Climate Change ActsClimate Change Acts

Empowering a VisionEmpowering a Vision

Thursday 12Thursday 12thth March 2009 March 2009

Phil Newcombe – Learning to DeliverPhil Newcombe – Learning to DeliverKatherine Shepherd - Marches Energy Katherine Shepherd - Marches Energy

AgencyAgency

Format of WorkshopFormat of Workshop

Stage 1 - What are the implications of this legislation for the West Midlands?

Stage 2 - Which implications represent opportunities and which represent threats?

Stage 3 - Which are the key opportunities and threats to act on…and why?

West MidlandsWest Midlandspopulation: 5.3 millionpopulation: 5.3 millionCOCO22 : 50 million tonnes: 50 million tonnes

West MidlandsWest Midlandspopulation: 5.3 millionpopulation: 5.3 millionCOCO22 : 50 million tonnes: 50 million tonnes

Sources: Energy4All, WDM, IEASources: Energy4All, WDM, IEA

NigeriaNigeriapopulation: 140 millionpopulation: 140 millionCOCO22 : 52 million tonnes: 52 million tonnes

Climate Change – the ChallengeClimate Change – the Challenge

““The Government The Government believes that climate change is the believes that climate change is the greatest long-greatest long-

term challengeterm challenge facing the world today. There is facing the world today. There is strong and strong and

indisputable evidenceindisputable evidence that climate change is happening and that that climate change is happening and that

man-made emissions are its main cause... man-made emissions are its main cause... If left uncheckedIf left unchecked, ,

climate change will have climate change will have profound impactsprofound impacts on our societies and on our societies and

way of life, affecting agriculture and food security, leading to way of life, affecting agriculture and food security, leading to

water shortages, triggering population movements and impacting water shortages, triggering population movements and impacting

on our economies, and our security. on our economies, and our security. So action is needed nowSo action is needed now.”.”

UK Climate Change Programme, 2006UK Climate Change Programme, 2006

Climate Change – UK Programme 2006Climate Change – UK Programme 2006

• Achieve UK targets of 20% COAchieve UK targets of 20% CO22 below 1990 by 2010, 60% by below 1990 by 2010, 60% by 20502050

• National & international policies & priorities for action, National & international policies & priorities for action, beyond 2000s beyond 2000s – Annual progress reports to Parliament, continue & review Annual progress reports to Parliament, continue & review

existing policiesexisting policies– Climate Change Adaptation PlanClimate Change Adaptation Plan– Support microgeneration, renewables & barriersSupport microgeneration, renewables & barriers– Carbon abatementCarbon abatement– National Allocation Plan for EUETS National Allocation Plan for EUETS – Renewables Transport Fuels Obligation (2008)Renewables Transport Fuels Obligation (2008)– Code for Sustainable Homes, smart-metersCode for Sustainable Homes, smart-meters– Household energy efficiency initiativeHousehold energy efficiency initiative– Consumer product information & standardsConsumer product information & standards– LA action, revolving loan fund, strategic targetsLA action, revolving loan fund, strategic targets– Funding for community groups Funding for community groups

0

100

200

300

400

500

600

700

800

900

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

mill

ion

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Basket of greenhouse gases (CO2 equiv)

Carbon Dioxide

Source: AEA

2000 CCP

2003 Energy

WP2006 CCP

UK COUK CO22 Emissions – Progress? Emissions – Progress?

Queen’s Speech 2008Queen’s Speech 2008

• Annual event to mark State opening of Parliament Annual event to mark State opening of Parliament

• Introduces legislative programme for UK Introduces legislative programme for UK

• 2626thth November 2008 November 2008

• 27 Bills to Parliament 2007 – 14 enacted into Law27 Bills to Parliament 2007 – 14 enacted into Law

““My Government has worked to protect the environment and to tackle climate change, both at home and abroad.” My Government has worked to protect the environment and to tackle climate change, both at home and abroad.”

Climate Change ActClimate Change Act ““Legislation has been enacted to make the United Kingdom Legislation has been enacted to make the United Kingdom the first country in the world to introduce a legally binding the first country in the world to introduce a legally binding

framework to reduce carbon emissions, by 80 per cent of the framework to reduce carbon emissions, by 80 per cent of the 1990 levels by 2050.” 1990 levels by 2050.”

Energy ActEnergy Act

““Legislation has also been enacted to provide clean and Legislation has also been enacted to provide clean and secure suppliers of energy”. secure suppliers of energy”.

Planning ActPlanning Act ““Legislation has been enacted to reform the planning system, Legislation has been enacted to reform the planning system, providing for quicker and more transparent decision making, providing for quicker and more transparent decision making,

and to enable the introduction of the Community and to enable the introduction of the Community Infrastructure Levy.” Infrastructure Levy.”

Planning and Energy ActPlanning and Energy Act

Climate Change ActClimate Change Act

• Two main aims:Two main aims:

– Improve management of carbon emissions & help Improve management of carbon emissions & help transition of UK toward low carbon economytransition of UK toward low carbon economy

– Demonstrate UK leadership to global carbon reduction Demonstrate UK leadership to global carbon reduction internationally & its commitment to responsibility in internationally & its commitment to responsibility in negotiations on a post-2012 global agreementnegotiations on a post-2012 global agreement

• Department of Energy and Climate Change (DECC)Department of Energy and Climate Change (DECC)

• Deliver UK Climate Change ProgrammesDeliver UK Climate Change Programmes

• Statutory targets on greenhouse gases and CO2 emissions Statutory targets on greenhouse gases and CO2 emissions & carbon budgeting system& carbon budgeting system

• New reporting frameworkNew reporting framework

• Creation of independent advisory body: Climate Change Creation of independent advisory body: Climate Change CommitteeCommittee

• Trading scheme powersTrading scheme powers

• Policy measures to reduce emissionsPolicy measures to reduce emissions

• AdaptationAdaptation

Climate Change Act - ProvisionsClimate Change Act - Provisions

GHG & COGHG & CO22 emissions targets & carbon budgeting system emissions targets & carbon budgeting system

• 80% cut in GHGs from 1990 by 2050 & 26% CO80% cut in GHGs from 1990 by 2050 & 26% CO22 by 2020 by 2020

• Beyond 60% COBeyond 60% CO22 by 2050, 20% by 2010 & 12.5% GHGs by 2010 by 2050, 20% by 2010 & 12.5% GHGs by 2010

• European Union UK target 16% COEuropean Union UK target 16% CO22

• Budgeting system on net UK carbon emissions in five year periods, Budgeting system on net UK carbon emissions in five year periods, set three years in advance set three years in advance

• Budgets begin 2008 (2008-12) - first in place by 1st June 2009Budgets begin 2008 (2008-12) - first in place by 1st June 2009

• Set emissions trajectory to 2020 & 2050.Set emissions trajectory to 2020 & 2050.

Climate Change Act - ProvisionsClimate Change Act - Provisions

Creation of an independent advisory bodyCreation of an independent advisory body

• Climate Change Committee (CCC) Climate Change Committee (CCC)

• Independent body to advise on reducing carbon emissions & climate Independent body to advise on reducing carbon emissions & climate change issueschange issues

• Advice on adaptation, trajectory to 2050, carbon budgets, emissions Advice on adaptation, trajectory to 2050, carbon budgets, emissions from international aviation & shipping, emissions trading schemes, from international aviation & shipping, emissions trading schemes, carbon credits carbon credits

New reporting frameworkNew reporting framework

• CCC key in the annual reporting of Government progressCCC key in the annual reporting of Government progress

• Government must respond to ParliamentGovernment must respond to Parliament

• First report published on 1st December 2008First report published on 1st December 2008

Climate Change Act - ProvisionsClimate Change Act - Provisions

Trading scheme powersTrading scheme powers

• New powers to introduce secondary legislation on domestic New powers to introduce secondary legislation on domestic emissions trading schemes inc Carbon Reduction Commitmentemissions trading schemes inc Carbon Reduction Commitment

• Provides additional policy options to meet targetsProvides additional policy options to meet targets

AdaptationAdaptation

• Assessment & reporting procedure on climate change risks for UK on Assessment & reporting procedure on climate change risks for UK on an at least five yearly basisan at least five yearly basis

• Sustainable adaptation programme Sustainable adaptation programme

• New powers for Government to require risk assessments & action New powers for Government to require risk assessments & action programmes from public bodies & statutory undertakersprogrammes from public bodies & statutory undertakers

Climate Change Act - ProvisionsClimate Change Act - Provisions

Emissions Reducing PoliciesEmissions Reducing Policies

• Amendments to Renewable Transport Fuel ObligationsAmendments to Renewable Transport Fuel Obligations

• Powers to require a minimum charge for single use carrier bags & pilot LA Powers to require a minimum charge for single use carrier bags & pilot LA financial incentive schemes for household wastefinancial incentive schemes for household waste

• Amendment to EPA on household waste collectionAmendment to EPA on household waste collection

• Extension of Certified Emissions Reductions Scheme to support creation Extension of Certified Emissions Reductions Scheme to support creation of Community Energy Saving Programmeof Community Energy Saving Programme

• Carbon Emissions Reduction TargetCarbon Emissions Reduction Target

• Guidance & by 2010 mandatory emissions reporting by companiesGuidance & by 2010 mandatory emissions reporting by companies

• Annual reporting on Government estate performance, emissions Annual reporting on Government estate performance, emissions offsettingoffsetting

Climate Change Act - ProvisionsClimate Change Act - Provisions

Energy ActEnergy Act

• Aim: update existing legislative framework through new measures & actions, to make it more appropriate for today’s energy market

• Implements legislative aspects of 2007 Energy White Paper

• Six parts:

RenewablRenewable e

ElectricityElectricity

GeneraGenerall

MiscellaneousMiscellaneous

Decommissioning Decommissioning of energy of energy

installationsinstallations

Oil & gasOil & gas

Gas importation Gas importation & storage& storage

Energy Act - ProvisionsEnergy Act - Provisions

• Gas importation & storage, COGas importation & storage, CO22 storage for permanent disposal storage for permanent disposal

• Oil & gas licensing, infrastructure & processingOil & gas licensing, infrastructure & processing

• Decommissioning costs of energy installationsDecommissioning costs of energy installations

• Renewable Electricity: RO amendments inc Renewable Electricity: RO amendments inc technology technology bandingbanding, offshore transmission, , offshore transmission, feed-in tariffs for small scale feed-in tariffs for small scale generationgeneration

• Misc: Reporting on energy requirements, Misc: Reporting on energy requirements, smart meterssmart meters, , renewable heat incentivesrenewable heat incentives, Ofgem duties, transmission access , Ofgem duties, transmission access powers & network connection costs, transfer of responsibilities powers & network connection costs, transfer of responsibilities for energy regulation, & nuclear securityfor energy regulation, & nuclear security

• General: Secondary legislation, Act amendments & introductionGeneral: Secondary legislation, Act amendments & introduction

• Feb 09 – Legislation to introduce banding before Parliament

• Form part of Renewables Obligation Order, amending RO & ROC

• Proposed Order implementation 1st April 09

• Differential banding – less developed technologies receive more ROCs / MWh

• Banded RO lead to 13.4% of electricity from renewable sources by 2015; unbanded RO only 11.4%

Energy Act – RO Banding SystemEnergy Act – RO Banding System

Proposed 'banding' of the Renewables Obligation

Band Technologies ROCs/MWh

Established Sewage gas; landfill gas; co-firing of non-energy crop biomass.

0.25

Reference Onshore wind; hydro-electric; co-firing of energy crops

1.0

Post-demonstration

Offshore wind; dedicated regular biomass 1.5

Emerging technologies

Wave; tidal stream; advanced conversion technologies (AD, gasification, pyrolysis); dedicated biomass burning energy crops; dedicated regular biomass with CHP; PV; geothermal

2.0

Energy Act – RO Banding SystemEnergy Act – RO Banding System

Energy Act – ‘Feed-in Tariffs’

• Renewable Electricity Tariffs (‘Feed-in Tariffs’)Renewable Electricity Tariffs (‘Feed-in Tariffs’)

• Financial incentive to encourage small scale generationFinancial incentive to encourage small scale generation

• Guaranteed price for each kW/h produced from renewable sources Guaranteed price for each kW/h produced from renewable sources & exported to grid in fixed period& exported to grid in fixed period

• Payable to users generating their own renewable electricityPayable to users generating their own renewable electricity

• Provisional eligible energy & technology: biomass, biofuels, fuel Provisional eligible energy & technology: biomass, biofuels, fuel cells, PV, water (inc waves & tides), wind, solar power, geothermal cells, PV, water (inc waves & tides), wind, solar power, geothermal sources, CHP with electrical capacity of 50kW or lesssources, CHP with electrical capacity of 50kW or less

• Consultation summer 2009, introduction April 2010Consultation summer 2009, introduction April 2010

• subsidies for any supplier of renewable heat or renewable fuel to be used for heating purposes – including households, community projects & industry

• Expected to include biomass, biofuel & biogas powered heating systems, air-source pumps, fuel cells & solar thermal systems

• CHP only eligible if powered by renewable fuels

• Payments made by ‘designated fossil fuel suppliers’ or as a levy administered by Ofgem

• ‘Banded’ system similar to for renewable electricity

• No cap on eligible size, proposed to include renewable heat at all scales

Energy Act Energy Act ‘Renewable Heat Incentive’‘Renewable Heat Incentive’

Energy Act – Smart MetersEnergy Act – Smart Meters

• Government has power to design smart meter roll-out (inc Government has power to design smart meter roll-out (inc functions, installations, timetable & implementation) functions, installations, timetable & implementation)

• Smart meters allow users to monitor their energy use & work out Smart meters allow users to monitor their energy use & work out how much energy specific appliances are using how much energy specific appliances are using

• Roll-out to all domestic customers by end 2020Roll-out to all domestic customers by end 2020

• 2 year design period, 10 year roll-out 2 year design period, 10 year roll-out

• Advanced metering will be rolled-out to larger business customers Advanced metering will be rolled-out to larger business customers over five years from early 2009 over five years from early 2009

• Government consulted recently on requirementsGovernment consulted recently on requirements

• New system of development consent for certain infrastructure projects in New system of development consent for certain infrastructure projects in energy, transport, water, waste water & wasteenergy, transport, water, waste water & waste

• Aims to streamline decision-making, avoid lengthy public inquiries Aims to streamline decision-making, avoid lengthy public inquiries

• Decisions taken by new Infrastructure Planning Commission (IPC) based on Decisions taken by new Infrastructure Planning Commission (IPC) based on new National Policy Statements (NPSs)new National Policy Statements (NPSs)

• Project promoters must consult prior to submitting application, new process Project promoters must consult prior to submitting application, new process for examining applications for examining applications

• New Government power to establish Community Infrastructure Levy (CIL) New Government power to establish Community Infrastructure Levy (CIL)

by regulations,by regulations, to finance facilities required as a result of developments to finance facilities required as a result of developments

• Charged by local planning authorities on developers in respect of Charged by local planning authorities on developers in respect of developments in their areadevelopments in their area

• Consultation on draft regulations issued spring 2009; will not enter into Consultation on draft regulations issued spring 2009; will not enter into force before October 2009 force before October 2009

Planning ActPlanning Act

• Alters existing regional & local town & country planning regimesAlters existing regional & local town & country planning regimes

• Simplifying Local Development Plan system by removing minor Simplifying Local Development Plan system by removing minor proceduresprocedures

• Duty on councils to take action on climate change in development Duty on councils to take action on climate change in development plans & have regard to the desirability of achieving good designplans & have regard to the desirability of achieving good design

• Streamlining development control proceduresStreamlining development control procedures

• Amending appeals processAmending appeals process

• Adding transitional powers allowing regional assemblies to Adding transitional powers allowing regional assemblies to delegate planning functions to regional planning bodiesdelegate planning functions to regional planning bodies

Planning ActPlanning Act

• Enables local planning authorities to set requirements for new Enables local planning authorities to set requirements for new developments in:developments in:

– (a) a proportion of energy used in development in their area to (a) a proportion of energy used in development in their area to be energy from renewable sources in the locality of the be energy from renewable sources in the locality of the developmentdevelopment

– (b) a proportion of energy used in development in their area to (b) a proportion of energy used in development in their area to be low carbon energy from sources in the locality of the be low carbon energy from sources in the locality of the developmentdevelopment

– (c) development in their area to comply with energy efficiency (c) development in their area to comply with energy efficiency standards that exceed the energy requirements of building standards that exceed the energy requirements of building regulationsregulations

• Policies included in development plan documents must not be Policies included in development plan documents must not be inconsistent with relevant national policies inconsistent with relevant national policies

Planning & Energy ActPlanning & Energy Act

Energy White Paper 2007:Energy White Paper 2007:Meeting the Energy ChallengeMeeting the Energy Challenge

• Free real-time electricity display devices for consumers 2008–2010

• Smart metering, historic consumption info on energy bills• New build requirements based on Code for Sustainable Homes• Energy Performance Certificates, Zero Carbon Housing• Product efficiency, inefficient bulb phase out• Doubling of CERT, intro of CRC• Public sector procurement guidelines• Fuel poverty, heat & distributed energy• Oil, gas & coal supply• Increase in RO to 20%, introduction of technology banding• Changes to planning system & grid connection procedures• Carbon Capture & Storage (CCS)• Nuclear power consultation• Aviation in emissions trading schemes, car efficiency standards• Streamlining planning policy for large scale projects

Planning for a Sustainable Future 2007 – White Paper

• http://www.communities.gov.uk/publications/planningandbuilding/planningsustainablefuture

Planning Policy Statements

Planning Policy Statement 1: Delivering Sustainable Development (2005)Sets out Government's planning policies on the delivery of sustainable development through the planning system  Planning and Climate Change: Supplement to Planning Policy Statement 1 (2007)Sets out how planning, in providing for the new homes, jobs and infrastructure needed by communities, should help shape places with lower carbon emissions & resilient to the climate change

Planning Policy Statement 22: Renewable energy (2004)Sets out policies for renewable energy, which planning authorities should have regard to when preparing local development documents & taking planning decisions

Implications WorkshopImplications Workshop

Your Chance to RespondYour Chance to Respond

• 12th Feb DECC & DCLG  launched three Heat & Energy Saving 12th Feb DECC & DCLG  launched three Heat & Energy Saving Strategy consultations:Strategy consultations:

• Heat and Energy Saving Strategy (HES): Government’s longer-term Heat and Energy Saving Strategy (HES): Government’s longer-term ambitions for energy use in homes & businesses, & how we ambitions for energy use in homes & businesses, & how we generate our heating (closes 8th May)generate our heating (closes 8th May)

• Community Energy Saving Programme (CESP): to deliver significant Community Energy Saving Programme (CESP): to deliver significant packages of energy efficiency measures to households in low-packages of energy efficiency measures to households in low-income communities (closes on 8th May)income communities (closes on 8th May)

• 20% increase to Carbon Emission Reduction Target (CERT) on major 20% increase to Carbon Emission Reduction Target (CERT) on major energy suppliers, driving in household energy & carbon saving by energy suppliers, driving in household energy & carbon saving by March 2011 (closes 14th April)March 2011 (closes 14th April)

• www.decc.gov.uk/en/content/cms/consultations/consultations.aspx

DECC is holding interactive events to present proposals to contribute DECC is holding interactive events to present proposals to contribute to consultation processto consultation process

For local government, community groups, NGOs and the supply For local government, community groups, NGOs and the supply chains of energy efficiency products and services in West Midlands chains of energy efficiency products and services in West Midlands

16th March 200916th March 2009 9:30am – 4:30pm9:30am – 4:30pm

Botanical Gardens, Westbourne Road, Edgbaston, Botanical Gardens, Westbourne Road, Edgbaston, Birmingham, B15 3TR   Birmingham, B15 3TR  

To register for this event email To register for this event email deccbirmingham@jcconferences.co.uk stating the name of your organisation and rolestating the name of your organisation and role

Your Chance to RespondYour Chance to Respond

To conclude…To conclude…

Tell me, what is it you plan to doTell me, what is it you plan to dowith your one wild and precious life?with your one wild and precious life?

Mary Oliver, The Summer DayMary Oliver, The Summer Day

““What we think, or what we know, or what What we think, or what we know, or what we believe is, in the end, of little we believe is, in the end, of little

consequence. The only consequence is consequence. The only consequence is what we do.”what we do.”

John RuskinJohn Ruskin

Don’t just stand there, do something!Don’t just stand there, do something!

Katherine Shepherd Phil Newcombe

katherine@mea.org.uk phil@mea.org.uk