Practical applications of the Government’s Infrastructure Carbon Review
Dr Jean-Yves CherruaultSustain Ltd
Tel: [email protected]
South-West Low Carbon Business Breakfast
February 2015
John SmithSainsbury’s PLC
“Infrastructure is the backbone of any modern, successful and
competitive economy”
• Build on the previous NIP publications from 2010-12, holistic
approach in assessing to challenges facing infrastructure in the UK,
and developing plans for future action
• Plan of action for the next decade for public investment and
infrastructure
HM Treasury, National Infrastructure Plan (NIP) 2013
NIP
1. Strengthening the delivery of government infrastructure projects
2. Streamlining the planning system
3. Optimising efficiency and value for money via:
• Promoting cross-sectoral working, addressing skills requirements
• Infrastructure Costs Review: Cost Review Programme, Final
Report, Spring 2014;
Key workstream:
• Infrastructure Carbon Review: Demonstrate how saving
carbon saves money
NIP: Creating the right environment for delivery
NIP
John SmithSainsbury’s PLC
Why does reducing capital and operational carbon
make good business sense?
• Reduces costs
• Unlocks innovation and drives better solutions
• Drives resource efficiency
• Provides competitive advantages
• Contribution to climate change mitigation
“Pursuing a low carbon agenda stimulates innovation, making
businesses more competitive not only in their home markets but
on the international stage too”
Report is targeted at Infrastructure leaders – who can effect change
Purpose of ICR 2013 report: “To make carbon
reduction part of the DNA of infrastructure
in the UK”
ICR
John SmithSainsbury’s PLC
ICR
We can successfully drive down
carbon when asked, but this is rarely
a contractual requirement. Clients
need to demand reductions and
provide incentives!We want to demonstrate best practice
in reducing carbon, but the regulatory
environment does not support action
in this area
Carbon reduction makes a lot of
sense, BUT we can’t direct clients to
drive low carbon solutions because it
is not part of the mandate from the
Government!If carbon reduction makes so much
sense, why don’t they just get on and
do it??
Contractors
Clients
RegulatorsGovernment
Structural blockages in the value chain: Who will move
first?
John SmithSainsbury’s PLC
A summary of the key terminology used in the Infrastructure
Carbon Review:
• Capital carbon, or ‘CapCarb’ = Emissions associated with
creation of the asset. It is the same as the ‘cradle to construction
embodied carbon’. Therefore once the asset is constructed and
ready to use it is beyond the boundaries of capital carbon.
• Operational Carbon, or ‘OpCarb’ = emissions associated with
the operation and maintenance of an asset. This includes
energy to operate the asset and the embodied carbon of
material maintenance and repair.
• Whole life carbon = CapCab + OpCarb
Terminology
ICR
Our businessConclusions
• HM Treasury states “Reducing carbon reduces cost”
• Leading clients have already achieved capex savings of 22% (from
reductions in capital carbon of up to 39 per cent, and 34 per cent in
operational carbon)
• Potential net benefit to the UK economy of up to £1.46 billion/year (if
best practice is adopted)
• Clients stand to benefit the most and have a pivot role in removing
sector blockages – carbon reduction should be embedded and
demanded
• “Fundamentally, organisations responsible for infrastructure must
demand lower carbon”
• Leadership, procurement and innovation are the three key aspects for
change
• ICR One year on: Endorsed by a large number of construction orgs
ICR 2013 report Conclusions:
High level driversICR
NIP and Transport: London Underground
• NIP 2013 highlights the importance of the London Underground
by stating that it “provides the connectivity required to unlock
investment in underdeveloped parts of the city”. Aside from
Crossrail, the LU commands a large proportion of capital value
(£8.9bn) within London’s Projects and Programmes pipeline
London Underground
London Underground and London
• London forecast to grow by twice the population of Bristol by
2022 (8.4m to 9.4m)
• LU passenger demand to grow by 60% by 2050
• Station infrastructure will continue to be created and upgraded
for years to come….opportunities to address carbon early as
advocated by the ICR
London Underground
Improvement Plan
(Stations)
Future Stations
Phase 3
Dialogue input &
Lessons learned
Phase 2
Proof of Concept
Study
Phase 1
Study
ITT Dialogue Detail design
Vision: Wider Business
Existing
Policies
2014 2015 2016+
Req
uir
em
en
ts
Camden Town
Holborn
Elephant & Castle
Kennington & NLE
Old Street
Paddington
Victoria
Tottenham Court Road
Bond Street
Bank
Paddington BLL
VauxhallInnovative Contractor Engagement (ICE)
Next Tranche
of
Future Stations
London Underground ICR Response A methodological approach
Carbon Reduction Maturity Matrix
London Underground
Level Level One – Foundation
Level Two – Embed
Level Three – Practice
Level Four – Excel
1) Strategy, Policy and Leadership
2) Management and Governance
3) Procurement and Supply Chain
4) Station Technologies, Data and Information
• ICR: Infrastructure clients stand to benefit the most. They have a
pivot role in removing sector blockages to make carbon reduction
happen
• The organisation has a unique opportunity to respond to the
energy and carbon challenge through the Station Capacity
Programme: LU can use energy and carbon in these programmes
as a proxy for higher value so that the organisation gets the most
from station assets and technologies
• Take early action in the station upgrade programme: Station
upgrade represents an opportunity to mitigate significant carbon
related cost increase at (almost) no cost increase
• Policy context is right, Infrastructure Cost Review: Alongside the
Green Construction Board, the government is working with industry
to develop a new standard (Publicly Available Specification) to
support the recommendations of the Infrastructure Carbon Review
Key opportunities
Opportunities
• Leadership, procurement and innovation are the three key aspects
for change (ICR), however: • Leadership: Leaders require less risks and more certainty for value for
money
• Innovation: The positive impact of innovation needs to be quantified and
valued in the procurement process. Innovative solutions can lack track
record of performance
• Procurement: Suppliers require clarity and consistency in the process to
provide a platform for engagement (ICE)
• Current focus is on the delivery of “hard” aspects: Carbon and
sustainability are often viewed as “Soft” matters and projects
constraints rather than opportunities
• Whole Life Carbon needs to be embedded in key industry
developments to become business as usual: Asset Management
Standard (ISO 55000) and Whole Life Cost methodologies and tools,
Systems Approach and BIM
Key challenges
Challenges