CBI climate change forum - Tom Delay


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Presentation by Tom Delay, chief executive Carbon Trust, at the first CBI climate change forum, March 2009

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  • CBI climate change forum - Tom Delay

    1. 1. CBI Climate Change Forum Tom Delay 31 March 2009
    2. 2. Our mission is to accelerate the move to a low carbon economy <ul><li>We cut carbon emissions now </li></ul><ul><li>By providing business and the public sector with expert advice, finance and accreditation </li></ul><ul><li>By stimulating demand for low carbon products and services </li></ul><ul><li>We cut future carbon emissions </li></ul><ul><li>By developing new low carbon technologies through project funding and management, investment and collaboration </li></ul><ul><li>By identifying market barriers and practical ways to overcome them </li></ul>
    3. 3. We create economic value by reducing costs and building low carbon enterprise <ul><li>The UK is committed to ambitious long term carbon reduction targets </li></ul><ul><li>We believe that the transition to a low carbon economy is a business opportunity </li></ul><ul><li>Our mandate is to help business and public sector cut carbon emissions now and in the future </li></ul><ul><li>Low carbon growth is a key lever for economic recovery –investment can deliver environmental and economic benefits </li></ul>Low Carbon Investment Prioritisation High Potential Low Potential Low Potential High Potential UK environmental objective UK economic objective Do nothing Attract inward investment e.g. first generation photovoltaics Invest for export e.g. stationary fuel cells for Africa Invest for domestic use and export e.g. Offshore wind
    4. 4. Economic recover needs dual focus on efficiency today and low carbon growth <ul><li>Access to advice and information </li></ul><ul><li>Access to loan finance </li></ul><ul><li>Low carbon public sector procurement </li></ul><ul><li>Current regulations enforced </li></ul>Building efficiency into organisations today Investing in strategic low carbon industries of tomorrow Jobs and carbon savings today Jobs, potential carbon savings and leadership in key sectors for the future <ul><li>Access to investment finance – venture capital to support a portfolio of early stage technologies and businesses </li></ul><ul><li>Access to targeted support to accelerate development of advantaged UK industries </li></ul><ul><li>Enhanced regulations and product standards </li></ul>
    5. 5. Net present value of costs and benefits to Carbon Trust customers in 2007/8, £m Note: Policy cost covers the annual policy cost; capital investment is the investment to get the energy savings; lifetime energy savings is the present value of energy savings Policy cost Capital investment Lifetime energy savings Total cost saving (34) (300) 620 320 Weak business drivers limit organisational commitment <ul><li>Energy is not relevant to “core business” </li></ul><ul><li>Lack of sustained senior level commitment </li></ul><ul><li>Perceived risk of new technologies </li></ul><ul><li>High transition costs </li></ul><ul><li>“ The new energy efficiency motors do not fit in the old imperial frames…” </li></ul><ul><li>Measures may be NPV positive but with paybacks of over 2 years fail to meet company investment criteria </li></ul><ul><li>“ Engineers write specifications but don’t have budget and don’t get financial benefit for energy efficiency improvements.” </li></ul>Lack of an identified solution prevents action Lack of funding prevents investment Energy efficiency makes good business sense today, although barriers remain
    6. 6. Carbon Trust Standard measures year-on-year reductions and is aligned to the CRC <ul><li>Objectives </li></ul><ul><li>Encourage organisations to measure, manage and reduce their carbon emissions </li></ul><ul><li>Build on established approaches through the Greenhouse Gas Protocol/ ISO 14064 </li></ul><ul><li>Reward good performance </li></ul><ul><li>To be awarded the standard: </li></ul><ul><li>Demonstrate either an absolute reduction or reductions relative to output </li></ul><ul><li>Continually improve – certification lasts for two years, after which organisations must reapply </li></ul><ul><li>Offsets do not count towards reduction </li></ul>Organisations certified at launch
    7. 7. Product carbon footprinting generates carbon/cost savings across supply chain <ul><li>Developing standards to: </li></ul><ul><li>Measure ; </li></ul><ul><li>Reduce ; and </li></ul><ul><li>Communicate </li></ul><ul><li>emissions from goods & services </li></ul><ul><li>Testing the Carbon Reduction Label </li></ul><ul><li>Used on product, point of sale and on-line </li></ul>1. Standards setting 2. Customer communication Working in partnership with business in the UK and overseas PAS 2050 launched October 2008