace time training, humanitarian operations, transition to war and warfighting, has a carbon footprint. These activities (labelled as the ‘carbon boot-print’) can be divided into four primary emitters and categories – as detailed in Table 1.

The ability to provide force projection is currently dependent on

equipment that is primarily diesel powered under the single fuel

policy (the submarine fleet notwithstanding) with the extended

life-cycles of many existing military platforms (and ongoing

procurements) locking the MoD into long term hydrocarbon

dependencies beyond the NZ50 timeframe, examples include:

4AJAX (AFV) – Projected Out of Service Date (OSD) 2060;

4Global Combat Ship Type 26 – Projected OSD 2065;

4Queen Elizabeth Class Aircraft Carrier – Projected OSD 2055;

4F35 Fighter – Projected OSD 2050.

To achieve NZ50, Defence will have to find a method to offset

the future emissions of these equipment or provide retrofit to

reduce or eliminate these emissions.

Retrofit for zero carbon fuels would require additional space

requirements for storage to achieve the same operational

performance due to lower energy density. This needs to be

balanced with providing the required levels of the endurance,

survivability and recovery of these platforms.

Designing in NZ50 into platforms at the earliest phases will

naturally provide more value for money than a later date

retrofit.

It is therefore vital that carbon measurement is incorporated

into the procurement methodology to ensure MoD realizes its

strategic objectives.

ACTIVITY CATEGORY / DESCRIPTION

Production and Maintenance of

Equipment

4 Raw materials, supply chain / logistics, final assembly / replacement / repairs, disposal /

return

4 Routine activities – Domestic bases

4 Routine activities – Overseas bases

Military Bases etc4 Energy use (accommodation / offices / FOBs), food / water, waste management – static

and deployed

Equipment Use4 Aircraft (fast jet, rotary, logistic support, contracted, UAV)

4 Marine vessels (FF/DD, aircraft carriers, RFA, RORO (contracted))

4 Land vehicles (MBT, AFV, Wheeled)

Peace Keeping / Humanitarian

Aid / Warfighting

4 Logistics and Transportation (extended supply chain)

4 War impacts (examples) - post-conflict reconstruction, health care for survivors (civilian/

military), fires caused by weapons-use, deforestation during conflict, destruction of vital

infrastructure (sewage treatment, water supply, food production etc.)

Table 1: Categories of Main Emitters

MAIN EMITTERS

All military activity, whether in the procurement of equipment and services, peace time training, humanitarian operations, transition to war and warfighting, has a carbon footprint. These activities (labelled as the ‘carbon boot-print’) can be divided into four primary emitters and categories – as detailed in Table 1.

The ability to provide force projection is currently dependent on

equipment that is primarily diesel powered under the single fuel

policy (the submarine fleet notwithstanding) with the extended

life-cycles of many existing military platforms (and ongoing

procurements) locking the MoD into long term hydrocarbon

dependencies beyond the NZ50 timeframe, examples include:

4AJAX (AFV) – Projected Out of Service Date (OSD) 2060;

4Global Combat Ship Type 26 – Projected OSD 2065;

4Queen Elizabeth Class Aircraft Carrier – Projected OSD 2055;

4F35 Fighter – Projected OSD 2050.

To achieve NZ50, Defence will have to find a method to offset

the future emissions of these equipment or provide retrofit to

reduce or eliminate these emissions.

Retrofit for zero carbon fuels would require additional space

requirements for storage to achieve the same operational

performance due to lower energy density. This needs to be

balanced with providing the required levels of the endurance,

survivability and recovery of these platforms.

Designing in NZ50 into platforms at the earliest phases will

naturally provide more value for money than a later date

retrofit.

It is therefore vital that carbon measurement is incorporated

into the procurement methodology to ensure MoD realizes its

strategic objectives.

ACTIVITY CATEGORY / DESCRIPTION

Production and Maintenance of

Equipment

4 Raw materials, supply chain / logistics, final assembly / replacement / repairs, disposal /

return

4 Routine activities – Domestic bases

4 Routine activities – Overseas bases

Military Bases etc4 Energy use (accommodation / offices / FOBs), food / water, waste management – static

and deployed

Equipment Use4 Aircraft (fast jet, rotary, logistic support, contracted, UAV)

4 Marine vessels (FF/DD, aircraft carriers, RFA, RORO (contracted))

4 Land vehicles (MBT, AFV, Wheeled)

Peace Keeping / Humanitarian

Aid / Warfighting

4 Logistics and Transportation (extended supply chain)

4 War impacts (examples) - post-conflict reconstruction, health care for survivors (civilian/

military), fires caused by weapons-use, deforestation during conflict, destruction of vital

infrastructure (sewage treatment, water supply, food production etc.)

Table 1: Categories of Main Emitters

CARBON MEASUREMENT FRAMEWORK FOR DEFENCE

Identify Operational Boundaries

START FINISH

Measure andDisclose GHG

Adopt a Baselining approach

Deliver a MOD GHG Measurement Policy

Measure Benefits from future Carbon Abetment Projects

SCOPE 1 : Direct EmissionsSCOPE 2: Emissions associated with Energy purchasedSCOPE 3: Other Emissions

CO2 Equivalent measured as per Greenhouse Gas (GHG) Protocol

To be fit for purpose for GHG Inventory Analysis

Key Performance Indicators for Carbon Performance

Ensuring Net Zero is achieved

Figure 6: Framework for Carbon Measurement

and Benefits Realisation

Organisations that measure their contribution to sustainability have often adopted the ‘triple bottom line’ approach, seeking to report Economic, Social and Environmental indicators alongside their financial results. The established framework for these indicators is the United Nations’ Sustainable Development Goals (SDG).

The most widely-used carbon measurement and reporting

standard is the Greenhouse Gas Protocol, developed by the

World Resources Institute and World Business Council for

Sustainable Development.

Figure 6 shows standard methodology to baseline greenhouse

gas (GHG) emissions and measure future benefits of

procurement activities. Figure 7 shows the breakdown of Scope

1 2 and 3.

Since 2011, Departments of central government within the UK

have been required to report their carbon emissions under

the Greening Government Commitments (GGCs) 5. The MoD

is, therefore, not starting from scratch, but the emissions

reported under the GGCs are only a subset of the whole life

cycle emissions that should be captured, as shown in Figure 6.

It is recommended that the development of a fit-for-purpose

baseline and measurement system to capture and track all

the relevant emissions (steps 1-3 shown in Figure 6) be a priority

within the next 12 months.

The MoD is beginning to use the SDGs internally and these should provide the holistic context within which to measure carbon

emissions and other sustainability KPIs.

5 “Overview of reporting requirements 2016-2020” Greening Government Commitments, Department for Environment, Food & Rural Affairs Dec 2016

CARBON MEASUREMENT FRAMEWORK FOR DEFENCE

Identify Operational Boundaries

START FINISH

Measure andDisclose GHG

Adopt a Baselining approach

Deliver a MOD GHG Measurement Policy

Measure Benefits from future Carbon Abetment Projects

SCOPE 1 : Direct EmissionsSCOPE 2: Emissions associated with Energy purchasedSCOPE 3: Other Emissions

CO2 Equivalent measured as per Greenhouse Gas (GHG) Protocol

To be fit for purpose for GHG Inventory Analysis

Key Performance Indicators for Carbon Performance

Ensuring Net Zero is achieved

Figure 6: Framework for Carbon Measurement

and Benefits Realisation

Organisations that measure their contribution to sustainability have often adopted the ‘triple bottom line’ approach, seeking to report Economic, Social and Environmental indicators alongside their financial results. The established framework for these indicators is the United Nations’ Sustainable Development Goals (SDG).

The most widely-used carbon measurement and reporting

standard is the Greenhouse Gas Protocol, developed by the

World Resources Institute and World Business Council for

Sustainable Development.

Figure 6 shows standard methodology to baseline greenhouse

gas (GHG) emissions and measure future benefits of

procurement activities. Figure 7 shows the breakdown of Scope

1 2 and 3.

Since 2011, Departments of central government within the UK

have been required to report their carbon emissions under

the Greening Government Commitments (GGCs) 5. The MoD

is, therefore, not starting from scratch, but the emissions

reported under the GGCs are only a subset of the whole life

cycle emissions that should be captured, as shown in Figure 6.

It is recommended that the development of a fit-for-purpose

the relevant emissions (steps 1-3 shown in Figure 6) be a priority

within the next 12 months.

The MoD is beginning to use the SDGs internally and these should provide the holistic context within which to measure carbon

emissions and other sustainability KPIs.

5 “Overview of reporting requirements 2016-2020” Greening Government Commitments, Department for Environment, Food & Rural Affairs Dec 2016

CARBON MEASUREMENT FRAMEWORK FOR DEFENCE (CONTINUED)

5 Greenhouse Gas Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard

CO2 CH4 SF6N2O PFCsHFCs

Investments

Franchises

Leased assets

End-of-life treatment of sold products

Use of sold products

Processing of sold products

Company vehicles

Waste generated in operations

Purchased electricity, steam, heating &

cooling for own use

Transportation and distribution

Fuel and energy related

activities

Capital goods

Business travel

Employee commuting

Leased assetsCompany

facilities

Purchased goods and

services

Upstream activities Downstream activitiesReporting Company

SCOPE 3INDIRECT

SCOPE 2INDIRECT

SCOPE 1DIRECT

Figure 7: Value chain carbon emissions 5

CARBON MEASUREMENT FRAMEWORK FOR DEFENCE (CONTINUED)

5 Greenhouse Gas Protocol, Corporate Value Chain (Scope 3) Accounting and Reporting Standard

CO2 CH4 SF6N2O PFCsHFCs

Investments

Franchises

Leased assets

End-of-life treatment of sold products

Use of sold products

Processing of sold products

Company vehicles

Waste generated in operations

Purchased electricity, steam, heating &

cooling for own use

Fuel and energy related

activities

Capital goods

Business travel

Employee commuting

Leased assetsCompany

facilities

Purchased goods and

services

Upstream activities Downstream activitiesReporting Company

SCOPE 3INDIRECT

SCOPE 2INDIRECT

SCOPE 1DIRECT

Figure 7: Value chain carbon emissions 5

CRITERIA Weighting Criteria Comments Score Weighted Score

Ease of Implementation 10%

Cost/Benefit Ratio 10%

Carbon 20%

Safety, Health & Environment 20%

Risks 30%

Social Impact 10%

Overall Result

SCORING Suitability

1 2 3 4 5 Very low

1 2 3 4 5 Low

1 2 3 4 5 Medium

1 2 3 4 5 Likely

1 2 3 4 5 Strong

As a first step, it is assumed that all projects are aligned with

the UK sustainability and NZ50 vision. We propose a multi-

criteria approach to screen projects and move from a long list

of initiatives to a short list, whose potential can be screened

in more detail. A proposed set of initial criteria is outlined in

Figure 8:

Once the selection criteria has been agreed, a weighting must

then be proposed in order to prioritise options.

Is the solution based on proven/

commercially available technology? -

Can existing Assets be easily modified

for the technology?

Does it comply with existing regulations

or are changes needed?

Would land remediation be needed

during decommissioning?

Short, medium and long term

economic implications of adoption?

Is the project payback within the

accepted limits?

Is the required level of investment

acceptable?

Can the required investment be

obtained internally?

Timeline required for adoption

Risk due to involvement of external

parties

Land and natural resources

requirement

Risk associated with deployment

Risk associated to decommissioning

(e.g. land remediation)

Lifecycle net Greenhouse Gas emissions

Impact of deploying the solution to

achieving NZ50

Measure of how widely deployed the

solution is within the Defence and

national systems

Contribution to the U.K. innovation

agenda

Effect over local economy (increase

in number of jobs - temporary and

permanent)

Public awareness

(educational impact)

Is there any adverse effect over HSE?

Is the operation safe and reliable?

Is the significant reduction on direct

emissions vs current practices

Significance of emissions from the value

chain vs current practices

Figure 8: Selection Criteria Pillars and Weighting

Define weighting criteria according to MOD’s vision

and strategy

Include comments or valuable information for decision making

SOLUTION EVALUATION CRITERIA

The MoD will need to evaluate all the options for change in order to choose, prioritise and implement the changes to meet the NZ50 target.

Ease of implementation Cost / Benefit Ratio Risks Carbon Social Impact Safety, Health & Environment

CRITERIA Weighting Criteria Comments Score Weighted Score

Ease of Implementation 10%

Cost/Benefit Ratio 10%

Carbon 20%

Safety, Health & Environment 20%

Risks 30%

Social Impact 10%

Overall Result

SCORING Suitability

1 2 3 4 5 Very low

1 2 3 4 5 Low

1 2 3 4 5 Medium

1 2 3 4 5 Likely

1 2 3 4 5 Strong

As a first step, it is assumed that all projects are aligned with

the UK sustainability and NZ50 vision. We propose a multi-

criteria approach to screen projects and move from a long list

of initiatives to a short list, whose potential can be screened

in more detail. A proposed set of initial criteria is outlined in

Figure 8:

Once the selection criteria has been agreed, a weighting must

then be proposed in order to prioritise options.

Is the solution based on proven/

commercially available technology? -

Can existing Assets be easily modified

for the technology?

Does it comply with existing regulations

or are changes needed?

Would land remediation be needed

during decommissioning?

Short, medium and long term

economic implications of adoption?

Is the project payback within the

accepted limits?

Is the required level of investment

acceptable?

Can the required investment be

obtained internally?

Timeline required for adoption

Risk due to involvement of external

parties

Land and natural resources

requirement

Risk associated with deployment

Risk associated to decommissioning

(e.g. land remediation)

Lifecycle net Greenhouse Gas emissions

Impact of deploying the solution to

achieving NZ50

Measure of how widely deployed the

solution is within the Defence and

national systems

Contribution to the U.K. innovation

agenda

Effect over local economy (increase

in number of jobs - temporary and

permanent)

Public awareness

(educational impact)

Is there any adverse effect over HSE?

Is the operation safe and reliable?

Is the significant reduction on direct

emissions vs current practices

Significance of emissions from the value

chain vs current practices

Figure 8: Selection Criteria Pillars and Weighting

Define weighting criteria according to MOD’s vision

and strategy

Include comments or valuable information for decision making

SOLUTION EVALUATION CRITERIA

The MoD will need to evaluate all the options for change in order to choose, prioritise and implement the changes to meet the NZ50 target.

Ease of implementation Cost / Benefit Ratio Risks Carbon Social Impact Safety, Health & Environment

Experience from other sectors has shown that adopting whole-

life-costing within business cases (as opposed to short-term

return on investment) is the clinching argument that makes

these investments stand out as the best economic use of limited

capex budgets. Further measures include adopting a cost of

carbon, the level of which can be reviewed annually to either

dial up or dial down the weighting needed at the macro-level

to drive low carbon investment, depending on the prevailing

economics.

However, today’s technologies will not be sufficient to meet

NZ50 on their own. There will be a dependency on future

technologies that do not yet exist, or are not yet fully tested,

affordable and available at scale. Therefore, the MoD has an

important role to play in stimulating and driving innovation and

the development of new technology.

Mobilising funding and financing for low-carbon solutions in

the public and private sector has seen a substantial growth

in recent years. However, the transition from the research to

the deployment phase – often called the ‘Valley of Death’– has

typically featured a lack of financial and funding resources

between the companies or institutions on the research side of

innovation and those on the commercialization side (Figure 9).

Private investors are reluctant to invest in potentially risky

projects, implying the need of government’s intervention,

through public resources.

Areas that could be explored by Defence Support when looking

at funding and financing options are:

4Government Funding and Financing: Public projects

are typically financed directly from allocated annual

cash budgets. The UK MoD often supports technology

innovation through a variety of different bodies (i.e.

DASA, DE&S). In addition to direct funding, alternative

public mechanisms exist, including BEIS. The ‘greening’

of the aerospace industry has been among the projects

supported by BEIS, especially through programmes funded

as part of the Aerospace Technology Institute (i.e. National

Aerospace Technology Exploitation Programme seeks to

fund new and novel technology advances). Knowledge

Transfer Network (KTN) has also been directly supporting

the development of innovation, especially by bridging the

gap between the feasibility/demonstration phase and

the point at where technologies can be accelerated to

deployment (i.e. Innovation Exchange (iX), Infrastructure

Industry Innovation Partnership (i3P)).

4Export Credit Agencies: The UK Export Finance (UKEF)

has committed to supporting low-carbon energy projects,

providing government-backed loans, guarantees, credits,

and insurance.

4Green Bonds: Green bonds have often been used by

government entities to raise capital for financing carbon-

reducing projects.

4European Financing: Available funding sources,

applicable to the defence sector, include the European

Structural and Investment Funds (ESIF) whose role is to

co-fund productive investment projects (i.e. a transferable

Autonomous Composting Unit for organic wastes was

developed by the Hellenic Ministry of Defence to be used in

military missions in 2017).

4Public Private Partnerships: PPPs have become

increasingly common in government-funded projects in

public sectors, including defence.

4While the MoD can explore a wide range of available

sources, the associated constraints and limitations with

respect to the eligibility criteria should always be considered.

As a key principle, it is recommended that the MoD considers

the wider commercial industry dominated challenges and

emerging solutions:

4 A high-level business case, along with a vision for a funded

transformation programme should be developed, focusing

first on delivering the benefits and outcomes, which in turn

will facilitate the delivery of the capabilities and services the

MOD needs through Defence Support.

4 HMG best practices for transformative programmes

(Managing Successful Programmes) should be followed,

using Science and Technology (S&T) and Innovation to de-

risk larger programmatic outcomes and capability needs.

Clear funded programmatic outcomes should also be

defined before embarking on innovation calls.

4 The ‘top-down’ outcome, rather than the detailed solution

requirements, which the MoD desires should be considered,

whilst working collaboratively with industry and other

government departments to further elaborate challenges,

solutions and opportunities.

4 Strong relations with BEIS and its partner organisations

should be established, not only to learn lessons, but most

importantly, to lever wider civilian cross-sector investment

into solutions. Examples include:

4 Alternative contracting and commercial Models with BEIS,

OLEV and CCS

4 Emerging technical development and trials into future

Specialist Electric Vehicles, plus green hydrogen and

ammonia alternative fuels

4 Best practices around emerging solutions in the wider

context of the UK prosperity agenda should be further

considered. Defence is a large user of energy in the country,

and it has a part to play in positioning the UK – aligned

always with the Central Government’s intent – Into delivering

capabilities and services which can then be exported.

FUNDING AND FINANCING

Many of the technologies required to decarbonize already exist. However, the upfront cost of purchasing and deploying these technologies is a barrier to implementation, even though they often reduce costs over the longer term.

Figure 9: Funding “Valley of Death”

Basic Research

RD&D Support

IncubatorsConcessional Loans

Business Angels

Crowd Funding

VentureCapital

Export credit Agencies

CommercialBanks

CorporateDebt

Mezzanine

Private Equity

Loan Guarantees

Public/PrivateEquity

Public/Private Grants

AppliedResearch Demonstration Pre-

CommercialFully

Commercial

TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9

PUBLIC FUNDING PRIVATE FUNDING

HIGHER RISK LOWER RISK

FUNDING VALLEY OF DEATH

Experience from other sectors has shown that adopting whole-

life-costing within business cases (as opposed to short-term

return on investment) is the clinching argument that makes

these investments stand out as the best economic use of limited

capex budgets. Further measures include adopting a cost of

carbon, the level of which can be reviewed annually to either

dial up or dial down the weighting needed at the macro-level

to drive low carbon investment, depending on the prevailing

economics.

However, today’s technologies will not be sufficient to meet

NZ50 on their own. There will be a dependency on future

technologies that do not yet exist, or are not yet fully tested,

affordable and available at scale. Therefore, the MoD has an

important role to play in stimulating and driving innovation and

the development of new technology.

Mobilising funding and financing for low-carbon solutions in

the public and private sector has seen a substantial growth

in recent years. However, the transition from the research to

the deployment phase – often called the ‘Valley of Death’– has

typically featured a lack of financial and funding resources

between the companies or institutions on the research side of

innovation and those on the commercialization side (Figure 9).

Private investors are reluctant to invest in potentially risky

projects, implying the need of government’s intervention,

through public resources.

Areas that could be explored by Defence Support when looking

at funding and financing options are:

4Government Funding and Financing: Public projects

are typically financed directly from allocated annual

cash budgets. The UK MoD often supports technology

innovation through a variety of different bodies (i.e.

DASA, DE&S). In addition to direct funding, alternative

public mechanisms exist, including BEIS. The ‘greening’

of the aerospace industry has been among the projects

supported by BEIS, especially through programmes funded

as part of the Aerospace Technology Institute (i.e. National

Aerospace Technology Exploitation Programme seeks to

fund new and novel technology advances). Knowledge

Transfer Network (KTN) has also been directly supporting

the development of innovation, especially by bridging the

gap between the feasibility/demonstration phase and

the point at where technologies can be accelerated to

deployment (i.e. Innovation Exchange (iX), Infrastructure

Industry Innovation Partnership (i3P)).

4Export Credit Agencies: The UK Export Finance (UKEF)

has committed to supporting low-carbon energy projects,

providing government-backed loans, guarantees, credits,

and insurance.

4Green Bonds: Green bonds have often been used by

government entities to raise capital for financing carbon-

reducing projects.

4European Financing: Available funding sources,

applicable to the defence sector, include the European

Structural and Investment Funds (ESIF) whose role is to

co-fund productive investment projects (i.e. a transferable

Autonomous Composting Unit for organic wastes was

developed by the Hellenic Ministry of Defence to be used in

military missions in 2017).

4Public Private Partnerships: PPPs have become

increasingly common in government-funded projects in

public sectors, including defence.

4While the MoD can explore a wide range of available

sources, the associated constraints and limitations with

respect to the eligibility criteria should always be considered.

As a key principle, it is recommended that the MoD considers

the wider commercial industry dominated challenges and

emerging solutions:

4 A high-level business case, along with a vision for a funded

transformation programme should be developed, focusing

first on delivering the benefits and outcomes, which in turn

will facilitate the delivery of the capabilities and services the

MOD needs through Defence Support.

4 HMG best practices for transformative programmes

(Managing Successful Programmes) should be followed,

using Science and Technology (S&T) and Innovation to de-

risk larger programmatic outcomes and capability needs.

Clear funded programmatic outcomes should also be

defined before embarking on innovation calls.

4 The ‘top-down’ outcome, rather than the detailed solution

requirements, which the MoD desires should be considered,

whilst working collaboratively with industry and other

government departments to further elaborate challenges,

solutions and opportunities.

4 Strong relations with BEIS and its partner organisations

should be established, not only to learn lessons, but most

importantly, to lever wider civilian cross-sector investment

into solutions. Examples include:

4 Alternative contracting and commercial Models with BEIS,

OLEV and CCS

4 Emerging technical development and trials into future

Specialist Electric Vehicles, plus green hydrogen and

ammonia alternative fuels

4 Best practices around emerging solutions in the wider

context of the UK prosperity agenda should be further

considered. Defence is a large user of energy in the country,

and it has a part to play in positioning the UK – aligned

always with the Central Government’s intent – Into delivering

capabilities and services which can then be exported.

FUNDING AND FINANCING

Many of the technologies required to decarbonize already exist. However, the upfront cost of purchasing and deploying these technologies is a barrier to implementation, even though they often reduce costs over the longer term.

Figure 9: Funding “Valley of Death”

Basic Research

RD&D Support

IncubatorsConcessional Loans

Business Angels

Crowd Funding

VentureCapital

Export credit Agencies

CommercialBanks

CorporateDebt

Mezzanine

Private Equity

Loan Guarantees

Public/PrivateEquity

Public/Private Grants

AppliedResearch Demonstration Pre-

CommercialFully

Commercial

TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9

PUBLIC FUNDING PRIVATE FUNDING

HIGHER RISK LOWER RISK

FUNDING VALLEY OF DEATH

LEARNING FROM INDUSTRY EXPERIENCES – INDUSTRY CASE STUDIES

AUTOMOTIVES MARITIME INFRASTRUCTURE AVIATION

Automotive companies are developing heavy duty hybrid vehicles. Potential exploitation includes HET, HEV & PSV

Electric/hybrid vehicles

AI journey optimisation, MOJO

Green hydrogen & green ammonia fuel production technology solutions.

Hydrogen cell vehicles

Electric battery vehicles

Electric drives for ships – Azipod

Catalytic converters for nitrogen emissions – HMS Tamar

Energy saving technology fact sheets for vessels

R&D shows suitability of NH3 as marine fuel either by direct combustion or via SOFC

To run ship fitted with ammonia fuel cells

Combined Heat & Power Plant Portsmouth Naval Base

Building data and efficiency – K-SMART

Deployed Water Production – Combat Water

Singapore Prime Ministers Office Hydrogen Import and Downstream Application Study

Controller for multiple energy sources – Micro-grids

Solar-electric, stratospheric UAV – Zephyr

Unmanned aerial UAV (MAGMA) & unmanned solar powered aircraft (PHASA-35)

Consortium exploring fully electric aircraft with liquid hydrogen as energy storage

Hybrid electric power fuels – E-Fan X

Reduction on reliance of diesel fleet; increasing use of green fuels; efficiency of journeys.

Gatwick Airport Case Study – Gatwick Airport maintains carbon neutrality and saves with renewable electricity

LEARNING FROM INDUSTRY EXPERIENCES – INDUSTRY CASE STUDIES

AUTOMOTIVES MARITIME INFRASTRUCTURE AVIATION

Automotive companies are developing heavy duty hybrid vehicles. Potential exploitation includes HET, HEV & PSV

Electric/hybrid vehicles

AI journey optimisation, MOJO

Green hydrogen & green ammonia fuel production technology solutions.

Hydrogen cell vehicles

Electric battery vehicles

Electric drives for ships – Azipod

Catalytic converters for nitrogen emissions – HMS Tamar

Energy saving technology fact sheets for vessels

R&D shows suitability of NH3 as marine fuel either by direct combustion or via SOFC

To run ship fitted with ammonia fuel cells

Combined Heat & Power Plant Portsmouth Naval Base

Building data and efficiency – K-SMART

Deployed Water Production – Combat Water

Singapore Prime Ministers Office Hydrogen Import and Downstream Application Study

Controller for multiple energy sources – Micro-grids

Solar-electric, stratospheric UAV – Zephyr

Unmanned aerial UAV (MAGMA) & unmanned solar powered aircraft (PHASA-35)

Consortium exploring fully electric aircraft with liquid hydrogen as energy storage

Hybrid electric power fuels – E-Fan X

Reduction on reliance of diesel fleet; increasing use of green fuels; efficiency of journeys.

Gatwick Airport Case Study – Gatwick Airport maintains carbon neutrality and saves with renewable electricity

LOW CARBON AND CIRCULAR SOLUTIONS FOR UK DEFENCE

Zero Carbon Aviation

Transition of Defence Aviation Transportation to zero carbon fuels.

Low Carbon Power

Fixed production of power on Defence estate through utilizing Solar, Wind, Micro Nuclear, Tidal etc can increase power security

Zero Carbon Fuels Production

Production of zero carbon fuels such as green hydrogen, green ammonia low carbon power or biofuels can enhance fuel security.

Oxygen produced used for Pilots and in Medical facilities

Direct Air Capture of Carbon

Use of direct air capture from atmosphere to produce fuels

Remote Analysis, Diagnosis and Control

UK Base to support remote operations through AR / VR technology to provide assistance in maintenance, medicine and operation.

Material Recycle and Additive Manufacturing

A combination of recycle and repurpose materials with the use of 3D printing to manufacture new products for Defence dramatically reduces the demand of Defence for resources

Zero Carbon Shipping

Transition of Defence Maritime Transportation to zero carbon fuels.

Autonomous Warehousing

Autonomous Warehousing can increase the carbon and operational efficiency. Allowing personnel to focus on key tasks

SMART Buildings

Automatic control of heat, air conditioning, lighting through a building management system.

Use of waste heat from Hydrogen Electrolysis

Zero Carbon Vehicles

Transition of Defence Ground Transportation, such as White Fleet or HET to zero carbon fuels.

LOW CARBON AND CIRCULAR SOLUTIONS FOR UK DEFENCE

Transition of Defence Aviation Transportation to zero carbon fuels.

Low Carbon Power

Fixed production of power on Defence estate through utilizing Solar, Wind, Micro Nuclear, Tidal etc can increase power security

Zero Carbon Fuels Production

Production of zero carbon fuels such as green hydrogen, green ammonia low carbon power or biofuels can enhance fuel security.

Direct Air Capture of Carbon

Use of direct air capture from atmosphere to produce fuels

UK Base to support remote operations through AR / VR technology to provide assistance in maintenance, medicine and operation.

A combination of recycle and repurpose materials with the use of 3D printing to manufacture new products for Defence dramatically reduces the demand of Defence for resources

Autonomous Warehousing

Autonomous Warehousing can increase the carbon and operational efficiency. Allowing personnel to focus on key tasks

SMART Buildings

Automatic control of heat, air conditioning, lighting through a building management system.

Use of waste heat from Hydrogen Electrolysis

LOW CARBON AND CIRCULAR SOLUTIONS FOR FORWARD OPERATING BASES

Deployable Low Carbon Power

Temporary production of power on FOBs through utilising containerized solutions for Solar, Wind, Micro Nuclear to increase power security. Power is centralized for all power users

Climate controlled on-site food production

Deployable Zero Carbon Fuels Production

Onsite production of zero carbon fuels such as green hydro-gen, green ammonia low carbon power or biofuels can eliminate fuel supply chains

Flexible water grade purification for drinking, ideal for resource scavenging

Transition of Defence Aviation, jets and UAVs, to zero carbon fuels.

Deploying Autonomous Warehousing can increase the efficiency of operations and has a lower carbon footprint

Increasing electrification of personnel equipment requires lightweight wearable batteries or fuel cells.

With support from UK to sup-port operations through AR / VR technology to provide assistance in maintenance, medicine and operation.

A combination of on site recycle and repurpose materials with the use of 3D printing to manufacture new products for Defence.

The Dismounted Solider

On-site Water Purification System

Deployed Autonomous Warehousing

LOW CARBON AND CIRCULAR SOLUTIONS FOR FORWARD OPERATING BASES

Deployable Low Carbon Power

Temporary production of power on FOBs through utilising containerized solutions for Solar, Wind, Micro Nuclear to increase power security. Power is centralized for all power users

Climate controlled on-site food production

Deployable Zero Carbon Fuels Production

Onsite production of zero carbon fuels such as green hydro-gen, green ammonia low carbon power or biofuels can eliminate fuel supply chains

Flexible water grade purification for drinking, ideal for resource scavenging

Transition of Defence Aviation, jets and UAVs, to zero carbon fuels.

Deploying Autonomous Warehousing can increase the efficiency of operations and has a lower carbon footprint

Increasing electrification of personnel equipment requires lightweight wearable batteries or fuel cells.

With support from UK to sup-port operations through AR / VR technology to provide assistance in maintenance, medicine and operation.

A combination of on site recycle and repurpose materials with the use of 3D printing to manufacture new products for Defence.

The Dismounted Solider

On-site Water Purification System

Deployed Autonomous Warehousing

LIVING LABORATORY

Definition – An ecosystem of innovation, collaboration and integration for testing new ideas and evaluating the impact of multiple experiments in an evolving ‘live’ environment of open innovation.

The setup of a Living Laboratory within Defence is proposed

in order to test and develop the options for change within a

real environment. For Defence, the challenges are faced both

in UK bases and in FOBs on deployments and, as such, the

living laboratory should initially include linkages between UK

sites, with further links to deployments once established, to

allow forward testing of the deployed logistics footprint. There

may well be other options that can be included as part of this

process, such as a network of Defence and Industry Living Labs

to bring in industry and supply chain partners.

Benefits of a Living Lab in Defence Support:

4Real world test bed and incubator for sustainability

innovation

4Creates the conditions to rapidly develop, iterate and prove

new solutions at scale

4Provides the opportunity to test and validate concepts in real

world applications

4Ensures the successful and impactful delivery of new

solutions

4Allows Defence Support to prove and operationalise

techniques and processes as a system

How do we design a Living Laboratory for Defence, and what form could it take?

When designing a Living Lab for Defence, the chosen site must

complement the area being tested. For example, if the wish is

to test Hydrogen vehicles, then there should be a local way to

generate enough Hydrogen, ideally using electricity generated

from renewable sources. Only by testing these elements as an

eco-system can the true measure of benefits be achieved.

With the right selection, as few as one or two bases in the UK

could provide adequate variety, scale and challenge to validate

multiple techniques and technologies.

Three key design principles underpin the success of the Living

4Measurability – there must be sufficient evidence of the as-is

state to inform the selection and deployment of solutions.

4Baselining – using clear processes, including sensor-based

measurement and data capture to be able to measure

variance and therefore benefit.

4Iterability – i.e. how easy is it to update, pivot and develop

the solutions in place. We cannot assume we will get it all

right first time, so we must adopt a build, measure and learn

approach to test each hypothesis, to test new solutions.

EXAMPLE: SALISBURY PLAIN TRAINING AREA LIVING LABORATORY SITE

Currently a single contract covers the provision of buildings (Accommodation and Office), support, white and green fleets

across the 38,000 hectare Salisbury Plain Training area. This offers the opportunity to establish a living laboratory under

controlled conditions that will represent an operational environment due to its use for training whilst providing immediate

benefits to the UK MoD. The contract has one simple mission – to make life better for some 18,700 soldiers (nearly 20% of

the British army) by providing modern, high quality, fully serviced, purpose-built living and working accommodation, and

encompasses a wide range of support services including catering, cleaning, transport, estate management, document

production and handling, stores and waste disposal. As a result, this provides the opportunity to test and demonstrate both

the operational and environmental benefits of sustainability, across the breadth of opportunities whether from the use of

renewable energy to provide power through managed micro-grids, improved decision support through exploitation of exercise

planning and live data from buildings with data analytics to provide improved decision support on people and materiel

movements, to generation of renewable fuels and use of alternative power trains for vehicles. This controlled environment

provides the ability to understand the baseline, measure the benefits and demonstrate them to potential operational users.