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Economic Assessment Through Marginal Abatement Cost Curves Annex D - Construction Waste Report December 2012

Report Prepared by Matthew Fishwick and Anton van Santen

For and on behalf of Environmental Resources Management Approved by: Simon Aumônier ___________ Signed: ________________________________ Position: Partner ________________________ Date: December 2012 ____________________

This report has been prepared by Environmental Resources Management the trading name of Environmental Resources Management Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk.

ENVIRONMENTAL RESOURCES MANAGEMENT DEFRA

D1

This annex report has been prepared by Environmental Resources Management Limited (ERM) as part of Defra’s evidence programme in preparing the Waste Prevention Plan for England. It presents an initial assessment of alternative actions aimed at increasing waste prevention, including re-use and preparation for re-use, of construction wastes in terms of their economic performance. Information is provided on the potential carbon and waste savings, and the associated financial and economic costs (or savings), of the alternative actions considered. This is presented in the form of a marginal abatement cost (MAC) curves. The assessment draws on a wide range of data and assumptions sourced largely from published and on-going WRAP studies, published secondary sources and personal communication with industry experts. Where data has been lacking, best estimates and professional judgement has been used to enable an initial assessment. The results presented are indicative of the relative order magnitude of the potential savings and come with the following caveat:

“The information displayed is an indicative estimate based on a number of assumptions. While the scale of the effect is likely to be reflective of the real world situation, no accuracy should be ascribed to the numbers given. Data provided is the best available at the time of publication and may be superseded by more accurate or representative data in future, should this become available.”

ERM acknowledges the support of WRAP experts and the Defra project steering group under the chairmanship of Professor David Wilson in guiding this work.


D2

D1 CONSTRUCTION WASTE

This Annex provides details and analysis of actions considered for the prevention and re-use of wastes from construction. The data and information is provided in the following tables and figures: Table 1 – construction action matrix, which maps each method of

implementation (MOI) to technical potential (labelled A to D) and lifecycle stage (1 to 6). This is the key mapping table.

Table 2 – construction action list and descriptions, provides a detailed description of each technical potential (TP) and associated MOIs

Figure 1 – MAC curve for waste: Cost (annualised £/tonne waste saved) plotted against waste tonnage saved by each MOI (negative MAC values represent savings).

Table 3 – MAC curve details for waste, provides the data behind the MAC curve, with MOIs ranked by MAC value

Figure 2–MAC curve for overall carbon savings (CO2e): Cost (annualised £/tonne carbon saved) plotted against overall tonnage carbon saved (negative MAC values represent savings).

Table 4 – MAC curve details of overall carbon, with MOIs ranked by MAC value.

Table 5 – Overall summary of the data and the overall annualised cost (saving) resulting from each action.

Table 6 – Interaction matrix, provides the assumed percentage interaction between the actions and consequent percentage change in waste reduction achieved by each action.

The information in the tables and figures is an indicative estimate based on a number of assumptions. While the scale of the effect is likely to be reflective of the real world situation, no accuracy should be ascribed to the numbers given. Data provided is the best available at the time of publication and may be superseded by more accurate or representative data in future, should this become available.

The Annex concludes with a discussion of the key points arising from the analysis. This indicates that the actions considered in this assessment deliver an annualised resource efficiency and waste saving of 17 million tonnes with a cost saving of £5100 million. This represents some 40% of the annual construction waste arising. 50% of the indicated resource saving is as a result of diverse waste prevention and re-use actions aimed at the construction phase, with action to increase landfill tax, ban the landfilling of soils and the introduction of standards for sustainable construction and design offering the greatest potentials.

Table D1 Constriction Action matrix Life cycle stage A B C D Lean design Design for deconstruction and

refurbishment Waste reduction in construction process Waste reduction in supply chain

1 Design Increase lean practice in construction design through support materials, eg guidance, toolkits, training, achieves 3% material consumption reduction (MOI_A1a). Increase lean design, eg through demonstration projects and dissemination of good practice guidance, achieves 3% material consumption reduction (MOI_A1b). Increase lean design through the safe minimisation of materials, eg through materials testing and good practice guidance, achieves 6% material consumption reduction (MOI_A1c). Reduce soil waste, eg by amending environmental permitting legislation to ban the disposal of soil to landfill, achieves 80% reduction in soil waste (MOI_A1d). Promote lean design, eg through voluntary agreement, achieves 3% reduction in construction waste (MOI_A1f).

Increase design for deconstruction through support materials, eg guidance, toolkits, training, achieves 3.6% material saving in year 10 and 1.3% overall (MOI_B1a). Increase design for deconstruction, eg through demonstration projects, achieves 3.6% material saving in year 10 and 1.3% saving overall (MOI_B1b).

2 Materials manufacture

Reduce waste in the manufacture of construction materials, eg through industrial symbiosis and business clubs, achieves 3% reduction in construction waste (MOI_A2a).

Life cycle stage A B C D Lean design Design for deconstruction and


3 Materials distribution

Reduce supply chain waste by reducing transit damage, eg through good practice guidance, achieves 1% overall reduction (MOI_D3a). Reduce packaging waste in the supply chain through promotion of reusable packaging, achieves 1.7% overall reduction in construction waste (MOI_D3b).

4 Supply chain procurement

Reduce construction waste at build phase, eg through offsite construction and modular buildings, achieves 6% reduction in construction waste (MOI_C4a).

Reduce waste at supply chain interfaces through support materials, eg leaflets, toolkits, training, achieves 0.5% material consumption reduction (MOI_D4a). Increase waste prevention in the supply chain, eg through buying standards, achieves 10% reduction in waste (MOI_D4b). Increase lean practice in the supply chain through support materials, eg toolkits, training, achieves 3% material saving (MOI_D4c).

5 Primary use phase - Construction

Increase refurbishment/repair through financial incentives, eg by removing VAT differential versus new build, achieves 3% material saving (MOI_B5a).

Reduce construction waste at build phase through support materials, eg leaflets/toolkits/ training sessions, achieves 2.5% construction waste reduction (MOI_C5a). Reduce construction waste at build phase, eg through the introduction of a standard for sustainable construction, achieves 10% reduction in construction waste (MOI_C5b). Reduce construction waste at build phase, eg through the introduction of a voluntary agreement, achieves 2.5% reduction in construction waste (MOI_C5c).

6 Secondary use phase – use in buildings / infrastructure

Reduce need for new construction, eg by leasing vacant commercial and industrial buildings (MOI_B6a).

Life cycle stage A B C D Lean design Design for deconstruction and


Reduce construction waste at build phase through increase in the rate of landfill tax for CD&E waste, achieves 60% reduction in waste to landfill (MOI_C5d). Reduce construction waste at build phase, eg through obligation on construction businesses to report waste arisings, achieves 0.5% reduction (MOI_C5e).

Table D2 Construction Action list and descriptions Action Action Name Action Detailed description Waste

Stream 23 TP_A Technical Potential of Lean

Design in reducing waste Technical potential of reducing 60% of construction waste is achieved through lean design to reduce the overall consumption of materials and their associated wastage rates (TP_A).

Total construction and demolition waste in 2010 in England = 47,356,000 tonnes of which some 50% is estimated to arise during construction. Waste reduction at the design stage is estimated to have potential to reduce overall consumption of materials by 60% (WRAP estimate). Examples of actions that will contribute to achieving this potential include campaigns to demonstrate the benefits of lean design, encouraging industrial symbiosis and establishing a voluntary agreement between construction companies.

C&D Construction Manufacture Prevention

1 MOI_A1a Increase lean practice in construction design through support programme

Increase lean practice in construction design through support materials, eg guidance, toolkits, training, achieves 3% material consumption reduction (MOI_A1a).

Increase adoption of lean design principles at the design stage through action with the construction industry to develop a range of support materials (guidance/leaflets/ toolkits/training sessions, etc). The effectiveness of engaging construction industry is 5%. Potential for lean design is 60%, hence overall reduction of 3% in material consumption is achievable. Cost of action is based on a single message integrated national education campaign - £5m over 10 years (shared between public and private sectors).


2 MOI_A1b Increase lean design through demonstration projects at the design stage

Increase lean design, eg through demonstration projects and dissemination of good practice guidance, achieves 3% material consumption reduction (MOI_A1b).

Increase lean design through action with the construction industry to create demonstration projects, good practice guidance and case studies to demonstrate the benefits of lean design. The effectiveness of engaging construction industry is 5%. Potential for lean design is 60%, hence overall reduction of 3% is achievable. Cost of action is based on undertaking 50 demonstration projects with four public sector-funded FTEs and one private sector FTE required for the entire 10 years of implementation.


3 MOI_A1c Increase lean design through guidance on safe minimisation of materials

Increase lean design through the safe minimisation of materials, eg through materials testing and good practice guidance, achieves 6% material consumption reduction (MOI_A1c).

Increase lean design through further materials testing and dissemination of revised guidance. The uptake in use of minimised materials/alternatives by construction firms assumed to be 10%. Potential for lean design is 60%, hence overall reduction of 6% is achievable. Cost of action is based on research programme of £500,000 per year for first three years and on-going costs of £100,000 per year after development. Materials testing costs estimated at £200,000 per year for the first three years.


4 MOI_A1d Amend environmental permitting legislation to ban landfilling soil

Reduce soil waste, eg by amending environmental permitting legislation to ban the disposal of soil to landfill, achieves 80% reduction in soil waste

Reduce soil waste by amending environmental permitting legislation to ban the landfilling of soil and ensure that it is treated as a resource rather than a waste and is only discarded in exceptional situations. It is assumed that 20% of soil will be too contaminated to be used and will be disposed to landfill therefore


Action Action Name Action Detailed description Waste Stream

(MOI_A1d). only 80% of soil waste will be prevented. No cost is associated with this action.

5 MOI_A1e Introduce standard for sustainable construction to promote lean design

Promote lean design, eg by developing standard for sustainable construction, achieves 15% reduction in construction waste (MOI_A1e).

Promote lean design through action with industry to develop and promote standard for sustainable construction, to include specific lean design actions as mandatory. Action assumed to result in 15% waste reduction. Cost of action is based on one public sector FTE and two private sector FTEs.


6 MOI_A1f Introduce voluntary agreement to promote lean design

Promote lean design, eg through voluntary agreement, achieves 3% reduction in construction waste (MOI_A1f).

Promote lean design through action with industry to develop and promote voluntary agreement for sustainable construction. A technical potential of lean design in reducing waste is set at 60%, however, a voluntary agreement will only encourage certain realistic lean design actions, resulting in a reduction in waste of 3%. It is assumed 50% of the construction industry will sign up to the voluntary agreement. Cost of action is based on one public sector FTE and two private sector FTEs, required for first three years.


7 MOI_A2a Reduce construction waste through knowledge sharing

Reduce waste in the manufacture of construction materials, eg through industrial symbiosis and business clubs, achieves 3% reduction in construction waste (MOI_A2a).

Reduce waste in the manufacture of construction materials, through action with industry to promote industrial symbiosis and knowledge sharing through waste minimisation clubs and mentoring networks. NISP estimate the potential for waste prevention from industrial symbiosis is 7m tonnes in England. Cost of action is based on one public sector FTE and one private sector FTE, required for first three years.


TP_B Technical Potential of Design for Deconstruction in reducing waste

Technical potential of design for deconstruction and refurbishment to reduce demolition waste (TP_B).

Design for deconstruction and refurbishment uses design to enable materials to be more easily recovered and reused from a building at end of life. Potential for waste reduction is 60% (WRAP estimate). Examples of actions that will contribute to achieving this potential include demonstration projects and toolkits to demonstrate the benefits of design for deconstruction.


8 MOI_B1a Increase design for deconstruction through support programme

Increase design for deconstruction through support materials, eg guidance, toolkits, training, achieves 3.6% material saving in year 10 and 1.3% overall (MOI_B1a).

Increase adoption of design for deconstruction principles at the design stage through action with industry to develop a range of support materials (guidance/leaflets/toolkits/training sessions etc). A technical potential of design for deconstruction in reducing waste is 60%. Cost of action is based on single message integrated national campaign - £5m over 10 years (shared between public and private sectors). The effectiveness in engaging construction industry with action is 5%. Action assumed to impact in Year 5 following decisions in previous years and achieves 3.6% waste saving in year 10 and 1.3% saving overall.

C&D Construction Use phase Re-use


9 MOI_B1b Increase design for deconstruction through demonstration programme

Increase design for deconstruction, eg through demonstration projects, achieves 3.6% material saving in year 10 and 1.3% saving overall (MOI_B1b).

Increase design for deconstruction through action with industry to create demonstration projects, good practice guidance and case studies to increase industry uptake of design for deconstruction in building construction. The effectiveness of engaging construction industry is 5%. Action assumed to impact in Year 5 following decisions in previous years. Results in 3.6% material saving in year 10 and 1.3% saving overall. Cost of action is based on 50 demonstration projects with four public sector-funded FTEs and one private sector FTE required for the entire ten years of implementation.


10 MOI_B5a Encourage refurbishment/ repair by reducing VAT rates versus new build

Increase refurbishment/repair through financial incentives, eg by removing VAT differential versus new build, achieves 3% material saving (MOI_B5a).

Increase refurbishment/repair through action by Government to introduce financial incentives to reduce demolition for rebuild with resulting prevention of waste eg by reducing VAT differential. The technical potential of refurbishing properties rather than demolishing and rebuild is set at 60%. Secondary impacts and loss of Treasury income excluded.


11 MOI_B6a Shift towards a service-based economy - leasing rather than ownership

Reduce need for new construction, eg by leasing vacant commercial and industrial buildings (MOI_B6a).

Reduce need for new construction through action by Government to introduce programme to optimise use of existing building stock by requiring vacant buildings to be made available on a 'leasing rather than ownership' arrangement. Action results in 1% of 55,000 vacant commercial and industrial properties in England being made available for use. Cost of action is based on five FTEs to manage process of building stock optimisation.


25 TP_C Technical Potential of waste reduction in construction process

Technical potential of reducing 50% of construction waste created during build phase (TP_C).

Actions that will contribute to achieving technical potential include increasing promotion of offsite construction, landfill tax rates for CD&E waste and development of standards for construction that include reference to waste reduction and encouraging re-use of materials.


12 MOI_C4a Reduce construction waste through modular building

Reduce construction waste at build phase, eg through offsite construction and modular buildings, achieves 6% reduction in construction waste (MOI_C4a).

Reduce construction waste created onsite and achieve greater material efficiency and re-use potential through off-site construction. Cost of action is based on a three year programme (cost-shared with industry) to develop and disseminate good practice guidance and case study materials to promote shift towards offsite construction and modular building. Technical potential for waste reduction is 60%, however it is assumed that only a 10% shift to modular building is possible given public perception, suitability and availability.

C&D Construction Use phase Prevention

13 MOI_C5a Reduce waste in construction process through support programme.

Reduce construction waste at build phase through support materials, eg leaflets/toolkits/ training sessions, achieves 2.5% construction waste reduction (MOI_C5a).

Reduce construction waste at build phase through action with the construction industry to identify need for and development of further support materials (leaflets/toolkits/training sessions etc) on construction waste reduction. Effectiveness of engaging construction industry supply chain is 5%. Cost of action is based on single message integrated national education campaign - £5m



over 10 years (shared between public and private sectors).

14 MOI_C5b Introduce standards for sustainable construction

Reduce construction waste at build phase, eg through the introduction of a standard for sustainable construction, achieves 10% reduction in construction waste (MOI_C5b).

Reduce construction waste at build phase through action with industry to develop and promote standard for waste reduction in construction processes for buildings and infrastructure. Technical potential of waste reduction in the construction process is 50%; however, a standard for sustainable construction will only make specific realistic actions mandatory, resulting in a reduction in waste of 10%. Cost of action is based on one public sector FTE and two private sector FTEs, required for one year.


15 MOI_C5c Introduce voluntary agreement to promote waste reduction in the construction process

Reduce construction waste at build phase, eg through the introduction of a voluntary agreement, achieves 2.5% reduction in construction waste (MOI_C5c).

Reduce construction waste at build phase through action with industry to develop and promote a voluntary agreement for sustainable construction. Action assumed to achieve additional 5% construction waste saving and 50% of the construction industry sign up to a voluntary agreement. Cost of action is based on one public sector FTE and two private sector FTEs, required for one year.


16 MOI_C5d Increase the landfill tax rate for CD&E waste

Reduce construction waste at build phase through increase in the rate of landfill tax for CD&E waste, achieves 60% reduction in waste to landfill (MOI_C5d).

Reduce construction at the build phase through Government action to increase the rate of landfill tax for CD&E waste to double the current (reduced) rate, resulting in a reduction in waste going to landfill by 60% (Institute for Environmental Studies, 2005). This translates to a 10% increase in re-use and waste minimisation. No cost is associated with this action.


17 MOI_C5e Introduce waste reporting obligation on construction businesses

Reduce construction waste at build phase, eg through obligation on construction businesses to report waste arisings, achieves 0.5% reduction (MOI_C5e).

Reduce construction waste at build phase through action to introduce an obligation on construction companies and suppliers to report the quantity of waste produced in annual reports, websites etc. Measure could be included in Environmental Management Standards. Cost of action is based on one public sector FTE. Costs to construction industry and secondary impacts not included.


TP_D Technical Potential waste reduction in supply chain

Technical potential of reducing 10% of supply chain waste through improvements in supply chain interface (TP_D).

Actions that will contribute to achieving technical potential include bespoke shipping sizes to match requirements, damage reduction in transit and awareness campaigns on the benefits of improving supply chain interfaces or through changing to sustainable procurement procedures.


18 MOI_D3a Reduce supply chain waste through action on distribution damage and losses

Reduce supply chain waste by reducing transit damage, eg through good practice guidance, achieves 1% overall reduction (MOI_D3a).

Reduce supply chain waste through action with supply chain companies into causes of damage and loses during transit / distribution, including packaging specification and design. Technical potential of reduction of waste in distribution is 10% and 10% reduction is assumed through this action. Cost of action is based on research costs of £150,000 per year plus one public sector FTE

C&D Construction Supply chain Prevention


for first three years and on-going cost of half FTE.

19 MOI_D3b Increase reusable packaging to reduce packaging waste

Reduce packaging waste in the supply chain through promotion of reusable packaging, achieves 1.7% overall reduction in construction waste (MOI_D3b).

Reduce packaging waste through action with the supply chain to inform the construction industry on the opportunities and benefits of reusable packaging. Technical potential of reusable packaging in reducing packaging waste is assumed to be 50% (ERM estimate). Cost of action is based on single message integrated education campaign (shared between public and private sectors) and assumed to impact 5% of construction industry by year 5 achieving 1.7% overall


20 MOI_D4a Reduce waste at supply chain interefaces through support programme

Reduce waste at supply chain interfaces through support materials, eg leaflets, toolkits, training, achieves 0.5% material consumption reduction (MOI_D4a).

Reduce waste at supply chain interfaces through action with the construction industry to identify need for and development of further support materials (leaflets/toolkits/training sessions etc) to inform construction supply chain of waste reduction measures (e.g. bespoke shipping sizes that match requirements). Technical potential saving in supply chain is 10% Cost of action is based on single message integrated national education campaign - £5m over 10 years (shared between public and private sectors) - and assumed to impact 5% of construction industry by year 5, achieving 0.5% overall reduction in material consumption.


21 MOI_D4b Develop buying standards to increase waste prevention in the supply chain

Increase waste prevention in the supply chain, eg through buying standards, achieves 10% reduction in waste (MOI_D4b).

Increase waste prevention in the supply chain through action with the construction industry to develop buying standards. For example, points could be given in tender assessments to manufacturers that can demonstrate they have minimised waste in their processes. It is assumed that green materials reduce waste by 10%. Cost of action is based on two private sector FTEs required to develop and disseminate standards.


22 MOI_D4c Increase lean practice in supply chains through support programme

Increase lean practice in the supply chain through support materials, eg toolkits, training, achieves 3% material saving (MOI_D4c).

Increase lean practice in the supply chain through action with industry to develop support materials (leaflets/toolkits/training sessions, etc) to increase use of lean practices in materials procurement and reduce over specification. Potential for lean design is 60%. Cost of action is based on single message integrated national education campaign - £5m over 10 years (shared between public and private sectors) and assumed to impact 5% of construction industry by year 5, achieving overall material saving of 3% is achievable.


Figure D

D1 Construction MAC curve forr waste

Table D3 Construction MAC curve details for waste

Colour on chart

Action name Action type Life cycle stage

Annualised Cost

(£000s)

Waste saving

(tonnes)

MAC (£/tonne)

Line 13. Reduce waste in construction process through support programme. (MOI_C5a)

Prevention Construction -£240,000 610,000 -390

Line 4. Amend environmental permitting legislation to ban landfilling soil (MOI_A1d)

Prevention Construction -£760,000 2,000,000 -380

Line 10. Encourage refurbishment/repair by reducing VAT rates versus new build (MOI_B5a)

Reuse Construction -£320,000 850,000 -380

Line 17. Introduce waste reporting obligation on construction businesses (MOI_C5e)


Line 15. Introduce voluntary agreement to promote waste reduction in the construction process (MOI_C5c)


Line 8. Increase design for deconstruction through support programme (MOI_B1a)


Line 16. Increase the landfill tax rate for CD&E waste (MOI_C5d) Reuse Construction -£740,000 2,000,000 -370

Line 12. Reduce construction waste through modular building (MOI_C4a) Prevention Construction -£280,000 780,000 -360

Line 14. Introduce standards for sustainable construction (MOI_C5b) Prevention Construction -£510,000 1,400,000 -360

Line 9. Increase design for deconstruction through demonstration programme (MOI_B1b)


Line 20. Reduce waste at supply chain interfaces through support programme (MOI_D4a)

Prevention Supply chain -£6,400 25,000 -260

Line 21. Develop buying standards to increase waste prevention in the supply chain (MOI_D4b)


Line 19. Increase reusable packaging to reduce packaging waste (MOI_D3b)


Line 22. Increase lean practice in supply chains through support programme (MOI_D4c)


Line 18. Reduce supply chain waste through action on distribution damage and losses (MOI_D3a)


Colour on chart

Action name Action type Life cycle stage

Annualised Cost

(£000s)

Waste saving

(tonnes)

MAC (£/tonne)

Line 6. Introduce voluntary agreement to promote lean design (MOI_A1f) Prevention Design -£74,000 340,000 -220

Line 7. Reduce construction waste through knowledge sharing (MOI_A2a)

Prevention Design -£160,000 720,000 -220

Line 5. Introduce standard for sustainable construction to promote lean design (MOI_A1e)

Prevention Design -£640,000 3,400,000 -190

Line 3. Increase lean design through guidance on safe minimisation of materials (MOI_A1c)


Line 2. Increase lean design through demonstration projects at the design stage (MOI_A1b)


Line 1. Increase lean practice in construction design through support programme (MOI_A1a)


*Costs and waste savings are annualised over 10 years (ie total net present value or tonnage saving over 10 years divided by 10).. Costs are discounted at 3.5% pa (negative costs are savings)

D1.1 DISCUSSION

The waste savings shown in the MAC curve are cumulative and indicate an annualised potential saving as a result of these actions of 18 million tonnes (a number of MOIs are not discernible on the curve due to their relatively low waste saving). This is against an indicated annual construction waste arising of some 48 million tonnes. Interactions between these actions are considered in Table D6.

The calculated MAC values are grouped essentially into three groups. These are differentiated by the life cycle stage at which the actions impact, with actions impacting in construction having the greatest economic performance (most negative MAC value), reflecting the higher value attributed to construction materials at the point of use (£369/t) compared with the value in the supply chain and in design (£ 221/t and £148/t respectively).

Despite these differences the MAC values are all negative (ie actions are all economically advantageous), indicating that the costs incurred in taking action to prevent or re-use waste are relatively small compared with the potential saving in material and disposal costs.

Regulatory and fiscal actions are indicated as having the largest impact in terms of tonnage saving (Action 16: increase landfill tax; Action 4: amend permitting regulations; and Action 5: introduction of mandatory reporting standards). All other actions indicate broadly similar tonnage savings, largely reflecting the assumptions made.

.

Figure D

D2 Construction MAC curve forr overall carbon

Table D4 Construction MAC curve details for overall carbon

Colour on Chart

Action name Action type Life cycle stage Annualised

Cost (£000s)

Carbon saving

(kg CO2-eq)

MAC (£/t CO2-eq)

Line 10. Encourage refurbishment/repair by reducing VAT rates versus new build (MOI_B5a)


Line 8. Increase design for deconstruction through support programme (MOI_B1a)


Line 16. Increase the landfill tax rate for CD&E waste (MOI_C5d) Reuse Construction -£740,000 1,600,000 -480

Line 13. Reduce waste in construction process through support programme. (MOI_C5a)


Line 4. Amend environmental permitting legislation to ban landfilling soil (MOI_A1d)

Prevention Construction -£760,000 1,700,000 -440

Line 9. Increase design for deconstruction through demonstration progamme (MOI_B1b)


Line 17. Introduce waste reporting obligation on construction businesses (MOI_C5e)


Line 15. Introduce voluntary agreement to promote waste reduction in the construction process (MOI_C5c)


Line 12. Reduce construction waste through modular building (MOI_C4a) Prevention Construction -£280,000 670,000 -420

Line 14. Introduce standards for sustainable construction (MOI_C5b) Prevention Construction -£510,000 1,200,000 -420

Line 20. Reduce waste at supply chain interfaces through support programme (MOI_D4a)


Line 21. Develop buying standards to increase waste prevention in the supply chain (MOI_D4b)


Line 19. Increase reusable packaging to reduce packaging waste (MOI_D3b) Prevention Supply chain -£86,000 290,000 -290

Line 22. Increase lean practice in supply chains through support programme (MOI_D4c)


Line 18. Reduce supply chain waste through action on distribution damage and losses (MOI_D3a)


Colour on Chart

Action name Action type Life cycle stage Annualised

Cost (£000s)

Carbon saving

(kg CO2-eq)

MAC (£/t CO2-eq)

Line 6. Introduce voluntary agreement to promote lean design (MOI_A1f) Prevention Design -£74,000 290,000 -250

Line 7. Reduce construction waste through knowledge sharing (MOI_A2a) Prevention Design -£160,000 620,000 -250

Line 5. Introduce standard for sustainable construction to promote lean design (MOI_A1e)


Line 3. Increase lean design through guidance on safe minimisation of materials (MOI_A1c)


Line 2. Increase lean design through demonstration projects at the design stage (MOI_A1b)


Line 1. Increase lean practice in construction design through support programme (MOI_A1a)


*Costs (value) of carbon savings and amount of carbon savings are annualised over 10 years (ie total net present value or tonnage saving over 10 years divided by 10). Costs are discounted at 3.5% pa (negative costs are savings) D1.2 DISCUSSION

For construction waste, the modelling indicates that carbon and cost savings are broadly proportional to the material weight saving by each action. Reductions in carbon savings due to reduced transport requirements resulting from waste prevention actions have not been included in this high level

analysis. Transport generally has a second order impact compared to the savings in embodied carbon through waste prevention and re-use actions.

Table D5 Construction MAC summary table

Principal actor Beneficiary Actor Annualised cost

Annualised waste saving

Carbon saving MACW MACE

Action ref

Action

Pri

vate

sec

tor

SME

Hou

seho

ld

Civ

il So

ciet

y

Pub

lic s

ecto

r

Pri

vate

sec

tor

SME

Hou

seho

ld

Civ

il So

ciet

y

Pub

lic s

ecto

r

(£m) (kt) (kt CO₂e)

(£/t waste)

(£/t Carbon)

Technical potential of reducing 60% of construction waste is achieved through lean design to reduce the overall consumption of materials and their associated wastage rates (TP_A).

x x x x -2,800 14,000 12,000 -190 -230

1 Develop support programme to increase lean practice at construction design stage, achieves 3% material consumption reduction (MOI_A1a).

x x x x x -140 730 630 -190 -220

2

Increase lean design through demonstration projects and dissemination of good practice guidance to the construction industry, achieves 3% material consumption reduction (MOI_A1b).

x x x x -140 730 630 -190 -220

3

Develop good practice guidance through research and materials testing on the safe minimisation of materials, achieves 6% material consumption reduction (MOI_A1c).

x x x -270 1,500 1,300 -190 -220

4 Amend environmental permitting legislation to ban the landfilling of soil, achieves 80%reduction in soil waste (MOI_A1d).

x x x --760 2,000 1,700 -380 -440

5 Introduce standard for sustainable construction to promote lean design, reduces construction waste by 15% (MOI_A1e).

x x x x -640 3,400 2,900 -190 -220




Action ref

Action

Pri

vate

sec

tor

SME

Hou

seho

ld

Civ

il So

ciet

y

Pub

lic s

ecto

r

Pri

vate

sec

tor

SME

Hou

seho

ld

Civ

il So

ciet

y

Pub

lic s

ecto

r


(£/t waste)

(£/t Carbon)

6 Develop voluntary agreement to promote lean design, reduces construction waste by 3% (MOI_A1f). x x x x -74 340 290 -220 -250

7 Reduce construction waste in materials manufacture by 3% through industrial symbiosis or business clubs (MOI_A2a).

x x x x x -160 720 620 -220 -250

Total Actions MOI_A -2200 9400 8000

Technical potential of design for deconstruction and refurbishment to reduce demolition waste (TP_B). x x x x -2,800 14,000 12,000 -190 -230

8 Develop support programme to increase design for deconstruction, achieves 3.6% material saving by year 10 and 1.3% overall (MOI_B1a).

x x x x x -110 300 230 -370 -480

9 Support demonstration projects to increase use of design for deconstruction principles (MOI_B1b). x x x x x -100 300 230 -340 -440

10 Increase refurbishment/repair by removing VAT differential versus new build, achieves 3% material saving (MOI_B5a).

x x x -320 850 660 -380 -490




Action ref

Action

Pri

vate

sec

tor

SME

Hou

seho

ld

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y

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vate

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tor

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Hou

seho

ld

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il So

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y

Pub

lic s

ecto

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(£/t waste)

(£/t Carbon)

11 Reduce need for new construction by 1% by leasing vacant commercial and industrial buildings rather than ownership (MOI_B6a).

x x x -260 690 530 -380 -490

Total Actions MOI_B -790 1800 1400

Technical potential of reducing 50% of construction waste created during build phase (TP_C). x x x x -2,300 12,000 10,000 -190 -230

12 Reduce construction waste by 60% through modular buildings achieving 6% saving (MOI_C4a). x x x x x -280 780 670 -360 -420

13

Reduce waste in construction process through support programme of leaflets/toolkits/training sessions, achieves 2.5% point material consumption reduction (MOI_C5a).

x x x x x -240 610 530 -390 -460

14 Reduce construction waste by 10% through the introduction of a standard for sustainable construction (MOI_C5b).

x x x x -510 1,400 1,200 -360 -420

15 Reduce construction waste by additional 2.5% points through the introduction of a voluntary agreement on construction waste (MOI_C5c).

x x x x -190 500 430 -370 -430




Action ref

Action

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vate

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(£/t waste)

(£/t Carbon)

16 Increase landfill tax for CD&E waste resulting in 10% increase in re-use and waste minimisation (MOI_C5d).

x x x -740 2,000 1,600 -370 -480

17 Introduce waste reporting obligation on construction businesses, achieves 0.5% saving (MOI_C5e). x x x -37 100 86 -370 -430

Total Actions MOI_C -2000 5400 4500

Technical potential of reducing 10% of supply chain waste through improvements in supply chain interface (TP_D).

x x x x -94 480 410 -190 -230

18 Develop good practice guidance to reduce transit damage in supply chains, achieves 1% overall saving (MOI_D3a).

x x x x -12 50 43 -240 -280

19 Reduce construction waste by 1.7% through promotion of reusable packaging (MOI_D3b). x x x -86 340 290 -250 -290

20 Develop support programme to reduce waste at supply chain interfaces, achieves 0.5% point material consumption reduction (MOI_D4a).

x x x x x -6 25 21 -260 -300




Action ref

Action

Pri

vate

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(£/t waste)

(£/t Carbon)

21 Develop buying standards to increase procurement of green materials by 10% increases waste prevention in the supply chain (MOI_D4b).

x x x x -12 48 41 -250 -300

Total Actions MOI_D -120 400 400

Total Technical Potentials -8000 40,000 34,000

Total MOIs -5100 17,000 14,000

*Costs (value) and waste and carbon savings are total over 10 years. Costs are discounted at 3.5% pa (negative costs are savings). Annualised cost is the net present value divided by 10. Negative costs are savings. ** Colour coding of the Action number gives qualitative indication of the order of magnitude confidence in the data that underpins the action.

Green: High - Action based on referenced current data with few assumptions Amber: Medium - Action draws on case studies or qualified estimates Red: Low - Action largely based on assumptions and unqualified estimates (order of magnitude estimate only)

Table D6 Interaction matrix (-0.10 indicates a positive interaction of 10% between actions. Values are based on ERM judgement)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Increase lean

practice in

constructio

n de

si gn through

Increase lean

design through

demon

stratio

n projects at the

Increase lean

design through

guidance on safe m

inim

isatio

n of

Amen

d en

vironm

ental permitting

legisla

tion to ban

land

filling soil

Introd

uce standard fo

r sustainable constructio

n to

Introd

uce voluntary agreem

ent to

prom

ote lean

design

Redu

ce con

struction waste

throu gh know

ledge sharing

Increase design for

deconstructio

n throu gh supp

ort

Increase design for

deconstructio

n throu gh

Encourage refurbish

men

t/repair

b y re

ducing

VAT

rates v

ersus n

ew

Shift to

wards a se

rvice‐based

econ

omy ‐ leasin

g rather th

an

Redu

ce con

struction waste

throu gh mod

ular building

Redu

ce waste in con

struction

process throu

gh su

pport

Introd

uce standards for

sustainable constructio

n Introd


ent to

prom

ote waste re

duction in th

e Increase th

e land

fill tax ra

te fo

r CD

&E waste

Introd

uce waste re

porting

obligation on

con

struction

Redu

ce su

pply chain waste

through actio

n on

distrib

ution

Increase re

usable packaging

to

redu

ce packaging

waste

Redu

ce waste at sup

ply chain

interefaces throu

gh su

pport

Develop bu

ying

standards to

increase waste prevention in th

e

1 MOI_A1a Increase lean practice in construction design through support programme ‐0.10 ‐0.10 ‐0.10 ‐0.10 0.50

2 MOI_A1b Increase lean design through demonstration projects at the design stage ‐0.10 ‐0.10 ‐0.10

3 MOI_A1c Increase lean design through guidance on safe minimisation of materials ‐0.10

4 MOI_A1d Amend environmental permitting legislation to ban landfilling soil

5 MOI_A1e Introduce standard for sustainable construction to promote lean design ‐0.10 ‐0.10 0.80 ‐0.20

6 MOI_A1f Introduce voluntary agreement to promote lean design ‐0.10 ‐0.05

7 MOI_A2a Reduce construction waste through knowledge sharing 0.50

8 MOI_B1a Increase design for deconstruction through support programme ‐0.10

9 MOI_B1b Increase design for deconstruction through demonstration programme ‐0.10 ‐0.10

10 MOI_B5a Encourage refurbishment/repair by reducing VAT rates versus new build ‐0.10

11 MOI_B6a Shift towards a service‐based economy ‐ leasing rather than ownership

12 MOI_C4a Reduce construction waste through modular building

13 MOI_C5a Reduce waste in construction process through support programme.

14 MOI_C5b Introduce standards for sustainable construction ‐0.20 ‐0.10 0.80 ‐0.10

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Increase lean

practice in

constructio

n de

si gn through

Increase lean

design through

demon

stratio

n projects at the

Increase lean

design through

guidance on safe m

inim

isatio

n of

Amen

d en

vironm

ental permitting

legisla

tion to ban

land

filling soil

Introd

uce standard fo

r sustainable constructio

n to

Introd


ent to

prom

ote lean

design

Redu

ce con

struction waste

throu gh know

ledge sharing

Increase design for

deconstructio

n throu gh supp

ort

Increase design for

deconstructio

n throu gh

Encourage refurbish

men

t/repair

b y re

ducing

VAT

rates v

ersus n

ew

Shift to

wards a se

rvice‐based

econ

omy ‐ leasin

g rather th

an

Redu

ce con

struction waste

throu gh mod

ular building

Redu

ce waste in con

struction

process throu

gh su

pport

Introd

uce standards for

sustainable constructio

n Introd


ent to

prom

ote waste re

duction in th

e Increase th

e land

fill tax ra

te fo

r CD

&E waste

Introd

uce waste re

porting

obligation on

con

struction

Redu

ce su

pply chain waste

through actio

n on

distrib

ution

Increase re

usable packaging

to

redu

ce packaging

waste

Redu

ce waste at sup

ply chain

interefaces throu

gh su

pport

Develop bu

ying

standards to

increase waste prevention in th

e

15 MOI_C5c Introduce voluntary agreement to promote waste reduction in the construction process 0.10 ‐0.10

16 MOI_C5d Increase the landfill tax rate for CD&E waste

17 MOI_C5e Introduce waste reporting obligation on construction businesses ‐0.10 ‐0.10

18 MOI_D3a Reduce supply chain waste through action on distribution damage and losses ‐0.10

19 MOI_D3b Increase reusable packaging to reduce packaging waste ‐0.10

20 MOI_D4a Reduce waste at supply chain interefaces through support programme ‐0.10

21 MOI_D4b Develop buying standards to increase waste prevention in the supply chain ‐0.10

% Increase in waste prevention through interactions 46% 33% 10% 52% ‐78% 10% 21% 10% 31% ‐78% 21% 10% 10% 10% 10%

kt/y additional waste prevention through interactions 340 240 150 1800 ‐270 30 62 85 440 ‐390 21 5 32 2 5

TOTAL kt/y 2,550*

* the net of an increase as a result of positive interactions of 3,200 kt/y and a decrease due to negative interactions of 660 kt/y. See discussion below.


D24

D1.3 DISCUSSION

The actions considered in this assessment are estimated to deliver an annualised waste and resource saving of 17 million tonnes with a cost saving of £5100 million. 50% of the resource saving is as a result of diverse waste prevention and re-use actions aimed at the construction phase, with action to increase landfill tax (Action 16), ban the landfilling of soils (Action 4) and introduce standards for sustainable construction (Action 14) accounting for 60% of the indicated construction phase saving. The headline waste data are summarised in Table D7 below.

Table D7 Summary of waste savings

Technical potential (kt/y)

Total MOIs (kt/y)

Additional waste saving due to interactions (kt/y)

Total Construction 40,000 17000 2550 MOI_As Lean design 14,000 940 2260 MOI_Bs Design for deconstruction 14,000 1800 180 MOI_Cs Waste in construction process

12,000 5400 70

MOI_Ds Waste reduction in supply chain

480 400 40

Actions to increase lean design in construction (MOI_As) deliver an

annualised saving of 9.4 million tonnes with a cost saving of £2200 million. This represents some 20% of the annual construction waste arising. These actions include cost-shared demonstration programmes with industry, the development and dissemination of good practice guidance and the introduction of standards for sustainable design. These actions would be mutually reinforcing, as indicated in the interaction matrix, Table D6, which indicates a potential additional annual resource efficiency saving of some 2.5 million tonnes. However, introducing a standard for sustainable design (Action 5) would be expected to supersede and largely negate voluntary actions on sustainable design (Action 6); although conversely, the presence of a voluntary agreement might be expected to aid (to some extent at least) the introduction of a standard as a more robust measure. Again, this is indicated in the interaction matrix (factors based on ERM judgement). It is noteworthy that requirements to meet sustainable building design standards for energy efficiency have been in place for some time.

Actions for design for deconstruction and refurbishment (MOI_Bs) deliver an annualised saving of some 1.8 million tonnes with a cost saving of £790 million. These represent some 13% of the technical potential (14 million tonnes) based on WRAP estimates. The largest element here would be through changes to VAT, which currently penalises refurbishment compared with new build through differential taxation. However, the potential impact of support to industry, including through demonstration programmes, is understated here as the benefits of


D25

improved design are unlikely to be realised until refurbishment is required at some future date.

Actions considered to reduce waste at the construction stage (MOI_Cs)

are indicated to offer a potential saving of 5.4 million tonnes per year, some 45% of the technical potential, with an annual cost saving of some £2000 million. Raising landfill tax for CD&E waste (Action 16) is indicated as having the greatest impact (2 million tonnes per year), with the introduction of standards for sustainable construction indicating a further 1.4 million tonnes per year (Action 14). Introduction of such a standard would be expected to interact with standards on design (Action 5), or be integral to it. Such interaction could deliver a further 440 kt/y resource saving (Table D6).

Actions along the supply chain (MOI_Ds) through reductions in

packaging and supply chain interface losses are estimated to provide a potential saving of some 400 kt/y with an annual saving of some £120 million. Again, such actions would be expected to be mutually reinforcing, and some 10% additional benefit is indicated in Table D6 (based on ERM judgement of interaction factors). However, the greatest indicated impact would be through reducing the over-specification of materials.

The potential carbon savings are roughly proportional to weight savings.

However, there is considerable uncertainty in the underlying factors (ERM estimate based on a basket of construction materials). The analysis would benefit from further work to validate these factors should carbon be considered a significant metric in decision making.

Notwithstanding the uncertain data quality behind individual actions, it

is concluded that all actions considered are economically advantageous (have negative MAC values). However, secondary impacts and distributional effects have not been considered in this high level analysis.

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