Westminster City Council – Carbon Management Strategy
Carbon Management Strategy and
Work Programme
Date:
Summary:
1st December, 2009
This paper sets out an updated Carbon Management Strategy
that will take the Council through to carbon neutrality in three
years’ time.
It provides an understanding of how the various regulatory and
voluntary requirements fit together, how they impact on different
areas of the Council’s operations, what programmes of work will
be developed to achieve the desired outcomes, how these
programmes will be financed, and which management structures
have been established within the Council to ensure that the
objectives are met.
Report Author/s:
Nicholas Mason
ext. 5627
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Westminster City Council – Carbon Management Strategy
1.
Executive Summary
The Carbon Neutral Council 2012 Objective
Recognising that climate change is the greatest challenge facing the world today,
Westminster City Council has decided that one of the most valuable contributions
it can make to combating this threat is to show real leadership in reducing
greenhouse gas emissions from across all Council operations.
By setting the Carbon Neutral Council 2012 goal as one of its seven key
objectives, the Council has challenged itself to exceed current and future
statutory carbon management requirements, while providing demonstrable
leadership in the area of carbon management and emissions reduction.
For Westminster City Council, becoming carbon neutral means reducing net
carbon emissions to zero by July 2012, by reducing energy demand, procuring
energy from low- or zero-carbon sources, and offsetting the residual emissions.
To achieve this, the Council has set a minimum emission reduction target of 30%
on corporate emissions from the 2008/09 baseline by 2011/12, and an
aspirational target of 50% reductions.
In order to lead the world in achieving cuts in carbon emissions, the UK has set one of the most ambitious
greenhouse gas (GHG) emission reduction targets of any developed nation, with the Climate Change Act
2008 requiring an 80% reduction by 2050. To support this national objective, a range of mechanisms have
been introduced that encourage Local Authorities (LAs) to manage and reduce emissions both within their
boroughs, and arising from their own direct operations. For Westminster City Council, these national
mechanisms have been augmented by the voluntary objective, declared by the Leader of the Council in his
inaugural speech, that the organisation will become Carbon Neutral by 2012.
To ensure that the Council achieves carbon neutral in three years’ time, the Council recently produced an
updated Carbon Management Strategy. This document provides an understanding of how the various
regulatory and voluntary requirements fit together, how they impact on different areas of the Council’s
operations, what programmes of work will be developed to achieve the desired outcomes, how these
programmes will be financed, and which management structures have been established within the Council to
ensure that the objectives are met.
The Council has identified five primary emission categories through which to manage its GHG emissions,
each of which fall into two or more of the three main scopes: Carbon Neutral Council 2012; Carbon
Reduction Commitment Energy Efficiency Scheme; and, National Indicator 185. The following table details
the emission baseline for each category, the scopes under which each emission category falls, and the total
baseline for the emissions included in the Council’s Carbon Neutral objective.
Scope
Emissions (tCO2-e) per Financial Year
Emission Category
CN
CRC
NI185
2006/07
2007/08
2008/09
Corporate Property
x
x
x
15,476
13,630
13,981
Street Lighting and Furniture
x
x
x
5,567
5,567
3,937
Fleet Vehicles
x
x
-
-
115
x
7,509
7,291
8,395
x
-
-
6,596
21,043
19,197
18,033
Schools
x
Contractors
Carbon Neutral Baseline
The overall Carbon Management Strategy has been designed to deliver the Carbon Neutral Council 2012
objective, while preparing the Council to engage with the forthcoming Carbon Reduction Commitment, and
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Westminster City Council – Carbon Management Strategy
ensuring that it complies with the requirements of National Indicator 185. The key dates and requirements
are outlined in the following table:
Date
Carbon Neutral
Carbon Reduction Commitment
National Indicator 185
FY
2008/09
 Commitment made 18 Jun 2008
 Baseline Year
 Consultation
 Baseline Year
FY
2009/10
 Carbon Management Strategy
and Work Programme complete
31 Aug 2009
Preparation year
 Early Action Metrics (Carbon
Trust Standard and Automatic
Meter Reading)
First Year of Reductions
 Aug 09 Baseline submitted
 Oct 09 Reduction target set with
Government Office for London
FY
2010/11
 Council begins purchasing
energy from PDHU 01 Apr 2010
First Compliance Year
 Baseline Year
Second Year of Reductions
 Jul 10 Annual Report submitted
 Emission reductions of at least
30% achieved across corporate
portfolio
Second Compliance Year
 Apr 2011 Sale of allowances
 Jul 2011 Submit annual report
 Oct 2011 League table published
and payments recycled
Third Year of Reductions
 Jul 11 Annual Report submitted
 LAA targets and priorities
renegotiated going forward
 Carbon Neutrality achieved by 30
Jun 2012
Third Compliance Year
 Apr 2012 Sale of allowances
 Jul 2012 Submit annual report
 Oct 2012 League table published
and payments recycled
FY
2011/12
FY
2012/13
The strategic approach that the Council will undertake to ensure it achieves these key actions by the dates
specified can be broadly broken down into six key strategic themes:






Energy and Carbon Monitoring and Management System Improvement
Energy Demand Reduction Projects
Low- or Zero-Carbon Energy Procurement
Council Process Changes
Carbon Offsetting
Strategic Partnerships
There are three distinct delivery programmes set against these strategic themes that have been developed
to deliver the Council’s overall carbon management objectives. Each of the three Programmes have different
sets of objectives, which have been developed based on the understanding that in each area, the Council
has more or less control over the rate at which emissions can be reduced. They also take into account the
importance of each programme of work for the Council, due to the different scopes each impacts upon, and
the rate at which resources are likely to be targeted within each area. The three programmes are:



Carbon Neutral Work Programme
Energy Efficiency in Schools Programme
Supply Chain Carbon Reduction Programme
The key objectives are outlined in the table below.
Programme of Work
Scope/s
Primary Objective
Secondary Objective/s
Carbon Neutral Council
2012



CN
CRC
NI185



CRC

Energy Efficiency in
Carbon Neutrality achieved by
30 June 2012.
Arrest growth in emissions from
© Copyright Westminster City Council, September 2009

Achieve emission reductions of at least
30% across the corporate portfolio by
11/12, against 08/09 baseline.
Establish the Dedicated Energy
Efficiency Project (DEEP) Fund as a
means of financing Carbon
Management in a sustainable manner.

Engage with identified number of
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Westminster City Council – Carbon Management Strategy
Schools Programme

NI185
Supply Chain Carbon
Reduction Programme

NI185
Westminster schools to maintain
08/09 baseline of c.8,000 tCO2.

Reduce in-scope NI 185
contractor emissions by 5% on
08/09 baseline.
schools each year, achieving an 80%
engagement level by the third year of
engagement.



Develop systems for supply chain
engagement in relation to carbon
management.
Extend supply chain engagement
beyond selected NI 185 contractors.
Encourage contractors to become
members of the Westminster Carbon
Alliance to further drive emission
reductions.
Carbon Neutral Council 2012 Work Programme
The Carbon Neutral Work Programme is the primary programme of carbon management work being
undertaken by the Council. It is focused on the emission categories that fall within the Carbon Neutral
Council 2012 scope, which currently include corporate property, fleet vehicles and street furniture and
lighting, and encompasses the individual programmes of work that target each of these areas. Any actions
taken within this programme are especially valuable as they contribute to achieving success in all three
scopes – Carbon Neutral Council, Carbon Reduction Commitment and National Indicator 185.
These emissions are those that the Council has direct control over, and can therefore engage directly with to
implement technology and behaviour change programmes. As such, this is the area the Council will have the
largest impact reducing emissions from and will be where most resources will be targeted. The calculated
baseline for these emissions in 2008/09 was 18,033 tCO 2-e.
The Council has set a minimum reduction target of 30% in carbon emissions from the 2008/09 baseline in
the 2011/12 financial year across the corporate portfolio of buildings, vehicles and street lighting and
furniture, resulting in a minimum target baseline of 12,625 tCO 2-e in the 2011/12 FY. However, as carbon
offsetting will be required in order to reach carbon neutral status, there is a preference for dropping these
emission levels faster if at all possible. The next section outlines how it could be possible for the Council to
achieve greater than 50% reductions over the next three years, should all identified projects successfully
deliver their potential reductions.
There are a number of distinct projects that have been identified in the process of developing the
overarching strategy. These are a mix of projects, covering all strategic areas identified above, that look to
reduce emissions, but to also continue to develop the strategic and operational base on which future
emission reduction projects will be built. The projects identified are as follows:











CNWP01 – Procuring Electricity from the Pimlico District Heating Undertaking (PDHU)
CNWP02 – Establish Advanced Energy Programme (AEP) in partnership with EDF
o
CNWP02a – AEP Project: Park Lane Car Park
o
CNWP02b – AEP Project: Archives Building
CNWP03 – CRC Early Action Metric: Automatic Meter Reader (AMR) Installation
CNWP04 – CRC Early Action Metric: Carbon Trust Standard (CTS)
CNWP05 – New City Hall: Energy Feasibility Study
CNWP06 – Establishment of Dedicated Energy Efficiency Project (DEEP) Fund
CNWP07 – Audit of Corporate Property Portfolio (in relation to Energy Use)
CNWP08 – City Hall Projects: Zonal Lighting
CNWP09 – SMART Lights Programme
CNWP10 – Strategy Research: Supply Chain Carbon Management Engagement
CNWP11 – Internal Council Communications Plan
Details regarding each programme are contained as an appendix. It is essential that the milestones detailed
for projects CNWP01-06 are achieved in their prescribed timeframes to ensure that the Council is capable of
meeting its carbon saving objectives.
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Westminster City Council – Carbon Management Strategy
The Path to Carbon Neutrality
While the Council has set a minimum reduction target of 30% of corporate emissions from the FY 2008/09
baseline to the FY 2011/12 baseline, it is possible for reductions of greater than 50% to be achieved if all
identified projects provide the maximum possible reductions, reducing the emissions that are required to be
offset to achieve carbon neutrality to c.8,625 tCO2. The graph below shows how the path of the reductions
might be envisaged.
These potential reductions are based on the following assumptions:
Emission Category
Reduction Source
Description
Corporate Property
New City Hall


AEP Programme


PDHU Energy Purchase


Street Lighting and
Furniture
SMART Lights Programme
© Copyright Westminster City Council, September 2009

The shift to a new, smaller, much more energy
efficient City Hall may possibly provide emission
reductions of up to 50% on the present energy
usage, or c.2,000 tCO2.
The current proposal is for City Hall shift to occur
in December 2011.
As per the recent proposal from EDF, they
believe that they can find 7% year-on-year
reductions in the corporate property portfolio
(excluding City Hall) for a total of c.2,100 tCO2.
This reduction would be incremental over the
three years.
The purchase of High-Quality CHP electricity
directly from PDHU may provide c.4,000 tCO2
savings if all electricity generated is used by the
Council.
These reductions are likely to begin in FY
2010/11.
Reductions from the SMART Lights Programme
are currently estimated to be c.1,400 tCO2 over
this period.
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Westminster City Council – Carbon Management Strategy
Vehicle Fleet
None identified
n/a
Energy Efficiency in Schools Programme
Emissions from schools do not fall in scope for the Council’s Carbon Neutral objective. However, they are
required to be included in both the CRC and NI 185 scopes. As such, they have both financial and
reputational implications for the Council, and need to be managed appropriately. The Energy Efficiency in
Schools Programme will form part of the Sustainable Schools Programme run by Westminster’s Schools
Environment Coordinator.
There are currently 54 schools maintained by Westminster and 4 academies that fall within scope. This
represents a 2008/09 baseline for all schools of 8,395 tCO 2-e. As engaging with schools presents a
particularly difficult task, with the Council being unable to mandate that individual schools take actions,
targets and objectives for the Energy Efficiency in Schools Programme have been developed based on:


an incremental increase in the number of schools engaged with over the period, with a goal of
engaging with 80% of Westminster’s schools by 2012; and,
a decrease of 5% on average each year for each school engaged with.
Emissions from schools are growing fast, a trend that is noticeable and likely to continue for all Local
Authorities, primarily due to increased IT use in schools and extended opening hours. This, along with the
several schools not yet accounted for in the Council’s baseline, means it is likely that if left alone the
emissions levels would increase dramatically.
Supply Chain Engagement Programme
The Supply Chain Engagement Programme will look at the most effective way the Council can engage with
its supply chain to measure and manage emissions. At the outset, this will be focused on fulfilling NI 185
requirements, however, the systems developed will be designed to be used more broadly to ensure that the
Council can expand its supply chain engagement should it want to in the future.
Financial Management
The overarching objective of the financial management strategy is to develop mechanisms that allow for an
enduring carbon management programme to be established at the Council. Rather than proceeding on a
reactive, individual project basis, a successful implementation of the finance structure detailed in this paper
would allow proactive engagement with energy efficiency projects and other carbon related issues. There a
three key sub-objectives that this encompasses:
i.
ii.
Establish a budget line for direct carbon management costs in the Council;
Establish a dedicated invest-to-save fund utilising SALIX funding and matched Council funding to
cover the costs of energy efficiency projects in corporate property, street lighting and schools; and,
iii. Minimise the financial risk associated with the Carbon Reduction Commitment and the Carbon
Neutral Council 2012 objective.
Management and Governance of the Programme
In order to ensure successful implementation of the Carbon Management Programme, a robust governance
and management structure is required. The aim of this structure is to:




ensure that clear lines of responsibility and communication are developed within the Council
regarding carbon reduction efforts;
ensure senior, strategic ownership of carbon reduction targets, the carbon neutral goal, and statutory
reporting requirements;
bring together under one programme structure the diverse set of projects from around the Council
that are focused on reducing emissions;
provide oversight for these projects, encouraging delivery by providing strategic and operational
support, sourcing funding, removing blockages from within the Council, and ensuring buy-in at all
levels;
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Westminster City Council – Carbon Management Strategy


ensure coherence and coordination of carbon reduction activities across the Council; and,
ensure that this coherence and coordination can be maintained across the following three years, at
least until the Carbon Neutral Council 2012 objective has been achieved.
The governance structure of the Carbon Management Programme is outlined in the diagram below.
Table 15.1 –Mitigating Risks of Succession
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Table of Contents
1.
Executive Summary
Page
2
PART ONE:
Carbon Management at Westminster City Council
2.
Introduction
10
3.
3.1
3.2
Key Drivers for Carbon Management at Westminster
Key External Drivers
Key Internal Drivers
11
4.
Vision: A Carbon Neutral Council by 2012
12
5.
5.1
5.2
5.3
Central Government Carbon Management Requirements
Carbon Reduction Commitment
National Indicator 185
Carbon Neutrality, Carbon Reduction Commitment and National Indicator 185
13
PART TWO:
Scope, Data and the Carbon Management Strategy
6.
6.1
6.2
6.3
6.4
6.5
6.5
6.6
Scope of Westminster’s Greenhouse Gas Emissions
The Greenhouse Gas Protocol
Defining the Scope of Westminster City Council’s Emissions
Carbon Neutral Council 2012 Scope
Carbon Reduction Commitment Scope
National Indicator 185 Scope
Prioritising Carbon Management Based on Scope
Calculating the Council’s Emissions Baselines
16
7.
7.1
7.2
7.3
Data Management
Data Sources, Collection and Ownership
Quality of Datasets
Data Management Requirements and Costs
20
8.
8.1
8.2
8.3
Carbon Management Strategy
Carbon Management Timeframes
Overarching Strategic Approach
Programmes of Work
22
PART THREE:
Carbon Neutral Council 2012
9.
9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
9.9
9.10
9.11
9.12
Carbon Neutral Work Programme
Baseline and Targets
Strategic Approach
Programme Management
Energy and Carbon Monitoring and Management
Energy Demand Reduction Programme: Corporate Property
Energy Demand Reduction Programme: Street Lighting and Furniture
Energy Demand Reduction Programme: Green Fleet Strategy
Low- or Zero-Carbon Energy Procurement
Carbon Offsetting
Central Government Requirements
Engagement with Broader Council Processes and Policies
Internal Communication
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9.13
9.14
9.15
External Outreach
Capital Works (New Builds and Major Refurbishments)
Key Contacts
10.
10.1
Carbon Neutral Work Programme Projects
Maintaining Momentum: Critical Path for 2009
35
PART FOUR:
Energy Efficiency in Schools Programme
11.
11.1
11.2
11.3
11.4
11.5
Energy Efficiency in Schools Programme
Strategic Approach
Working in Partnership
Baseline and Targets
Building Schools for the Future
Key Contacts
37
PART FIVE:
Supply Chain Engagement Programme
12.
12.1
12.2
12.3
12.4
12.5
Supply Chain Engagement Programme
Strategic Approach
Working in Partnership
Liveability Network Funding
Baseline and Targets
Key Contacts
40
PART SIX:
Financing, Risk Management and Governance
13.
13.1
13.2
13.3
13.4
13.5
13.6
13.7
13.8
Financing the Carbon Programme
Strategic Assumptions
Responsibility for Carbon Management Cost Centres
Direct Programme Management Costs
Dedicated Energy Efficiency Project (DEEP) Fund
Other Funding Sources
Financial Implications of the Carbon Reduction Commitment
Financial Implications of the Carbon Neutral Council 2012 Objective
Key Contacts
43
14.
Risk Identification and Management
47
15.
15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
Carbon Programme Management and Governance
Strategic Resources: Programme Ownership
Carbon Board: Strategic Ownership and Oversight
Go Green Board: Linking with the Broader Sustainability Agenda
Carbon Working Group: Project Delivery at an Operational Level
Carbon Neutral Programme Manager: An Evolving Role
External Stakeholder and Strategic Partner Management
Annual Progress Review
Knowledge Management for Key Roles
49
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PART SEVEN:
Appendices
Appendix 1
Appendix 2
Appendix 3
Appendix 4
Appendix 5
Appendix 6
Appendix 7
Appendix 8
Appendix 9
Appendix 10
Appendix 11
Appendix 12
Appendix 13
Westminster City Council DEC Ratings Summary
Council Corporate Property Ranked by Emissions 2008/09
Carbon Neutral Work Programme: Identified Projects
Carbon Neutral Programme Workplan
EDF Generator Link Concept
Draft Project Management Costs and Funding Options
SALIX Ring Fenced Fund: Fund Manual
EDF AEP Energy Services Proposal and Service Level Agreement
EDF City Hall Energy Feasibility Study Proposal
EDF AEP Audit: Park Lane Car Parks
EDF AEP Audit: Archives Centre
Westminster City Council Go Green Carbon Management Programme (2007)
Carbon Trust Standard Requirements
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54
57
69
69
69
69
69
69
69
69
69
69
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PART ONE:
Carbon Management at Westminster City Council
2.
Introduction
Climate change is the greatest threat the world faces today. The average temperature of the Earth's surface
is expected to increase by between 2° C and 6° C by the year 2100 – even if the minimum predicted
increase takes place, it will be larger than any century-long trend in the last 10,000 years. This is a rapid and
profound change, the impacts of which are likely to include more frequent extreme weather events like floods
and drought, and increase global instability, conflict, public health-related deaths and migration of people to
levels beyond any of our recent experience. Heat waves, droughts, and floods would also affect the UK.
It is now widely accepted that the principal reason for the rising temperatures is a century and a half of
industrialization: the burning of ever-greater quantities of oil, gasoline, and coal, the cutting of forests, and
the practice of certain farming methods. To avoid the most dangerous impacts of climate change, average
global temperatures must rise no more than 2°C. Scientific consensus is that global greenhouse gas
emissions, especially carbon dioxide, methane, and nitrous oxide, must start falling before 2020 and then fall
to at least 50% below 1990 levels by 2050.
In order to lead the world in achieving these cuts, the UK has set one of the most ambitious emission
reduction targets of any developed nation, with the Climate Change Act 2008 requiring an 80% reduction by
2050. In July 2009 the government laid out its roadmap to achieving the transition to a low carbon economy
in its national strategy for climate and energy, The UK Low Carbon Transition Plan.
To support this national objective, a range of mechanisms have been introduced that encourage Local
Authorities (LAs) to manage and reduce emissions within their boroughs. There are also now central
government requirements for LAs to reduce the emissions originating from their own direct operations,
including the National Indicators 185, 186 and 188, and the Carbon Reduction Commitment scheme.
In 2007, Westminster City Council developed a Carbon Management Strategy and Implementation Plan as
part of its broader Go Green agenda, under the guidance of the Carbon Trust’s Local Authority Carbon
Management (LACM) programme. This Strategy was described as the first step towards developing a
systematic approach to reducing emissions from the Council’s operations, and produced the first overall
picture of the organisation’s carbon impact, along with a series of actions to begin the reducing emissions in
the short-term and establish a foundation from which the Council could work in the future.
In the intervening two years, the carbon management landscape has changed considerably for the Council,
not only due to external factors, such as the new legislation and central government requirements for LAs in
this area, but also due to the voluntary objective declared by the Leader of the Council in his inaugural
speech that the organisation will become Carbon Neutral by 2012, leading the way in carbon management in
the City and beyond.
Westminster City Council is well placed to meet its regulatory requirements, and to exceed these through
achieving carbon neutrality, due to the actions implemented and lessons learned from the initial Carbon
Management Strategy.
This paper sets out the updated Strategy that will take the Council through to carbon neutrality in three years’
time. It provides an understanding of how the various regulatory and voluntary requirements fit together, how
they impact on different areas of the Council’s operations, what programmes of work will be developed to
achieve the desired outcomes, how these programmes will be financed, and which management structures
have been established within the Council to ensure that the objectives are met.
It is important to note that this Strategy focuses solely on emissions arising from the Council’s own
operations, not those from of the activities of businesses or residents in the broader Westminster City. The
Council does have other programmes, such as the Westminster Carbon Alliance, that seek to engage the
community and reduce emissions, and while there are some areas where internal and external activities
cross, they for the most part fall beyond the remit of Carbon Management Strategy.
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3.
Key Drivers for Carbon Management at Westminster
There are a range of voluntary and mandatory drivers that provide the impetus for the City Council to engage
with issues surrounding climate change, carbon emission reduction and carbon management. These can be
broadly divided into external and internal drivers, examples of which are outlined below.
3.1
External Drivers
The Climate Change Act became law in the UK on 26 November 2008. It makes it the duty of the Secretary
of State to ensure that the net UK carbon account for all six greenhouse gases in the year 2050 is at least
80% lower than the 1990 baseline, and aims to enable the country to become a low-carbon economy by
giving ministers powers to introduce the measures necessary to achieve a range of greenhouse gas
reduction targets.
The objectives of the Act are supported by the recently published UK Low Carbon Transition Plan. This
white paper sets out the UK’s transition plan for becoming a low carbon country through cutting emissions,
maintaining secure energy supplies, maximising economic opportunities, and protecting the most vulnerable
in the community. The Plan includes a focus on local communities and the role of Local Authorities (LAs) to
help deliver this transition, and may become a key consideration in the Council’s own approach to carbon
management and offsetting in the future.
The second round of Local Area Agreements (LAAs) saw the introduction of emission reduction indicators in
the form of National Indicators 185, 186 and 188. The Council chose to include NI 185: Percentage CO2
reduction from LA operations as one of its 35 Improvement Priorities, and is now required to report
annually on its corporate and schools emissions, as well as those of its top contractors. (See Section 5 for
further details.)
The Carbon Reduction Commitment is a mandatory carbon emissions trading scheme that starts in April
2010. It applies to qualifying public and private sector organisations (c.4-5,000 in total), and has the potential
to have large financial and reputational implications for the Council. (See Section 5 for further details.)
The Energy Performance Of Buildings Directive (EPBD) is an EU directive that requires that Display
Energy Certificates (DECs) be completed for all public buildings over 1000 m2 occupied or part occupied by
Public authorities or by institutions providing public services. DECs must be publicly displayed within the
building, and be updated on an annual basis. The aim is to improve the energy efficiency of buildings by
providing information on how energy efficient they are compared to a national average for that type of
building, and the Council has already received enquiries regarding what actions it is taking to improve the
DEC ratings of its own corporate building portfolio.
Westminster City Council is a signatory to the Nottingham Declaration, which sets out actions to address
climate change and mobilise action in local communities and has been signed by over 300 English Councils.
The Declaration recognises the central role of local authorities in leading society's response to the challenge
of climate change. By signing the Declaration councils pledge to systematically address the causes of
climate change and to prepare their community for its impacts.
The responses of other UK Local Authorities not only inform the City Council’s own approach to this issue,
but in many instances also raise a challenge for Westminster to lift its own game in order to display the
leadership in carbon management that the Carbon Neutral Council 2012 objective exemplifies.
3.2
Internal Drivers
The Carbon Neutral Council 2012 objective represents the Council’s public statement of intent to provide
highly visible leadership in the area of carbon management, and as such it is perhaps the key driver for
overall Carbon Management Strategy. The reputational risk associated with this goal is considerable, and it
adds greater impetus for the Council to engage with and exceed the statutory requirements in order to
ensure that future claims of carbon neutrality are accepted by Westminster businesses and residents.
The Strategy forms part of the Go Green Programme, the Council’s sustainability agenda, which sets out
the ways in which the council intends to lead in creating a more sustainable city. The programme’s aim is to
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Westminster City Council – Carbon Management Strategy
re-establish Westminster as an exemplar ‘green’ authority, and the Carbon Management Strategy feeds
directly into this goal.
The Council is also committed to providing value for money for its residents, and to using resources in the
most effective and efficient way. Reducing emissions via the Carbon Management Strategy is directly related
to managing the Council’s use of energy resources more effectively and efficiently. Currently the Council
spend on energy is £3.8 million, and as the price of energy is expected to rise in the future as the general
economy recovers, the Strategy can be seen in many ways as a way of insulating the Council against this
risk.
As Westminster has one of the worst air quality ratings in the country, the Council’s forthcoming Air Quality
Strategy has the potential to be a key driver behind carbon emission reductions. However, while there will
be many synergies between the two strategies, it is important to note that at times the two goals do clash, for
example on the subject of biomass boilers, and these clashes will need to be managed.
4.
Vision: A Carbon Neutral Council in 2012
Recognising that climate change is the greatest challenge facing the world today,
the most valuable contribution Westminster City Council can make to combating
this is to show real leadership in the area of carbon management.
By setting the Carbon Neutral Council 2012 as one of its seven key objectives,
the Council has challenged itself to exceed current and future statutory carbon
management requirements, providing demonstrable leadership in the area of
carbon management and emissions reduction.
For Westminster City Council, becoming carbon neutral means reducing net
carbon emissions to zero by July 2012, by reducing energy demand, procuring
energy from low- or zero-carbon sources, and offsetting the residual emissions.
As part of his inaugural speech as Council Leader in 2008, Cllr Barrow identified as one of his seven key
goals the ambition for the City Council to become carbon neutral by 2012. This vision of carbon neutrality is
a public statement of intent that Westminster will lead the way in this area, and holds the Council up to a
higher standard than simply complying with statutory requirements.
To achieve this, the Council is required to reduce its net carbon emissions over the intervening period to
zero, through reducing energy demand across all operations; procure or generate its own required energy
from low- or zero-carbon sources where possible; and, if required, purchase carbon offsets to balance the
residual emissions.
The true value of the objective lies in the legitimacy it will provide the Council’s in its attempts to challenge
businesses, organisations and individuals within Westminster City and beyond to manage and reduce their
own emissions. By engaging with its own emissions, this programme will also provide the Council with the
necessary experience and structures to support others in their own attempts.
As discussed in Section 6.1, the scope of this carbon neutral goal has been set to encompass those
emissions the Council has direct control over, namely, the corporate building portfolio, vehicle fleet, and
street furniture and lighting operations.
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5.
Central Government Carbon Management Requirements
As discussed above, the Council is responsible for complying with two central government requirements that
require it to measure, manage and reduce carbon emissions arising from its operations: the Carbon
Reduction Commitment (CRC) and the National Indicator 185.
5.1
Carbon Reduction Commitment
The CRC is a new mandatory carbon emissions trading scheme that targets large non-intensive energy
users that have at least one Half Hourly Electricity meter settled on the half hourly market and have a total
half hourly metered electricity consumption over 6,000 MWh, and will cover all core energy use thereafter.
There are expected to be around 5-6,000 participating organisations in the scheme when it begins, with a
CRC organisation defined as being the highest UK parent. Local Authorities are therefore responsible for the
inclusion of state schools and academies (although there is the possibility that academies will be excluded
from the scheme after the final consultation is completed).
Each April, participating organisations will have to purchase allowances from central government for every
tonne of CO2 they expect they will emit in the coming financial year. Six months later, in October each year,
the income generated from this sale will then be recycled back to all participants. At this point, each
participant would receive their initial allowance payment plus/minus a bonus/penalty based on their position
on a league table containing all organisations. This recycling has a dual purpose; firstly it removes some of
the financial burden of participating in the scheme and secondly provides a financial incentive for delivering
year-on-year reductions in CO2.
In year one the maximum recycling bonus or penalty is 10%, increasing by 10% each year to a maximum of
50% in year 5. However, the actual bonus or penalty received by an organisation depends on its share of the
carbon ‘pot’ in the baseline year, meaning that at this point in time it is impossible to exactly say how much
the value at stake is in any given year.
The scheme commences April 2010 and will run indefinitely:
i.
The introductory phase covers the period April 2010 - March 2013. In this phase allowances will be
available for purchase at a fixed price of £12 per tonne of CO 2, with no limit on the number available
for purchase.
ii.
The next phase will cover a five year period from April 2013 and will involve a ‘cap and trade’
scheme where allowances are sold by auction via a sealed bids process.
The Council will have a commitment in April 2011 to purchase two years' worth of allowances (actual
emissions looking backwards over the footprint year of 2010/11, and estimating expected emissions forward
for 2011-12). 2012/13 will be the third compliance year, while in 2013 the first capped phasing, with its
auctioning of carbon allowances, begins. In each compliance year, participants complete four steps:




they purchase allowances based on expected energy use emissions;
they monitor their energy use during each scheme year and by the end of July, following the end of
the scheme year, they report their emissions to the administrator;
they also, by the end of July, have to hold and cancel allowances equal to their emissions during that
year; and,
they receive a revenue recycling payment from Government in the October after they have reported
their energy use, based on their relative performance in the scheme, which is published in a
performance league table.
During the first year of the Introductory Phase Year an organisation’s position in the performance league
table will be based on two factors, equally weighted:
i.
the percentage of non-mandatory HH metered electricity and gas emissions which are covered by
voluntary installed automatic meter reading (AMR) by 31 March 2011; and,
ii.
a valid Carbon Trust Standard or Energy Efficiency Accreditation Scheme certificate on 31 March of
each compliance year.
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In years 2 and 3 of the introductory phase the early action metric detailed in (i) and (ii) above reduces to 20%
of the weighting. 60% being attributed to the absolute metric (this compares current annual emissions with
average emissions) and 20% being attributed to the growth metric (this takes account of whether an
organisation is growing or declining). The weighting in future phases is 75% absolute metric and 25% growth
metric.
At the end of each year, performance or absolute carbon reductions since the start of the scheme will be
summarised in a league table. This table will highlight the best and worse performers in terms of year on
year reduction in CO2, and will impact on the recycling payment received by each organisation.
While this brief overview in no way captures the real complexity of the scheme, the City Council has already
actively engaged with the CRC and its implications: assigning a representative from central finance to help
develop an understanding of the financial implications of the scheme; engaging with the Carbon Trust to
ensure that the organisation is able to receive Carbon Trust Standard certification; and, engaging with our
energy providers to ensure that all relevant meters have been upgraded with AMR technology before the
start of the first compliance year in April 2010.
As a key part of their role, the Carbon Management Programme Manager would be responsible for ensuring
that the Council is prepared for the CRC and its implications.
5.2
National Indicator 185
Of the two of the national indicators chosen by Westminster as part of its LAA relating to the theme of
‘Sustainability’, National Indicator 185: CO2 reduction from local authority operations falls within scope of the
Carbon Management Strategy.
The aim of this indicator is to measure the progress of local authorities to reduce CO 2 emissions from the
relevant buildings and transport used to deliver its functions and to encourage them to demonstrate
leadership on tackling climate change.
The indicator being assessed will be a year on year measured reduction of CO 2 emissions. First year data
was reported in August 2009, with the baseline year calculated from January to December 2008. CO 2
emissions considered in scope are the total amount of direct and indirect CO 2 emitted as a result of the
Council’s operations.

Direct emissions are emissions from sources that are owned or controlled by the local authority e.g.
emissions from the combustion in owned or controlled boilers and vehicles, or energy used in
Council buildings.

Indirect emissions are emissions that are a consequence of the activities of the local authority, but
occur at sources owned or controlled by another entity e.g. emissions from consumption of
purchased electricity or heat, transport-related activities in vehicles not owned or controlled by the
local authority and outsourced activities.
While direct emission reporting has proven relatively straight forward, due to established reporting
procedures with its Energy Bureau contractor, Advanced Demand Side Management (ADSM), indirect
emission reporting presented more of a challenge, and a project to establish reporting procedures to capture
this information was launched in January 2009. 30 contractors were identified as being in scope of this
project, with the scope defined as having a greater than 3 years contract duration (whether they conclude
before or after 2012), and at least £1m annual spend. 19 of these contractors complied with the request to
provide the required data across 21 contracts.
The Council has contracted the Carbon Disclosure Project (CDP) to manage the data collection process over
the next three years.
Once the baseline is complete, and a fuller understanding of the Council’s direct and indirect emission profile
is established, reduction targets will be set for the indicator’s year on year measured reduction of CO 2
emissions. As discussed in the following sections, the reduction targets set for NI 185 will be aligned with the
overall Carbon Management reduction targets.
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5.3
Carbon Neutrality, Carbon Reduction Commitment and National Indicator 185
Both of the central government carbon management requirements, and the Carbon Neutral Council 2012
objective, have overlapping scopes with regards to what kind of emissions are considered in and out of
scope. The diagram below gives a general outline of how these drivers fit together, Part Two of the Carbon
Management Strategy looks at this fit in much greater detail, and begins to consider the drivers in terms of
scope definition and how individual programmes of work emerge from them.
Carbon Reduction
Commitment
Carbon Neutrality
Commitment to reduce Westminster City
Council’s net corporate carbon emissions to zero
by 2012 and purchase offsets for remaining
emissions.
Mandatory carbon trading scheme. Annual
requirement to purchase allowances at £12per
tonne CO2, revenue is recycled back to
participants based on a league table.
WCC
buildings
Schools
Staff travel
(where
identifiable)
WCC Street
lighting and
furniture
WCC
Vehicles
Key contractor’s
vehicles and
buildings
National Indicator 185
Annual requirement to report on carbon emissions to DEFRA as part of new performance framework. As the indictor
is in WCC’s Local Area Agreement a target will be agreed with government (to be achieved by March 2013).
Figure 5.1 – Westminster City Council Carbon Management Overlapping Drivers
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PART TWO:
Scope, Data and the Carbon Management Strategy
Scope of Westminster’s Greenhouse Gas Emissions
6.
Due to the range of central government and voluntary drivers behind carbon management at the City
Council, the breadth of services being delivered, and the range of ways in which they are delivered,
developing a valid understanding of the scope of the Council’s greenhouse gas (GHG) emissions is essential
to ensuring that effort and resources spent reducing emissions are well targeted.
Defining the scope incorrectly introduces unnecessary risk into the carbon management programme at the
Council. For the Carbon Neutral Council 2012 objective, the claim of carbon neutrality relies on a clear
understanding of what emissions are required to be reduced or mitigated to achieve this goal. Failure to do
so exposes the Council to the reputational risk, along with financial risk associated with offsetting
inappropriate or unnecessary carbon emissions.
In terms of the Council’s central government carbon management requirements, incorrectly defining scope
may lead to incorrect reporting, which could impact negatively on the Council’s Local Area Agreement
outcomes, and expose the Council to large financial penalties due to the Carbon Reduction Commitment.
6.1
The Greenhouse Gas Protocol
The Council has used the most widely accepted approach to identifying and categorising GHG emissions
originating from its operations: the Greenhouse Gas Protocol.
The Protocol was developed by the World Business Council for Sustainable Development and the World
Resources Institute to provide guidance for businesses and other organisations preparing a greenhouse gas
inventory. To help delineate direct and indirect emissions sources, improve transparency, and ensure that
where possible there is no double counting of GHG emissions it identifies three scopes:1

Scope 1 (Direct emissions): Activities owned or controlled by an organisation that release
emissions straight into the atmosphere. They are direct emissions. Examples of scope 1 emissions
include emissions from combustion in owned or controlled boilers, furnaces, vehicles owned or
controlled; emissions from chemical production in owned or controlled process equipment.

Scope 2 (Energy indirect): Emissions being released into the atmosphere associated with the
consumption of purchased electricity, heat, steam and cooling. These are indirect emissions that are
a consequence of an organisation’s activities, but which occur at sources it does not own or control.
Examples for the Council include electricity and gas used in corporate property and street lighting.

Scope 3 (Other indirect): The final category is all other activities that release emissions into the
atmosphere as a consequence of an organisation’s actions, which occur at sources that it does not
own or control and which are not classed as scope 2 emissions, i.e., do not result from the purchase
of electricity, heat, steam and cooling. Examples of scope 3 emissions are business travel by means
not owned or controlled.
When deciding how to determine which parts of its operations can be defined as scope 1 and 2 emissions,
the Council has chosen to use the operational control approach,2 in which an organisation is considered to
have control over an aspect of its operation if it has the full authority to introduce and implement its operating
policies in this area. This is a vital consideration, as the Council has many aspects of the its extended
operations over which it does not have full control.
1
DEFRA, Draft guidance on how to measure and report your greenhouse gas emissions, http://www.DEFRA.gov.uk/
corporate/ consult/greenhouse-gas/draft-guidance.pdf, 5 June 2009, p 14
2 Ibid, p 12
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6.2
Defining the Scope/s of Westminster City Council’s Emissions
If the Council were to map its overall carbon impact, encompassing all direct and indirect emissions
associated with Council operations, it would include emissions from Council corporate properties, street
lighting and furniture, fleet vehicles, corporate travel, corporate waste, water usage, fugitive emissions,3
schools, contractors and vendors providing services for the Council, and social housing.
This strategy seeks to map the central government and voluntary
drivers for carbon management discussed in previous sections
onto these emission categories. This approach allows the
Council to develop an understanding of how the various drivers
complement or contradict each other, and where best to prioritise
resource and effort. Figure 6.1 shows how each of the three
primary drivers translate into overlapping scopes, with further
detail provided in the following sections.
The Council as yet does not have visibility over several of these
categories, namely, emissions from corporate travel, waste and
water, and fugitive emissions. It is envisaged that over the next
three years the Council will investigate systems to account for,
and strategies to minimise, these emissions, and decide whether
these emissions should be included in the carbon management
strategy.
Figure 6.1 - Overall Carbon Footprint
(boxes not to scale)
The primary reason for doing this is reputational. The Council is looking to establish itself as an exemplar of
carbon management for LAs, and as such, should attempt to follow best practice where possible. Accounting
for these emissions, and managing their reduction, would therefore strengthen the Council’s claim to being a
leader in this area.
Social housing is a complex area. Currently it is not included in any voluntary or statutory scope, and there is
no immediate intention to develop a method of accurately measuring these emissions and/or including them
in any of the Council’s defined scopes.
As discussed in section 5, there are three primary drivers for carbon management that this strategy is
required to consider: the Carbon Neutral Council 2012 objective, Carbon Reduction Commitment, and
National Indicator 185. Each covers different but overlapping sets of direct and indirect emissions from
Council operations, and for the purposes of this strategy, each has been considered as a separate scope for
carbon management.
By using these different but overlapping scopes, the Council will be able to prioritise its emission reduction
spend and effort, while developing appropriate management, measurement and engagement strategies for
each scope to provide the desired overall outcomes.
6.1
Carbon Neutral Council 2012 Scope
The Council has chosen to define the scope of its Carbon
Neutral Council objective as covering scopes 1 and 2 of the
GHG Protocol, defined as being corporate emissions that the
Council has direct control over, namely: corporate property that
the Council purchases energy for (defined as those in the
Council’s operational portfolio, used by the Council itself to
provide Council services to the public); the Council’s directly
operated fleet of vehicles; and the street lighting and street
furniture operations that the Council directly purchases energy
for.
Due to the nature of the Council’s operations, these emissions
are almost all ‘Energy indirect’ emissions.
This scope may expand or contract prior to 2012, depending on
3
Figure 6.2 – Carbon Neutral Council 2012
Examples of such emissions include air conditioning and refrigeration leaks, or methane leaks from pipelines.
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how the Council’s operational building portfolio changes, and whether it successfully develops systems to
account for corporate travel, waste, water and fugitive emissions resulting from corporate operations.
6.3
Carbon Reduction Commitment Scope
The scope of the CRC can be thought of as the Council’s
corporate emissions, minus transport related emissions, plus all
schools within the borough. Ensuring that the emission footprint is
reported correctly for the CRC is essential, as failure to report or
reporting it incorrectly carries fines.
The CRC effectively measures scope 2 emissions as defined by
the Greenhouse Gas Protocol, with the “who pays the bills for a
source of energy” being the fundamental principal used by the
CRC to determine emission responsibility. In some cases other
parties may be involved in the process of arranging energy
supplies, administering supplier accounts and even acting as a
third party buyer. In all these cases, the final consumer is
responsible for emissions as ultimately they pay the bill.
6.4
Figure 6.3 – Carbon Reduction Commitment
National Indicator 185 Scope
According to DEFRA guidance, NI 185 is to include all CO2
emissions from the delivery of local authority functions. In terms of
the meaning of the word in legislation "function" covers both the
duties and powers of an authority, including an authority’s own
operations and outsourced services.
There is no exhaustive list of the powers and duties of an authority
in legislation, as the term function is taken to understand what that
means for the relevant authorities. Schools and business travel
are included within the definition. However, social housing
provided by the authority or a third party is not included within the
scope of the indicator.4
The first baseline report was submitted to DEFRA in August 2009
and included:



Figure 6.4 – National Indicator 185
Energy and fuel consumption from City Council corporate emissions;
Energy consumption from schools in Westminster, and,
Energy and fuel consumption from the selected contractors’ buildings and vehicles.
Even though it is identified in the guidance, the Council is not reporting on business travel as it currently has
no visibility over this information, nor any means to capture the data. As discussed above, this may change
in future. However, even if it does it will not be incorporated into NI 185 reporting until the next LAA period is
entered and should this indicator be chosen again in early 2011.
The scope and methods used for gathering data on the emissions being reported on for NI 185 purposes
have been agreed to by DEFRA. The reduction targets that the Council will report to will be confirmed with
DEFRA later in 2009, now that the baseline data has been submitted.
4
DEFRA, Guidance to local authorities and Government Offices on National Indicator 185, http://www.defra.gov.uk/
environment/localgovindicators/documents/ni185-guidance-2008.pdf, July 2008, p 3
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6.5
Prioritising Carbon Management Based on Scope
The overlapping scopes described above provide the Council with the ability to prioritise its resource use and
effort committed to carbon management projects within the overall programme. Table 6.1 below summarises
how the different emission categories are prioritised within the overall strategy.
Scope
Emission Category
CNC
CRC
NI185
Priority
Corporate Property
x
x
x
1
Street Lighting and Furniture
x
x
x
1
x
x
2
x
2
x
3
Schools
Fleet Vehicles
x
Contractors
Table 6.1 – Priorities Based on Scope
6.6
Calculating the Council’s Emissions Baselines
While there are a number of gases that contribute to climate change,5 It is standard practice to report GHG
emissions in tonnes of CO2 equivalents (CO2-e). The Council will follow this standard, utilising the most upto-date calculation tools available from DEFRA and/or DECC to convert data by source into emissions of
CO2-e.
For the baseline calculations quoted in this report, the Council has used the conversion factors from the
DEFRA spreadsheet developed for National Indicator 185 reporting requirements. 6 Table 6.2 below provides
total emissions for each emission area discussed in the sections above. More detailed breakdowns of these
areas can be found in Parts 3, 4 and 5.
Emission figures are calculated on a financial year basis. The baseline year for the Council’s corporate
operations and schools is taken as 2006/07, for contractors the year is 2008/09 as the Council has only just
begun collecting this data.
While the figures contained in this strategy are accurate and up-to-date as of 31 August 2009, they will be
subject to change as the Council’s portfolios change and the understanding of what should be considered in
and out of various scopes changes over time.
Emissions (tCO2-e) per Financial Year
Emission Area
2006/07
2007/08
2008/09
15,476
13,630
13,981
Street Lighting and Furniture
5,567
5,567
3,937
Schools
Corporate Property
7,509
7,291
8,395
Fleet Vehicles
-
-
115
Contractors
-
-
48,088
Table 6.2 – Emission Category Baselines
5
The six main GHGs are covered by the Kyoto Protocol: carbon dioxide (CO2), methane (CH4), hydrofluorocarbons
(HFCs), nitrous oxide (N2O), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).
6 DEFRA, Local government performance framework: NI 185 - Percentage CO2 reduction from LA operations,
http://www.defra.gov.uk/environment/localgovindicators/ni185.htm, July 2009.
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7.
Data Management
7.1
Data Sources, Collection and Ownership
Data have to be collected from each of the Council’s operational areas in order to develop emission
baselines for each of the three scopes identified in Section 6.
The majority of energy usage data are captured and validated by the Council’s external energy services
bureau, Advanced Demand Side Management (ADSM), making the collection of these data a relatively
straight-forward process. However, there are a number of more labour intensive areas for data collection,
and streamlining these collection processes while increasing the quality of the data received forms an
essential aspect of carbon management over the next three years.
Alongside this process of streamlining data collection from existing sources, the Council aims to develop
visibility over the areas where it currently collects no data, as discussed in section 6.2.
Table 7.1 identifies the current data sources and the Council Officers responsible for data collection. Unless
otherwise noted, all data are owned by the City Council, even if held or managed by external third party
contractors.
Emission Area
Source of Data
Responsible Officer
Corporate Buildings
Validated energy usage data (H/H
electric and gas) from external energy
services bureau.
David Haygarth,
Corporate Energy Manager
Y
Street Furniture and
Lighting
Un-Metered Supply
supply invoices.
Dave Franks,
Public Lighting Manager
Y
Fleet Vehicles
Mileage, vehicle and fuel usage data
from Fleet Manager.
Kevin Ward,
Fleet Manager
Y
Schools
(Maintained)
Validated energy usage data (H/H
electric and gas) from external Energy
Services Bureau.
David Haygarth,
Corporate Energy Manager
Y
Schools
(Academies)
To be confirmed.
David Haygarth,
Corporate Energy Manager
N
Contractors (NI185
Selected)
“Approximation Method” for baseline
footprint used by Carbon Disclosure
Project (CDP).
Nicholas Mason,
Carbon Neutral Programme Manager
Y
Contractors (Other)
To be developed (see Part Five: Supply
Chain Engagement Programme)
n/a
n/a
Corporate Travel
To be developed.
n/a
n/a
Waste
To be developed.
n/a
n/a
Water
To be developed.
n/a
n/a
Fugitive Emissions
To be developed.
n/a
n/a
Social Housing
Not in scope at present time.
n/a
n/a
(UMS)
energy
Own?
Table 7.1 – Data Sources and Collection Responsibilities
7.2
Quality of Datasets
The quality of the datasets collected by the Council varies. The process for expanding the range of data
collected, and streamlining the collection processes, must by necessity go together and will increase the
overall quality of the data used in calculating the Council’s emissions.
This is especially the case with regards to the CRC, as there are considerable financial penalties for
misreporting emissions data included in scope for this scheme. As such, any areas that fall within this scope
will be prioritised for increasing the quality of data.
The quality of the data collected will also effect the Council’s ability to accurately measure changes in
emissions, and the benefits that come from implementing the carbon management programme. Tables 7.2
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and 7.3 describe the quality of the Council’s current datasets, taking into account the completeness, validity,
timeliness and accuracy of the datasets used to generate emission levels.
Data Quality Attribute
Completeness
Validity
Timeliness
Accuracy
Rating
Reason
1
Complete and accurate inventory of assets and associated dataset
maintained by Council.
2
Some inaccuracies in inventory reflected in associated dataset.
3
Incomplete inventory of assets that results in known incompleteness in
emissions dataset.
1
Dataset validated by external third party.
2
Dataset not-validated by external third party, but reasonable degree of
confidence in validity held.
3
Concerns over validity of dataset.
1
Up-to-date dataset available on request or maintained by the Council.
2
Historical dataset available on request from third party or maintained by
the Council.
3
Data are required to be requested form original source when required.
1
95% confidence that dataset is accurate.
2
75% confidence that dataset is accurate.
3
Less than 75% confidence that dataset is accurate.
Table 7.2 – Data Quality Attributes
The calculation for quality of existing datasets is as follows:



Each attribute is given a score from 1 (high) to 3 (low) as per table above.
Scores are multiplied together to give a quality rating.
The quality rating is then awarded as follows: High (1-5), Acceptable (6-15), Poor (16-26), and Very
Poor (27+).
Existing Dataset
C
V
T
A
Quality
Validated energy usage data (H/H electric and gas) from
external energy services bureau.
2
1
2
1
High (4)
3
2
2
1
Acceptable (12)
1
2
3
1
Acceptable (6)
3
1
3
3
Very Poor (27)
Un-Metered Supply (UMS) energy supply invoices.
Mileage, vehicle and fuel usage data from Fleet Manager.
“Approximation Method” for baseline footprint used by Carbon
Disclosure Project (CDP).
Table 7.3 – Quality of Existing Datasets
7.3
Data Management Requirements and Costs
In future, the Council will move towards creating and maintaining one central database of carbon emission
data to ensure internal consistency across the organisation when reporting, either officially for external
reporting requirements, or informally for publicity purposes. Most importantly, this internal consistency will
minimise the risk when the Council is audited, and would aim to provide a clear, audited and auditable trail of
data collection and use.
In order to achieve this consistency in the management of emission data, the Council will investigate using
an appropriate carbon management software solution.
As part of this process, the Council will determine the key deliverables and cost effectiveness of the current
external energy services bureau, Advanced Demand Side Management (ADSM), and whether the service
provided is of value, or could be replaced by the Council’s own internal data management system.
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8.
Carbon Management Strategy
This Carbon Management Strategy has been designed to deliver the Carbon Neutral Council 2012 objective,
while preparing the Council to engage with the forthcoming Carbon Reduction Commitment, and ensuring
that it complies with the requirements of National Indicator 185.
8.1
Carbon Management Timeframes
The Strategy is focused on delivering the Carbon Neutral objective by 30 June 2013. As such, it describes
how each of the Programmes of work contained within it will be delivered over a three year period from 31
August 2009 through to 31 August 2012. Key dates and requirements are outlined in the following table.
Date
Carbon Neutral
Carbon Reduction Commitment
National Indicator 185
FY
2008/09
 Commitment made 18 Jun 2008
 Baseline Year
 Consultation
 Baseline Year
FY
2009/10
 Carbon Management Strategy
and Work Programme complete
31 Aug 2009
Preparation year
 Early Action Metrics (Carbon
Trust Standard and Automatic
Meter Reading)
First Year of Reductions
 Aug 09 Baseline submitted
 Oct 09 Reduction target set with
Government Office for London
 Council begins purchasing
energy from PDHU 01 Apr 2010
First Compliance Year
 Baseline Year
Second Year of Reductions
 Jul 10 Annual Report submitted
 Emission reductions of at least
30% achieved across corporate
portfolio
Second Compliance Year
 Apr 2011 Sale of allowances
 Jul 2011 Submit annual report
 Oct 2011 League table published
and payments recycled
Third Year of Reductions
 Jul 11 Annual Report submitted
 LAA targets and priorities
renegotiated going forward
 Carbon Neutrality achieved by 30
Jun 2012
Third Compliance Year
 Apr 2012 Sale of allowances
 Jul 2012 Submit annual report
 Oct 2012 League table published
and payments recycled
FY
2010/11
FY
2011/12
FY
2012/13
Table 8.1 – Key Dates for the Carbon Management Strategy
8.2
Overarching Strategic Approach
There are six key themes in the Council’s strategic approach to carbon management. These inform the way
in which the Council interacts with the different emission categories, providing a framework through which
projects can be developed. The key themes are:
i.
Energy and Carbon Monitoring and Management System Improvement
Ensuring that the Council maintains robust and best practice systems to manage energy and carbon
provides an essential base on which all other carbon reduction actions are built. Good management
systems provide high quality datasets which are essential for accurate measurement of carbon
emissions. They also allow appropriate prioritisation of projects, based on having the fullest possible
understanding of the way in the Council uses its energy resources, and are essential for providing
the means to judge the success, or otherwise, of carbon reduction actions.
ii. Energy Demand Reduction Projects
Reducing energy demand will be achieved through two main avenues: improving energy efficiency
through changes in the use of, or upgrades to, technology (which could include a wide range of
options, such as Building Management System installation and upgrades, lighting sensors, insulation
and draft reduction); and, reducing demand through behaviour change through training and
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awareness programmes. Targeted demand reduction campaigns will be rolled out across all the
Council’s emission categories.
iii. Low- or Zero-Carbon Energy Procurement
The energy that the Council requires will by preference be procured from low- or zero-carbon
generation sources. This will be achieved by either accessing local, renewable or high-quality
Combined Heat and Power (CHP) operations where the Council is also able to purchase the
Renewable Obligation Certificates (ROCs) to ‘prove’ the green energy purchase; or through the
development of its own renewable or CHP energy sources.
An important note here is that as of summer 2008, the revised non-statutory advice from DEFRA on
greenhouse gas emissions recommended that green tariff electricity could no longer be counted as
having zero carbon emissions, but rather as having ‘grid-average’ emissions.7
iv. Council Process Changes
In order to embed carbon management within the Council more generally, and in particular to
support carbon reduction projects by ensuring that actions in one part of the Council don’t undermine
efforts in another, a key strategic engagement area will be engaging with Council processes in areas
such as procurement, finance, IT strategy, etc. Many of these areas are already undertaking efforts
in this area, the carbon management strategy will look to pull these together, and provide support
and guidance where required.
v. Carbon Offsetting
As the Council can no longer rely on green energy tariff purchasing to lower its carbon emissions, it
is certain that there will residual emissions in 2012. This means that in order for the Council to make
the claim of carbon neutrality, it will have to offset its emissions. These offsets would be bought
purely to cover residual emissions in the Carbon Neutral Council scope as outlined above.
As yet there is no agreed approach as to how the Council will source these offsets. Over the next
year research will be conducted into the options that are available, taking into account the current
consultation processes on guidance in this area by both DECC and DEFRA8, to establish how the
Council can most appropriately offset and claim carbon neutral status.
vi. Strategic Partnerships
The final key strategic theme is the development of key strategic partnerships with external
organisations. This is in recognition that the Council will require support achieve carbon reductions,
and in turn that the Council can offer support to other organisations in this area. These partnerships
will include: support organisations such as the Carbon Trust, the Energy Savings Trust and the
London Energy Project; private companies who provide energy services, such as EDF, Corona Gas
and ADMS; and other local authorities and representative bodies, such as Camden, Islington, and
London Councils.
This strategic theme differs from the preceding five, as it does not provide insight into what projects
or organisational changes will be delivered by the Programme, but rather how these will be delivered
by the Council and its partners.
8.3
Programmes of Work
There are three distinct delivery programmes set against these strategic themes that have been developed
to deliver the Council’s overall carbon management objectives. The three programmes are:



Carbon Neutral Work Programme
Energy Efficiency in Schools Programme
Supply Chain Carbon Reduction Programme
7
ENDSreport, BT still claiming green tariff emissions cuts, ENDS Report 414, July 2009, pp 9-10..
See: DEFRA consultation, Draft guidance on how to measure and report on your greenhouse gas emissions,
http://www.defra.gov.uk/corporate/consult/greenhouse-gas/index.htm; and, DECC consultation, Consultation on the term
‘carbon neutral’: its definition and recommendations for good practice, http://www.decc.gov.uk/en/content/cms/
consultations/open/carbon_neutrality/carbon_neutrality.aspx
8
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Westminster City Council – Carbon Management Strategy
See Parts 3, 4 and 5 for a detailed discussion on the individual strategies developed or being developed for
each of the three delivery programmes.
Each of the three Programmes have different sets of objectives. These have been developed based on the
understanding that in each area, the Council has more or less control over the rate at which emissions can
be reduced. They also take into account the importance of each programme of work for the Council, due to
the different scopes each impacts upon, and the rate at which resources are likely to be targeted within each
area.
Programme of Work
Scope/s
Primary Objective
Secondary Objective/s
Carbon Neutral Council
2012



CN
CRC
NI185


Energy Efficiency in
Schools Programme


CRC
NI185

Arrest growth in emissions from
Westminster schools to maintain
08/09 baseline of c.8,000 tCO2.

As per Part Four, engage with identified
number of schools each year, achieving
an 80% engagement level by the third
year of engagement.
Supply Chain Carbon
Reduction Programme

NI185

Reduce in-scope NI 185
contractor emissions by 5% on
08/09 baseline.

Develop systems for supply chain
engagement in relation to carbon
management.
Extend supply chain engagement
beyond selected NI 185 contractors.
Encourage contractors to become
members of the Westminster Carbon
Alliance to further drive emission
reductions.
Carbon Neutrality achieved by
30 June 2012.



Achieve emission reductions of at least
30% across the corporate portfolio by
11/12, against 08/09 baseline.
Establish the Dedicated Energy
Efficiency Project (DEEP) Fund as a
means of financing Carbon
Management in a sustainable manner.
Table 8.2 – Carbon Management Objectives
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Westminster City Council – Carbon Management Strategy
PART THREE:
Carbon Neutral Council 2012
9.
Carbon Neutral Work Programme
9.1
Baseline and Targets
As discussed in Section 6.1, the scope for the Council’s Carbon Neutral Council 2012 objective includes the
corporate property, street lighting and furniture and vehicle fleet emissions categories. For the 2008/09
financial year, these categories total 18,034 tCO 2-e, which breaks down as per the table below.
Emissions (tCO2-e)
2008/09 %
Property Category
2006/07
2007/08
2008/09
%
Cumulative
Corporate Property
15,477
13,631
13,981
77.53%
77.53%
5,567
5,567
3,938
21.83%
99.36%
-
-
115
0.64%
100.00%
21,044
19,198
18,034
100.00%
-
Street Lighting and Furniture
Vehicle Fleet
Total
Table 9.1 – Carbon Neutral Scope Baseline
Each of these categories is discussed
in more detail in Sections 9.5, 9.6 and
9.7, including outlining the approach
to
emission
reductions
being
undertaken for each category.
While there was a considerable drop
in emissions from 2006/07 in the
corporate property portfolio, these
reductions have levelled off in the
2008/09 year. The real reductions
have been made in the street lighting
and furniture portfolio, and relate to a
re-inventory undertaken in 2007/08
that reduced the amount of estimated
energy being charged for.
There is a minimum target of 30%
reduction in carbon emissions from
the 2008/09 baseline in the 2011/12
financial year across the corporate
Figure 9.1 - WCC Corporate Emissions Profile
portfolio of buildings, vehicles and
street lighting and furniture, resulting in a minimum baseline of 12,625 in the 2011/12 FY. However, as
carbon offsetting will be required in order to reach carbon neutral status, there is a preference for dropping
these emission levels faster if at all possible.
See Section 10 for a discussion on how emissions will reduce due to currently identified projects.
9.2
Strategic Approach
The Carbon Neutral Work Programme is the primary programme of carbon management work being
undertaken by the Council. It is focused on the emission categories that fall within the Carbon Neutral
Council 2012 scope, which currently include corporate property, fleet vehicles and street furniture and
lighting, and encompasses the individual programmes of work that target each of these areas. Any actions
taken within this programme are especially valuable as they contribute to achieving success in all three
scopes – Carbon Neutral Council, Carbon Reduction Commitment and National Indicator 185.
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These emissions are those that the Council has direct control over, and can therefore engage directly with to
implement technology and behaviour change programmes. As such, this is the area the Council will have the
largest impact reducing emissions from and will be where most resources will be targeted.
The Carbon Neutral Programme Manager is directly responsible for managing this programme and
maintaining an overview of all projects being conducted within it. The Carbon Working Group will also focus
on the work being conducted as part of this Programme.
See Appendix 4 for the Carbon Neutral Programme Workplan, detailing the projects that have been
identified, their costs and expected savings, and the timing of the implementations. This is a living document
and it is expected it will change frequently, as such the appendix is indicative.
All strands of the overarching strategic approach detailed in Section 8 will be applied to the Carbon Neutral
Work Programme. As such, the key Work Streams identified in this programme include:












9.3
Programme Management
Energy and Carbon Monitoring and Management
Energy Demand Reduction Programme: Corporate Buildings
Energy Demand Reduction Programme: Street Lighting and Furniture
Energy Demand Reduction Programme: Green Fleet Strategy
Low- or Zero-Carbon Energy Procurement
Carbon Offsetting
Statutory Requirements
Engagement with Broader Council Processes and Policies
Internal Communication
External Outreach
Capital Works (New Builds and Major Refurbishments)
Programme Management
This work stream focuses on ensuring that the Programme is managed well, both in terms of outcomes as
well as financially, and provides reports in an accurate, complete and timely manner to the Carbon and Go
Green Boards, and the Strategic Director of Resources as required. It also looks to plan for training
requirements for Council staff in areas such as project management, carbon and energy management, or
carbon allowance trading, for example.
The Carbon Neutral Programme Manager is responsible for the activities and projects located in this work
stream. See section 15 for full details of the management and governance structures for the overall Carbon
Management Programme.
9.4
Energy and Carbon Monitoring and Management
This work stream focuses on ensuring that the systems are in place to properly monitor and manage energy
and carbon emissions at Westminster. Key areas of concern at this point include:




upgrading the Council’s energy meters with Automatic Meter Reader (AMR) technology, in order to
provide more accurate and timely data on energy usage, while reducing the risk associated with the
introduction of the CRC scheme;
developing a programme for installing sub-metering in the Council’s buildings, where appropriate, in
order to monitor energy usage more precisely and identify opportunities for savings;
investigating the potential of introducing a software solution for energy and/or carbon management in
order to provide higher quality data, with greater consistency, that leaves a fully auditable trail to
reduce risk further for the Council; and,
establishing accepted internal and external auditing processes to ensure the carbon management
claims, such as carbon neutrality, are verified as being correct.
This area is vital as it is an enabler for undertaking successful energy demand reduction projects in the
future, providing the ability to prioritise projects, and measure success or otherwise.
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The Corporate Energy Manager and Carbon Neutral Programme Manager are responsible for the activities
and projects located in this work stream.
9.5
Energy Demand Reduction Programme: Corporate Property
The Council currently has 122 properties that have been designated as part of its corporate property
portfolio, and which cause emissions due to energy use. In 2008/09 the emission baseline for all corporate
property was 13,981 tCO2-e which fall into a range of different categories, as identified in the table below.
The Council’s building stock is made up of relatively inefficient buildings. This is reflected in the DEC ratings
given to them, which sees almost 70% of buildings receiving an E or lower rating (see Appendix 1 for list of
DEC ratings). These ratings, along with relative emissions, allow effective targeting of energy demand
reduction projects, and their improvement will form a key performance indicator for the Programme as a
whole.
Emissions (tCO2-e)
2008/09 %
Property Category
#
2006/07
2007/08
2008/09
%
Cumulative
Corporate buildings and offices
5
6,463
5,442
5,974
42.72%
42.72%
Car parks
14
2,749
2,746
2,778
19.87%
62.59%
Community buildings
20
2,210
1,950
2,142
15.32%
77.91%
Libraries and archives
13
1,091
1,059
1,139
8.15%
86.05%
Subways and underpasses
11
516
638
710
5.08%
91.13%
Public Conveniences
28
456
469
565
4.04%
95.17%
Depots
11
944
955
265
1.90%
97.07%
Miscellaneous buildings and assets
7
943
238
238
1.70%
98.77%
Gardens, parks and playgrounds
25
105
134
172
1.23%
100.00%
Total
134
15,477
13,631
13,981
100.00%
-
Table 9.2 – Corporate Property Portfolio Emissions by Category
The Corporate Property department at the Council is currently in the process of implementing an updated
property database, cleaning its existing databases, and introducing a new Property Asset Management
strategy. As such, it is expected that the definitions and categories used in the Carbon Management Strategy
will change over the course of the coming year to properly reflect and align with the new Corporate Property
approach. This realignment will form a key project in the first twelve months of the Carbon Neutral Work
Programme.
A key aspect of the Corporate Property Work Programme is working in partnership. The Council is currently
trialling EDF’s Advanced Energy Programme (AEP) process on four buildings (as described below) to assess
whether it provides value for money and can drive meaningful savings. If the Council agrees to adopt the
AEP, then it will do so on a risk/reward basis, with EDF guaranteeing minimum savings from the projects that
they will implement.
In the medium-term, it is envisaged that a programme of work will be developed for each of the property
categories where it is felt meaningful savings can be made. However, as each building is different even
within categories, it may be that this approach needs to be discarded for a building by building take on
energy efficiency projects.
The cost of implementing energy efficiency projects is expected to be covered by the Dedicated Energy
Efficiency Project (DEEP) Fund, as discussed in section 13 regarding financing the programme.
While the Carbon Neutral Programme Manager and Corporate Energy Manager are responsible for
developing potential projects for the corporate property portfolio, responsibility for the delivery of individual
projects will be delegated on a per project basis.
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Of the properties, the top 20 emitters produce 80% of the recorded emissions (see Appendix 3 for a ranked
order of Council corporate property portfolio). The top 6 buildings emit almost 60% of the corporate property
emissions, each have been considered separately below. At the outset of the Programme, these particular
buildings will be targeted for energy efficiency projects.
9.5.1
City Hall
City Hall alone is responsible for c.4,000 tCO2-e emissions annually (28.8% of the corporate property
emissions). The building is the second least efficient building in the portfolio, with a G DEC rating of 381.
Energy audits have been conducted in the past, and there have been a range of improvements made that
have seen a drop in emissions over the past three years. Small energy efficiency projects with short payback
periods are still being implemented though, such as the zonal lighting and after hours heating/cooling control
systems outlined in section 10. However, as it is likely the Council will move to a new City Hall in the shortterm, many potential projects will not be implemented.
The move to a new City Hall is one of the most important opportunities the Council has for reducing
corporate emissions, especially as the move will have an impact on energy usage for the next 20 years. At
the current time, the Programme Manager is preparing a business case for EDF to model the energy usage
in the current and proposed city halls, and provide detailed evaluations of technologies that could be used in
both buildings to increase energy efficiency.
It is expected that it will be more efficient to fitout a new city hall than it will be to retrofit the existing building.
The move to a smaller, energy efficient building, along with the move of the Council’s IT servers out from City
Hall to an external, dedicated location, the potential to use low-carbon electricity generated by the Pimlico
District Heating Undertaking (PDHU), and the possibility of being located in such a position to take
advantage of the pipeline between the PDHU and Whitehall District Heating Scheme, all mean that it is
possible the Council could achieve a 50% reduction in emissions from it’s flagship building.
However, there is also the possibility that the Council will not move to a new location. If this were to be the
case, any energy modelling work done by EDF would still be useful, forming the basis on major energy
efficiency improvements for the current building.
Further to this, discussions with EDF have suggested that they see benefit in aligning themselves with the
Council in terms of supporting energy efficiency measures in a new city hall for it to become one of their
showcase buildings. This would potentially mean financial support f3r the Council to install new technologies,
along with top quality energy management systems.
9.5.2
Lisson Grove
Lisson Grove is responsible for c.2,000 tCO2-e emissions annually (13.6% of the corporate property
emissions). The building is the least efficient building in the portfolio, with a G DEC rating of 598.
These emissions have been climbing over the previous three years, most likely due to increased use of the
building by the Council, and discussions with the Corporate Estates Manager suggest that the Council is
likely to retain this building for the foreseeable future. This building represents opportunities for the Council in
two ways: firstly, energy efficiency projects with longer payback periods can be undertaken; and, secondly,
with such a low energy efficiency rating, it is expected that there will be plenty of savings that can be
identified.
Lisson Grove is one of four buildings that the Council have contracted EDF to undertake energy audits on,
with a view to developing and implementing and energy efficiency programme in the building as part of their
AEP. The audit is due to be completed by the end of September, and builds from previous Carbon Trust
audits.
9.5.3
Park Lane Car Park
Park Lane Car Park is responsible for c.740 tCO2-e emissions annually (5.3% of the corporate property
emissions). The building does not currently have a DEC rating.
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EDF are currently undertaking an energy audit of this building as part of the potential AEP programme,
results of which are expected to be available in the short-term. A further eight of the buildings in the top 20
are car parks, and it is hoped that the lessons learned from Park Lane will be used to increase efficiency
throughout these properties.
9.5.4
Council House
Council House is responsible for c.694 tCO2-e emissions annually (5.0% of the corporate property
emissions). The building is the third least efficient building in the portfolio, with a G DEC rating of 252.
In previous carbon management plans, work had been identified for this building. However, it was deferred
until a major refurbishment took place. This refurbishment not happened, and discussions with the corporate
estates manager suggest that at the present time the future of the building in the Council’s portfolio is
unclear. As such, for the present time this building is not being targeted with projects.
The lack of certainty regarding this property is a risk for the Carbon Neutral Work Programme, as the
emissions from this building cannot at the present time be engaged with. Options are being discussed at the
present time and an open paper is due to be presented to informal cabinet in the near future regarding the
potential redevelopment of this building.
9.5.5
Hyde Park Corner Underpass
This underpass is responsible for c.415 tCO2-e emissions annually (3% of the corporate property emissions).
The building does not currently have a DEC rating.
No work is currently being undertaken on this property. However, it is envisaged that it would be targeted in
a second round of AEP audits, and lessons learned from this property could be rolled out to other subways
and underpasses in the portfolio.
9.5.6
Archives Centre
The Archives Centre is responsible for c.412 tCO2-e emissions annually (3% of the corporate property
emissions). The building is the fourth least efficient building in the portfolio, with a G DEC rating of 208. This
rating is of particular concern, given the relative newness of this building compared to others in the portfolio.
EDF are currently undertaking an energy audit of this building as part of the potential AEP programme,
results of which are expected to be available in the short-term. It is hoped that the lessons learned from this
building will be used to increase efficiency throughout the libraries and archives properties.
9.5.7
Further Current Corporate Property Actions
While Moberley Sports Centre is not in the top six properties, it is in the top 20 and is also in the process of
being audited by EDF as part of the EDF programme as it is expected there will be some quick win energy
savings available at this location.
A programme of work installing voltage optimisers was identified for the Council’s car park properties.
However, this has been put on hold while the audit is carried out at Park Lane so it can be assessed whether
there are more cost efficient technologies that could be installed either instead of or before these devices.
The Council is leasing two of its car parks (Leicester Square and Chiltern) later this year. When this occurs,
the emissions will become the responsibility of the company leasing the buildings. This represents an
immediate reduction in the Council’s emissions of 391 tCO2-e.
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9.6
Energy Demand Reduction Programme: Street Lighting and Furniture
The emissions from the Council’s street lighting and furniture were 3,938 tCO 2-e in the 2008/09 baseline
year. This represents c. 22% of the Council’s corporate emissions, and therefore is a key area of focus for
the Carbon Neutral Work Programme. This emission calculation is calculated from an estimated energy use,
which is based on an street lighting inventory that is in the process of being audited. It is expected that
energy savings will be found through the creation of an accurate inventory.
Highways and Transportation are in the process of developing the SMART Lights Programme that
promises to deliver significant cost and energy savings from Westminster’s street lighting over the next four
to seven years, with considerable savings in both energy and ongoing maintenance costs achieved in the
future.
There are a range of technologies and actions being proposed for this Programme. At the outset, it is
envisaged that there will be an accurate inventory of street lights taken in the City, along with the installation
of remote monitors will allow the Council to know precisely when lights are on or off, the latter allowing the
Council to move to cheaper, half hourly electricity supplies and away from the estimated unmetered supply,
and more importantly allowing the Council to only be account for that energy it actually uses. It is expected
that these changes, along with the introduction of a Command Management System, will save around 750
tCO2-e annually, and should be able to be rolled out in one year.
Further lighting technologies that are currently proposed would see further potential savings of over 1,000
tCO2-e annually. However, as this would involve replacing the lighting units themselves, this rollout period is
expected to be around 4 years. The table below summarises the possible savings from the rollout of the
SMART Lights Programme.
Emission Reductions (tCO2-e)
Action/Technology
2009/10
2010/11
2011/12
2012/13
Accurate Inventory, Remote Monitors,
and CMS Trimming
375
375
New Lighting Technology
125
250
250
250
Annual Total Savings
500
625
250
250
Cumulative Total Savings
500
1,125
1,375
1,625
Table 9.3 – Potential SMART Lights Programme Carbon Reduction
At the present time, the Programme is being reassessed due to the introduction of new technologies that
have the potential to significantly reduce costs and shorten payback periods. It is expected that the updated
Business Case will be completed on 1 October 2009.
The cost of implementing energy efficiency projects is expected to be covered by the Dedicated Energy
Efficiency Project (DEEP) Fund, as discussed in section 13 regarding financing the programme.
The delivery of this programme will be the responsibility of Dave Franks, the Public Lighting Manager.
9.7
Energy Demand Reduction Programme: Green Fleet Strategy
The Council’s fleet of vehicles contributes 115 tCO 2-e, representing just over half of one percent of the
Council’s overall emissions profile. As such, this is not a key area for engagement by the Carbon Neutral
Work Programme. However, the Council’s fleet is targeted by the broader Green Fleet Strategy, and as such
is being by the Council managed under this remit.
As the total emissions produced by the fleet are very low, it is envisaged that the real potential in engaging
with the fleet policy is in terms of providing high visibility confirmation of Westminster’s commitment to carbon
neutrality in the future.
The Green Fleet Review and Action Plan is one of the projects identified in the Go Green Programme, a key
One City project that aims to make Westminster an exemplar green authority. The Transportation
Department is leading on the implementation of the Green Fleet Action Plan.
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The Action plan goes beyond the Council’s corporate fleet of vehicles, encompassing all 400 plus vehicles
that are operated on behalf of the City Council in order to deliver the full range of Westminster’s services.
The actions identified in the plan have the twin aims of reducing emissions of air pollutants and carbon
dioxide. This represents a step change in fleet management and is the first time that the fleet policy has
given dual consideration to these issues.
Christel Quellennec-Reid, the Project Manager for the Green Fleet Strategy, is responsible for this project.
9.8
Low- or Zero-Carbon Energy Procurement
While energy demand reduction projects should reduce the energy used by the Council as a whole,
procuring energy from low- or zero-carbon sources will be an essential aspect of the Council’s Carbon
Neutral Strategy. This can be broken down into three key areas of consideration:



Procuring locally generated low- or zero-carbon generated energy;
Developing low- or zero-carbon energy sources within the Council’s own property portfolio; and,
Investing in large, renewable energy schemes that generate zero-carbon electricity for the Council.
Of the three options, at the present time only procuring locally generated low-carbon energy is applicable to
the Council’s goal of reducing emissions. However, as part of the evolution of the Programme, the option of
developing the Council’s own energy sources or investing in large-scale renewable energy sources will be
investigated.
The responsibility for ensuring that the PDHU option is achieved is that of the Corporate Energy Manager.
9.8.1
The Pimlico District Heating Undertaking (PDHU)
The Pimlico District Heating Undertaking (PDHU) is a district heating scheme delivering heat using boilers
and a combined heat and power (CHP) plant within the grounds of the Churchill Gardens estate. It is a
Westminster City Council owned asset which serves the City West Homes Client with heat, and sells on the
electricity it generates on the wholesale market. It is a local, low-carbon source of electricity that the Council
can directly use to procure its energy from.
The PDHU has two CHP units operating 17 hours per day 7 days per week. The electrical output is 17,700
megawatt hours. This electricity generated is surplus and is sold to a power company at a rate of
approximately 5.1 p/kWh, providing an income of around £930,000 per year, once other factors such as
Triad avoidance and levy exemptions certificates are paid. Energy from this site is classed as GQCHP and
therefore has a carbon emissions factor of approximately half that of grid electricity.
A tripartite agreement between Westminster City Council, City West Homes and EDF Energy is being
investigated, and is due to be signed by 1 October 2009. This agreement is based on a service provided by
EDF which will allow the City council to balance the surplus electrical output from the PDHU against the load
of key corporate buildings. See Appendix 5 for a description of the EDF product that will allow this agreement
to be established.
This trade or balancing of low carbon energy between the City Council and CWH will provide three key
positive outcomes by: allowing for general fund expenditure to be recycled through to the HRA; providing a
lower cost energy procurement option to the Council; and, reducing the City Council’s carbon footprint by up
to c.4,000 tonnes per year. The carbon figures are due to be confirmed before the 1st October for an 01 April
2010 commencement, while the full cost implications will only be understood sometime in early 2010 due to
the buying cycle.
Furthermore, PDHU are currently considering becoming a 24 hr operation. If this occurs, and once the
metering of the street lights has been improved as part of the SMART Lights Programme, the Council should
be able to run its street lighting from this energy source, further reducing carbon emissions.
PDHU are also investigating installation of new CHP plant at an energy centre near Vauxhall Bridge, as well
as at Avenue Gardens. Both these installations would provide further opportunities for the Council to
purchase low-carbon CHP electricity from local sources.
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9.9
Carbon Offsetting
At the point the Council made the commitment to become carbon neutral, it was able to purchase green tariff
energy and claim these purchases as a reduction in its emissions levels. However, recent government
guidance has established that an organisation cannot claim a reduction in carbon emissions. 9
This has meant that that the Council will not be able to become carbon neutral through energy efficiency and
energy sourcing decisions alone, as was originally planned. As such, there is an expectation that in order to
achieve carbon neutrality, the Council will purchase carbon offsets to cover the residual carbon footprint in
the 2012/13 financial year.
As yet there is no agreed approach as to how the Council will source these offsets, whether they will be
purchased from existing markets, or whether the Council will develop its own scheme of generating offsets.
In order to fill this gap in the programme, a research project has been proposed that will be conducted by the
Programme Manager and delivered to the Carbon Board on 15 November 2009 that, taking into account the
current consultation processes on guidance in this area by both DECC and DEFRA10, establish a range of
options as to how the Council can most appropriately offset and claim carbon neutral status.
Should the Council decide to buy offsets from the market, research conducted for the Carbon Neutral
Council Report (25 April 2009) suggests the current cost of offsetting a tonne of carbon varies between
£7.50 and £20.00. It is hard to say what these costs might be in the future, but at these rates, and with the
minimum reduction of 30% in emissions achieved by 2012 to 12,624 tCO 2-e, this would equate to potential
costs of £94,680 to £252,480 for the Council.
There have also been potential concerns regarding the legality of a Council purchasing offsets to become
carbon neutral. However, the advice from Rhian Davies in the Council’s legal team is that this is legal, and
covered by Section 2 of the Local Government Act 2000 (the ‘2000 Act’), which allows principal local
authorities in England and Wales to do anything they consider likely to promote the economic, social and
environmental well-being of their area unless explicitly prohibited elsewhere in legislation. This Power is
usually referred to as ‘the well-being power”.
The legal requirements associated with carbon offsetting will be a key aspect of the research undertaken to
deliver a range of options as to how to approach this issue.
9.10
Central Government Requirements
The Central Government Requirements work stream is focused on ensuring that the Programme Manager
takes into account any requirements associated with these carbon management schemes, ensuring that the
Council is prepared to engage with these, and has minimised any risk associated with these as much as
possible.
The two requirements currently in scope are the Carbon Reduction Commitment and the National Indicator
185, as discussed in previous sections.
9.11
Engagement with Broader Council Processes and Policies
In order to ensure that carbon management processes are embedded within the business as usual approach
for Council processes, carbon management requirements will be included in existing and new processes.
Examples of these include:

Property Asset Management
As discussed above, the Corporate Property department are in the process of cleaning their existing
databases and establishing what energy and carbon information is required to be captured by these
9
In particular, this has impacted on the likes of BT, O2, Vodafone and Marks & Spencer. A recent report from
ENDSreport.com outlines the different reactions from these organisations to this change, and can be accessed at
https://www.endsreport.com/index.cfm?action=report.article&articleID=20964
10 See: DEFRA consultation, Draft guidance on how to measure and report on your greenhouse gas emissions,
http://www.defra.gov.uk/corporate/consult/greenhouse-gas/index.htm; and, DECC consultation, Consultation on the term
‘carbon neutral’: its definition and recommendations for good practice,
http://ww#w.decc.gov.uk/en/content/cms/consultations/open/carbon_neutrality/carbon_neutrality.aspx
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Westminster City Council – Carbon Management Strategy
so that future decisions made regarding property investment and maintenance are appropriate and
can accurately take into account their impact on energy usage and carbon emissions for the Council.
It will also be important for the Carbon Management Programme to understand how energy
efficiency projects identified and funded as part of the Work Programmes fit with regular property
maintenance work and investment decisions.

IT Strategy
Discussions with David Wilde, Chief Information Officer, have suggested that the Council will be
relocating its IT servers to an outsourced, dedicated provider. This has the potential to significantly
reduce emissions at City Hall and Lisson Grove, where these servers are currently located, although
carbon management considerations should be included in decisions about how these services are
outsourced as part of the general supply chain carbon management strategy.

Policy and Planning
As much of the work to combat climate change more generally occurs under the guise of policy and
planning in an externally facing fashion, this is a key area that the Council’s own approach to carbon
management should align to. In particular, the Programme’s relationship with the Westminster
Carbon Alliance (WCA) is an area of note, as there are significant overlaps between the groups in
the wider community the WCA is engaging with, and the scope of the Programme, in particular
schools and contractors.
9.12
Internal Communication
An internal communication plan needs to be developed that looks to raise staff awareness about the
Programme itself, and the Council’s approach to carbon management and emission reduction, but also that
provides training or encouragement to change behaviour to more energy efficient practices.
This will involve developing a call to action for staff alongside Communications that will draw on previous
work done under the remit of Go Green. It will also be important to draw on external partners for expertise
and resources in this area, such as the Carbon Trust and the Energy Savings Trust, who have offered to
help by running an Energy Doctor event in the Council foyer at some stage in the future.
Due to the current Council transformation process, this aspect of the Programme will be developed after
October, and launched later in 2009.
9.13
External Outreach
As one of the key drivers behind the Carbon Neutral Council 2012 objective is to show leadership in this
area, undertaking effective external outreach will be an important part of the Programme. There are a range
of ways that external outreach for the Carbon Management Programme can benefit the Council’s efforts to
reduce emissions and communicate these reductions to the wider community. These include:




Influencing local business and organisations;
Developing new and enhancing existing key partnerships;
Influencing central government policy setting process; and,
Communicating with Westminster residents about the Council’s plans and successes in this area.
In order to successfully develop and implement both an internal communication plan and an external
outreach programme, the Programme will need to draw on Communications resources where possible, as it
is not an area of expertise for the Programme Manager.
9.14
Capital Works (New Builds and Major Refurbishments)
Ensuring that the appropriate energy efficiency technologies are installed in new builds and major
refurbishments is an important aspect of the Programme. Currently, the Corporate Energy Manager offers
advice to programmes such as the Building Schools for the Future (BSF) Programme on how energy
efficiency and renewable energy technologies can be included.
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A key aspect of this engagement is understanding that it will certainly be more cost-effective to install energy
efficiency products and design energy efficient buildings during a build or a major refurbishment, rather than
attempting to retro-fit such technologies.
As discussed in Part Four, ensuring that the BSF Programme and the Schools Energy Efficiency Programme
align where possible will be a key role for the Schools Environment Coordinator and the Programme
Manager. EDF, one of the organisations who will assist in the Schools Programme have already met with the
BSF team to see whether there are any ways they can effectively work together in this area.
9.15
Key Contacts
Details for key contacts for financial management of the Programme are contained in the table below.
Name
Position
Contact Details
Nicholas Mason
Carbon Neutral Programme Manager
nmason@westminster.gov.uk
ext. 5627
David Haygarth
Corporate Energy Manager
dhaygarth@westminster.gov.uk
ext. 6913
Dave Franks
Public Lighting Manager
dfranks@westminster.gov.uk
ext. 2040
Christel Quellennec-Reid
Green Fleet Project Manager
cquellennecreid@westminster.gov.uk
ext. 3815
Simon Evans
Westminster Carbon Alliance
sevans@westminster.gov.uk
ext. 6925
Michael Clark
Property Operations Manager
mclark@westminster.gov.uk
ext.
Glenn Woodhead
Assistant Director of Building
Operations
gwoodhead@westminster.gov.uk
ext.
Jerry Mavin
Portfolio Manager
jmavin@westyminster.gov.uk
ext. 2759
Chris Pickles
Building Schools for the Future
cpickles@westminster.go.uk
ext. 3457
Mike Chan
Energy Services - EDF Energy
michael.chan@edfenergy.com
020 7632 0722
Table 9.4 – Key Contacts: Carbon Neutral Programme
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10.
Carbon Management Projects
There are a number of distinct projects that have been identified in the process of developing the
overarching strategy. These are a mix of projects, covering all strategic areas identified above, that look to
reduce emissions, but to also continue to develop the strategic and operational base on which future
emission reduction projects will be built. The Carbon Management Strategy Matrix in Appendix 3 shows how
each project fits with the overall strategic approach.
The twelve distinct projects and sub-projects identified in this report are as follows. Further details for each
can be found in Appendix 3, and the Carbon Neutral Programme Work Plan contains information regarding
the phasing of projects, and expected timelines.
Each project detailed is due to be at the very least established, if not completed, before 1 April 2010. The
remainder of this financial year is considered a chance to really solidify the Council’s approach to carbon
management; the work done over the next seven months will see the Council exceptionally well placed to
engage with the CRC and NI 185 reporting requirements, and push forward aggressively with further
emission reduction projects in the 2010/11 financial year.
The projects identified are as follows:










CNWP01 – Procuring Electricity from the Pimlico District Heating Undertaking (PDHU)
CNWP02 – Establish Advanced Energy Programme (AEP) in partnership with EDF
o
CNWP02a – AEP Project: Park Lane Car Park
o
CNWP02b – AEP Project: Archives Building
CNWP03 – CRC Early Action Metric: Automatic Meter Reader (AMR) Installation
CNWP04 – CRC Early Action Metric: Carbon Trust Standard (CTS)
CNWP05 – New City Hall: Energy Feasibility Study
CNWP06 – Establishment of Dedicated Energy Efficiency Project (DEEP) Fund
CNWP07 – Audit of Corporate Property Portfolio (in relation to Energy Use)
CNWP08 – City Hall Projects: Zonal Lighting
CNWP09 – SMART Lights Programme
CNWP10 – Strategy Research: Supply Chain Carbon Management Engagement
At the present time it is difficult to specify particular savings or costs against many of these projects.
However, several of them do promise to provide savings, which are estimated to be as follows:
Ref
Project
Responsible
Reduction
(tCO2 p.a.)
CNWP01
Procuring Energy from PDHU
David Haygarth
4,000
CNWP02a
AEP Project: Park Lane Car Park
Nicholas Mason
200
CNWP02b
AEP Project: Archives Building
Nicholas Mason
60
CNWP08
City Hall Projects: Zonal Lighting
Jerry Mavin
33
CNWP09
SMART Lights Programme
Dave Franks
1,375
Total (by FY 2011/12)
5,668
Table 10.1 – Estimated Carbon Savings for CNWP Projects
If these projects are implemented successfully, these reductions, along with the leasing of the two car parks
identified in Section 9.5.7, should see the following overall reductions achieved by 2011/12 for the corporate
emissions in the Carbon Neutral Council 2012 objective scope.
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Emissions (tCO2-e)
%Change
Property Category
2008/09
2011/12
Corporate Property
13,981
9,297
34%
3,938
2,563
35%
115
115
0%
18,034
18,034
34%
Street Lighting and Furniture
Vehicle Fleet
Total
%
Table 10.2 – Estimated Carbon Reduction for Carbon Neutral Council 2012 Scope
10.1
Maintaining Momentum: Critical Projects for 2009
Of the projects outlined above, it is essential that the milestones detailed for projects CNWP01-06 are
achieved in their prescribed timeframes to ensure that the Council is capable of meeting its carbon saving
objectives in the next financial year, and its CRC and NI 185 requirements further in the future.
To ensure momentum is maintained, staff resource will be provided while the Carbon Neutral Programme
Manager is away from the Council specifically to manage these eight projects.
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Westminster City Council – Carbon Management Strategy
PART FOUR:
Energy Efficiency in Schools Programme
11.
Energy Efficiency in Schools Programme
11.1
Strategic Approach
Emissions from schools do not fall in scope for the Council’s Carbon Neutral objective. However, they are
required to be included in both the CRC and NI 185 scopes. As such they have both financial and/or
reputational implications for the Council, and need to be managed appropriately.
The Energy Efficiency in Schools Programme will form part of the Sustainable Schools Programme run by
Westminster’s Schools Environment Coordinator. The broader sustainability programme utilises the
framework and resources provided by the ‘Eco-schools scheme’, which has one of its key areas of
engagement focused around energy.
Currently, 25 schools are part of Westminster’s Eco-schools scheme. As these schools have already shown
an interest in being involved with the sustainability agenda, the Coordinator will in the first instance target
those schools already signed up to the scheme, with a preference for those schools with the lowest energy
efficiency ratings and therefore the highest scope for improvement.
As engaging with schools presents a particularly difficult task, with the Council being unable to mandate that
individual schools take actions, targets and objectives for the Energy Efficiency in Schools Programme have
been developed based on:


an incremental increase in the number of schools engaged with over the period, with a goal of
engaging with 80% of Westminster’s schools by 2012; and,
a decrease of 5% on average each year for each school engaged with.
School Type
Total
2009/10
2010/11
2011/12
Primary
40
10
20
30
Secondary
6
1
4
6
Academies
2
1
2
4
Nursery
4
1
4
4
Special
2
0
0
2
Referral
2
0
0
2
Total
58
13
30
48
Table 11.1 – Energy Efficiency in Schools Programme Engagement Targets
While the Carbon Management Strategy sets out the overarching objectives and targets for this Programme,
the Schools Environment Coordinator will be responsible for developing specific engagement strategies that
achieve these reductions.
11.2
Working in Partnership
In order to provide schools with support to engage with the necessary behavioural and technological change
required to reduce their emissions, the Council has engaged with two energy companies who have existing
campaigns for energy reduction in schools: EDF and npower.
The Coordinator will work with these companies to introduce their programmes into at minimum 5 primary
schools each in the City in the first year of the Programme, with a view to assessing which of the
programmes is more successful and appropriate after this year in order to recommend to schools the best
way to reduce their emissions in the future.
While the educational and behavioural change programmes provided by both npower and EDF are primarily
targeted at primary school aged children, these companies can also offer a solution for older pupils and
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Westminster City Council – Carbon Management Strategy
colleges if required, which would based on the creating energy awareness and the implementation of
integrated energy efficiency solutions. They also present opportunities for all schools, not just primary
schools, to run energy audits and install new energy efficiency technologies.
The Carbon Trust’s schools engagement advice will also be incorporated into the Council’s planning in order
to target secondary school and academies, with the possibility of further, more formal, support from the
organisation investigated in the first year by the Carbon Neutral Programme Manager.
There will be a Partnership Agreement between each engaged school and WCC on what the Council will
deliver and what is expected of each school. It is envisaged that schools can use this as part of their energy
management policy rather than starting from scratch. The Partnership Agreement will be developed by the
Schools Environment Coordinator.
There is also the potential that schools will be able to join the Westminster Carbon Alliance and link into
broader community efforts at reducing emissions.
11.3
Baselines and Targets
WCC Schools Emission Profile
There are 58 schools in Westminster,
comprised of:
8,000.00
Emissions (tCO2-e)






9,000.00
40 primary
6 secondary
4 academies
4 nursery schools
2 special schools
2 pupil referral units.
Currently, all schools are considered in
scope, although academies may be
removed in future pending DECC’s
decision on whether they are in or out of
the CRC scope.
7,000.00
Pupil Referral Units
6,000.00
Special Schools
Nursery Schools
5,000.00
Academies
4,000.00
Secondary Schools
3,000.00
Primary Schools
2,000.00
1,000.00
0.00
2006/07
2007/08
2008/09
Financial Year
Figure 11.1 - WCC Schools Emission Profile
The 2008/09 baseline for all schools is 8,395 tCO2-e.
The Council has reasonably high quality data on energy usage in schools, as the majority purchase their
energy via the Council’s procurement agreement with EDF, giving the energy bureau visibility over billing
and usage figures. However, the data is incomplete, with academies and pupil referral units being the two
areas with very limited data currently available. In order to ensure that the baseline is correct, particularly for
CRC requirements, the Corporate Energy Manager will be required to source the required data.
Projected Impact of Energy Efficiency Campaign
12,000.00
10,000.00
Emissions (tCO2)
Emissions from schools are
growing fast, a trend that is
noticeable and likely to continue
for all Local Authorities, primarily
due to increased IT use in schools
and extended opening hours. This,
along with the several schools not
yet accounted for in the Council’s
baseline, means it is likely that if
left alone the emissions levels
would increase dramatically.
Business as
Usual Estimates
8,000.00
6,000.00
Energy
Efficiency
Programme
4,000.00
2,000.00
A comparison of how the
difference between a 5% projected
increase year on year, and a
successful
engagement
programme providing 5% reduction for
engaged schools might look is
illustrated in figure 11.2 above.
0.00
© Copyright Westminster City Council, September 2009
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
Financial Year
Figure 11.2 – BAU vs Projected Schools Emission Profile
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Westminster City Council – Carbon Management Strategy
11.4
Building Schools for the Future
The Energy Efficiency in Schools Programme will be designed to complement and be complemented by the
Building Schools for the Future Programme, with potential opportunities for cross-over between the two
programmes explored by the Schools Coordinator and Programme Manager.
11.5
Key Contacts
Details for key contacts for the Energy Efficiency in Schools Programme are contained in the table below.
Name
Position
Contact Details
Joanna Hill
Schools Environment Coordinator
jhill@westminster.gov.uk
ext.1462
Angela Drizi
Director of Schools and Learning
adrizi@westminster.gov.uk
ext. 7858
Chris Pickles
Building Schools for the Future
cpickles@westminster.go.uk
ext. 3457
David Haygarth
Corporate Energy Manager
dhaygarth@westminster.gov.uk
ext. 6913
Nicholas Mason
Carbon Neutral Programme Manager
nmason@westminster.gov.uk
ext. 5627
Table 11.2 – Key Contacts for the Energy Efficiency in Schools Programme
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PART FIVE:
Supply Chain Engagement Programme
12.
Supply Chain Engagement Programme
12.1
Strategic Approach
At the present time, the Council’s sustainable procurement guidance on environmental issues includes
carbon emissions as an area that should be considered when a contract is being let. This has resulted in the
need to measure and report on carbon emissions being included on an ad hoc basis in large contracts, such
as the parking services and waste management re-let. However, there are no clear mechanism included in
this guidance for how suppliers should measure their carbon emissions, and the Council has no systems in
place for storing and using this data once it is received.
As part of the NI 185 requirements, the Council has estimated the emissions of 19 of its top suppliers by
spend. This work was completed by the Carbon Disclosure Project, and forms the basis for how the Council
will be measured on carbon reductions over the next two years.
The Supply Chain Engagement Programme will look at the most effective way the Council can engage with
its supply chain to measure and manage emissions. At the outset, this will be focused on fulfilling NI 185
requirements, however, the systems developed will be designed to be used more broadly to ensure that the
Council can expand its supply chain engagement should it want to in the future.
In order to understand how the Council might approach developing this Programme, the Programme
Manager will conduct research into the area to determine best-practice and potential options to be developed
in future. This research is scheduled to be complete by 15 November 2009. The research will look to
investigate the following, and be funded via the Procurement department.
i.
Methods for engaging with existing and future vendors and contractors to measure their carbon
footprint for services provided to the Council, to provide this information to the Council, to design
carbon reduction plans, and to implement carbon reduction actions.
ii.
Processes that ensure that carbon management activities are embedded within Westminster’s
Procurement and Contract Management processes.
iii. Training for Council staff to ensure they are able to engage with vendors and contractors in the
area of emission reductions, through developing an understanding of the requirements and
systems for carbon management at the Council, and which feeds into the Council’s more general
sustainable procurement training system.
The research will also look at carbon offsetting, how the Council might procure offsets, the legal and financial
implications of offsetting, and the potential requirement for Council contractors to be part of offsetting
schemes in the future.
Further, the research would look to go beyond tying in the overall Carbon Management Strategy with the
Supply Chain Engagement Strategy, linking this to sustainable procurement more generally, and the
Council’s Go Green Agenda. Finally, it would look to develop an understanding of the roles and
responsibilities throughout the Council that relate to this issue.
12.2
Working in Partnership
The Supply Chain engagement Programme will be developed in with input from a number of external
partners. These include London Remade, who have offered advice in this areas as part of Westminster’s
involvement in the Mayor of London’s Green Procurement Code; the Carbon Disclosure Project, who have
been contracted to collect data on the Council’s contractors as part of the NI 185 reporting process over the
next two years; and, Trucost, another consultancy working in this area who have offered advice in the past
on possible approaches to engaging with supply chains.
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The Programme Manager will also look to other Councils to benchmark the processes being developed, and
to develop an understanding of current best-practice in this area.
As part of the general reorganisation, the Council’s Procurement function is being centralised and enhanced.
As such, any Programme of supply chain engagement developed for carbon management will by necessity
be tailored to fit with the general procurement and contract management processes being developed for the
Council as a whole.
The Westminster Carbon Alliance (WCA) will be a key partner in delivering any supply chain strategy, as it
looks to engage with businesses in Westminster to increase its own ability measure and influence emissions
reductions in the broader community. The Liveability Network Funding discussed below is a key aspect of
this partnership.
12.3
Liveability Network Funding
The Carbon Management Programme and the WCA are in the process of applying for funding from the
Liveability Network to support the achievement of the Council’s NI 185 objectives. This allows the funding to
be targeted at corporate, schools and contractor emissions, one of the few funding sources that allow spend
in the latter category. As such, part of the proposal is aimed at supply chain engagement, with two distinct
phases identified.
The first phase is targeted at improving the way the Council engages with and measures suppliers
emissions. As discussed below, there has been a risk identified in the methods used to generate the current
NI 185 baseline for contractor emissions and this phase would look to rectify that problem by establishing
mechanisms for collecting data directly from contractors. It is likely this would include the use of a software
solution to provide and online portal for data provision.
The aim would be for any systems developed during this process to become an enduring system that the
Council could use to maintain visibility over the emissions of its supply chain, and potentially modify to take
into account other sustainable indicators if required in future.
The second phase would engage with consultants to deliver contractors energy audits, develop energy
efficiency implementation plans, and most importantly support contractors in implementing these plans. This
phase would be aimed at generating real emissions savings that will help the Council achieve its NI 185
objectives.
12.4
Baseline and Targets
The Carbon Disclosure Project was contracted to provide emission baselines for contractors as part of the NI
185 requirements. They were successful in retrieving information from 19 contractors, providing the following
baseline.
In terms of ensuring meaningful carbon emissions from contractors, then the Council must engage with
Veolia and the waste contract they deliver to lower them overall. Fortunately, this has been included within
the current waste contract re-let, utilising the WRATE waste management modelling system to ensure that
bidders look for ways to drive down emissions.
The TranServ emissions are to be directly reduced by the proposed SMART Lights Programme. This is a
good example of where efficiency improvements in corporate operations can have impacts on external
contractors as well.
Finally, a major risk in the approach that the CDP have taken to establish these baselines has been
identified. The figures provided above are estimated carbon baselines that have been generated by taking
the proportion of the company’s turnover generated by the Council contract, and establishing this as the
proportion of the carbon emissions from the total company operations that are attributable to the Council.
The risk associated with this is that, especially with regards to large organisations such as Veolia, the
Council will not be able to measure any reductions in emissions attributable to its engagement with the
contractor.
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The Supply Chain Engagement Strategy described above aims to mitigate this risk by establishing systems
that do measure emissions directly, which in turn allow the Council to drive emission reductions in its supply
chain, and therefore meet the NI 185 reporting requirements.
Contractor
Emissions (tCO2)
Percentage
Cumulative %
45,164
93.92%
93.92%
1,030
2.14%
96.06%
Care UK
409
0.85%
96.91%
City West Homes
394
0.82%
97.73%
West One Infrastructure
274
0.57%
98.30%
Vertex
248
0.52%
98.82%
Bouygues (Westminster LEP)
126
0.26%
99.08%
Dial-a-cab
110
0.23%
99.31%
WSPLD
98
0.20%
99.51%
Cory Environmental
58
0.12%
99.63%
NSL Services
45
0.09%
99.72%
Wettons
30
0.06%
99.79%
RMG
29
0.06%
99.85%
Carlisle Cleaning
28
0.06%
99.91%
Capita
17
0.04%
99.94%
Scolarest / Compass
14
0.03%
99.97%
Westminster Drug Project
8
0.02%
99.99%
Medequip
7
0.01%
100.00%
0.4
0.00%
100.00%
48,088
100%
100%
Veolia
TranServ
RSM Bentley Jennison
Totals
Table 12.1– Contractor Emissions NI 185 Baseline
12.4
Key Contacts
Details for key contacts for the Supply Chain Engagement Programme are contained in the table below.
Name
Position
Contact Details
tbc
Sustainable Procurement Manager
tbc
David Loseby
Director of Procurement
dloseby@westminster.gov.uk
ext. 1939
Nicholas Mason
Carbon Neutral Programme Manager
nmason@westminster.gov.uk
ext. 5627
Majken Moller
London Remade
majken@londonremade.com
020 7061 6377
Tom Carnac
Carbon Disclosure Project
tom.carnac@cdproject.net
020 7415 7109
Tom Barnett
Trucost
tom.barnett@trucost.com
020 7160 9812
Table 12.2 – Key Contacts for the Supply Chain Engagement Programme
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Westminster City Council – Carbon Management Strategy
PART SIX:
Financing, Risk Management and Governance
13.
Financing the Carbon Programme
13.1
Strategic Overview
The overarching objective of this financial management strategy is to develop mechanisms that allow for an
enduring carbon management programme to be established at the Council. Rather than proceeding on a
reactive, individual project basis, a successful implementation of the finance structure detailed in this paper
would allow proactive engagement with energy efficiency projects and other carbon related issues.
There a three key sub-objectives that this encompasses:
iv. Establish a budget line for direct carbon management costs in the Council;
v. Establish a dedicated invest-to-save fund utilising SALIX funding and matched Council funding to
cover the costs of energy efficiency projects in corporate property, street lighting and schools; and,
vi. Minimise the financial risk associated with the Carbon Reduction Commitment and the Carbon
Neutral Council 2012 objective.
Examining these objectives further, there are five key budget areas for consideration:
i.
direct costs associated with managing the Programme, (e.g. staffing, software, conferences,
consultancy and membership fees, travel and communications material);
ii. costs of implementing individual energy efficiency projects via a dedicated, invest-to-save style fund;
iii. costs of implementing individual energy efficiency projects via other, one-off funding sources (e.g.
Liveability Network, EDF, BERR);
iv. financial implications of the Carbon Reduction Commitment; and,
v. financial implications of the Carbon Neutral Council 2012 objective.
The funds necessary to offset these costs will be sourced from a variety of budget lines and external
organisations. It is likely that they will consist of:
i.
direct savings that will accrue from the Programme, particularly in the area of energy savings, but
also in terms of fuel and maintenance savings;
ii. internal funding from departmental budget lines for energy efficiency projects and management
overheads;
iii. funding from external providers, both one-off funding for individual projects, as well as recycling
funds for an ongoing energy efficiency programme; and,
iv. internal funding for costs associated with the CRC and Carbon Neutral objective, at either a
corporate or departmental level, depending on future decisions.
Note: This approach to financing the Programme has not as yet been approved by SEB or Resources,
although it has been discussed with the Director of Finance. It outlines a suggested approach to financial
management for the Carbon Management Programme; the details of the finances will be developed with
Finance, Resources and SEB in the near future.
13.2
Responsibility for Carbon Management Cost Centres
The Programme Manager will be responsible for managing the day-to-day finances of the Carbon
Management Programme, including being responsible for sourcing, managing and reporting on external
funding, establishing internal funding procedures, and briefing management and members on the financial
implications of CRC and carbon neutrality.
To this end, the Programme Manager will be responsible for submitting a financial report as part of the
quarterly carbon management report to the Carbon Board, with a detailed financial report due with the
Programme’s Annual Report.
As the ultimate responsibility for carbon management will be retained by the Strategic Director of Resources
in the new Council structure, this cost centre and budget will be located within this remit.
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Westminster City Council – Carbon Management Strategy
However, as many of the financial implications are corporate in nature, it is vital that a Central Finance
representative maintains an overview of this area to ensure a corporate view is maintained on all linkages
with the Resources issues, as well as potential CRC and carbon neutral costs.
13.3
Direct Programme Management Costs
Programme management costs will include the likes of staff, software, conferences, consultancy fees,
membership fees, travel, legal fees and communications materials. They are costs associated with delivering
the Programme successfully, but which cannot be directly linked to any particular cost-savings.
It is likely that the highest of these will be staff related, with the requirement of an overall Carbon Neutral
Programme Manager (see Section 15.5 for further details about the Programme Manager role), and the
potential need for administrative resourcing in future for the Carbon Reduction Commitment. Also, by
establishing a cost centre for carbon, it would be possible to recharge dedicated staff time from other
departments to ensure that a real understanding of the cost of carbon management is developed.
Other costs such as installing Automated Meter Reading (AMR) technology and providing a software solution
for carbon data management will potentially form significant areas of spending.
The funding for this cost centre would most likely originate from two sources: overhead fees charged on
energy efficiency programmes funded via the Carbon Management Programme; and, an allocated internal
budget to make up any shortfall, possibly drawn from the Council’s energy budget and predicated on the
understanding that efficiency measures implemented by the programme will drop the Council’s overall
energy spend over time.
See Appendix 6 for an overview of potential direct programme management costs and funding options.
13.4
Dedicated Energy Efficiency Project (DEEP) Fund
Establishing a dedicated, invest-to-save energy efficiency project fund, will be a key objective for the Project
Manager in the first year of the Programme. The principal objective when establishing this fund will be to
provide a fund of between £500,000 and £1 million that will result in a self-funding Programme over a five
year period.
The DEEP fund will look to source internal Council fund to be matched by a SALIX Finance recycling fund
grant, with SALIX able to provide up to 10% of the Council’s energy bill in matched funds. On a present
energy spend of £3.8 million, this equates to a potential fund of £760,000 (£380,000 from SALIX, matched
funding from the Council). Once established it will act as an internal pool of resources that can be used for
energy efficiency projects for corporate property, street lighting and furniture, and schools.
SALIX allows for up to a 15% overhead to be charged on the fund to be used for general programme
management costs, as discussed above.
It is envisaged that the Council would establish a dedicated fund of between £500,000 to £1 million in value.
As per discussions with the Director of Finance, the internal matched funding is likely to be provided via the
Council’s existing invest-to-save fund.
To establish the fund, the Council first needs to identify four technologies it bases the initial application on.
These not add to the eventual total fund level, which will be reached through subsequent projects, and drawn
down over the following two years. The energy efficiency audits currently underway as part of the potential
AEP programme are likely to form the basis of this initial application.
As there is only £15 million of an initial £50 million available in the SALIX fund, it is very important that the
Council moves on this potential funding before the end of this calendar year. The minimum fund size is
£100,000 (£50,000 from the Council, £50,000 from SALIX), although only a portion of the fund needs to be
allocated to specific projects when the initial agreement is made. The fund is then drawn down over two
years in four 6-monthly payments.
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Westminster City Council – Carbon Management Strategy
Outline for approach to managing the dedicated fund:
i.
The Programme Manager would source energy efficiency projects from individual Council
departments and schools.
ii. Each project funded would be required to have a maximum payback period of five years, as well as
meeting other SALIX technology criteria.
iii. A 15% management fee would be included in each project budget that would be transferred directly
to the programme management cost centre.
iv. The savings generated by individual projects would be recycled into the fund, to be used by other
energy efficiency projects.
The Programme Manager would be responsible for liaising with and reporting to SALIX Finance.
13.5
Other Funding Sources
The Programme Manager will be responsible for sourcing other internal and external funds for carbon
management and energy efficiency projects.
Internal funding may be sourced via the Council’s own Spend-to-Save programme or individual department
budgets. The Carbon Management Programme has also been approached to apply for £200-400,000 of
funding via the Liveability Network to use for National Indicator 185 scope emissions.
Potential external funding sources include BERR’s Low Carbon Building funding, as well as an alternate
SALIX Finance fund scheme that provides 100% interest free loans for specific technologies. The latter
funding is only available for a limited time, and it is envisaged that several smaller projects at City Hall will be
financed through this fund in the near future.
Depending on the structure of the funding, the Programme will seek a percentage overhead from each grant
to help fund the Programme Management cost centre.
13.6
Financial Implications of the Carbon Reduction Commitment
The introduction of the Carbon Reduction Commitment has direct financial implications for the Council. At
the current time the precise nature of these implications is not clear, for the most part due to the complexity
of the scheme itself.
The basic premise of the scheme is that participating organisations will have to purchase allowances from
central government for every tonne of CO 2 they emit, with the income generated from this sale then recycled
back to all participants six months later. At this point, each participant would receive their initial allowance
payment plus/minus a bonus/penalty based on their position on a league table containing all organisations.
The scheme begins in April 2011 and for the first three years the cost of allowances is capped at £12 per
tonne. The potential bonus/penalty swing is 10% in the first year, 20% in the second, rising to 50% from the
fifth year onwards.
In April 2011 the Council will have to purchase two years worth of allowances (for the actual 2010/11 and
estimated 2011/12 financial years). Based on estimated rates of emissions reductions over this period, this
equates to a cash flow implication of between £450-650,000 in the first year, and £200-300,000 in the
second year, with a corresponding value at stake of £80-130,000.
There are also a number of administrative charges and potential fines associated with the scheme.
The Council is aware of the approach of the CRC, and a more precise understanding of the scheme and its
financial implications is being developed in consultation with Finance at the present time. It is likely the cost
of allowances will be budgeted for at a corporate level.
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13.7
Financial Implications of the Carbon Neutral Council 2012 Objective
At the present time, in order for the Council to be carbon neutral by 2012 it will be required to purchase
carbon offsets to offset those emissions it has been unable to reduce. On present timelines, these costs
would begin in either the 2011/12 or 2012/13 financial year, depending on when the Council chooses to
make the purchases.
As yet it is unclear how these offsets will be sourced, whether they will be purchased from existing markets,
or whether the Council will develop its own scheme of generating offsets. These are questions that will be
answered as part of the general carbon management programme at the Council, although the answers will
have financial implications.
Should the Council decide to buy offsets from the market, research conducted for the Carbon Neutral
Council Report (25 April 2009) suggests the current cost of offsetting a tonne of carbon varies between
£7.50 and £20.00. It is hard to say what these costs might be in the future,11 but at these rates and after
achieving a minimum of 30% emissions reduction by 2011/12, resulting in a carbon baseline of c.12,625
tCO2-e, this would equate to potential costs of £95,000 to £252,500 for the Council.
Similar to the CRC financial discussion, these costs would have to be budgeted for at a corporate level.
Carbon neutrality is a voluntary target that has been set seeking to challenge Westminster City Council to go
beyond merely complying with statutory requirements. When offsetting begins in 2012, this will add an
additional cost to the Council above and beyond the cost associated with Carbon Reduction Commitment –
the allowances purchased for the CRC are not carbon offsets.
13.8
Key Contacts
Details for key contacts for financial management of the Programme are contained in the table below.
Name
Position
Contact Details
Ron MacLeod
Principal Accountant
Built Environment
rmacleod@westminster.gov.uk
ext. 2903
Peter Hayday
Director of Finance
phayday@wetsminster.gov.uk
ext. 2904
Nicholas Mason
Carbon Neutral Programme Manager
nmason@westminster.gov.uk
ext. 5627
Table 13.1 – Key Contacts: Financial Management
11
The capacity of the Council to model these and future energy costs more appropriately is an area which is included
within the Carbon Neutral Work Programme. With the Council moving towards a future where it will engage with both
carbon offsetting and carbon trading, developing this capacity within the carbon management function will be essential to
reduce risks and minimise costs.
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Westminster City Council – Carbon Management Strategy
14.
Risk Identification and Management
Risk
There are several key areas of risk that will need to be managed during the
development and implementation of the Carbon Management Strategy. The
risks outlined here are focused on those that impact on each of the primary
delivery programmes and therefore the delivery of expected emission
reductions, rather than risks that might impact the outcome of individual
projects.
Risk Area
Description
PDHU
Key element in reduction strategy, as
has potential to reduce emissions by
c.4k tonnes.
New City Hall
New City Hall
Regulatory
Risks –
CRC
Council is not prepared to engage with
Carbon Reduction Commitment
requirements as part of overall strategy.
Scope Setting
Council has defined scope incorrectly
for carbon neutrality, impacting on
investment decisions and eventual
ability to claim carbon neutrality.
Target
Setting
Data
Management
Council
Transformation
Council transformation process reduces
Council staff desire or ability to
participate in carbon management
activities.
Impact
High
Low
1
2
3
Med
2
4
6
High
3
6
9
3
1
3
Engage with EDF and CWH to
ensure that this can be achieved
and is in place to be
implemented on 1 April 2010.
3
Engage with landlords to ensure
that energy efficiency projects
are implemented, and benefits
are passed to Council.
Council’s datasets for emissions are
inaccurate, leading to poor reporting
and potential for challenge of carbon
management claims now and in the
future.
Energy demand reduction projects are
not identified or implemented correctly.
Med
Risk
Council sets emission reduction targets
that are not achievable, leading to risk
of undermining support for Programme
internally, and reputational risk for
Council externally.
Demand
Reduction
Projects
Low
Likelihood
Council decides to stay at present
location, remaining in very inefficient
building.
Incorrect reduction targets are set by
DEFRA (based on risk identified from
contractor baseline calculations)
Calculation
Impact
Council does not maintain control over
energy spend at new City Hall.
Regulatory
Risks –
NI 185
Likelihood
3
3
1
3
Ensure work done on energy
modelling for potential move is
transferable to energy demand
reduction projects in existing
City Hall.
2
1
2
Ensure that this issue is raised
at point reduction targets are set
later in 2009.
3
Council is engaging with CRC,
especially with relation to
financial implications and early
action metrics.
3
1
1
2
2
2
© Copyright Westminster City Council, September 2009
1
Management and Mitigation
1
1
1
2
2
2
1
1
Ensure that scope is regularly
reassessed throughout
Programme.
Develop correct targets during
strategy development, properly
aligned with statutory and
carbon neutral requirements.
4
Develop and improve systems
for data gathering.
Engage recognised third parties
to audit data and emissions
calculations to ensure accuracy.
4
Engage with external partners to
develop appropriate
programmes of work for
premises in Council’s portfolio.
4
Ensure that knowledge
management systems are in
place so that if staff are leaving,
impact on Programme is
lessened.
Need to recognise that certain
actions are unlikely to be
effective until after 1 October,
particularly with regards to staff
behaviour change programmes.
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Westminster City Council – Carbon Management Strategy
Financing /
resourcing
Financing /
resourcing
Maintaining
Momentum Critical Path
There are insufficient staff or financial
resources to effectively implement the
projects developed as part of the work
programme
DEEP Fund (SALIX and Council Investto-Save funding) is not established,
and/or does not reach necessary level
to maintain self-supporting Programme
The momentum generated over the
past three months is lost during
transformation and with Programme
Manager away.
3
3
2
1
2
2
3
Financial implications of carbon
management are being
investigated currently, including
developing an overall carbon
budget to be presented to SEB.
6
Develop new business case that
would:
a) Request more funding from
Invest-to-Save programme.
b) Approach SEB/Strategic
Resources for higher levels of
direct funding if Programme is
agreed to be beneficial.
4
Appoint temporary Programme
Manager to ensure that
momentum is maintained, and
key projects identified are
implemented in coming months.
Table 14.1 – Risk Log
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15.
Carbon Programme Governance and Management
In order to ensure successful implementation of the Carbon Management Programme, a robust governance
and management structure is required. The aim of this structure is to:






ensure that clear lines of responsibility and communication are developed within the Council
regarding carbon reduction efforts;
ensure senior, strategic ownership of carbon reduction targets, the carbon neutral goal, and statutory
reporting requirements;
bring together under one programme structure the diverse set of projects from around the Council
that are focused on reducing emissions;
provide oversight for these projects, encouraging delivery by providing strategic and operational
support, sourcing funding, removing blockages from within the Council, and ensuring buy-in at all
levels;
ensure coherence and coordination of carbon reduction activities across the Council; and,
ensure that this coherence and coordination can be maintained across the following three years, at
least until the Carbon Neutral Council 2012 objective has been achieved.
Figure 15.1 – Carbon Programme Governance and Management Structure
15.1
Strategic Resources: Programme Ownership
The Carbon Management Programme sits within the Resources structure in the Council, with ultimate
responsibility for the success of the programme lying with the Strategic Director of Resources.
At the operational level, the Programme will be managed by the Carbon Neutral Programme Manager, a role
reporting directly to the Director of Strategic Resources. The Programme Manager will be responsible for,
although not limited to, preparing progress reports, monitoring the progress of carbon reduction projects,
assisting in the preparation of business cases for projects, sourcing funding for individual projects as well as
the programme itself, organising meetings, liaising with internal and external stakeholders, and responding to
public interest in the carbon management programme.
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15.2
Carbon Board: Strategic Ownership and Oversight
Strategic ownership and oversight for the Carbon Management Programme will be provided by the Carbon
Board. This Board is primarily made up of Council members and senior management who are responsible for
delivering the Carbon Neutral Council 2012 objective, and for ensuring that the Council meets all statutory
carbon management requirements.
A Programme progress report will be submitted by the Programme Manager to the Board quarterly. If
required, the Board will meet to discuss this report and request further clarification.
The report will focus primarily on the progress of carbon reduction projects being undertaken, an assessment
of the overall risks to the programme, and, where possible, provide updated emission levels. It will also
report on any specific area requested by the Board members, and will be prepared by the Programme
Manager.
Membership of the Board will change as circumstances and requirements dictate. At the present time,
membership includes:








15.3
Cllr Melvyn Caplan (Chair)
Cllr Steve Summers
Cllr Nicholas Yarker
Alastair Gilchrist, Strategic Director of Resources
Peter Hayday, Strategic Director of Finance
Leith Penny, Strategic Director of Environment & Leisure
David Loseby, Director of Procurement
Sam Mowbray, Policy Analyst, Chief Executive Policy and Communication
Go Green Board: Linking with the Broader Sustainability Agenda
The Programme Manager will also be required to report to the Go Green Board on an as required basis to
ensure that the Carbon Management Programme links in with the Council’s overall sustainability agenda.
15.4
Carbon Working Group: Project Delivery at an Operational Level
The Carbon Working Group was initially established to provide support in the development of the carbon
management strategy and carbon neutral work plan.
Once the strategy is established, the Group will shift its focus towards monitoring the progress of carbon
reduction projects, provide cross-Council support and guidance for their development and implementation,
link different areas of the Council together to increase understanding of how they can work together to
achieve carbon reduction outcomes, and to ensure that knowledge of carbon management processes is
communicated throughout the Council’s structure.
The Group will meet monthly, and membership of the Group will change as circumstances and requirements
dictate. At the present time, membership includes:














Nicholas Mason, Carbon Neutral Programme Manager (Chair)
Alastair Gilchrist, Strategic Director of Resources
Michael Clark, Property Operations Manager
Glenn Woodhead, Assistant Director of Building Operations
David Haygarth, Corporate Energy Manager
tbc, Sustainable Procurement Manager
Ron MacLeod, Finance – Built Environment
Dave Franks, Public Lighting Manager
Christel Quellennec-Reid, Project Officer – Green Transport
Joanna Hill, Schools Environment Coordinator
Simon Evans, Westminster Carbon Alliance
Bryan Hunter, Project Officer – National Indicator 185
Mike LeRoy, Environment Policy Manager
Colin Fenn, Proteus Consulting (external member)
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Westminster City Council – Carbon Management Strategy

15.5
Gareth Stevens, ADSM (external member)
Carbon Neutral Programme Manager: An Evolving Role
The Carbon Neutral Programme Manager is tasked with developing the overall Strategy and Carbon Neutral
Work Programme, and then ensuring that it is implemented on time to specified requirements, as per the
responsibilities established throughout this Strategy.
The Programme Manager is responsible for reporting directly to the Carbon Neutral Board and for chairing
the Carbon Working Group.
The role itself is expected to evolve over time. At the outset, it will be primarily focused on carbon
management, establishing an enduring programme, and achieving quick, early wins in energy demand
reduction projects. However, once the programme is established it is likely the role will evolve into a broader
sustainability role within the Council, focusing on issues of sustainable resource use more generally.
15.6
External Stakeholder and Strategic Partner Management
The Programme Manager will be tasked with ensuring that external stakeholders and strategic partners are
kept up to date with the Council’s carbon management work where appropriate. They will also be
responsible for ensuring that they maintain visibility over actions and decisions taken by external
stakeholders and strategic partners that may impact on the delivery of the Council’s programme.
In particular, the following organisations will need to be engaged with or monitored on a regular basis:









Carbon Trust
Energy Savings Trust
London Energy Project (LEP)
Department for Energy and Climate Change (DECC)
Department for Environment, Food and Rural Affairs (DEFRA)
EDF
Corona
British Gas
Other UK Councils
The Programme Manager will also be tasked with developing existing and new partnerships with
organisations and other UK Local Authorities where they deem the relationship to be beneficial to the
Council. This may include seeking secondments at other London boroughs to generate an understanding of
how other Councils are engaging with carbon management, share Westminster’s experiences, and bring
new ideas back to the organisation.
15.7
Annual Progress Review
The Programme Manager will be responsible for preparing an Annual Progress Report that provides a
complete update on carbon management at the Council. In particular, the report will focus on, but not be
limited to:







Updated scope requirements
Updated emission baselines
Data management requirements
Reports from each Programme of Work
Individual project progress and outcomes
Overall assessment of the success of the strategic approach
Updated strategic approach, if necessary
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15.8
Knowledge Management for Key Roles
There are five key roles within the overall Carbon Management Programme at the Council that have the
potential to disrupt successful delivery of the Programme should staff changes within these roles occur. This
is a particular issue at a time when the Council is undergoing significant organisational change, and efforts
need to be made to retain the required skills and knowledge throughout the Programme delivery. This is a
key risk area for the Programme as a whole.
A key aspect of the knowledge management for all roles will to ensure that all Programmes are developed
between several officers, and disseminated via the Carbon Working Group to other staff, to ensure that no
one person retains sole knowledge of any work being undertaken. Similarly, key management will need to be
briefed regularly to ensure an understanding of the programmes of work is maintained.
Role
Current Officer
Key Risk
Mitigation
Carbon Neutral
Programme Manager
Nicholas Mason
 Supernumerary Interim
role
 Maintain high level of documentation for
actions being undertaken so that
information can be passed on to Council
staff should role be disestablished.
 Ensure that Carbon Working Group
meets regularly so that knowledge
regarding the Programme is dispersed
throughout the organisation.
Corporate Energy Manager
David Haygarth
 Council reorganisation –
role moving from
Corporate Property to
Procurement
 Ensure that technical energy
management knowledge is either
retained within the Council, or if required
brought in from outside, should role
change with its move into Procurement.
Schools Environment
Coordinator
Joanna Hill
 Funding for role uncertain
after January 2010
 Application for funding has been included
as part of LivNet bid.
 Work to be conducted alongside Energy
and Carbon Managers to ensure
knowledge of Programme is spread.
 Education to be briefed on Programme to
ensure an understanding of importance
of role in future.
Sustainable Procurement
Manager
Nicholas Mason
 Council reorganisation
 Current Officer only temporary staff, will
be leaving role on 4 Sept 2009.
 As this is a permanent position in
Procurement Structure, role should be
filled within next month.
Nominated Finance
Representative
Ron MacLeod
 Council reorganisation
 Ensure that a nominated finance
representative is provided to the
Programme regardless of changes in
staffing due to reorganisation.
 Ensure that finance management are well
briefed on financial implications.
Table 15.1 –Mitigating Risks of Succession
© Copyright Westminster City Council, September 2009
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Westminster City Council – Carbon Management Strategy
Appendix 1
Westminster City Council DEC Ratings Summary
Ratings as of June 2009, as supplied by Advanced Demand Side Management.
Name
St Gabriel's School
Charing Cross Rd Library
St George's Hanover Sq School
Queen Elizabeth 2 Jubilee School
College Park School
St Stephen's School
Maida Vale Library
Ebury Bridge Centre
St Clement Dane's School
Robinsfield School
Sayers Croft Centre
Westminster Adult Education Service
Victoria Library
St Vincent's School
Christ Church Bentinck School
Westminster Central Reference Library
Barrow Hill School
St Augustine's Primary School
Greycoat School 1 St Andrews
St Saviour's School
Our Lady Of Dolours School
Churchill Gardens School
Westminster Cathedral School
Essendine School
St James' & St Michael's School
St Mary's Bryanston Square School
Wilberforce Primary School
St George's Maida Vale School
Millbank School
St Peter's (Eaton Square) School
Burdett Coutts & Townshend School
St Marylebone School
Greycoat School 2 St Michaels
St Matthew's School
St Joseph's School
St Mary Magdalene School
Queens Park Junior/infants School
St Mary Of The Angels Rc School
St Edward's Rc School
St Vincent De Paul School
Hallfield School
Westminster City School
Quintin Kynaston School
Westmead Elderly Resource Centre
Carlton Dene Erc
Archives Centre
Council House
City Hall
Lisson Grove
© Copyright Westminster City Council, September 2009
Code
WCC0204
WCC0118
WCC0208
WCC0241
WCC0229
WCC0219
WCC0121
WCC0142
WCC0202
WCC0243
WCC0251
WCC0256
WCC0126
WCC0221
WCC0199
WCC0117
WCC0227
WCC0207
WCC0290
WCC0218
WCC0200
WCC0228
WCC0224
WCC0233
WCC0209
WCC0213
WCC0245
WCC0250
WCC0238
WCC0217
WCC0198
WCC0212
WCC0257
WCC0215
WCC0210
WCC0214
WCC0242
WCC0226
WCC0203
WCC0220
WCC0237
WCC0225
WCC0246
WCC0161
WCC0158
WCC0190
WCC0146
WCC0144
WCC0001
DEC Rating
B
C
C
C
C
D
D
D
D
D
D
D
D
D
D
E
E
E
E
E
E
E
E
E
E
E
E
F
F
F
F
F
F
F
F
F
G
G
G
G
G
G
G
G
G
G
G
G
G
48
67
70
70
75
79
85
86
89
92
93
93
95
96
100
102
104
105
105
107
113
113
115
116
118
118
124
126
129
130
131
132
133
136
143
149
151
160
161
161
164
180
180
191
199
208
252
381
598
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Westminster City Council – Carbon Management Strategy
Appendix 2
Council Corporate Property Ranked by Emissions 2008/09
Code
CO01
CO07
CP09
CB40
S04
LA01
Westminster Schools
City Hall
Lisson Grove
Park Lane Car Park
Council House
Hyde Park Corner Underpass
Archives Centre
Baseline (kgCO2)
4,028,567.22
1,903,151.47
739,843.28
694,175.19
415,205.54
412,838.59
%
28.81%
13.61%
5.29%
4.97%
2.97%
2.95%
Cum.
28.81%
42.43%
47.72%
52.68%
55.65%
58.61%
CB27
CP08
CP14
LA13
CB02
CP07
CB38
CP03
CP05
CB24
CP11
CP12
CP02
S09
Sayers Croft Youth Study Centre
Oxford Street Car Park
Trafalgar Car Park
Westminster Central Reference Library
Carlton Dene Erc
Leicester Square Car Park
Westmead Elderly Resource Centre
Chinatown Car Park
Harley Car Park
Moberley Sports Centre
Queensway Car Park
Soho Car Park
Chiltern Car Park
Strand Underpass
333,715.53
314,666.40
249,892.11
243,626.69
226,867.41
216,144.09
211,219.50
204,788.55
202,554.51
199,896.24
195,807.68
179,772.72
162,678.46
136,787.98
2.39%
2.25%
1.79%
1.74%
1.62%
1.55%
1.51%
1.46%
1.45%
1.43%
1.40%
1.29%
1.16%
0.98%
60.99%
63.24%
65.03%
66.77%
68.40%
69.94%
71.45%
72.92%
74.37%
75.80%
77.20%
78.48%
79.65%
80.62%
CB15
MB03
CP13
CP01
LA11
CP06
S02
LA02
D04
CB10
D06
LA05
PC15
LA08
PC12
CB09
GP25
MB06
CB29
PC08
CB08
GP07
PC20
CO08
LA06
PC11
CB33
D12
CB28
LA10
LA09
MB05
Horseferry Road Mortuary
Elevated Harrow Road Structure
St John's Wood Car Park
Abingdon Car Park
St James Library & One Stop
Knightsbridge Car Park
Charing Cross Pedestrian Subway
Charing Cross Rd Library
Farm Street Depot
Clifford House (Droop Street)
Newport Place Depot
Maida Vale Library
Leicester Sq Public Convenience
Paddington Library
Hyde Park Corner Public Convenience
Crompton St Youth Offending Team
Victoria Embankment Gardens
Jubilee Bridge
Shirland Rd (Children's Home)
Covent Garden Public Convenience
Crompton St Walc Team
Eros Statue And Fountain
Piccadilly Circus Public Convenience
Tachbrook Street Admin Building
Mayfair Library
Green Park Public Convenience
St Vincent's Hostel
New North Wharf Road Depot
Seaforth Place Control Office
Queens Park Library
Pimlico Library
Hungerford Bridge
124,040.00
116,959.61
95,196.10
91,926.84
91,910.10
88,132.48
85,729.31
83,180.16
82,160.23
69,162.34
66,640.09
66,210.95
65,617.94
65,225.70
61,421.41
60,894.96
59,770.72
59,272.41
53,001.61
50,464.08
47,367.09
45,104.92
44,798.96
41,786.49
40,473.41
39,261.98
36,223.89
35,181.03
34,670.06
33,377.60
32,674.82
32,443.13
0.89%
0.84%
0.68%
0.66%
0.66%
0.63%
0.61%
0.59%
0.59%
0.49%
0.48%
0.47%
0.47%
0.47%
0.44%
0.44%
0.43%
0.42%
0.38%
0.36%
0.34%
0.32%
0.32%
0.30%
0.29%
0.28%
0.26%
0.25%
0.25%
0.24%
0.23%
0.23%
81.51%
82.35%
83.03%
83.69%
84.34%
84.97%
85.59%
86.18%
86.77%
87.26%
87.74%
88.21%
88.68%
89.15%
89.59%
90.02%
90.45%
90.88%
91.26%
91.62%
91.95%
92.28%
92.60%
92.90%
93.19%
93.47%
93.73%
93.98%
94.23%
94.46%
94.70%
94.93%
© Copyright Westminster City Council, September 2009
55
Westminster City Council – Carbon Management Strategy
CB06
D08
PC03
PC16
MB14
PC14
PC27
S01
LA03
D02
PC29
CP10
CB14
S08
PC09
PC19
LA12
LA04
S06
PC13
LA07
D09
PC22
CP04
PC25
PC10
GP10
PC06
PC21
PC26
PC05
PC23
D11
S11
PC30
PC02
PC31
GP21
GP06
GP01
S10
GP20
D01
GP11
GP23
GP26
S05
GP14
GP16
GP27
GP17
D03
GP24
GP05
CP17
GP15
Cosway Street Youth Service
Page St Depot
Bayswater Road Public Convenience
Marble Arch Public Convenience
Victoria Embankment Festoon Lighting
Kensington Gardens Public Convenience
Victoria Embankment Public Convenience
Aldwych Pipe Subway
Church St Library
Dufours Place Depot
Walterton Road Public Convenience
Pimlico Car Park
Horseferry Road Coroners Court
Leicester Sq. Pipe Subway
Great Marlborough St Public Convenience
Paddington St Public Convenience
St Johns Wood Library
Kingsgate House Muniments
Kingsway (west) Pipe Subway
Jubilee Hall Public Convenience
Paddington Children's Library
Relton Mews Cleansing Depot
Queensway Public Convenience
Cramer Street Car Park
Strand / St Clement Danes Public Convenience
Great Portland St Station Public Convenience
Hanover Sq Gardens
Broadwick St Public Convenience
Pimlico Road Public Convenience
Tachbrook St Public Convenience
Broad Sanctuary Public Convenience
Salisbury St Public Convenience
Woodfield Rd Depot
Victoria Embankment Pipe Subway
Wellington Place Public Convenience
Barrett Street Public Convenience
Westminster Bridge Public Convenience
Rembrandt Gardens
Ebury Sq Gardens
Berkeley Sq Gardens
Tavistock St Pipe Subway
Queen's Park Open Space
Drury Lane Depot
Hyde Park Corner Irrigation System
St John's Gardens
Violet Hill Gardens
Inveresk House Pipe Subway
New Trinity Mews Playground
Paddington Green
Westbourne Green Open Space
Paddington Street Gardens
Ebury Bridge Depot
Tamplin Mews Open Space
Drury Lane Gardens
Broadwick Street Car Park
Norfolk Square Gardens
© Copyright Westminster City Council, September 2009
30,789.37
30,499.48
30,048.85
29,687.98
27,538.46
25,569.90
25,500.86
22,441.84
22,290.70
22,005.80
20,889.59
20,775.57
20,487.06
19,825.29
18,511.51
18,026.17
16,451.95
16,139.72
14,801.37
14,484.95
14,422.43
14,123.56
14,058.71
13,468.24
13,218.25
13,007.48
12,346.41
11,763.79
11,285.77
10,604.83
10,198.46
9,512.29
8,816.18
8,381.57
8,330.31
8,185.96
6,977.32
6,953.26
6,333.51
5,267.64
4,092.98
3,393.21
3,327.31
3,295.28
3,220.10
2,982.66
2,641.66
2,608.19
2,429.33
2,212.37
2,046.49
2,016.16
1,985.82
1,940.32
1,911.56
1,808.53
0.22%
0.22%
0.21%
0.21%
0.20%
0.18%
0.18%
0.16%
0.16%
0.16%
0.15%
0.15%
0.15%
0.14%
0.13%
0.13%
0.12%
0.12%
0.11%
0.10%
0.10%
0.10%
0.10%
0.10%
0.09%
0.09%
0.09%
0.08%
0.08%
0.08%
0.07%
0.07%
0.06%
0.06%
0.06%
0.06%
0.05%
0.05%
0.05%
0.04%
0.03%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.02%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
95.15%
95.37%
95.58%
95.80%
95.99%
96.18%
96.36%
96.52%
96.68%
96.84%
96.98%
97.13%
97.28%
97.42%
97.55%
97.68%
97.80%
97.92%
98.02%
98.13%
98.23%
98.33%
98.43%
98.53%
98.62%
98.71%
98.80%
98.89%
98.97%
99.04%
99.12%
99.18%
99.25%
99.31%
99.37%
99.43%
99.48%
99.53%
99.57%
99.61%
99.64%
99.66%
99.69%
99.71%
99.73%
99.75%
99.77%
99.79%
99.81%
99.82%
99.84%
99.85%
99.87%
99.88%
99.90%
99.91%
56
Westminster City Council – Carbon Management Strategy
PC01
MB11
GP19
GP04
PC28
GP03
GP22
GP02
GP12
GP09
MB07
PC24
MB12
D10
Adelaide Street A Public Convenience
Old Roman Bath
Porchester Sq Gardens
Causton St Playground
Villiers St Public Convenience
Broadley Street Gardens
Soho Sq Gardens Hut
Bessborough Gardens
Leicester Sq Gardens
Golden Square Gardens
Morshead Rd Ll Supply
Soho Square Public Convenience
Pop Up Supply St Pauls
Storage Depot Colchester
© Copyright Westminster City Council, September 2009
1,637.51
1,501.00
1,467.01
1,400.07
1,386.47
1,298.66
1,175.70
1,094.11
847.26
622.37
404.80
114.01
26.15
3.14
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
99.92%
99.93%
99.94%
99.95%
99.96%
99.97%
99.98%
99.99%
99.99%
100.00%
100.00%
100.00%
100.00%
100.00%
57
Westminster City Council – Carbon Management Strategy
Appendix 3
Carbon Neutral Work Programme: Identified Projects
Project
Procuring Electricity from the Pimlico District Heating Undertaking (PDHU)
Reference
CNWP01
Responsible
David Haygarth, Corporate Energy Manager
Department
Procurement
Description
The Pimlico District Heating Undertaking (PDHU) is a district heating scheme
delivering heat using boilers and a combined heat and power (CHP) plant within the
grounds of the Churchill Gardens estate. It is a Westminster City Council owned
asset which serves the City West Homes Client with heat, and sells on the electricity
it generates on the wholesale market. It is a local, low-carbon source of electricity
that the Council can directly use to procure its energy from.
Benefits


Financial savings: Unknown as yet. Is expected to result in lower energy costs
for Westminster and higher income for PDHU, but will not be confirmed until
early 2010.
Payback period: Not applicable as no investment required.
Reputational: The use of locally generated, low-carbon energy is something that
the Council can use to gain
CO2 Emissions reduction: Potentially upwards of 4,000 tCO2, dependent on how
much energy can be utilised by the Council, from April 2010 onwards.
If fully utilised, could reduce Carbon Neutral Scope emissions by 20%.
Funding

No funding required.
Resources

No additional resource required.
Ensuring Success

Agreement needs to be reached by CWH, WCC and EDF within next two
months to ensure systems are in place to begin purchasing the energy on 1 April
2010 (when current contract rolls over).
Principal risk is that not enough correctly metered Council properties can be
netted off to take advantage of full PDHU output. AMR projects that upgrade
metering and new SMART Lights programme metering will reduce this risk.
A further major risk is that DECC or DEFRA will not accept this energy
purchased as being high-quality CHP for the purposes of NI185 and/or CRC
reporting. Energy Manager is currently contacting both departments to ensure
that this is acceptable.





Measuring
Success


Project will be considered a success when energy from PDHU has begun to be
purchased by the Council.
Project will be considered a complete success once Council is able to procure all
electricity produced by PDHU.
Timing



Project Start:
Contract Signed:
Purchase of Energy begins:
Notes

In many ways this project will become a pilot project for potential future energy
purchases from PDHU, in terms of both night time generation for street lighting
once the CHP plants operate 24 hours a day, and electricity generated from
potential new CHP plants once they come online at Vauxhill Bridge and Avenue
Gardens.
See paragraph 9.35 onwards for further discussion regarding this project, and
Appendix 5 for a description of the EDF product that will allow this agreement to
be established.

© Copyright Westminster City Council, September 2009
01 April 2009
01 October 2009
01 April 2010
58
Westminster City Council – Carbon Management Strategy
Project
Establish Advanced Energy Programme (AEP) in partnership with EDF
Reference
CNWP02
Responsible
Nicholas Mason, Carbon Neutral Programme Manager
Department
Procurement
Description
The AEP is a bespoke energy efficiency programme designed to identify potential
projects, develop implementation plans, and implement these projects in large
organisations that purchase energy from EDF. This would see EDF build on previous
work done in Carbon Trust reports, providing in-depth assessments and
implementation plans for the Council’s operational property portfolio.
Benefits





Funding



Financial savings: Dependant on individual property.
Payback period: Dependant on individual property.
Reputational: Positive, with Council aligning itself with UK’s largest energy
provider. EDF are also interested in aligning themselves with the Council’s
brand, providing showcase building and testing new technologies in Council
properties.
CO2 Emissions reduction: Dependant on individual property.
EDF will work on a risk/reward basis, guaranteeing certain levels of CO2
reductions for each property they engage with.
Cost of £9.950 for four initial audits. However, this is refundable should Council
move to implement full AEP.
Quote provided of approximately £30,000 to audit, develop implementation plans
and manage implementation in four Council properties for one year.
These costs will be included with overall cost of programme for each property
where work is undertaken.
Resources

No additional resource required.
Ensuring Success

Full AEP will only go ahead if EDF can find enough savings in Council property
to justify cost. As such, a successful project will be if appropriate savings can be
identified in Council portfolio.
Principal financial risk is that identified projects will be under-resourced. This
should be mitigated by the creation of the DEEP Fund.
Principal technical risk is that Council will be unable to implement identified
programmes. Mitigation through utilising EDF to manage implementation.


Measuring
Success


Project will be initially considered a success when initial audits show savings
that justify establishing an AEP programme for the Council.
In the longer term, success of the AEP will be seen from the target savings
achieved in each property engaged with.
Timing




Initial Proposal:
SLA Signoff:
Audit Completion:
AEP Signoff:
Notes

If the EDF audits do not provide a sufficient level of savings to justify a full AEP
to be established, then each individual building can be considered as a separate
project and managed individually.
To pilot this programme, EDF have been asked to conduct four audits on Council
properties (Park Lane Car Park, Archives Building, Lisson Grove and Moberley
Sports Centre). Preliminary results have been obtained for the first two
properties, with full audit results due during October. See projects CNWP02a
and CNWP02b for preliminary findings.
See Appendix 8 for EDF Proposal and SLA for initial audits and AEP.


© Copyright Westminster City Council, September 2009
10 August 2009
21 August 2009
18 November 2009
Dependent on audit outcomes.
59
Westminster City Council – Carbon Management Strategy
Project
AEP Project: Park Lane Car Park
Reference
CNWP02a
Responsible
Nicholas Mason, Carbon Neutral Programme Manager
Department
Procurement
Description
An energy audit was carried out at Park Lane Car Park on 18 August 2009.
Preliminary findings were provided to the Council on 28 August 2009. The audits
were undertaken in order to:

Understand how energy is used in the building.

Identify areas where energy is wasted.

Enable the production of energy saving improvement measures.

Provide the basis for developing an integrated delivery offer (AEP).
Benefits




Financial savings: Lighting Solutions identified that provide total potential energy
savings c. £15,500 p.a.
Payback period: Between 5 months and 6 years, depending on technology.
CO2 Emissions reduction: Identified savings of 27.5%, or c.200 tCO2 p.a.
Further opportunities identified for further investigation include space utilisation
and CO sensor optimisation.
Funding




Implementation plan not fully developed, costs as yet unavailable.
Funding would be met by DEEP Fund.
Decision on funding will be made once Fund established by Fund manager.
Audits and implementation plan will be used to access SALIX Finance – see
CNWP06
Resources

No additional resource required.
Ensuring Success

Risks will be identified as part of implementation plan.
Measuring
Success



Project delivers savings as advertised.
Project identifies further savings as part of ongoing investigations.
Lessons learned from this car park are applied to others in portfolio.
Timing



Audit Complete:
Project Signoff:
Project Commences:
Notes

At this stage, these are preliminary findings. A more details audit will be provided
to the Council if it is decided to engage a full AEP programme. At this point an
implementation plan will be developed and a clearer understanding of costs and
paybacks will be provided.
Part of project will include an ongoing process of identifying potential savings – it
will not focus on providing the technological solutions outlined above alone.
A positive piece of feedback from the audit was that the ventilation systems were
run very efficiently due to past investments.
See Appendix 10 for full preliminary findings.



© Copyright Westminster City Council, September 2009
18 November 2009
30 November 2009
01 January 2010
60
Westminster City Council – Carbon Management Strategy
Project
AEP Project: Archives Building
Reference
CNWP02b
Responsible
Nicholas Mason, Carbon Neutral Programme Manager
Department
Procurement
Description
An energy audit was carried out at Park Lane Car Park on 21 August 2009.
Preliminary findings were provided to the Council on 28 August 2009. The audits
were undertaken in order to:

Understand how energy is used in the building.

Identify areas where energy is wasted.

Enable the production of energy saving improvement measures.

Provide the basis for developing an integrated delivery offer (AEP).
Benefits



Financial savings: Assessed saving potential of c.£9,000 p.a.
Payback period: Information not provided.
CO2 Emissions reduction: Identified savings of 10-15%, or c.60 tCO2 p.a.
Funding




Implementation plan not fully developed, costs as yet unavailable.
Funding would be met by DEEP Fund.
Decision on funding will be made once Fund established by Fund manager.
Audits and implementation plan will be used to access SALIX Finance – see
CNWP06
Resources

No additional resource required.
Ensuring Success

Risks will be identified as part of implementation plan.
Measuring
Success



Project delivers savings as advertised.
Project identifies further savings as part of ongoing investigations.
Lessons learned from this car park are applied to others in portfolio.
Timing



Audit Complete:
Project Signoff:
Project Commences:
Notes

At this stage, these are preliminary findings. A more details audit will be provided
to the Council if it is decided to engage a full AEP programme. At this point an
implementation plan will be developed and a clearer understanding of costs and
paybacks will be provided.
Part of project will include an ongoing process of identifying potential savings – it
will not focus on providing the technological solutions outlined above alone.
A key outcome of the initial audit was that the BMS system installed in the
building might be calibrated incorrectly, resulting in poor control of temperature
and humidity throughout the building. This is an essential aspect of document
storage, and as such correcting this potential problem, even if it provides no
discernable energy savings, is an important non-financial benefit of the AEP
programme.
See Appendix 11 for full preliminary findings.



© Copyright Westminster City Council, September 2009
18 November 2009
30 November 2009
01 January 2010
61
Westminster City Council – Carbon Management Strategy
Project
CRC Early Action Metric: Automatic Meter Reader (AMR) Installation
Reference
CNWP03
Responsible
David Haygarth, Corporate Energy Manager
Department
Procurement
Description
The rationale for installing AMR is three-fold: for compliance with CRC requirements;
improving energy management and data streams; and health and safety
requirements. This project would see the energy manager prioritise the existing
meters the Council has for a roll out of the new meters in the most cost effective
manner, and will focus on both gas and electric meters.
Benefits





Financial savings:
o Direct savings through removing need for meter readers.
o Energy savings, although these difficult to quantify.
Reputational: Increases Council’s initial CRC League Table standings.
Payback period: n/a – ongoing cost as part of metering.
CO2 Emissions reduction: Difficult to precisely measure, evidence suggests gas
AMR provides between 1 and 3% reduction in energy usage, while electric AMR
between 5 and 12% reduction, due to better house keeping and management.
Two clear benefits are: that AMR provides more accurate metering, which will
allow the Council to estimate future gas use much more accurately, reducing risk
associated with purchasing CRC carbon allowances; and, that AMR is 50% of
the CRC early action metric, and therefore AMR installation ensures much lower
risk in CRC at the outset of the scheme.
Funding

Cost of AMR would be absorbed into overall Council energy bill.
Resources

Prioritisation planning support from Mike Chan, EDF Energy Services.
Ensuring Success

Principal risk will be ensuring that meters are provided to schools, and as such,
they will need to be engaged with to ensure they understand the necessity of
having this extra cost on their energy bill. This should be mitigated by the rollout
of the Schools Energy Efficiency Programme, as schools will be able to use this
technology to control their energy usage better as part of this programme.
As this is a CRC requirement, a great many organisations will be looking to
install this metering in the near future. The Council should move quickly to
ensure programme is rolled out before the market is overrun with requests for
service.

Measuring
Success

Council properties and schools are correctly prioritised so that Council meets
90% deminimus requirements for CRC reporting with full AMR by 01 April 2010.
Timing



Prioritise Meters:
Initiate Programme:
Project Complete:
Notes

This project has yet to have costs and savings properly defined. They will be
calculated once meters have been prioritised and overall costs more completely
understood. It is likely that these meters will only be required to be installed in
the Council schools, and the top 20 corporate property locations, as this should
encompass approximately 90% of the Council’s energy usage (CRC
requirements). However, as energy efficiency is increased in these properties, it
may become necessary to extent the number of locations with AMR, and as
such, this will become an ongoing programme of work even after the initial rollout
is completed in April 2010.
The AMR installation services can be purchased from the Council’s existing
OGCbs framework through our current energy suppliers, Corona, British Gas or
EDF. There is also a new OGCbs framework specifically focussed on AMR that
is due to be available in October 2009 which may provide lower cost options.
See Section 5.1 for a more detailed discussion on CRC requirements.


© Copyright Westminster City Council, September 2009
19 September 2009
01 October 2009
01 April 2010
62
Westminster City Council – Carbon Management Strategy
Project
CRC Early Action Metric: Carbon Trust Standard (CTS)
Reference
CNWP04
Responsible
Nicholas Mason, Carbon Neutral Programme Manager
Department
Procurement
Description
The Carbon Trust Standard is a voluntary certification which provides an independent
verification and recognition of an organisation’s climate change credentials. This is
particularly important in our current times where many organisations claim to be
green, but until now have had no effective way of proving it.
Benefits




Financial savings: Reduces risk for Council for CRC payment recycling in
October 2011.
Reputational: Both in terms of CRC League Table position, and generally as
proof that the Council has been reducing emissions over time.
Payback period: n/a
CO2 Emissions reduction: n/a
Funding


Cost of £6,000 for certification.
Costs would be born by Carbon Management budget line, funded out of
management fees from DEEP Fund, although as the CTS needs to be done prior
to December 2009, this funding may need to be sourced elsewhere.
Resources

No additional resource required.
Ensuring Success

Risk that Council has not reduced emissions across complete CRC portfolio.
Discussions with Carbon Trust suggest this can be mitigated by breaking the
organisation into at least two (corporate and school emissions) parts, so that
Standard can be provided to corporate emissions.
Measuring
Success

Council achieves Carbon Trust Standard for corporate emissions.
Timing


Self Assessment Complete:
Awarded Standard:
Notes

A requirement of the CTS is that the organisation have an overall carbon
management policy, and reporting that reporting and governance processes are
established. This Strategy therefore forms a key part of the CTS requirements.
The CTS must be awarded prior to nine months from the end of the financial
year. As such, it must be awarded by 31 December 2009. Another option is to
wait until 2010, and gain the CTS at this point.
See Appendix 13 for details as to assessment process and requirements.


© Copyright Westminster City Council, September 2009
01 October 2009
31 December 2009
63
Westminster City Council – Carbon Management Strategy
Project
New City Hall: Energy Feasibility Study
Reference
CNWP05
Responsible
Nicholas Mason, Carbon Neutral Programme Manager
Department
Procurement
Description
The move to a new City Hall is one of the most important opportunities the Council
has for reducing corporate emissions, especially as the move will have an impact on
energy usage for the next 20 years. At the current time, the Programme Manager is
preparing a business case for EDF to model the energy usage in the current and
proposed city halls, and provide detailed evaluations of technologies that could be
used in both buildings to increase energy efficiency.
Benefits




Funding

Financial savings: Dependent on findings.
Reputational: Provides Council with way of showing commitment to moving to a
highly energy efficient building.
Payback period: Dependent on findings.
CO2 Emissions reduction: Dependent on findings.

EDF proposal for energy modelling in current City Hall and 4 Victoria Street for
£34,650.
Funding would have to be sourced from estates or property budget lines, based
on business case to show that cost was appropriate as compared to risk of
energy costs over long-term.
Resources

No additional resource required.
Ensuring Success

Principal risk for this process is that the proposed lease agreement does not
allow Council control over its energy billing. This reduces the organisations
ability to undertake energy efficiency measures, or reduce emissions in the long
term, and as such exposes Council to energy cost and emission risks. Part of the
business plan is to show that the Council should retain control over this aspect of
any new City Hall in order to ensure risks are appropriately managed in the
future.
Risk of lack of funding to conduct study due to lack of resources.
Key success factor is that study is conducted in the near future so it can be
incorporated into overall business case for new City Hall.


Measuring
Success


Study signed off by 15 September 2009.
Results of study used in either business case for new City Hall, or to introduce
energy saving measures into current City Hall.
Timing





EDF Proposal Received:
Business Case Developed:
Project Signoff:
Project Commences:
Project Completed:
Notes

See Appendix 9 for EDF Energy Feasibility Study.
© Copyright Westminster City Council, September 2009
15 August 2009
04 September 2009
15 September 2009
01 October 2009
30 November 2009
64
Westminster City Council – Carbon Management Strategy
Project
Establishment of Dedicated Energy Efficiency Project (DEEP) Fund
Reference
CNWP06
Responsible
Nicholas Mason, Carbon Neutral Programme Manager
Department
Procurement
Description
The Council can access interest free loan funding from SALIX Finance to enhance
it’s own invest to save finances in order to implement energy efficiency projects
across Council property, street lighting and schools. Once established, the fund will
become a ring-fenced, invest to save fund focused on funding Council projects.
Further, the fund can charge a 15% management overhead on each project
undertaken, allowing it to become the primary mechanism for financing carbon
management activities more generally.
Benefits




Financial savings: n/a
Reputational: n/a
Payback period: n/a
CO2 Emissions reduction: n/a.
Funding

SALIX Finance can provide up to 50% matched funding for DEEP Fund, itself up
to 10% of the Council’s energy spend. This equates to a total possible SALIX
grant of £380,000.
SALIX funding to be matched by Council’s own invest-to-save funding of at least
£380,000 in order to establish overall minimum fund of £760,000.

Resources

Support from finance for Fund management required.
Ensuring Success

Council needs to identify four initial projects to gain access to the SALIX
Funding. These will most likely be sourced from AEP audits currently being
developed by EDF.
Success of Fund overall requires that appropriate spend be maintained each
year, both for SALIX requirements, and also for carbon management budget
requirements.

Measuring
Success



Fund established of between £500-1,000k.
Minimum spend of 60% of Fund achieved per year (as per SALIX requirements).
Fund generates enough management fee overheads to provide carbon
management budget line with required funding (c.£60-100k p.a)
Timing



AEP Audits Complete:
SALIX Funding Proposal:
Fund Established:
Notes

As establishing the fund requires that four projects (at least) be identified initially,
the application for funds will have to wait until the AEP audits are complete to
generate real projects that an application can be based upon.
See Section 13 for detailed discussion regarding finance requirements for
Carbon Management Strategy.

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18 November 2009
01 December 2009
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Westminster City Council – Carbon Management Strategy
Project
Audit of Corporate Property Portfolio (in relation to Energy Use)
Reference
CNWP07
Responsible
Nicholas Mason, Carbon Neutral Programme Manager
Department
Procurement
Description
The Council is currently going through the process of updating its corporate property
databases. Once this is complete, the categorisation used for property with regards
to energy and carbon management needs to be assessed as to whether it is correct.
In particular, the question of whether any given property is in or out of scope needs to
be considered, especially for multi-occupancy buildings, and those that are in scope
need to be categorised correctly to help with prioritisation of projects in future.
Benefits




Financial savings: Potential savings expected, as potential to identify nonCouncil energy spend.
Reputational: n/a
Payback period: n/a
CO2 Emissions reduction: n/a.
Funding

No funding required.
Resources

Support from Corporate Estates is required.
Ensuring Success

Requirement for updated property database to be completed prior to undertaking
energy use audit.
Measuring
Success

Complete audit undertaken and agreed standards for inclusion/exclusion
established. Baselines adjusted accordingly.
Timing


Property Database Complete: 31 December 2009
Energy Use Audit Complete: 31 March 2010
Notes

The Energy Use Audit should be a relatively small piece of work, once the
property database is completed. The goal is to align the Council’s property and
energy/carbon databases to ensure accuracy in reporting in future for Carbon
Neutral claims, CRC and NI 185.
The audit will encompass corporate property as well as schools, and will ensure
that the Council collects energy data for all required property (in particular with
regards to Academies).

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Westminster City Council – Carbon Management Strategy
Project
City Hall Projects: Zonal Lighting
Reference
CNWP08
Responsible
Jerry Mavin, Portfolio Manager
Department
Corporate Property
Description
This project would see light sensors placed in City Hall offices to measure the levels
of natural light entering the building, and adjust electric lighting accordingly., reducing
energy usage during daylight hours.
Benefits



Financial savings: £21,941 p.a.
Payback period: 2.3 years
CO2 Emissions reduction: 63 tCO2-e p.a.
Funding

While this project would meet the requirements of SALIX funding, at the present
time, a payback period of 2.3 years is too long for the existing City Hall location
and so it would be unlikely to be funded. Should the Council decide to stay in
City Hall, then this project becomes a viable option and would form part of an
energy efficiency programme targeting this building.
Resources

No additional resource required.
Ensuring Success

Either decision made to stay at City Hall, or way found to reduce costs
associated with rollout of technology.
Measuring
Success

Savings achieved as per business case.
Timing

Dependent on City Hall decision.
Notes

This project is an example of many energy efficiency projects that could be
implemented at the existing City Hall location. If a decision is made to stay in the
present location, a programme of work could be developed in a relatively short
period of time to achieve energy savings.
© Copyright Westminster City Council, September 2009
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Westminster City Council – Carbon Management Strategy
Project
SMART Lights Programme
Reference
CNWP09
Responsible
Dave Franks, Public Lighting Manager
Department
Highways and Transportation
Description
SMART Lights is a project to review the public lighting service delivered by
Westminster City Council, its aim is to reduce the Councils public lighting energy bill,
lower their associated carbon footprint, and improve the service level. This will be
delivered though changes in working practice, brought about by the use of new
technology, maintenance savings and revised energy procurement methods.
Benefits



Financial savings: tbc
Payback period: tbc
CO2 Emissions reduction: c.1,650
Funding

Depending on eventual costs and payback periods that are produced, the
technologies identified should fall within the scope of SALIX funding
requirements.
Resources

No additional resource required.
Ensuring Success


Business case must be stronger than it currently is.
Ensure that Programme is SALIX compliant to release funding.
Measuring
Success

Savings delivered as estimated in business case.
Timing

Updated draft of business case:
Notes

The implementation of the SMART Light measures will not only reduce energy
usage from street lighting, but will also enable the maintenance regimes to be
extended, thus reducing maintenance costs and the number of vehicles on the
street and reducing contractor emissions.
Current business case is undergoing a redraft due to the potential of new
technologies to lower implementation costs and reduce payback periods.

© Copyright Westminster City Council, September 2009
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Westminster City Council – Carbon Management Strategy
Project
Strategy Research: Supply Chain Carbon Management Engagement
Reference
CNWP10
Responsible
Nicholas Mason, Carbon Neutral Programme Manager
Department
Procurement
Description
In order to understand how the Council might approach developing a Supply Chain
Engagement Programme, the Programme Manager will conduct research into the
area to determine best-practice and potential options to be developed in future. This
research is scheduled to be complete by 15 November 2009.
Benefits



Financial savings: n/a
Payback period: n/a
CO2 Emissions reduction: n/a
Funding

Funding provided by Department of Procurement.
Resources

No additional resource required.
Ensuring Success

n/a
Measuring
Success

Research delivered to spec on time.
Timing


Research project milestones under negotiation presently.
Completed Project:
15 November 2009
Notes

Research will be undertaken while Programme Manager is not in the office for
several months.
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For the following Appendices, please see attached documents, or files if electronic version.
Appendix 4
Appendix 5
Appendix 6
Appendix 7
Appendix 8
Appendix 9
Appendix 10
Appendix 11
Appendix 12
Appendix 13
Carbon Neutral Programme Workplan
EDF Generator Link Concept
Draft Project Management Costs and Funding Options
SALIX Ring Fenced Fund: Fund Manual
EDF AEP Energy Services Proposal and Service Level Agreement
EDF City Hall Energy Feasibility Study Proposal
EDF AEP Audit: Park Lane Car Parks
EDF AEP Audit: Archives Centre
Westminster City Council Go Green Carbon Management Programme (2007)
Carbon Trust Standard Requirements
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