carbon saving public sector 2011-2012

In partnership with

carbon saving public sector, the crc and carbon reduction

It is now widely accepted that we must all reduce our carbon emissions in order to prevent catastrophic global climate change. In the UK, the public sector is directly responsible for approximately 3% of carbon emissions and, with 2.6 billion spent on electricity and gas in buildings in 2009, has a major part to play by using energy more efficiently. Furthermore, the public sector can play an important role in assisting and encouraging others to act to reduce their emissions, and can be a powerful leader and role model in the transition to a low carbon economy. There are already a number of regulations, targets and incentives designed to encourage public sector organisations to play their part in saving carbon. The Carbon Reduction Commitment Energy Efficiency Scheme (CRC EES) came into force in April 2010 and is a statutory scheme for public and private sector organisations that use electricity supplied through a half hourly meter, settled on the half hourly market, or that are mandated participants. If your organisation meets these criteria, then the Scheme applies to you and you must take action to comply with the legislation. The CRC EES is a complex scheme requiring a good understanding of your organisations legal structure, energy use, carbon reduction plans, financial management and more. Due to recent changes in the Scheme, including the scrapping of the recycling payment, the financial liability for participants is now much higher than expected (from 100,000 per annum for a small NHS Trust; 350,000 for an average size unitary authority; to more than 1million for larger county councils) and is forecast to rise each year. Further changes are due to come into force at the start of Phase 2 in 2013, so participants will need keep up to date with the Schemes requirements and amend their reporting and compliance procedures accordingly. To help reduce carbon emissions, incentives are now in place to encourage the uptake of renewable energy. Feed in Tariffs present an excellent opportunity for public sector organisations to generate energy for their own use from solar PV, wind turbines etc. and to receive guaranteed payments for that energy - whether used or exported - over a 25-year period. From 2012, the Renewable Heat Incentive offers similar guaranteed payments following installation of biomass boilers, solar thermal and other non-fossil fuel heating systems. Many organisations are now recognising the complexity of complying with CRC legislation, saving carbon to reduce financial liabilities, and taking advantage of new incentives in the most timely and efficient way. To meet the demand for a cost-effective and collaborative approach to successful carbon management, Local Energy has expanded its highly acclaimed public sector carbon network for the coming year.

CARBON SAVING PUBLIC SECTOR 2011-12

how will carbon saving public sector help me?

Following the success of our earlier projects, Carbon Trading Councils and Carbon Trading Public Sector, Local Energy is now inviting all public sector organisations to join the new Carbon Saving Public Sector (CSPS) network. As part of our partnership agreement with the Energy Saving Trust, CSPS members will also be eligible to receive support from Energy Saving Trust staff on topics such as housing stock refurbishment, tariff schemes, green finance, economic modelling, local authority carbon assessment and more. When you join Carbon Saving Public Sector, your organisation will be entitled to participate for a full year, and will receive:

Two free delegate places at a series of events throughout the project. Events are held in convenient locations around the UK, and include expert speakers, case studies, workshops and question and answer sessions. Additional delegate places may also be available for a small charge. Regular CRC updates by email, including policy briefings, news of updated guidance from the government, regulators and other sources, case studies from participants, and more. An online discussion forum, where you can ask sector-specific or more general questions, and receive answers and comments from experts and colleagues. Opportunities to network with colleagues at events and online, where you can focus on the solutions to shared problems and learn how other public sector organisations are approaching the CRC and carbon management issues. Advice, guidance and support from Local Energy and Energy Saving Trust staff. There are always members of staff available to answer queries on the project itself or on the many and varied aspects of the CRC and other carbon reduction and energy efficiency topics. If we dont know the answer, we are in close contact with the policy makers and regulators and can get a quick response. Plus new this year a mini-audit of your CRC data submissions (footprint and annual report) and evidence pack, to identify potential errors and omissions and to help you minimise your allowance liability.

In addition, we provide updates and guidance on energy efficiency and renewable energy options to help you cut carbon emissions and reduce energy costs. Well help you identify the best combination of technologies and incentives available, including Feed in Tariffs and the Renewable Heat Incentive, and examine how they affect your CRC liabilities too.

CARBON SAVING PUBLIC SECTOR 2011-12

our track record

The LGiU is a charity which has been working with the public sector for the past 25 years. Local Energy is a social enterprise established by the LGIU in 2010 to manage the growing volume of work in the areas of carbon reduction, climate change and renewable energy. All surpluses directly subsidise the LGiUs charitable work. The LGiU/Local Energy have run three successful virtual carbon trading projects already. The aim of this new project is to ensure that public sector organisations manage the risks and opportunities associated with participation in the CRC EES.

Year 1: Carbon Trading Councils

The pilot project began in April 2008 with 34 local authorities taking part. Participants identified a number of areas where they might need to develop to be ready for the CRC EES. The full project report, Taking Stock, is available online.

Year 2: Carbon Trading Public Sector

Our second project, running from July 2009 to June 2010, involved more than 100 participants including local authorities, NHS trusts, police authorities, universities and central government departments. As well as considering the issues raised by Carbon Trading Councils, participants in Carbon Trading Public Sector explored more advanced strategies including:

compiling an accurate baseline data for all your buildings how to monitor data and forecast the amount of carbon allowances needed identifying your liability from outsourced services or PFI projects identifying who needs to be involved in the CRC EES, from different departments across the organisation (such as finance, legal, energy, schools) how to identify the most cost-effective projects to reduce carbon emissions the effect of different carbon strategies on financial risk, savings and cash flow, and how to manage the process of buying carbon allowances evaluating the options available to improve your position in the league table

Year 3: Carbon Trading Public Sector 2010-2011

Running alongside the first year of the CRC EES (a footprint and reporting year), this project provided an opportunity to practise the requirements of the scheme with no financial risk. Participants explored how to:

determine their level of liability, define the organisational structure, register their organisation and submit reports put together a CRC team to monitor and manage carbon emissions, avoid penalties and communicate actions both internally and externally implement a forecasting strategy to calculate the quantity of allowances required, and monitor and manage changing requirements throughout a reporting year to minimise financial liability identify carbon reduction projects that will reduce their CRC liability and make real emissions reductions throughout their estate and operations. 4

CARBON SAVING PUBLIC SECTOR 2011-12

CARBON SAVING PUBLIC SECTOR 2011-12

how can i take part?

1: Join
The cost of joining Carbon Saving Public Sector 2011-2012 is 1,500 + VAT per organisation. To process your registration, we will need:

Your name Your job title/role and contact details (telephone and email) Your organisation Your postal address (for invoicing) A purchase order number or other invoicing reference (if required) Your signature (or the signature of the relevant budget holder)

Please complete the registration form and email it to karen.lawrence@lgiu.org.uk or fax to 020 7554 2801.

2: Submit data
To receive your mini-audit, you must provide your carbon emissions data, as you expect to report for CRC EES, as soon as possible. This should include all sources, emissions, exclusions and estimates and your Early Action Metric data.

3: Submit carbon reduction plan

It is important to have a plan so that your organisation is clear about how it will reduce its carbon emissions, and by how much. You should provide a summary of your carbon reduction plan, including total forecast emissions reduction and, if possible, a MAC curve or other data to indicate the cost-effectiveness and/or payback period of projects.

4: Join our mailing list and discussion groups

To receive regular newsletters, go to www.localenergy.org.uk and complete the Join our mailing list box on the right hand side of the screen. To participate in discussions with other Carbon Saving Public Sector members, join the Local Energy LinkedIn group: If you are not already a member of the LinkedIn community, you must first create a LinkedIn profile at www.linkedin.com (free of charge) then search for Local Energy in Groups. You can then also join the Carbon Saving Public Sector sub-group, giving you access to documents available only to CSPS members.

CARBON SAVING PUBLIC SECTOR 2011-12

CRC Energy Efficiency Scheme and Carbon Saving Public Sector 2011-2012: what happens when?
carbon saving public sector crc energy efficiency scheme: introductory phase
End of 1st compliance year Start of 2nd compliance year

Learning event: Project launch; reporting surgery

Submit footprint report Submit 2010-11 annual report

1st league table published Learning event: League table results; emissions reduction; allowance forecasting

Learning event: Project review; lessons learned; buying and surrendering allowances

End of 2nd compliance year Start of 3rd compliance year 1st sale of allowances begins (for 2011-12 emissions)

Allowance sale date TBC

Learning event: Reporting surgery

Submit 2011-12 annual report Surrender allowances (for 2011-12 emissions)

2nd league table published Learning event: League table progress; absolute and growth metric; audit review CARBON SAVING PUBLIC SECTOR 2011-12 7

what our previous participants say

a huge thank you for all your help with crc! we couldnt have done it without you and greatly appreciate all your support very worthwhile process and invaluable in helping to understand the crc thanks so much for these updates extremely useful!! worth the whole registration fee! most informative and gave me an insight into carbon trading within the crc scheme and... with reference to the crc as a whole a very useful summary, its already helped me answer some queries from my head of finance it has been a useful and helpful learning experience most interesting and an original idea for raising awareness

22 Upper Woburn Place London WC1H 0TB T 020 7554 2800 F 020 7554 2801 info@localenergy.org.uk www.localenergy,org.uk

Cover photo courtesy of Pixel Thermographics Ltd, professional thermographic surveyors 01625 260742