Submission from the Energy Saving Trust

This is the response of the Energy Saving Trust to the Environment Committee’s inquiry into climate change issued on 6 Feb 09. This response should not be taken as representing the views of individual Energy Saving Trust members.

The Energy Saving Trust was established as part of the Government’s action plan in response to the 1992 Earth Summit, which addressed worldwide concerns on sustainable development issues. We are Northern Ireland (NI) and the UK’s leading organisation working through partnerships towards the sustainable and efficient use of energy by households, communities and the road transport sector.

Our response focuses on the key areas of the Energy Saving Trust’s activities and related issues.

• To identify initial commitments for Northern Ireland that will ensure it plays a fair and proportionate role as part of the UK in meeting climate change targets.

The Energy Saving Trust believes that a regular series of targets needs to be set for the reduction of greenhouse gas emissions in NI and that within this sectoral targets need to be set so it is clear what each sector’s contribution to emissions reductions targets will be.

In terms of setting targets, we note that there are practical issues associated with setting annual targets, in that the ability to meet them can be unduly impacted by changes in weather or economic activity. On the other hand, however, targets over a 5-year timeframe could be too infrequent to adequately assess progress towards meeting climate change targets. It is worthwhile noting that both approaches have been adopted across the UK, with the UK Climate Change Act adopting 5-year carbon budgets, and both the Scottish Climate Change Bill and the Welsh Assembly Government’s draft Climate Change Strategy proposing annual targets. In this context NI might want to consider the option of rolling targets outlined in our response to the UK Climate Change Bill(1), but we note this would add a degree of complexity.

We believe that commitments to ensure that NI ‘plays a fair and proportionate role as part of the UK in meeting climate change targets’ need to be based on a full analysis of the actual and realistic potential for emissions reductions in NI. We believe that the detailed analyses within the recent Committee on Climate Change (CCC)(2) report should be used to guide decisions in NI. However, we note that while it explored the potential for such reductions at a UK-wide level, it did not break down the potential for NI, and we are not aware of any NI-specific work that does this job. Given that the potential for emissions reductions (at least for the household sector) varies considerably across the UK, such NI-specific work will be vital to determine what a ‘fair and proportionate’ contribution from NI would be.

Our views on emissions reduction targets for the household, transport and waste sectors are outlined below.

1. Domestic

When considering targets for the residential sector in NI it is important to take into account:

a) The fact that it is more cost-effective to deliver carbon savings in the household sector than in any other (see table below).

Source: Synthesis of Climate Change Policy Appraisals, Defra, January 2007, see: http://www.defra.gov.uk/environment/climatechange/uk/ukccp/pdf/synthesisccpolicy-appraisals.pdf

Indeed the findings of the CCC’s analysis(3) highlight that ‘One key feature of the sectors covered, in particular of the residential sector, is that there appears to be scope for significant energy efficiency improvement at a cost to the economy and to individuals which is low, nil, or indeed negative (i.e. where upfront investment would be quickly repaid and give a good return).’

b) The potential for improvements to the housing stock in Northern Ireland.

The potential for the installation of energy efficiency and microgeneration technologies in NI is different to that of the UK as a whole. This is for a range of reasons including the different composition of the housing stock, the proportion of household on and off the gas grid, the historical rate of installations, etc. The Energy Saving Trust’s analysis of the potential for energy efficiency measures in NI (and the other countries of the UK is summarised in table 1 in Annex 1).

c) The conclusions of the CCC(4) and DECC/CLG (outlined in the current Heat and Energy Savings Strategy consultation) that if the UK is to meet its climate change targets then emissions from existing housing will need to be reduced by at least 80 per cent by 2050, and that emission from buildings (by 2050) will be ‘as close to zero as possible’.

d) CCC’s analysis of potential realistic reductions for the household sector and DECC/CLG’s proposed targets (outlined in the current Heat and Energy Savings Strategy consultation) , including proposals that by 2015 all lofts and cavity walls should be insulated, where it is practical to do so and that by 2020 seven million homes will have had the opportunity to take up a ‘whole-house’ package of measures going beyond simply insulation, and that by 2030 all buildings will have received such a package.

We note that the above information suggests NI is likely to need to reduce emissions from its housing stock at a different rate than emissions reductions in this sector in the rest of the UK and as such interim percentage reduction targets for emissions in the sector may need to be different than those set for other parts of the UK.

We recommend that the NI Executive undertake more detailed analysis to determine the potential for household energy efficiency and microgeneration measures in NI. This analysis should also take account for actions that can be undertaken at the community level (distributed energy) as well as those that can be undertaken at the individual household level. This analysis should be used to set a challenging, but achievable, target for the residential sector in NI.

2. Road transport

Again, we believe it is important for account to be taken of the CCC’s analysis of potential realistic reductions for the transport sector.

However, in the context of setting targets for the road transport sector in NI it is worthwhile highlighting that there are big wins that can be achieved now from existing infrastructure and technologies. For instance, choosing the lowest carbon vehicle in its class (so the consumer does not have to compromise on utility) can save 25 per cent of CO 2 emissions. Driving in the most efficient style (smarter-driving) can save up to 15 per cent of CO 2 emissions. Someone who normally drives alone instead choosing to car-share can save at least 50 per cent CO 2 (and fuel costs) off their journey, and more than this if they take more than one passenger. Replacing a local car journey with a bus journey can cut emissions by approximately 50 per cent; replacing a long distance car journey with a coach journey can reduce CO 2 emissions by 85 per cent and choosing the train over the plane about 65 per cent. Most efficient of all, walking and cycling journeys are zero carbon so any shift to this mode will save 100 per cent CO 2. However, it is important not to underestimate the need for investment into low carbon infrastructure such as public transport and walking and cycling to encourage modal shift and behaviour change.

3. Waste

Over the last six months we have been running waste pilots, testing the inclusion of waste into our advice offering. Our activity in this area has been developed in partnership with WRAP (Waste & Resources Action Programme) and has centred on t hree areas; food waste, home composting and recycling. Four pilots ran during Jun to Sep 08 in London, Wales, North-East England and Northern Ireland. With early positive results including advising over 10,000 consumers on waste between Jun and Oct 08 and early indications showing that waste is a natural fit to the energy advice service, waste advice will be rolled out over the course of 2008/9 to some of the remaining advice centres. An evaluation of the original four pilots will be completed by the end of the financial year 2008/09.

Over the coming year we will be looking in more detail at the potential for waste related carbon savings t hrough using our advice network channel. We look forward to sharing this data with the Committee later in the year.

• To consider the necessary actions and route map for each significant sector in Northern Ireland (energy, transport, agriculture and land use, business, domestic, public sector etc).

1. Domestic

For the domestic sector the key actions that the Energy Saving Trust would like to see are as follows:

• The development of a forward looking strategy for emissions reductions from the housing sector, which includes a long-term of at least 80 per cent by 2050, together with interim targets, for emission reductions from NI’s housing stock.
• A programme of public engagement to help gain buy-in into the technologies and policies required to effect the emissions reductions required.
• The next update of NI Building Regulations will need to extend coverage of triggers for improving the energy performance of existing homes, including extensions, loft conversions, etc. In addition NI ought to adopt the Code for Sustainable Homes or an equivalent mechanism.
• A signal that the recommendations of Energy Performance Certificates will become mandatory by a certain date in the future, say 2015, for home sales, rental, etc.
• A variety of incentives and awareness raising activities, developed around people’s behaviour and the lifetime of their homes, in preparation for eventual mandation.

2. Transport

For the transport sector the key actions the Energy Saving Trust would like to see are as follows:

• The development of a forward looking strategy which includes a long-term target for the reduction of emissions from transport in NI together with interim targets.
• Implementation of measures to reduce transport emissions from driving which should include the promotion of smart-driving (saving 15% CO 2), signposting consumers to the lowest carbon vehicles (savings of up to 25% CO 2 if every consumer chose the most fuel efficient car for their needs), and car-sharing (can save over 50% CO 2 emissions). Our advice centres across the UK offer independent advice on energy saving. In Scotland and England this includes advice on the above issues, as well as modal shift (see below). This advice could and should be extended to NI.
• Implementation of schemes to encourage, a) car sharing which can save over 50% of CO 2 emissions and b) modal shift to walking and cycling, which are zero carbon transport modes. Smarter choice measures help people find less costly and less carbon intensive ways to travel. A UK Department for Transport report showed travel planning can reduce car travel by 15% and 25% in peak hours in urban areas.(5)
• Investment in low carbon public transport to ensure attractive, affordable and viable alternatives to travelling by car.
• In the longer term, a commitment to major low carbon infrastructure development (such as electric vehicle re-charging points and/or hydrogen re-fuelling stations) will be necessary if NI is to move towards advanced lower carbon vehicles. This would need to be part of a co-ordinated UK-wide approach.
• Planning can have a major impact on determining how people travel. All new developments should be designed so that they minimise car dependency and maximise low carbon travel options such as walking, cycling, and public transport.
• In Scotland and England the Energy Saving Trust offers free government funded advice to business to reduce the carbon footprint of their fleets. It delivers cuts in CO 2 from business travel t hrough cleaner vehicle purchase, efficient driving and reduced travel. And in Scotland the Energy Saving Trust offers free government funded travel planning consultancy for schools, businesses and other organisations. These are services that could be expanded to cover NI.

3. Waste

The NI Executive should work towards ensuring that:

• More people link waste to their carbon footprint, understand the relative contribution of waste to their carbon footprint, and understand how reducing waste can help tackle climate change.
• Consumers understand the importance of following the waste hierarchy: reduce, reuse, recycle and chose/use products that generate the least waste.

The Nl Executive should help facilitate domestic waste minimisation by helping to coordinate the efforts of Councils. They play a key role in making waste minimisation easier for householders, and the current wide range of different services in different areas makes it confusing; people don't know what they can recycle and where, and don't understand why they can recycle some things in one area, but not in another.

• To identify the costs associated with meeting these obligations and compare them with the costs that will be incurred if they are not achieved.

We are not aware of any specific analysis that has been undertaken to look specifically at the costs of NI meeting delivering a ‘fair and proportionate’ share of the UK’s climate change targets, and would be surprised if such analysis exists because NI’s appropriate share has yet to be determined. In terms of the costs of delivering improvements to the energy performance of existing buildings it worthwhile noting the findings of the CCC’s analysis,(6) which highlights that ‘One key feature of the sectors covered, in particular of the residential sector, is that there appears to be scope for significant energy efficiency improvement at a cost to the economy and to individuals which is low, nil, or indeed negative (i.e. where upfront investment would be quickly repaid and give a good return).’ It is also our view that additional work needs to be undertaken to look at costs (of improving the housing stock), including exploring marginal capital cost when measures are implemented as part of wider works, capital cost reductions with time and with volume installations etc.

It is also important to note that replacing car journeys by walking, cycling or car sharing can save money for consumers. Driving more efficiently or buying a more fuel efficient car reduces fuel bills, as well as CO 2.

• To make recommendations for appropriate targets/actions that could be included in the new Northern Ireland Sustainable Development Implementation Plan.

As noted above we believe that targets should be set for all sectors. We also believe that specific targets for microgeneration, and within this heat generating microgeneration should be set for NI. Long-term, as well as interim targets, should be set. The UK also has a role in meeting European 2020 renewables targets, and as such it is important that targets for the microgeneration and heat generating microgeneration are set for 2020 and are consistent with NI delivering an appropriate share of these targets. In this context we draw the Committee’s attention to a key point that we have raised in recent submissions to the NI Executive, as follows: ‘ We are not aware of any NI-specific analysis that provides sufficient detailed analysis to allow an assessment of a) the potential for microgeneration, and in particular heat generating microgeneration, in NI or b) an appropriate target for renewable microgeneration, and in particular heat generating microgeneration for NI(7). In this context we strongly recommend that DETI undertake further research in this area. The Energy Saving Trust has extensive experience of both managing and steering this type of work.’

Key actions that we believe should be taken in the housing and transport sectors are outlined in our response to the second bullet point above.

	Wales		Scotland		England			Northern Ireland
	numbers	as % of all households	numbers	as % of all households	numbers	as % of all households		numbers	as % of all households
Number of households:	1,264,000	100%	2,237,000	100%	20,866,000	100%		680,000	100%
Insulation potentials:
Unfilled cavity walls (all of which can potentially be filled):	250,000	20%	600,000	27%	6,500,000	31%		70,000	10%
Solid walled homes (assume all uninsulated):	430,000	34%	500,000	22%	6,300,000	30%	- All completely uninsulated solid-wall homes; includes some homes with extensions with filled cavity walls	130,000	19%
Under-insulated lofts:
- Virgin	3,000	0.2%	100,000	4%	400,000	1.9%	- Virgin	30,000	4.4%
- 100mm or less	537,000	42%	980,000	44%	10,500,000	50.3%	- Less than 100mm	160,000	24%
Double glazing:
- None	160,000	13%	260,000	12%	4,900,000	23%		95,000	14%
- Some	130,000	10%	40,000	2%	3,900,000	19%		126,000	19%

Table 1: Potential for energy efficiency measures in NI

Please note that the categories used in the table above differ slightly than those for the other countries of the UK. This reflects the categories used in the NI house condition survey.

Footnotes

(1) See: http://www.energysavingtrust.org.uk/uploads/documents/aboutest/Defra%20Climate%20Change%20Bill%20120607.pdf

(2) See: http://www.theccc.org.uk/

(3) See: http://www.theccc.org.uk/reports/

(4) CCC outline the potential (both technical and realistic) for the reduction in emissions across the UK, specifically that by 2020: In the residential sector there is technical potential to reduce emissions by almost 40 MtCO2, over half of which is t hrough negative cost energy efficiency improvements and lifestyle changes, and with much of the remainder costing less than our forecast carbon price of £40/tCO2. Our assessment of realistic potential suggests that a reduction of 9-18 MtCO2 could be achieved from existing buildings, with an additional 4 MtCO2 from new buildings. And In addition the development of renewable heat sources (mainly biomass) and of microgeneration (solar photovoltaic) could save up to 65 MtCO2 but at a much higher cost per tonne saved. Our assessment of realistic potential suggests a much lower reduction of up to 10 MtCO2.’.

(5) Smarter choices – changing the way we travel, Cairns et al, DfT 2004

(6) See: http://www.theccc.org.uk/reports/
While relevant analysis exists at a GB or UK level, given the substantial differences that exist between NI and the rest of the UK, it would make little sense to simply pro-rata suggested GB targets on the basis of, for example NI’s population, as the potential for the installation of such technologies in NI is likely to be considerably different. Indeed, we believe that that potential for such technologies is likely to be greater in NI than in other parts of the UK because substantial parts of NI are off the gas network.