Carbon Limited Final Event

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Presentation from the final event of the RSA Carbon Limited project, November 2008.

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  • Carbon Limited Final Event

    1. 2. www.carbonlimited.org Matt Prescott, Carbon Limited director
    2. 3. This evening’s format Matt Prescott, director, Carbon Limited Introduction from Matt Prescott, Project Director, Carbon Limited Peter Jones OBE discusses the origins and importance of personal carbon trading Matt Prescott, RSA, presents main Carbon Limited research findings Michael King, Atos Origin, outlines the key findings from the ‘carbon card’ trial Matt Prescott, RSA, describes the next steps Q&A Open discussion and networking Close 18.30 18.35 18.50 19.00 19.10 19.20 19.30 20.30
    3. 4. www.carbonlimited.org Peter Jones, Carbon Limited advisor
    4. 5. Origins of Carbon Limited Meeting with Colin Challen and the Tyndall Centre for Climate Change Research Peter Jones proposals to RSA Council/ Trustees Criteria for new programmes – Innovative, Inclusive, Pertinent, Wide ranging Tyndall Centre report Project and steering group formed, January Launch by David Miliband, former Environment Minister, October 2005 2005 2005 2005 2006 2006 Peter Jones, Carbon Limited advisor
    5. 6. Arctic ice melts at record levels This satellite image shows the Arctic sea ice spread on September 21, 2005, when it dropped to the lowest extent yet recorded. The yellow outline indicates where the concentration of ice was as of September 21, 1979. Source: AFP Peter Jones, Carbon Limited advisor
    6. 7. Government and resource efficiency: The delivery landscape GOVERNMENT TASKS Parameters/LCA Best science IPPC/planning Technology footprints Licensing Data BPEO CARBON COMMISSION Improved resource efficiency Lower carbon footprinting Data capture transparency Economic growth Minimal inflationary impact Improved R&D/innovation strategy Skills and employment issues Light touch regulation Efficient local government implementation POLICIES Data capture system Traded Permits structures Economic frameworks Public education Regional strategies R&D/innovation policies Skills and employment supply RESOURCES COMMISSION TASKS
    7. 8. Carbon obligations framework 10% renewable energy target 4.5% achieved 12.5% reduction from offices relative to 1999 Carbon Reduction Commitment on road vehicles and corporates Local authority pollution permit trading Closure of 35% electrical capacity from 45 year old plants Community Carbon Reduction Commitments on Local Authorities 20% CO2 reduction; 16% energy/35% electricity from renewable sources 50% / 60% / 80% CO2 reduction 2010 (2008) 2010-11 2011 2012 2015 2016 2020 2050 Peter Jones, Carbon Limited advisor
    8. 10. Local Authority challenges Peter Jones, Carbon Limited advisor Landfill Allowance Trading Scheme Carbon Footprint from the Community Nottingham Agreement Renewable energy assistance and Energy Savings Trust support 2011-12 2010 ongoing
    9. 11. Carbon and biomass to landfill 2007 Source: Biffa estimates Peter Jones, Carbon Limited advisor
    10. 13. Source: DTI
    11. 15. The interest from government <ul><li>All embracing inclusivity </li></ul><ul><li>Egalitarianism </li></ul><ul><li>Involving </li></ul><ul><li>Inter-active </li></ul>Peter Jones, Carbon Limited advisor
    12. 16. Questions remain <ul><li>Communication </li></ul><ul><li>Rural poor </li></ul><ul><li>Propertied pensioners </li></ul><ul><li>Transparency and complexity </li></ul><ul><li>Buy in </li></ul><ul><li>“ But it’s a tax!” </li></ul>Peter Jones, Carbon Limited advisor
    13. 17. www.carbonlimited.org Matt Prescott, Carbon Limited director
    14. 18. Providing the right lifestyle signals? Matt Prescott, Director, Carbon Limited
    15. 21. Decarbonising the economy? Matt Prescott, Director, Carbon Limited
    16. 22. The question of equity Matt Prescott, Director, Carbon Limited
    17. 23. The question of public acceptability <ul><li>Don’t want to get stitched up </li></ul><ul><li>High cost to delivery? </li></ul><ul><li>Complicated </li></ul><ul><li>Price volatility </li></ul><ul><li>Positive about the allowance as a normative signal </li></ul><ul><li>Don’t believe a carbon tax would be hypothecated </li></ul><ul><li>Feels fairer – more effective </li></ul>Matt Prescott, Director, Carbon Limited
    18. 24. A question of economics <ul><ul><li>In practical policy making, the response to these [behavioural] barriers has been the imposition of multiple economic instruments on the same unit of energy or along the same energy consumption chain , precisely because politically expedient application of upstream instruments do not appear to provide sufficient rationale for organisations or individuals to change behaviour downstream . </li></ul></ul>Dr Andy Kerr www.rsacarbonlimited.org Matt Prescott, Director, Carbon Limited
    19. 25. A question of economics <ul><ul><li>… Supplier Obligation that will create an absolute emissions or energy cap on household energy suppliers. Whilst the details have yet to be agreed, a key challenge for the policy is to avoid a misalignment between liability and responsibility : suppliers will hold the liability for capping emissions/energy, whilst the responsibility for emissions lies in the activities of householders. </li></ul></ul>Dr Andy Kerr www.rsacarbonlimited.org Matt Prescott, Director, Carbon Limited
    20. 26. A question of economics <ul><ul><li>For a personal carbon trading scheme to be more effective, it must break down the barriers to the efficient functioning of these economic instruments </li></ul></ul>Dr Andy Kerr www.rsacarbonlimited.org Matt Prescott, Director, Carbon Limited
    21. 27. Real-time Personal Carbon Michael King, Atos Origin
    22. 28. Locating this research within Personal Carbon Trading The creation, division and allocation of the carbon budget The utilisation of this allowance – capturing carbon emissions and updating a carbon account The trading of surplus and additional credits on the market
    23. 29. Capturing the utilisation of carbon – 5 options were researched… <ul><li>The ‘Miliband carbon card’ </li></ul><ul><li>Credit and debit cards </li></ul><ul><li>Pre-pay cards </li></ul><ul><li>Loyalty card schemes e.g. Nectar, Clubcard </li></ul><ul><li>Fuel cards </li></ul>
    24. 30. The strengths and weaknesses of the 5 options – an example with road fuel (1) Card company (Individual’s bank or building society) Individual purchases fuel Credit / Debit card presented Loyalty Card presented Carbon Card presented Transaction data Cash / cheque presented 66% 1 Note: process flows derived from APACS 1. Source: Payments Council Consumer Payments Survey 32% 1 Transaction data Loyalty company Card scheme (e.g. Visa, MasterCard) Acquirer (retailer’s bank) Transaction data
    25. 31. The strengths and weaknesses of the 5 options – an example with road fuel (2) Card company (Individual’s bank or building society) Individual purchases fuel Credit / Debit card presented Loyalty Card presented Carbon Card presented Transaction data Cash / cheque presented 66% 1 32% 1 Transaction data Loyalty company Card scheme (e.g. Visa, MasterCard) Acquirer (retailer’s bank) Transaction data Credit, debit pre-pay, fuel cards Loyalty cards Carbon card
    26. 32. The strengths and weaknesses of the 5 options – an example with road fuel (3) Notes: Absolute figures are not presented here. This approach seeks to show the different cost profiles of each option Loyalty cards Credit cards etc. Point of Sale changes Retail staff training Retail “opportunity costs” Transaction process costs Carbon card costs Carbon card
    27. 33. The Pilot – an automated real-time Personal Carbon Calculator <ul><li>Demonstrate the real-time capture of an individual’s actual fuel purchases. </li></ul><ul><ul><li>With accepted limitations </li></ul></ul><ul><ul><li>Objective </li></ul></ul><ul><li>Not simulating a UK-wide personal carbon allowance and trading scheme. </li></ul><ul><li>If people are unable to use BP stations or want to ‘hide’ their emissions by purchasing fuel elsewhere then we accept that as a limitation of the project. </li></ul><ul><li>We did not seek a demographically representative sample of the UK – our sample of volunteers was randomly self-selected and we accept that the group may or may not represent the wider UK population. </li></ul>
    28. 34. The Pilot Solution (2) For RSA Carbon pilot volunteers fuel transaction information (volume and grade) is extracted. (3) Fuel transaction (fuel volume and grade) is passed back to CarbonDAQ. (1) Volunteer registers for the pilot by entering their Nectar details on CarbonDAQ. (4) Fuel data is converted to emissions for presentation to users
    29. 36. Lessons learnt – anecdotal “ Sounds terrific. i'm [sic] realistic about limitations, it's really about being able to come clean about the full footprint. Any step is a good step in my book.” <ul><li>The green segment is real and it welcomes the support. </li></ul>“ I drive 30k+ miles a yr [sic] and regularly fill up at BP as I collect Nectar points.” <ul><li>Participation doesn’t just come from the usual suspects </li></ul>“ Went to fill up with diesel at the local BP today and at 131.9 just could not bring myself to do it. That's 7p more than Tesco's in Warrington …” <ul><li>No-one is being naïve – price is still a key factor </li></ul>
    30. 37. Lessons learnt (2) Individuals are not just economic actors responding to price signals from upstream policy All carbon is personal <ul><li>Make carbon personal: the individual must be involved in the response: </li></ul>Individuals as members of organisations contributing to CRC targets Individuals contributing to LA targets like N186 <ul><li>Our level of thinking needs to move to individuals as members of communities and organisations: </li></ul>Reward Individuals who help to achieve community goals – day’s leave, ££, etc Still the challenge of verification – self-assessment with random audits etc? <ul><li>Incentives and WIIFM: </li></ul>
    31. 38. www.carbonlimited.org.uk Matt Prescott, Carbon Limited director
    32. 39. Local climate and energy solutions popular <ul><li>Many see the value in trading within communities of interest </li></ul><ul><li>Energy Services model could apply </li></ul><ul><li>Potential for fuel security improvements </li></ul><ul><li>Local and community cohesiveness and creativity </li></ul>Matt Prescott, Director, Carbon Limited
    33. 40. Carbon credits could be saved … by switching to these… by not doing so much of this… by doing more of this…
    34. 41. Trading creates an incentive for participants The lower your footprint, the more carbon credit you can sell, which could mean: 1 being paid for your efforts to cut emissions, or participation in a virtual policy experiment 2 gaining more voting rights to secure funds for projects you want to support 3 receiving annual leave, entry into prize competitions or other incentives
    35. 42. A CarbonDAQ network might elect for carbon credit to be used to support local projects, such as this wind turbine in Swaffham. Those with carbon credit to sell gain extra voting rights to support the project. The money comes either from a sponsor, or from those needing to buy credit to balance their account. CSR possibilities
    36. 43. Local climate and energy solutions popular <ul><li>Many see the value in trading within communities of interest </li></ul><ul><li>Energy Services model could apply </li></ul><ul><li>Potential for fuel security improvements </li></ul><ul><li>Local and community cohesiveness and creativity </li></ul>Matt Prescott, Director, Carbon Limited
    37. 44. Taking the idea forward Low carbon local authority Profits from the trading scheme Itemised carbon cost imposed on households that exceeded carbon target High carbon local authority Costs to comply in trading scheme Revenue recycled as council tax discounts for households exceeding carbon target Community scale Household scale Matt Prescott, Director, Carbon Limited
    38. 45. Taking the idea forward Low carbon local authority Profits from the trading scheme Local authority provide information and support to households to reduce costs of compliance High carbon local authority Costs to comply in trading scheme Revenue recycled as community-scale benefits to local sustainable energy networks/ climate change Community scale Community scale Matt Prescott, Director, Carbon Limited
    39. 46. Voluntary Taking the idea forward Opt-in Opt-out Mandatory Matt Prescott, Director, Carbon Limited
    40. 47. Taking the idea forward mandatory Local authority participation Matt Prescott, Director, Carbon Limited
    41. 48. Taking the idea forward Local authority participation Fuel poor Inefficient homes Voter decides Matt Prescott, Director, Carbon Limited
    42. 49. Community carbon trading www.carbonlimited.org Dr Andy Johnston Centre for Local Sustainability Matt Prescott, Director, Carbon Limited

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