THE HIGHLAND COUNCIL Resources Committee
Agenda Item Report No
HIGHLAND COUNCIL DRAFT CARBON MANAGEMENT PLAN 2009-2012 Report by Head of Policy and Performance Summary This report presents the revised Carbon Management Plan (CMP), its scope, timescales, targets and actions to 2012. The CMP has been developed with assistance from the Carbon Trust and through discussions with Service representatives. It has been overseen by the Climate Change Working Group. In order that 12% emissions reductions targets are achieved by 2012, the report makes the recommendation that the importance of carbon reduction is factored into the criteria for prioritising the future capital programme.
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INTRODUCTION The Highland Council Programme contains within it the commitment to: “Produce and implement a climate change strategy for the Highlands which will reduce our impact on the environment and adapt our services to cope with the impact of climate change”. The Single Outcome Agreement includes the local outcome that “Carbon emissions are reduced and communities are protected from the consequences of changing weather patterns”. Following a progress report to the Climate Change Working Group (CCWG) on the 5th of March 2008 it was decided that the Highland Council Carbon Management Plan be reviewed and targets set to ensure that emissions continue to reduce. At a meeting of the CCWG on the 26th of March 2009 the revised Carbon Management Plan was discussed and it was agreed that it should be presented to Resources Committee for consideration. The Plan is appended. The CMP is a lengthy document created using a standard template for Local Authorities provided by the Carbon Trust. It has to set out the scope, baseline and methodologies in the initial report so that emissions monitoring remains consistent and robust over time. An executive summary of the report will be produced. The Plan relates to carbon management across six sectors of Council operations: Property; Staff Travel; Fleet; Internal Waste; Street lighting and Water. It sets targets to reduce carbon emissions by 12% by 2012. Key drivers for the revision of the CMP include Scotland’s Climate Change Bill and the forthcoming Carbon Reduction Commitment (CRC). In addition, there is: the need to address pressure on Council budgets from energy costs, which is being taken forward also through the Corporate Improvement Programme; the need to reduce dependency on fossil fuels; the challenge of reducing emissions from transport given the scale of the Council’s operating area the importance of embedding carbon management across all Council Services and procedures.
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In recognition of these key drivers, five strategic themes have been developed. These are explored in more detail in Section 2, page 8 of the plan and are summarised as: Theme 1: Reduce carbon emissions from internal operations Theme 2: Reduce energy costs Theme 3: Explore new areas for action Theme 4: Promote awareness and behavioural change Theme 5: Lead by example
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CARBON REDUCTION COMMITMENT (CRC) The Carbon Reduction Commitment (CRC) is a UK wide proposed cap and trade scheme with financial incentives to reduce carbon emissions and penalties and fines where carbon reduction targets are not met. Organisations with electricity consumption from half hourly meters in excess of 6,000 Mega Watt Hours (MWH) per annum will be required to participate in the CRC. The Highland Council currently consumes approximately 22.25GWH of electricity and as such is one of only a handful of Local Authorities in Scotland that falls within the requirement to report under the CRC scheme. All Council’s in Scotland have produced a Carbon Management Plan (CMP) using a standard template. Because Highland Council must participate in the CRC scheme, the associated costs of carbon allowances should be included in the Highland Council CMP. There will be further costs associated with registration, administration fees and fines as part of the CRC. These will be reported separately when the scheme is finalised, although work is in progress and with the CCWG to ensure the Council’s readiness for the scheme from 2010. TARGETS AND OBJECTIVES Highland Council carbon emissions for the baseline year of 2007/08 amount to 64,696 tonnes. It is anticipated that through the implementation of the revised CMP the Highland Council can reduce emissions by a total of 7,450 tonnes, saving the Council almost £1.4m against current energy and fuel costs, by 20121 (based on annual savings reported in Table 4, page 36 of the plan). In addition the CMP could save approximately £45,000 in the purchase of carbon allowances through the CRC scheme which comes into effect in 2010 (based on the initial fixed price of £12 per tonne). Targets are broken down per sector in Section 3, page 9 of the plan. Achievement of these targets will require total investment of £3.615m. Table 4 in the plan demonstrates the lifetime, revenue costs and pay-back period for each project. Funding is sought through the Capital Programme to enable projects to go ahead. Total cost savings over the lifetime of all projects will amount to £6.05m based on current energy and fuel prices.
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Should prices continue to increase, the level of actual savings may reduce but instead costs would be avoided.
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Each action requiring capital investment will undergo a business case and option appraisal and be presented to the Resources Committee for consideration. It should be noted that if investment is not possible in all cases, the overall emissions reduction target will need to be reviewed. Figure 4, page 33 of the plan shows the emissions reduction required to meet government targets. This projection is based upon 4% per annum emissions reductions during the timeframe of this revised CMP and continued 3% per annum saved thereafter. Any reduction in the current target will require additional investment in the near future in order that we meet these targets. In addition this will delay the cost savings associated with fuel and energy efficiency and purchase of carbon allowances. Section 5 of the carbon management plan highlights the work plan Carbon Management Plan as well as further actions taking place within Highland Council Services. EMMISSION PROJECTIONS AND FORECASTING Forecasting of anticipated emissions will become increasingly important after April 2010 when the Highland Council will report emissions as part of the Carbon Reduction Commitment. The CMP will therefore equip the Highland Council in making such emissions forecasts. COMMUNICATION It is widely recognised that behavioural change can assist in emissions savings. A programme of training and awareness raising is therefore extremely important to fund. Appendix B of the CMP outlines the proposed communication strategy of the plan. MANAGEMENT AND GOVERNANCE A Carbon Management Matrix for embedding throughout Council Services and operations can be found in table 5, page 43. This is the standard matrix provided by the Carbon Trust. Using the assessment matrix the Highland Council currently scores 25 out of a possible 35 for the baseline year of 2007/08. The aim is to achieve a minimum of 33 points by 2012. The final section of the CMP is concerned with management and governance of the plan. It has been developed to ensure that Services know which key staff are responsible for actions within the plan and to make sure that carbon management is embedded across every day service delivery. An Officer Working Group has been developed to monitor CMP implementation and review progress at a Service level. The Climate Change Working Group will oversee progress and it is recommended that progress be monitored bi-annually by the Resources Committee due to the significant financial savings involved. CONCLUSION It is important that in order to meet legislative requirements the Highland Council develop a Carbon Management Plan aimed at continued emissions reductions to 2012. Failure to implement a Carbon Management Plan will result in increased energy and fuel costs to the Council and increased costs associated with purchasing carbon allowances through the Carbon Reduction Commitment. In
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addition, greater investment costs will be needed to ensure that future targets set by the Scottish Government through the Climate Change Bill are achieved. 8.2 To meet the targets set out in the Carbon Management Plan funding is required through the Capital Programme, as outlined in paragraph 3.3, and it is recommended that the importance of carbon reduction is factored into the criteria for prioritising projects in the capital programme.
9. RECOMMENDATIONS 9.1 Members are asked to consider and comment on the draft plan and to note: • • • The baseline, scope and actions contained within the Carbon Management Plan; The legislative requirements and targets associated with reducing carbon emissions; That further reports on the impact of the Carbon Reduction Commitment will be brought to Committee for consideration.
9.2 Members are asked to agree: • that the importance of carbon reduction is factored into the criteria for prioritising projects in the capital programme; • That projects outlined in the plan undergo option appraisal and be presented at the next meeting of the Resources Committee for consideration as part of the future capital programme.
Signature: Designation: Head of Policy and Performance Date: 4th June 2009
Author/Ref: Ailsa Villegas, Sustainable Development Officer
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