This project is being developed as part of the Climate Change Skills Fund. The fund is managed by Sustainability East on behalf of Improvement East

Low Carbon Policy &

Cambridgeshire Renewables Infrastructure Framework (CRIF)

The Key Driver for Change

• The Climate Change Act 2008 legally bindsthe UK to deliver its commitment of 80% reduction of CO2 emissions by 2050

• The Coalition Government has committed to deliver the 4th carbon budget which covers the period spanning 2023 to 2027 and commits the UK to cut its emissions by 50% on 1990 levels, on course for emissions cuts of 80% by 2050.

“By making this commitment, we will position the UK as the leading player in the global low-carbon economy, creating significant new industries and jobs,” said the Prime Minister. Huhne added that the announcement will give investors the certainty they need to invest in clean energy”.

The Policy Framework

Carbon Emissions Targets for 2050

Zero Carbon Policy for New Homes

Electricity Market Reform

Presumption in Favour of Sustainable

Development

Affordable Warmth

The Green Deal

Carbon BudgetsFeed-in Tariffs

The Green Investment Bank

Energy Bill

Strategy to Promote Microgeneration

The UK Energy Trilemma

Energy Security

Affordable Energy

Low carbon energy

£200 billion energy

investment required in Britain

over the next decade

(Ofgem, 2009)

Global competition for energy

Reducing supply of fossil

fuels

Global demand for energy

forecast to increase by 45%

between 2006 and 2030, (IAE 2008)

Climate Change Act 2008,

reduce CO2 emissions by 80%

by 2050 from 1990 levels

Securing alternative

energy suppliesUK

Global – Energy Demand

Page 6

The energy challenge Source: E.ON

ELECTRICITY

SUPPLY

GAP

What does this mean for

Cambridgeshire?

• We need to find a way of dealing with rising fuel prices.

• We need to find a way of responding to targets – and the policy framework it offers. If we don’t we’ll find investment and opportunities go elsewhere.

• We need to know what options are on the table - how much energy will we need to generate, - how much will we have to rely on energy efficiency and - what investment, skills and resources do we have to tackle these problems

• CRIF is Cambridgeshire’s attempt to deal with this in an honest, sensible and transparent way.

Government is seeking to address the resource efficiency and CO2 emissions of new

buildings.

The Building Regulations, the principle tool for controlling energy use in new developments,

are being progressively tightened on a pathway to introduction of Zero Carbon Policy.

100% reduction

25% reduction

44% reduction

Regulated emissions

– heating, hot-water,

lighting& ventilation

Unregulated emissions

– appliances & cooking

2009 2010 2013 2016

CO

2e

mis

sio

ns

fro

m n

ew

de

ve

lop

me

nts

Zero Carbon

The Zero Carbon policy could potentially increase the role of local authorities in delivering

low carbon growth.

Pathway to Zero Carbon Homes

Government is implementing policies to ensure that new homes are

increasingly resource efficient

The zero carbon policy introduced the concept of allowable solutions –

this creates the role for community energy funds

Carbon Compliance – the

level of CO2 reduction that

must be delivered through

on-site measures

Allowable Solutions – A range of on-,

near- or off-site measures to mitigate

the remaining regulated emissions.

Community energy fund is a means of channelling developer

investment in carbon reduction into the local area

Developer CO2 reduction

obligation

Developer CO2 reduction

obligation

On-site CO2 reduction

% of target met through on-

site measures

Payment to Fund

% of target met by payment

into an Energy Fund

Fund invests in local

CO2 reduction projects

The Community Energy Fund

Developer

investments are

pooled in the Fund

Fund invests in local

low carbon projects

Potential revenue

into the Fund

The Community Energy Fund is a mechanism for ensuring the

substantial Allowable Solution investment is retained locally

Allowable Solutions payments

– potential investment in the

local economy

0

10

20

30

40

50

60

70

20

09

20

11

20

13

20

15

20

17

20

19

20

21

20

23

20

25C

um

ula

tiv

e i

nv

est

me

nt

(£

mil

lio

n)

Allowable Solutions investment raised in Cambridgeshire

Based on Cambridgeshire’s growth projections, the Allowable Solutions payments could

reach substantial sums.

The Community Energy Fund will ensure this money is invested locally.

The framework envisages a mix of Community Energy Funds and

private initiatives delivering Allowable Solutions projects

Developer requires Allowable

Solutions to comply with zero

carbon policy

Submits plans to

local authority

LA with a prescribed set of Allowable

SolutionsLA without a prescribed set

of Allowable Solutions

Pay into Community

Energy Fund

Pay into Community

Energy Fund

Contract a Third-

party to deliver

Allowable Solutions

Contract a Third-

party to deliver

Allowable Solutions

Private Energy Fund

is contracted to

manage delivery

Private Energy Fund

is contracted to

manage delivery

Either Or

Route A Route B

In both cases, Allowable Solutions projects

will be delivered in the local area

The Private Energy Fund can

deliver projects anywhere in

the country

The work to-date on a Cambridgeshire Community Energy Fund

An initial scoping study into the development of a Community Energy Fund in

Cambridgeshire was carried out in 2010. This study:

•Assessed the monetary size of a fund operating at a county-wide geographic scale.

•Examined potential mechanisms for collecting developer payments

•Proposed a structure for the local fund holding body – a company limited by

guarantee.

A further stage of detailed development of Fund proposals is now underway, focussing

on:

•Detailed governance structure – provisions for oversight by local authority members

•Measurement and accounting for carbon savings delivered

•Need for an evidence base and nature of local planning policy required.

CRIF Aim & Objectives

• To be proactive about addressing the known energy issues facing us in Cambridgeshire

• Identify opportunities for renewables investment by communities, private sector and use of public sector assets

• Make best use of the growth agenda to support renewables and investment in existing housing stock

• Creating and supporting green jobs

• Involving stakeholders in developing the CRIF

Scope of Work

• Step 1: Identify a baseline of energy use

Scope of Work

• Steps 2+3: Three pathways for community, commercial and public sector investment

• Identifying a supporting policy framework

• Developing a coordinating plan for investment

• Identifying how the community can benefit

Who is involved?