London Borough of Waltham Forest Carbon Management Programme

Transcription

1 London Borough of Waltham Forest Carbon Management Programme (CMP) Date: April 2009 Owner: Approval Route: Approval Status: LACM Project Lead LACM Programme Board; Leadership Team and Cabinet Final

2 Table of Contents Foreword from London Borough of Waltham Forest...4 Foreword from the Carbon Trust...5 Executive Summary Introduction Context and drivers for Carbon Management What this means for London Borough of Waltham Forest Our low carbon vision Emissions Target Emissions Baseline and Projections Scope Baseline Projections and Value at Stake Carbon Management Projects Projects and Funding by theme Projection Towards Target Financing Fit with Council Priorities Assumptions Benefits / savings quantified and un-quantified Additional resources Financial costs and sources of funding Actions to Embed Carbon Management in Your Organisation Corporate Strategy embedding CO2 saving across your organisation (Initial level 2; Target level 5 by 2014) Programme Management bringing it all together effectively (Initial level 1; Target level 5 by 2014) Responsibility being clear that saving CO2 is everyone s job (Initial level 1; Target level 4 by 2014) Data Management measuring the difference, measuring the benefit (Initial level 1; Target level 5 by 2014) Communication and Training ensuring everyone is aware (Initial Level 1; Target level 5 by 2014) Finance and Investment the money to match the commitment (Initial Level 1; Target level 5 by 2014) Policy Alignment saving CO2 across your operations (Initial Level 1; Target level 4 by 2014) Programme Management of the CM Programme The Programme Board strategic ownership and oversight The Carbon Management Team delivering the projects

3 7.3 Succession planning for key roles Ongoing stakeholder management Annual progress review Conclusion...36 Appendix A: Projects and Funding...37 Appendix B: Carbon Management Matrix - Embedding...38 Appendix C: Carbon Management Programme Project Definitions

4 Foreword from London Borough of Waltham Forest It is Waltham Forest's ambition to be the greenest borough in London. The Council aims to lead from the front, along with other public sector organisations, in reducing consumption of energy and water. Sustainable development is a priority, as is the reduction of waste and the promotion of environmentally friendly transport. Our reflects all these priorities. While our carbon reduction target of 20% by 2012 is undoubtedly ambitious, we are committed to doing all we can to achieve this with clear environmental benefits. Our work on climate change complements the aims of our Smarter Spending Programme. This plan will cost 3.1 m to implement but will realise potential cost savings of 8.2m up to We welcome the support of the Carbon Trust in helping the Council to realise its ambitions around climate change, and we look forward to a future in which Waltham Forest is recognised as a champion of green innovation. Andrew Kilburn Chief Executive Cllr Bob Belam Political Sponsor 4

5 Foreword from the Carbon Trust Cutting carbon emissions as part of the fight against climate change should be a key priority for local authorities - it's all about getting your own house in order and leading by example. The UK government has identified the local authority sector as key to delivering carbon reduction across the UK. This is in line with its Kyoto commitments and the Local Authority Carbon Management Programme is designed in response to this. It assists councils in saving money on energy and putting it to good use in other areas, whilst making a positive contribution to the environment by lowering their carbon emissions. The London Borough of Waltham Forest was selected in 2008, amidst strong competition, to take part in this ambitious programme. The London Borough of Waltham Forest partnered with the Carbon Trust on this programme in order to realise vast carbon and cost savings. This commits the Council to a target of reducing CO2 by 20% by 2012 and underpins potential financial savings to the Council of 8.2m up to There are those that can and those that do. Local authorities can contribute significantly to reducing CO2 emissions. The Carbon Trust is very proud to support the London Borough Of Waltham Forest in their ongoing implementation of carbon management. Richard Rugg Head of Public Sector, Carbon Trust 5

6 Executive Summary Context This (CMP) flows from the Sustainable Communities Strategy (SCS) adopted in A key aim within the SCS theme of Manage Population Growth and Change is to respond to climate change at a local level in a practical and effective way. Reducing CO2 emissions in the Council s own operations is vital to achieve this and to demonstrate community leadership by the Council s own actions. The Waltham Forest LSP Climate Change Strategy adopted in 2008 aims to reduce borough wide CO2 emissions by 80% by 2050 from 2005/06 levels. The Council has also adopted an Energy Strategy aimed at increasing energy efficiency within the Council s operations. The work with the Carbon Trust to develop dedicated carbon reduction projects, outlined in this CMP, are key to achieving these reduction targets. In addition to the above, the Council has developed this so as to: Lead by example in reducing carbon emissions in the borough; Reduce energy consumption and expenditure on energy bills; Build upon the LSP s Climate Change Strategy and embed energy efficiency within the Council s corporate culture and working practices; Allocate roles and responsibilities for implementing a series of energy efficiency projects within the Council; Establish an effective monitoring system of consumption and savings achieved; and Work towards setting informed carbon reduction targets for directorates once energy monitoring and data collection is improved. Total Savings The Council s carbon footprint for financial year was 37,000 tonnes of carbon dioxide emissions and this is likely to grow in the future without the. On average, emissions naturally grow at c. 3% per annum and this coupled with the likely continued growth in energy prices will mean much increased energy bills for the Council if no action is taken. This contains policies and actions to reduce the Council s energy consumption and carbon emissions by 20%, or 8,702 tonnes, over the next three years. The bulk of the measures are focused on energy use in buildings, schools and leisure centres but also includes measures in street lighting, the Council s vehicle fleet and awareness raising with staff. Existing projects only quantify savings up to 18%. The assumption is that the Smarter Spending Programme Asset Management work stream will realise an additional 2% of carbon saving needed to reach the agreed 20% carbon saving target. 6

7 The Plan requires 3.1 million to be spent on energy efficiency projects over the next 3 years, which can be partly sourced from two bids for external monies that requires council and schools match funding. This investment should deliver potential cost savings of 8.2m up to Key Strategy Elements A key aim, in this time of the Smarter Spending Programme (SSP) and tightening budgets for the Council, is to focus on actions and projects that realise quick results at affordable costs. The suite of 41 projects listed later in this CMP range from smaller projects such as awareness raising with staff to the rationalisation of Council accommodation. A main focus has been to maximise the use of existing resources by influencing existing maintenance programmes so that, in the future, replacement products (eg: in street lighting) include more energy efficient aspects (eg: white light or dimming which achieves 20% energy use savings). The CO2 reduction benefits have also been captured from the on-going accommodation & printer rationalisation programmes. It is important to demonstrate the CO2 reductions that have already been achieved since LBWF s baseline year of Finding robust actions to reach the 20% CO2 reduction target by 2012 has been challenging and will require annual monitoring and assessment to measure achievements and re-focus activity to ensure that the target is met. A major benefit of involvement in the Carbon Trust programme has been to strengthen the cross-departmental working that was already in place across the Council in terms of its work tackling climate change in the Borough. It has been important to continue harnessing the ideas and enthusiasm from both officers and Members whilst moving into the implementation of real projects. This has been invaluable and will form a good base for future work to show community leadership from the local authority by reducing CO2 emissions in the Council s own operations. The Pie Chart shows the London Borough of Waltham Forest (LBWF) CO2 baseline emissions for financial year The largest sector at 35% is emissions from schools. The next biggest sector is transport, including staff commuting, the Council and contractors fleet plus business mileage (travel for work through staff car claims). Commuting, although not technically part of the new National Indicator 185 (reduction in CO2 7

8 emissions from local authority operations) is a key factor for the Council to consider when looking to reduce its carbon footprint. Commuting is the largest transport aspect representing nearly half of the transport CO2 emissions. The next three largest sectors are Council buildings, street lighting and leisure centres with waste and water accounting for the final 4%. This data shows where the carbon reduction activity needs to be focussed. Work in schools is key as the largest sector. Working with schools will be the hardest area to achieve reductions in, as the schools have delegated budgets and may not naturally see the same carbon priorities as the Council. Finding additional support for a dedicated post schools and high level support from Children s Services will be vital. - Why Action needs to be taken The next set of charts show in two ways the carbon and financial implications of not taking action. This is called the Value at Stake and shows the growth in carbon and the financial cost if action to reduce CO2 and energy use is not taken. Using spreadsheets provided by the Carbon Trust and populated with LBWF specific data, projections can be made about the likely increases in CO2 emissions and energy use over the five year period up to 2012 without any action being taken to reduce them. On average, emissions naturally grow at c. 3% per annum and this is called the Business as Usual (BAU) scenario at This trend is particularly exacerbated in financial terms if the current pattern of increasing costs for petrol, oil and gas continues, as is likely. The graphs below show the CO2 emissions and financial Values at Stake ie: the difference between the top red line (the growth under the BAU scenario) and the CO2 and financial savings, which could be achieved if the CMP actions and target are adopted and implemented (the bottom blue line). 8

9 Value at Stake - Carbon This graph shows the likely growth in emissions under a Business As Usual (BAU) scenario compared to the reduction that could be achieved if the target of 20% reduction by 2012 is met. Carbon Value at Stake (VAS) is 8,702 tonnes of CO2 Value at Stake Financial This graph shows the likely increase in energy bills by 2012 if the 20% reduction target is not met. This includes the likely growth in energy use and bills by For LBWF this figure is 2,594,507 (excluding the cost of implementing the projects) that is effectively additional monies that would need to be found within council budgets to meet the likely growth in energy bills. The opportunity to reduce emissions and the savings to the Local Authority is represented as the wedge between the red and blue lines on the chart. Financial Value at Stake (VAS) is 2,594,507 9

10 Analysis by the Carbon Trust shows that, in financial terms, the cost of LBWF energy bills are likely to increase from 7.3m in 2007 to 11.4m in 2012 if no action is taken to reduce energy use and CO2 emissions. Therefore energy bills are anticipated to rise by 4.1m (56%) by The cost increases will fluctuate depending on electricity, gas and oil prices but are likely to continue to rise into the future. Please note that due to the projected increase in energy costs, even if the CMP projects are implemented, the Council energy bills will still increase to 8.8m as opposed to the BAU level of nearly 11.4m. Summary of Carbon and Financial Savings The headline figures to implement the Carbon Trust and reach the agreed target of 20% by 2012 are: Overall cost savings of Carbon savings 20% reduction 8,702 tonnes by 2012 Business as Usual (cost of not meeting target) Investment required to achieve 20% reduction Cost savings Total saving till million 3.1 million 2.8m. 565,000 pa 8.2m Please note that the is based on the best information as of April 2009 and projects need to be developed in detail prior to implementation. No projects will be started without funding being secured but there is a risk that without the whole suite of projects being delivered the Council s strategic 20% reduction target will not be reached. 10

11 1 Introduction The (CMP) itemises the actions that the Council are going to take within its own operations to reduce CO2 emissions by 20% by This action will underpin the overall aim of the LSP Climate Change Strategy to reduce borough wide community emissions by 80% by The timescale of this CMP is up to 2012 but also scopes continued actions which will be needed over the longer term up to 2025 and beyond. The Local Authority Carbon Management Programme (LACM) is run by the Carbon Trust and assists public sector organisations to reduce their carbon emissions through proven technologies and means. The 10 month focussed intense programme mobilises the Council across its various functions to understand its current baseline situation. And with the support of other local authorities and expert advice, devise a tailored clutch of projects that will effectively reduce CO2 emissions. The programme involves the five steps opposite. A 13 person Carbon Management Team was established with representatives from all Council directorates, focussing on the key areas where reductions can be successfully made and a Programme Board created to link delivery to strategy and remove barriers to progress. By gathering quantifiable data about existing activity that the Council was already undertaking, which also results in reduced CO2 emissions, has helped demonstrate that changes can be effected without always involving radical changes. For example, the BIG 1 Accommodation and site rationalisation programme in 2007 involved the refurbishment of Sycamore House to an energy efficient BREEAM very good standard. The closure of Chingford Municipal Offices resulted in a reduction of CO2 emissions by 381 tonnes. These savings arose through modern and reduced office floor space, adoption of alternative ways of hot desking and flexible working, plus most importantly, the closure of old and inefficient buildings. The printer rationalisation programme in 2007, for which ICS were nominated for a green ICT award also resulted in 250 tonnes of CO2 savings per annum. 11

12 2 LBWF is aiming to demonstrate community leadership in reducing CO2 emissions within its own operations. This will be achieved through increased energy efficiency in its own operations, enhanced standards in building refurbishments and work with schools to increase their energy efficiency. All these actions including implementation of the will contribute to the reduction in CO2 emissions and our targets of 20% by 2012 and 80% by 2050 echoing the new national target and the LSP Waltham Forest Climate Change Strategy. 2.1 Context and drivers for Carbon Management The UK Government has placed an emphasis on local authorities to lead by example on Climate Change. Action by Local Authorities (LA) will be critical to the achievement of the Government s climate change objectives, such as the long term goal to reduce CO2 emissions by 80% by 2050 in the Climate Change Act. This has created a number of legislative drivers for Local Authorities including Waltham Forest: Display Energy Certificates: these are now required to be displayed in a prominent place. The Accommodation Refurbishment programme is resulting in much more energy efficient buildings but energy management data needs to be improved to reach the higher grades for the Council s main public buildings. Carbon Reduction Commitment (CRC): This mandatory cap & trade emissions trading scheme will apply to LBWF from 2010 covering all electricity and fuel emissions. Carbon allowances will have to be purchased each year representing c. 8% of the annual energy spend (c. 375k pa at current spend levels). Poorly performing Local Authorities will be penalised depending on their position in an annual CRC league table and will have to purchase additional permits. In addition to the above legislative drivers, the Department of Environment, Food and Rural Affairs (Defra) have also created two new National Indicators specific to CO2 reduction: NI185 percentage CO2 reduction from LA operations: the public sector is in a key position to lead on efforts to reduce CO2 emissions by setting a behavioural and strategic example to the private sector and the communities they serve. Measurement against this indicator requires each local authority to calculate its CO2 emissions from analysis of the energy and fuel use in their relevant buildings and transport, including where these services have been outsourced. This CMP feeds directly into this work. NI186 per capita CO2 emissions in the LA area: This indicator has been included in the WF Local Area Agreement (LAA). Local authorities are uniquely placed to provide vision and leadership to local 12

13 communities by raising awareness and to influence behaviour change. The percentage reduction in CO2 per capita in each Local Authority will be reported annually by Central Government based on CO2 emissions from business, Public Sector, housing and road transport. Finally, and by no means least, measures to increase energy efficiency will reduce energy bills, which is particularly important in this time of budget restrictions and given the predicted increases in energy prices. Energy and fuel costs have seen a dramatic rise in recent years, with energy prices increasing by well over 50% since This trend is not expected to change and the price paid for energy is likely to continue to increase in the coming years. 2.2 What this means for London Borough of Waltham Forest The likely impacts of climate change on the borough (as across London) are likely to be increased extreme weather events, such as flash flooding, drought and heat stress. This will particularly affect the most vulnerable members of the local community, such as the young and elderly. Business continuity and service delivery is likely to be adversely affected during these extreme events. These are likely to become more frequent over time, due to increases in global temperatures disrupting traditional climate and weather patterns. It is therefore important to take action now, and as early as possible, to mitigate and adapt to such likely effects. The first step towards tackling these effects is to identify where carbon is currently being emitted within Council operations so as to actively target and reduce those emissions. This will contribute towards the % CO2 reduction target enshrined in national and local policy. Recent reports and strategies produced by the Council and LSP since autumn 2007 have produced baseline data showing the current level of energy use and CO2 emissions both within the Council and the wider Waltham Forest community. This work has informed the production of several strategies to tackle climate change, which are outlined here. Initially, the Council commissioned a Carbon Footprint report in autumn 2007 to show both the emissions from Council operations and in the wider community within the borough boundary. This shows that Council operations account for about 4% of CO2 emissions within the borough. The Council adopted an 11-point motion in December 2007 to tackle climate change within the Council s operations. Participation in the Carbon Trust LACM programme also supports delivery of the LBWF Energy Strategy that was agreed by the Council s Leadership Team in May 08. Policy 3 within the energy strategy has a target to reduce energy use in the Council s operations by 20% by The Sustainable Communities Strategy (SCS) was launched in June 2008 and seeks to be a beacon in sustainability with three key climate change commitments within it: To involve residents, businesses and the public sector in reducing landfill waste, energy use and carbon emissions 13

14 To promote sustainable forms of private and public transport To ensure new developments and existing public sector buildings are environmentally sustainable The Waltham Forest LSP Local Area Agreement (LAA) for was agreed with the Government Office for London (GoL) in May This includes as one of its 35 priorities, NI 186 (Per Capita reduction in CO2 emissions in the LA area). The target is to reduce community CO2 emissions by 9% by LBWF and the Local Strategic Partnership (LSP) adopted a borough wide Climate Change Strategy in September This aims to reduce CO2 emissions within the borough boundary by 80% by This work as part of the LACM programme will assist LBWF to meet this challenging long-term target. Implementing this will also clearly demonstrate community leadership in reducing CO2 emissions that can be showcased to local business, third sector and residential communities as well as LSP partners. 2.3 Our low carbon vision Waltham Forest is acting on climate change. As part of our ambition to be the greenest borough in London, the Council is leading local action to reduce carbon emissions and reduce our carbon footprint by 20% by 2012 to bring both environmental and economic benefits. The Council is taking action under six strategic themes: Theme 1: Increased energy efficiency - In buildings including leisure centres, equipment, ICT, street lighting plus more office recycling Theme 2: Improving the Town Hall complex: - Expand CHP capacity, increase roof insulation, draft proofing and on-site renewables Theme 3: Sites Rationalisation: - Continued site & accommodation rationalisation Theme 4: Practising Good Energy Management: - Ensure efficient and comprehensive energy management data from LBWF buildings and schools through the STARK system and works to make school buildings more energy efficient Theme 5: Encouraging Sustainable Transport: - Provision of low emission pool vehicles & bikes, driver training & green fleet reviews with contractors and work to reduce staff commuting by car 14

15 Theme 6: - Community Leadership through Communications & Outreach: - Staff Awareness raising, Green Champions network, work with young people in schools and Sustainable Procurement work with supply chains 2.4 Emissions Target The London Borough of Waltham Forest will reduce the CO2 emissions from it s activities by 20% from the 2006 baseline, by December This will fit within the LSP s Waltham Forest Climate Change Strategy target of reducing CO2 emissions by 80% by SMART targets will be set for all projects to enable close and effective monitoring of progress. 3 Emissions Baseline and Projections The current emissions baseline needs to be clearly established to enable targeting of the key sectors for emissions reduction projects. It also helps create the framework for data capture and reporting both to the Council, Carbon Trust and the government. 3.1 Scope The scope of this carbon management programme has been aligned with that of NI185, for consistency and ease of data capture / reporting. This new National Indicator 185 is defined as: NI 185 is to include all CO2 emissions from the delivery of local authority functions. In terms of the meaning of the word in legislation "function" covers both the duties and powers of an authority. It covers all an authority s own operations and outsourced services. Even if the services are being provided by an external body (e.g. a private company) they remain the function of the authority. The Council will be covering within this programme: The energy use in its own buildings using the STARK energy monitoring system that is being reactivating during 2009 Street lighting energy use data Council s fleet mileage Staff commuting information Leisure centres, the management of which is out-sourced Travel for work mileage claimed by staff through SAP HCM finance system 15

16 81 schools energy use data Energy and travel for work data from main out sourced contractors eg: street lighting maintenance, refuse collection, street & parks maintenance etc Not included within the programme: Housing data - this is not covered within the definition of this National Indicator. Work to improve the energy efficiency of the housing stock will be captured elsewhere under NI 187 addressing fuel poverty. 3.2 Baseline The baseline year is , the most recent data sets available, and to reflect that NI 185 and CRC reporting periods are financial, not calendar, years. The detailed sources of the baseline data is itemised in the separate Emissions Baseline tool completed for the Carbon Trust programme. The largest sector at 35% is emissions from schools. The next biggest sector is transport, including staff commuting, the Council and contractors fleet plus business mileage (travel for work through staff car claims). Commuting, although not technically part of the new National Indicator 185 (reduction in CO2 emissions from local authority operations), is a key factor for the Council to consider when looking to reduce its carbon footprint. Figure 3.1 Summary of emissions for LBWF baseline year

17 3.3 Projections and Value at Stake Without any action to reduce energy use and CO2 emissions these would grow on average by close to 3% per annum based on Defra studies. Therefore a Business as Usual (BAU) scenario would see LBWF emissions grow from just under 37,000 tonnes of CO2 pa to over 38,000 tonnes pa by Given that a target has been set to reduce emissions by 20% to 30,000 tonnes by 2012 this produces a gap between the BAU scenario and what could potentially be achieved in terms of emissions reductions and potential energy savings. If action is taken it is estimated this could potentially save 565k pa with a total saving of 8.2m (excluding the cost of implementing the projects). Given the actual 3.4% BAU energy increase, taking no action (even in the absence of carbon reduction projects) would place additional pressures on the Council s budgets, particularly in this time of the Smarter Spending Programme already in train across the Council s activities and organisational structures. The Carbon Management Programme Board has worked with the Smarter Spending programme team to embed these emission reduction projects and this within the Asset Management work stream so as to mainstream the activities within the Council s wider actions. Value at Stake Value at Stake for LBWF using the baseline data can be assessed in two ways; carbon that could be saved and financial costings which are both shown in the graphs below. An additional factor is that the costs of naturally growing energy use would also need to be found within future Council finances if no action is taken to reduce energy demand. The Graphs below show the CO2 emissions and financial Values at Stake ie: the difference between the top red line (the growth under the BAU scenario) and the CO2 and financial savings that could be achieved if the CMP actions and target are adopted and implemented (the bottom blue line). 17

18 Carbon Value at Stake Carbon Value at Stake (VAS) is 8,702 tonnes of CO2 Financial Value at Stake Financial Value at Stake (VAS) is 2,594,507 18

19 Analysis by the Carbon Trust shows that, in financial terms, the cost of energy bills are projected to increase from 7.3m in 2007 to 11.4m in 2012 if no action is taken to reduce energy use and CO2 emissions. Therefore energy bills are anticipated to rise by 4.1m (56%) by The cost increases will fluctuate depending on electricity, gas and oil prices but are likely to continue to rise into the future. The opportunity to reduce emissions and realise the savings to the Local Authority is represented as the wedge between the red and blue lines on the chart. This reduction in the increased costs by 2.5m is the clear financial incentive to LBWF to adopt and implement this. 4 Carbon Management Projects The suite of projects to reach the 20% carbon reduction target are itemised in this section. The 41 projects were developed with the 13 person in-house Carbon Management Team. Information was mapped about existing or approved projects that had taken place since April 2006 (our baseline year) to capture the CO2 savings from existing projects that were already planned or implemented. Projects were cross-referenced with the Top 10 emissions reducing projects recommended by the Carbon Trust. Where there wasn t existing activity, projects were included where the potential for savings was identified. The resulting projects are mainly a mix of hard edged energy efficiency works to existing buildings (which require additional funding to proceed) and awareness raising targeting behaviour change by staff to reduce energy use in buildings (which can largely be handled within existing staff resources and capacity). The projects are divided between the 6 themes identified: Theme 1: Increased energy efficiency - In buildings including leisure centres, equipment, ICT, street lighting plus more office recycling Theme 2: Improving the Town Hall complex: - Expand CHP capacity, increase roof insulation, draft proofing and on-site renewables Theme 3: Sites Rationalisation: - Continued site & accommodation rationalisation Theme 4: Practising Good Energy Management: - Ensure efficient and comprehensive energy management data from LBWF buildings and schools through using the STARK system and works to make school buildings more energy efficient 19

20 Theme 5: Encouraging Sustainable Transport: - Provision of low emission pool vehicles & bikes, driver training & green fleet reviews with contractors and work to reduce staff commuting by car Theme 6: - Community Leadership through Communications & Outreach: - Staff Awareness raising, Green Champions network, work with young people in schools and Sustainable Procurement work with supply chains 4.1 Projects and Funding by theme These 41 projects are shown in Appendix A. The programme will cost 3.1m to implement with the higher cost projects coming on stream later in the programme to enable external bids to be submitted. These costings are based on estimates and detailed costings will need to be established before projects can commence. 340,000 can be utilised from existing mainstream budgets, largely for street lighting and building energy efficiency works within the Council s property portfolio. Over 50% of the projects involve buildings energy efficiency works such as insulation, draught proofing, boiler controls, Building Energy Management Systems and fitting of SMART meters to improve the quality of energy data. Below is a summary of the funding sources and overall savings from implementation of the programme: Programme costs 3.1m to realise 8.2m reduction in energy bills over the lifetime of the projects (up to 2029). Programme pays for itself during ,000 will come from existing main stream budgets (maintenance and street lighting), Salix Fund application 915,000 (needs to be 50% match funded by LBWF - application deadline July 2009) 1.8m funding still needs to be sourced. Other options to be pursued include: - Building energy efficiency programme (BEEP) which is led by the LDA; - Internal invest to save bids including two posts one to run the CMP programme and another to provide energy efficiency advice to schools - Prudential Borrowing - Intend to submit external bids and establish ring fenced fund (requirement for Salix fund) for the energy efficiency funding and savings It is hoped that the 1.8m balance can be funded through a combination of internal invest to save support and external funding bids to the Salix Fund and the London Development Agency (LDA) as part of the Buildings Energy Efficiency Programme (BEEP). These bids will be developed through 2009 and projects will not be started if funding has not already been secured. Should the full 3.1m costs not be sourced, there is a major risk however that the 20% CO2 reduction target will not be reached which will result in increased energy bills for the Council. 20

21 4.2 Projection Towards Target This is illustrated on the middle purple line on the graph below showing progress against the Business as Usual scenario (top red line) and the reduction target (bottom blue line). This shows that the current clutch of 41 projects, if all implemented, should reach the 20% reduction target by the end of Financing 5.1 Fit with Council Priorities As far as possible these projects align with existing LBWF initiatives, for example the Smarter Spending Programme, low emission pool cars and Asset Management (Sites Rationalisation post 2009) project. Also, as far as practicable, the requirements to save energy will be passed onto our contractors as through their delivery of Council services, they are an important element of the Council s carbon footprint and are as important in saving energy and making CO2 savings. For example, it is planned to include energy efficiency improvements within the Council s four leisure centres (in terms of use of pool covers and savings with Variable Speed Drives) will be incorporated into the new leisure management contract and specifications for the planned redevelopment of the centres over the next 5-8 years. Therefore existing activity has been maximised (but not currently completely quantified) to reflect the Smarter Spending Programme environment. However in order to reach the CO2 saving target of 20% by 2012, additional investment is inevitably required in some areas mainly street lighting, Council buildings, schools and leisure centres. The Carbon Trust recommend establishing a specific ring fenced fund, where the savings from projects will 21

22 pay back their cost into the fund, in order to implement further energy efficiency projects. The Council is seeking to establish such a fund as part of its work with schools, the Salix Fund and BEEP. 5.2 Assumptions The key assumptions are itemised here to show what is under pinning the calculations, benefits and savings. Assumption 1: the project costings and energy savings are based on best estimates as advised by the Carbon Trust and exact details will need to be verified before projects are implemented Assumption 2: that the Smarter Spending Programme Asset Management work stream will realise an additional 2% of carbon savings needed to reach the agreed 20% carbon saving target (existing projects only quantify savings up to nearly 18%) Assumption 3: that energy costs will stablise at late 2008 prices essentially for gas and electricity. For the purposes of this calculation the gas and electricity prices were set at 2.6 pence and 9 pence, respectively. Assumption 4: that feasibility studies for increased use of CHP at the town hall site (due to report in April 2009) will realise the predicted energy savings Assumption 5: that the planned sites rationalisation and leisure centre redevelopment programmes will continue as currently scoped in outline form Assumption 6: that the CMP projects will be absorbed into the Smarter Spending Programme Assumption 7: that the Council s STARK energy data system will function from early 2009 Assumption 8: that accurate schools data will be made available as part of the DEC s process and can be integrated into the Council s STARK energy data system Assumption 9: that at least 25 schools will be persuaded to allow and part fund energy efficiency works to their buildings by 2012 Assumption 10: that contractors will be persuaded of the benefits and implement a green fleet review Assumption 11: that accurate Leisure centre energy use data will be made available by the contractor 22

23 Assumption 12: that directorates will make available the project management resources needed to implement the CMP projects Assumption 13: that the funding bids outlined in section 2 for the projects will be successful. No projects will be started without funding being identified so there is a risk of under performance against the target and savings if funds cannot be accessed. 5.3 Benefits / savings quantified and un-quantified As itemised in this CMP there are clear quantified benefits of concentrating on reducing carbon emissions thereby reducing energy use and realising financial savings for the Council. The financial savings are estimated as 8.2m up to 2029 that if implemented over the 41 projects will realise nearly 8,700 tonnes of CO2 savings by The costs associated with this cover two aspects: project implementation and additional in-house resources (ie: establishing additional staff capacity). The total costs are 3.1m divided across the projects. Once the savings have paid back the investment costs they will continue to realise annual financial savings of over 560k pa The main benefits from implementing this plan are financial cost and CO2 savings as shown in the table below: 2008/ / / / / /14 Cumulative Total Cost of Projects Annual Cost Savings Annual CO2 Savings (tonnes) 0 277, ,000 1,152,000 1,185, ,081, , , , , ,000 3,359,000 1,125 3,819 5,573 7,188 8,085 7,759 33,549 Unquantified benefits Meeting monitoring requirements for new National Indicator NI 185 (Reduction in Local Authority CO2 emissions) Contributing to lower CO2 emissions and therefore meaning less carbon allowances will need to be purchased under the new Carbon Reduction Commitment (CRC) from 2010 An improved reputation with staff, stakeholders & the public demonstrating community leadership 23

24 Helping meet the 80% target reduction in CO2 emissions agreed in the Waltham Forest LSP Climate Change Strategy agreed in September 2008 Helping meet the 80% target reduction in CO2 emissions national government target adopted in November 2008 Practical implementation of energy saving projects that can be showcased to partner organisations and rolled out across the LSP 5.4 Additional resources The CMT work has identified that the existing clutch of projects should be able to be co-ordinated within existing in-house capacity provided the additional project funding and two additional posts (one to coordinate the CMP implementation and one to work with schools on energy efficiency works) are identified. There is a risk however that by not requesting additional dedicated project management posts these projects will not be prioritised by internal departments or priorities may change. But in the current efficiency review climate it is not deemed appropriate to assume that additional project manager capacity can be automatically funded. 5.5 Financial costs and sources of funding Please note that the costs in the table below purely relate to projects that are currently unfunded, are shown as a total below and then shown divided across funding sources. The costs of existing and already planned projects have not been quantified here to avoid confusion. Annual Costs 2008/ / / / /13 Total Total Annual Project Costs 0 277, ,000 1,152,000 1,184,000 3,081,000 Committed Funding Mainstream Council Budgets 0 89, , , ,000 Funded Needed Salix Fund 0 65, , ,000 80, ,000 Invest to Save/Prudential Borrowing/ BEEP 0 445, , , ,000 1,826,000 24

25 6 Actions to Embed Carbon Management in Your Organisation As part of the Carbon Trust programme, the project lead, project sponsor and Carbon Management Team were asked to rank LBWF s current performance at the beginning of the programme against the Carbon Management Embedding Matrix shown at Appendix B. For most areas, LBWF was ranked as either 1 or 2 on the scale, as work to tackle CO2 reduction was only starting to be addressed (this is represented as the bottom line on the table in Appendix B). In terms of the Council s aspirations, performance was ranked also to show where the organisation would like to be in 5 years time (this is represented as the top line on the table in Appendix B). The middle line in the table shows the current position at the time of adopting the CMP in April 2009 in relation to the best practice advocated by the Carbon Trust. Realistic and pragmatic ratings were selected demonstrating ambition to, on the whole, reach a performance level of 4 or 5 for each area. To reach these rankings will involve the organisation embedding CO2 targets across the Council within staff and departmental performance and service plans. 6.1 Corporate Strategy embedding CO2 saving across your organisation (Initial level 2; Target level 5 by 2014) LBWF has already made good progress in this area having adopted a climate change strategy in 2008 with an 80% reduction target by Completion of this with a 20% reduction target by 2012 means that LBWF is currently at level 3 according to best practice see Appendix A. This (CMP) has senior endorsement from the Council s Leadership Team. It will be published on the Council s website to clearly show the aim to reduce CO2 emissions by 20% by This makes Waltham Forest s commitment transparent and reinforces the need for action within, and across, the organisation. Work will be undertaken in 2009 towards including the 20% CO2 saving target within the Council s Service Planning cycle and other high level plans and strategies from This will enable the Council to work towards setting individual targets for different service areas and directorates. This will also build on the fact that Cabinet reports already have to include a section on the climate change impacts of the proposals. By making CO2 reduction an explicit part of the Council s business approach through embedding these disaggregated targets into service area and directorate business plans, this reinforces local commitment and ensures funding and resources should be available to meet them into the future. 25

26 6.2 Programme Management bringing it all together effectively (Initial level 1; Target level 5 by 2014) LBWF was ranked at level 1 for programme management in May 2008 as no Carbon Management monitoring was carried out. By implementing the projects within this CMP and monitoring progress annually this will work towards achieving higher levels of the matrix. The continued Sponsor involvement of the Deputy Chief Executive will ensure that Leadership Team will regularly review progress on the projects and within the Council. The highest level will not be able to be reached until energy data is improved, and it is the intention by 2014 to enable quarterly reporting as required. 6.3 Responsibility being clear that saving CO2 is everyone s job (Initial level 1; Target level 4 by 2014) The Council was initially scored as a level 1, as when the programme was started in May 2008, climate change was being tackled in some areas but CO2 reduction was not explicitly mapped across the organisation. Through having completed the Carbon Management Programme and adopting this CMP the Council will have met level 3 with a CO2 focus and senior Sponsorship activity engaged. In order to move to level 5 the Council intends to take the following actions: Establishing a network of green champions across directorates to build engagement at the local level this can double the effectiveness and longevity of awareness campaigns. This will launch with an awareness raising campaign in 2009 which will lead, in its latter phases, to recruit volunteers to lead a green / carbon network (dependant on funding). In the medium term (ie: post 2013) the Council will work towards including specific carbon saving responsibilities in relevant job descriptions, e.g. Heads of Service. This cannot happen in the short term as the Council needs to radically improve its carbon and energy related data collection and management information. Without that structure in place meaningful disaggregated targets will not be able to be set at department, service or individual levels. Ultimately the Council would like to use carbon saving objectives for staff as part of their annual performance appraisal but until energy data has improved, the Smarter Spending Programme has embedded and new job descriptions are utilised this will not be possible in the short term. Despite these short-term constraints the Council still aspires to be a leader in this field. 26

27 6.4 Data Management measuring the difference, measuring the benefit (Initial level 1; Target level 5 by 2014) The Council initially scored 1 on this matrix for data management as bills are largely estimated and limited CO2 emissions data had been compiled. By the time of adopting this CMP the Council is improving energy data and moving towards being able to compile CO2 emissions data but additional investment (for example in SMART metering) will be needed to improve the position. To reach the level 5 aspired, the Council will need to undertake the following actions: improving data collection both across its own buildings and operations but also within leisure centres and schools. Re-instatement of the STARK energy monitoring system in 2009 will greatly help the collection of vital energy consumption information. This, combined with collection of consumption data from the 81 schools in the Borough, as a result of the new Display Energy Certificate requirements will also focus minds. The Council through its Children s Services lead officer will continue to work with schools in clusters of 6. This will help schools understand their energy use and how through relatively inexpensive measures (such as draft proofing and switch off campaigns) savings can be made. It is hoped to put a system in place during 2009 that ensures schools feed energy consumption data on a quarterly basis to the Council s Energy Manager for incorporation into the Council wide STARK system. It is hoped to amend the Council s Building Refurbishment Design Manual to include SMART meters (on every floor if practicable) so that service level CO2 reduction targets can be devised and measured. Work will begin in 2009 (under the Low Emission Pool Cars project) with individual departments to reduce the use of grey fleet mileage (ie: staff using their own cars for work and claiming car mileage). Green driver training will also be offered to staff (both fleet and in-house staff) to reduce CO2 emissions through more efficient driving techniques. Data will be collected annually using the STARK system plus the Council s car mileage and fleet data to monitor and target these carbon saving projects. This will be carried out through the combined efforts of the Council s Energy Manager and the lead in the Transport Planning unit. The success of these projects and the data on savings made will be communicated to staff through the awareness raising campaign led from Corporate Communications to demonstrate 27

28 what progress has been made and link the implications of individual s energy and fuel use to the Council s overall performance. 6.5 Communication and Training ensuring everyone is aware (Initial Level 1; Target level 5 by 2014) The Council ranks at level 1 on this area as no communication or training is currently being carried out due to lack of resources. In order to reach level 5 by 2014, the Council will take the following actions: Work to include the low carbon council culture in staff induction programmes Implement a 2009 staff awareness raising campaign (modelled on the Top 10 tips publicised to local residents and businesses through the Council climate change website pages and outreach events). 28

29 The Top 10 Tips are: 1. Lights off - Turn off lights when they aren t in use and you could save up to 10% of your energy bill. Using energy saving light bulbs could also save you up to 78 per bulb. 2. Boil what you need - Make sure you only fill the kettle with the amount of water you need. It will boil faster and you can save about 30% of the energy. 3. Cook smart - Turn your oven off a few minutes early and it will stay hot enough to finish cooking your food. Avoid opening the oven door too often to avoid losing heat and your food will cook faster. Using a microwave is also more energy efficient than a hob or oven. 4. Turn to 30 C - About 90% of the energy used by a washing machine goes to heat the water, so save energy by washing at 30 C. Most washing powders are just as effective at low temperatures and your clothes won t fade so quickly. 5. Close your fridge - Every time you open the fridge or freezer cold air escapes which means it has to use more energy to get cold again. Don t leave the door open for any longer than you need to. 6. Don t standby - Turn appliances like TVs off rather than leaving them on standby. You could save up to 37 a year! 7. Turn the tap off - If we all turned the tap off when brushing our teeth we d save enough water to supply 500,000 houses a day. 8. Cool it - Turn your central heating thermostat down by 1 C. You won t feel the difference but you could cut your heating bills by 10%. 9. Start reflecting - Put heat reflectors behind your radiators to reduce the amount of heat lost into the walls. Tin foil with the shiny side facing the radiator works really well. Keep furniture away from radiators to avoid blocking the heat. 10. Unplug it - Unplug chargers when you aren t using them, as they use energy constantly if left switched on. It takes a forest as big as 500 football pitches to absorb all the CO2 caused by chargers left plugged in when not in use. 29