UK ETS: what you need to know about reporting

The UK was a founding member of the EU Emissions Trading Scheme when it first launched in 2005. As the world’s first major carbon market, it was designed to incentivise the reduction of carbon emissions in a cost-effective way. Following Brexit, the UK established its own Emissions Trading Scheme (UK ETS) to further drive down emissions and maintain the UK’s competitiveness in a green global market.

How does the UK ETS work?

The UK was influential in the design of the EU ETS. So, it came as no great shock that when the UK ETS launched in May 2021, it looked very similar to its predecessor.

The system still works on the ‘cap and trade’ system. This means that a cap is set on the total amount of certain greenhouse gases that can be emitted by installations covered by the system. The cap is reduced over time so that total emissions fall in line with the UK’s net zero target.

This cap is converted into tradable emission allowances. For each allowance, the holder has the right to emit one tonne of CO2 (or its greenhouse gas equivalent). After each year, large energy users must give up enough allowances to cover all their emissions or face a fine.

What does it mean for companies that apply?

Facilities with installed combustion equipment above the 20MWth threshold are required to monitor and report their emissions each year. They then must surrender allowances to cover their reported emissions.

A portion of allowances will be issued for free to eligible installations (typically energy intensive industries or aviation). This follows the same approach as the EU ETS. If they are likely to emit more than their allocation, companies can take measures to reduce their emissions or buy additional allowances.

If a company decides to reduce its emissions, it can keep the spare allowances to either use the following year or sell them on. In this way, the ETS helps to monitor emissions from energy intensive industries and incentivises carbon conscious strategies. And it’s been a successful driver of reductions. Between the launch of the EU ETS in 2005 and 2019, emissions from installations covered by the scheme have declined by about 35%.

This is promising progress for the fight against climate change, and the UK ETS is expected to be even more ambitious in readjusting its cap. This will mean tighter restrictions on emission reductions in future carbon reporting, especially for big energy users.

uk ets timeline

How can EIC help?

EIC has a team of dedicated Carbon Consultants and Data Analysts who provide an all-encompassing UK ETS service. We provide you with guidance and support: interpreting complex legislation and keeping you up to date with any policy shifts. You will be assigned a dedicated Carbon Consultant who will help you navigate the reporting and compliance process with ease.

Our in-house carbon team has extensive experience with reducing energy consumption, costs and emissions for our clients. This means we can keep you ahead of the curve and prepare your business for future reporting requirements.

To learn more about how EIC can help you with reporting for UK ETS, contact us today.

It’s not too early to start thinking about ESOS phase 3

The deadline for the third phase of ESOS is on 5 December 2023, but it is never too early to start your carbon reporting process. Although working on a distant deadline may not seem like a priority, planning ahead may save considerable time and money.

Regulated by The Environment Agency, the mandatory compliance scheme aims to ensure that big energy users are working as efficiently as possible. Businesses that qualify for the scheme must have compliance plans in place to avoid fines and civil penalties.

The first step towards assessing an organisation’s carbon footprint is to conduct an energy audit. Energy audits assess total consumption within a business including buildings, industrial processes and transport usage. This is also crucial for understanding where a business could save money through energy conservation.

Who qualifies for ESOS?

ESOS is mandatory for large UK organisations that meet one of more of the following criteria:

  • Employ at least 250 people.
  • Have an annual turnover excess of €50 million and an annual balance sheet excess of €43
  • Are part of a corporate group containing a large enterprise.

Businesses that qualify must carry out ESOS assessments every four years. While fines differ from case to case, they can include an immediate £50,000 fine or £500 per day for up to 80 working days. Businesses who refuse to comply also run the risk of having their information published online.

What are the benefits of ESOS?

You may be thinking, why should I start thinking about phase 3 so early? Starting work towards phase 3 now means you are able to explore different options before deciding on the perfect one for your business. Becoming more energy efficient now will also mean environmental and financial benefits in the long term.

The two most significant benefits of ESOS lie in the reduction of carbon emissions and lowering of energy bills. If approached correctly, ESOS could bring benefits for both the business in question and the environment, in the form of cost effective savings.

ESOS has been predicted to deliver a total of £1.6 billion in savings to UK businesses between 2015 and 2030. Some of the most common areas in which savings are found include lighting, air conditioning and metering. EIC can also provide intelligent procurement: further simplifying our client’s energy management and reducing their utility costs.

Putting off compliance plans may also leave you vulnerable to price increases. Phase 1 of the scheme more than 40% of businesses were still not compliant 4 months after the deadline. If this were to happen again, in excess of 2,800 firms would be fined and in turn suppliers would be forced to raise their prices again. By identifying areas of carbon reduction, ESOS can also improve your Streamlined Energy and Carbon Reporting (SECR) narrative. While they are separate schemes, information gained from ESOS can be used to manage energy efficiency in annual reports.

How can EIC help with your compliance needs?

Our carbon team have extensive experience with complex compliance legislation and are dedicated to helping you reach deadlines efficiently. Our Lead Assessors and highly trained Auditors are on hand to assist you throughout your compliance process.

We have assisted over 550 clients with their ESOS journey, and in doing so have identified 4.65 million tonnes worth of CO2 savings. This has meant that our clients have avoided approximately £80 million worth of fines over phase 1 and 2.

Whilst balancing other jobs and responsibilities, schemes may seem like a hassle. Fortunately, EIC can help turn that obligation into an opportunity for your organisation.  Get in touch to find out how we can help you start your compliance journey.

What the new Industrial Strategy means for big energy users

On March 17 2021, the UK government announced their plans for a new Industrial Decarbonisation Strategy. In efforts to reach net zero by 2050, more than £1 billion has been channelled into industry, schools and hospitals. The strategy’s blueprint plans to switch 20 Terawatt hours of the UK’s energy from fossil fuels to low carbon alternatives.

The world’s industry sector generates one quarter of global GDP every year, as well as a significant percentage of jobs. However, industry also makes up a staggering 24% of global energy related carbon emissions. It is for this reason that the decarbonisation strategy is vital in championing a sustainable industrial future.

The strategy aims to cut two-thirds of emissions by 2050, meaning a 90% cut in comparison to 2018 levels. In addition, three megatons of CO2 are expected to be captured from industry by 2030. If this is achieved, the UK would become an international leader in industrial decarbonisation and manufacturing of low carbon products. But what does this mean for big energy users?

How will the decarbonisation strategy impact big energy users?

Carbon pricing

A carbon pricing tool will be introduced that helps assist businesses take account of their emissions by providing them with investment decisions. These measuring tools could potentially save businesses £2 billion in annual costs.

This project will ensure that businesses are maintaining the correct policy framework in switching to low carbon products. New product standards will also ensure that manufacturers are able to clearly identify their products as low carbon.

Financial benefits

It is imperative that this green revolution comes with economic benefits. Through greater energy efficiency, it is predicted that businesses will be provided with commercial opportunities and the chance to save on costs. These opportunities will be available across not only the UK, but global market.

Transforming industrial processes to include low carbon technology will benefit businesses tenfold. Significant costs will be saved on raw materials following a push for more sustainable practices, such as 3D printing and AI. Following the economic downturn created by Covid-19, finding a green recovery for the economy is vital.

Green links

The revamped decarbonisation strategy is heavily linked to the Industrial Decarbonisation Challenge, in which nine green tech projects will receive a cut of a £171 million grant. Announced last year as a £139 million project, the budget was further raised once the winner’s projects were announced. This challenge was created to support low carbon innovations across nine regions in the UK including Scotland, South Wales, Humber and Teesside.

As part of the Public Sector Decarbonation Scheme, £932 million has already been granted to 429 projects across England. This will fund low carbon heating systems such as heat pumps and, solar roof installations.

The strategy has also seen the emergence of the Infrastructure Delivery Taskforce, otherwise known as ‘Project Speed’. The taskforce will ensure that land planning is fit for low carbon infrastructure. This project will focus on delivering infrastructure that is quick, efficient and sustainable. It could also generate over 80,000 green jobs.

How can EIC help?

At EIC, we provide businesses with comprehensive energy management, as well as next generation energy technology. Our in-house services range from green energy procurement to onsite solar instalment and battery storage.

On the journey towards net zero carbon emissions, it is imperative that the economy has a sustainable Covid-19 recovery. By championing both efficiency and self-sufficiency, EIC are dedicated to finding the most suitable and sustainable solutions for your business. Get in touch to learn more about how EIC can help your business work towards a profitable and environmentally friendly future.

SECR: How to make it work for your business

Compliance with carbon legislation such as Streamlined Energy and Carbon Reporting (SECR) has become a corporate obligation. But it can also unlock a range of opportunities for businesses seeking sustainable growth.

This is because the energy audit and reporting involved in carbon compliance can gather valuable data. This can then help to unearth hidden financial savings by highlighting areas of inefficiency and waste. Not to mention, sealing those leaks to reduce carbon emissions.

So, while it is often seen as a tedious piece of admin, SECR can help organisations prepare for the UK’s transition to a net zero economy. Smart energy management can also help to build a resilient foundation for any future business.

Here are some of the hidden benefits businesses are privy to if they make the most of SECR.

Getting more out of your energy audit

If your organisation falls within the scope of SECR, your energy and carbon reporting is already a priority. But the data collected has value far beyond mandatory compliance.

Submetering and monitoring provide a window into the performance of your building. Helping to pinpoint any weaknesses and inefficiencies in your systems. This holistic view of your energy use and carbon emissions can help you build a smarter, data-driven sustainable strategy.

With the next-generation technology available today, you can go beyond the data and incorporate smart controls. Our sister company, t-mac, offers Building Management Systems (BMS) that enable real time insights with IoT technology. For big energy users, this is an invaluable energy management tool for streamlining carbon compliance processes.

Ignoring this data after the initial report would mean that you risk wasting time and money on energy admin. It would culminate in nothing more than standard compliance.

Preparing for future Scope 3 reporting

Currently, organisations are mandated to report on only scope 1 and 2 emissions.

Scope 1: Direct emissions from company operations such as company vehicles or factories

Scope 2: Indirect emissions from company operations such as purchased electricity generated by fossil fuels

But it is a long road to net zero, and scope 3 emissions will likely become a part of mandatory reporting before 2050.

Scope 3: Indirect emissions from company supply chains such as shipping, business travel, and raw material extraction

By making the most of your current reporting you can prepare your organisation for future compliance. This gives you an advantage over your competitors and helps mitigate any risks, and costs, involved in last-minute reporting.

Boosting your green credentials

Businesses are waking up to the rapidly evolving corporate landscape and the growing focus on transparency. With climate change now being widely recognised as a global challenge, it is clear that every industry will have to innovate and adapt. Any organisation’s growth and longevity will increasingly rely on its levels of sustainability and environmental, social and governance. Both at a leadership level but also embedded in the corporate identity as a whole.

SECR compliance spans areas like energy management, sustainability, and financial reporting. This challenge can be transformed into an opportunity by establishing open communication between teams and forming a more cohesive SECR team.

When EIC helps a client navigate complex carbon legislation, we go beyond compliance. By establishing a long-lasting sustainable strategy for your team, we help to incorporate green values into every part of your corporate identity.

Beyond compliance, genuine sustainability will become an expectation among employees, customers and stakeholders. While greenwashing is widespread now, with companies cashing in on the climate-friendly trend, this won’t be an option for long. With transparency made mandatory and rising interest from the general public, companies will struggle to hide their skeletons.

SECR can help you begin your sustainable journey by rallying your team around your environmental mission.

How can EIC help?

At EIC, we provide businesses with end-to-end guidance and support for carbon compliance including EPBD, ESOS and SECR. Our dedicated carbon consultants have supported over 300 organisations, many of them are big energy users with complex energy admin. Our goal is to simplify and streamline your energy management from utility connections to net zero guidance.

If you want to understand how to put the findings from your SECR reporting to good use or need to begin the reporting process, contact us at EIC today.

TCFD: 4 key points from the recommendations

The Task Force on Climate-related Financial Disclosures (TCFD) was established in 2015 by the international Financial Stability Board. It is based on the growing consensus that climate change has immediate effects on economic decisions. Investors are growing more aware of climate-related risks and putting more faith in organisations that are planning ahead.

In a recent series of environmental measures from the government, Chancellor Rishi Sunak announced plans to make alignment with the TCFD guidelines mandatory. This will apply to most sectors of the economy by 2025 including listed companies, banks, and large private businesses. This part of the green recovery plan aims to bolster the UK’s position as a global leader for green finance.

“By taking as many equivalence decisions as we can in the absence of clarity from the EU, we’re doing what’s right for the UK and providing firms with certainty and stability.”
– Chancellor Rishi Sunak

Can increased transparency help achieve net zero and a stable green economy? We look at the key points and benefits of the guidelines for the TFCD.

What are climate-related risks?

The Task Force broke down climate-related risks into two major categories:

  • risks related to the transition to a lower-carbon economy, and
  • risks related to the physical impacts of climate change.

Transition risks include shifts in policy and litigation, market, technology and reputation. Organisations are already seeing this impact with climate-related litigation and policy changes rising. Costs of operation, raw materials, and products are all vulnerable to shifts in policy, technology, and markets. And changes in consumer preferences and customer behaviour must also be taken into account.

Physical risks involve the effects of climate change on the natural world. These are broken down into two categories: acute and chronic risk. Acute risk involves extreme weather events such as wildfires or floods. Chronic risk refers to longer-term shifts in climate patterns. These could affect anything from an organisations supply chain to their employees’ safety.

two people working on a white board

What are climate-related opportunities?

In light of the potential risks posed by climate change, the TCFD also recommends several opportunities. These are solutions that can reduce risk and provide organisations with long-term stability.

  • Resource efficiency: Making your buildings and transportation as efficient as possible by integrating intelligent energy management, reducing water usage and consumption, and recycling.
  • Energy source: Implementing the use of clean energy sources through procurement or onsite generation and taking advantage of policy incentives.
  • Products and services: Developing low-emission goods or services and/or innovative climate-related products.
  • Markets: Having access to new markets and assets and use of public-sector incentives.
  • Resilience: Boosting financial and reputational stability by adopting sustainable solutions such as energy efficiency and supporting renewable energy.

What are the recommended disclosures?

There are four recommendations laid out by the task force for disclosures.

  • Governance: Disclosure of the board’s oversight on, and management’s role in, assessing and managing climate-related risks and opportunities.
  • Strategy: Disclosure of the short and long term climate-related risks and opportunities, their impact on the organisation, and the resilience of the strategy in place to manage those risks and opportunities.
  • Risk Management: Disclosure of the organisation’s process for identifying, assessing and managing risks, and how this is integrated into the organisation’s overall risk management.
  • Metrics and Targets: Disclosure of the metrics used to assess risks – Scope 1, Scope 2, and Scope 3 greenhouse gas emissions, the risks they pose, and the targets in place to manage risks and opportunities.

What are the benefits of implementing TCFD?

In the future green economy, disclosures like these will be crucial for a company’s sustainability and resiliency. Implementing TCFDs will help companies to identify and assess the risks posed by climate change. They can then address their structural weaknesses and implement mitigation and adaptation efforts to future-proof their business. Organisations that do this will have a competitive advantage over those that don’t when it comes to future funding and investments.

At EIC we are experienced in helping clients mitigate climate-related risks. Through our unrivalled energy management services and cutting-edge technology, we can help with most of the TCFD’s recommendations. From resource efficiency and clean energy to your carbon compliance, our goal is to simplify your sustainability journey. For more information on future-proofing your organisation, contact us at EIC.

ESOS Phase 2 Compliance – Act Now

While it may seem like a costly and time-intensive process, there are financial opportunities and benefits to be found in this mandatory scheme.

In Phase 1 of ESOS, we at EIC identified a total of 527GWh worth of energy savings for our clients, equivalent to £49 million in cost savings. If you act now, you could avoid fines of £90,000 and reap the rewards of a new green plan.

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory compliance scheme in the UK, derived from Article 8 of the EU Energy Efficiency Directive. ESOS’s aim was to reduce EU energy consumption by 20% by the end of 2020. ESOS occurs in four-yearly phases and introduces regular energy audits that highlight energy savings for large businesses.

Who needs to comply?

Public bodies are not affected. Large organisations that must comply are classified as those with:

  • More than 250 employees or
  • A turnover of more than £50 million and an annual balance sheet total of more than £43 million

ESOS Phase 2 Updates

The ESOS deadline for Phase 2 was 5 December 2019. Any qualifying organisations who did not complete their assessment and submit a compliance notification by the deadline are at risk of enforcement action. Penalties issued in Phase 1 for compliance failures ranged up to £45,000 with a potential maximum fine of £90,000.

Compliance Notices

ESOS Regulators are currently issuing compliance notices to all UK corporate groups who they believe should have participated but haven’t yet received a notification of completion from.

If you receive this, you must inform the regulators whether you are:

  • in the process of completing your compliance, or
  • provide evidence you have already submitted your notification, or
  • advise that you do not qualify for ESOS

ESOS Submissions

You can find a published list of all businesses who have made a submission via the ESOS notification system as of 1 February 2020 here.

Further evaluation of the effectiveness of energy audits and ESOS can be found here.

business analysis with colleagues

ESOS Support

If you need urgent support with your Phase 2 compliance, talk to EIC today. Our dedicated team of ESOS Lead Assessors and highly-trained Energy Auditors will work hard to help you comply as soon as possible, and support you in any conversations with the Environment Agency.

After ESOS Compliance

It’s vital that you don’t let your compliance go to waste. ESOS aims to highlight where companies can make energy improvements, cut wastage and lower costs, use these opportunities to improve your operations and make significant energy savings. The most common areas for energy savings are lighting, energy management through smarter energy procurement, metering, monitoring and controls, and air conditioning.

Reach out

Whether it’s ESOS, SECR, or CCA, EIC will work with you to reach compliance deadlines and targets. Talk to EIC on 01527 511 757 or email info@eic.co.uk if you need any further advice on ESOS or SECR. We’re here to help.

Explaining TM44 Inspections: The what, who, when and why

EIC explores the purpose of TM44 inspections, why your organisation might need one and how EIC can help you get one.

 

What is TM44?

TM44 is the accepted guidance for the UK for judging the efficiency of air-conditioning units. The key role of the guidance is to support inspections to comply with the Energy Performance of Buildings Directive (EPBD). However, they can provide assistance to any building owner or manager desiring further data on the efficiency of their air-conditioning system. The EPBD1 was initiated in 2003 and replaced a decade later by a recast Directive2.

The legislation required that European members devise ‘measures to establish a regular inspection of air-conditioning systems of an effective rated output of more than 12 kW’.

 

Who needs a TM44?

Not all air-conditioning systems are equal; TM44 focuses on those that use refrigerants for cooling, and parts of other cooling methods such as cooled decks/ceiling slabs or those using aquifers for cooling.

The 12kW figure is a good rule of thumb, making any building owner or manager with a system of that scale subject to TM44. It is important to note that this applies to single large-scale units with an output of 12kW and to individual units that together reach or exceed 12kW.

When is a TM44 necessary?

Inspections timings are relevant here since each mandatory inspection must take place within five years of the previous one. According to TM44 guidance, the initial inspection must satisfy the following criteria:

  • Any system that began service on or after 1st January 2008, must have undergone an initial inspection within five years of the date service began.
  • Systems whose output exceeds 250kW must have undergone inspection no later than 4th January 2009.
  • Systems with a service start date prior to 1st January 2008 and whose output exceeds 12kW must have received inspection by 4th January 2011.

From 6 April 2012, all TM44 air-conditioning inspection reports have been required to be lodged on the Ministry of Housing, Communities & Local Government Energy Performance of Buildings Register where a report and certificate are generated. Accredited assessors and members of the public may access this site to view and download their TM44 certificates and reports.

 

Why is TM44 important?

There are several benefits to having a TM44 inspection. Firstly, a company can avoid penalties for non-compliance. These penalties are costly, inviting a £300 fine per offence – meaning either a non-complying building or multiple units inside a single structure whose combined output is more than 12kW, and if an organisation fails to supply a copy of their inspection report within seven days of request by an enforcement authority, they can incur an additional fixed penalty of £200 per building or unit. Enforcement Officers can check at any time whether a building or unit is compliant.

TM44 is an excellent data gathering opportunity about a major source of utility costs, offering insight on how to:

  • Improve efficiency
  • Reduce electricity consumption
  • Decrease operating costs
  • Diminish carbon emissions
  • Reduce maintenance needs
  • Improve controls and settings
  • Identify technical flaws

The report will also highlight opportunities such as:

  • Improvement to operation
  • Improvements to replace less efficient systems
  • Replacement of oversized systems (scale of the system relative to cooling load)

When viewed with these gains in mind, TM44 can be thought of a necessary process that yields significant benefits down the line.

 

Securing your TM44 with EIC

The EIC team were among the first to receive UK accreditation for the delivery of airconditioning inspections and actively follow any legislative changes so they can keep businesses ahead of the game.

The team can also provide Wrap Reports as standard, offering an overview of essential report findings including reference pictures, additional relevant data and a complete asset list of equipment found.

Alongside this extensive experience, clients will receive additional complimentary intelligence in other areas of sustainable improvement. EIC’s expertise in other fields like Energy Contract Procurement and Intelligent Building Management will position organisations to undertake other sustainable development projects seamlessly, with guidance and security.

For a full breakdown of EIC’s compliance services, and how your organisation can acquire TM44 Certification, get in touch with the EIC team here.

 

1(2002/91/EC)

2(2010/31/EU)

3(Statutory instrument 2012 N0 3118)

 

 

Simplifying Display Energy Certificates

EIC discusses the purpose behind DECs, the benefits they offer and how the EIC carbon team can help you secure one.

What is a DEC?

Display Energy Certificates (DEC) have been a required document in public buildings since 2012. While some structures are exempt, those with floor space of less than 250m2, larger buildings fitting certain criteria must comply. These are properties that are occupied by a public authority and frequently visited by the public.

The certificate summarises the energy performance of the building based on criteria known to affect energy demand and usage. These criteria include the type of building under assessment, its total floor area and fuel use.

Accreditors then measure this data against specific benchmarks to determine the building’s overall energy performance. Newer buildings are more likely to have consolidated record-keeping on a building and their HVAC. However, older properties may need to collate this data from various departments and archives.

Since data might be stored in a multitude of locations and formats, this process can be complex and time-consuming. However, the more intelligence that can be sought, the more valuable the DEC becomes in its ability to help identify sources of energy waste.

Looking at trees through glasses held away from faceWhat are the benefits?

The primary benefit of a DEC is to provide a litmus test for the current energy efficiency of a building. This data can then guide improvement strategies for the structure’s utility usage, thereby reducing their demand and subsequent cost. Only accredited assessors are qualified to analyse and deliver DECs. Part of their service is identifying opportunities for improvement and providing guidance on how to implement these improvements as well.

DECs also communicate your commitment to carbon reduction to visitors, due to the requirement to display them prominently. As consumers become more aware of the effect of their spending habits on the environment, it will dictate the businesses they are willing to interact with. A DEC demonstrates dedication to reduce to or maintain an efficient rating for the building.

Do you need a DEC?

If you are a public authority receiving frequent public visitation, with usable floor space in excess of 250m2, then you will need to display a DEC. The validity period of these certificates does vary depending on building size. The DEC of buildings between 250m2 -1000m2  remains valid for 10 years. However, buildings larger than 1000m2 must renew every year.

Those in need of a DEC or those looking to renew would benefit from shopping around. Ideally looking for a compliance specialist that can offer them the most value with their service.

EIC offers an end-to-end DEC acquisition, starting with a comprehensive site survey if a lack of available data necessitates it. A copy of the accreditation documents will be forwarded to your organisation once the process is complete.

The EIC team pride themselves on providing relief from the complex process of accreditation, allowing business leaders to focus on their own clients and services. To date, EIC has produced over 5,000 DECs and currently manages the renewal process for over 600 sites.

Each of EIC’s EPBD delivery team, have worked within the schemes since their inception, thereby bringing trusted and reliable expertise to your project.

The EIC carbon team provides various compliance services including major carbon-legislative guidance and all EPBD services (EPCs, DECs, TM44). Since these accreditations work in tandem, and share data sets, getting them under one roof can save you some time. While each of these carbon services can be found on EIC’s trusted compliance page, those seeking the DEC offering specifically can find it here.

 

EPBD: What you need to know

EIC unpacks Energy Performance of Buildings Directive (EPBD), it’s origins, purpose and how firms can make sure they are compliant.

The Kyoto Protocol

Two years after the 1992 UNFCCC (United Nations Framework Convention on Climate Change), the Kyoto Protocol emerged as an extension to the conventions primary treaty.

The UNFCCC’s objective is to:

“Stabilise greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system”

The extension took effect in 1997 and was as much political as it was scientific, viewing the climate crisis from a purely mathematical perspective. The consensus was that industrially developed nations were far greater contributors to climate change than rural and agricultural ones.

CO2 emissions would not be divided equally between the committed nations but rather based on their industrial activity. Subsequently, the EU and its member states committed to binding emission reduction targets which remain in effect today.

Following Kyoto, the EU established EPBD in January 2003 to ensure sufficient CO2 reductions from European buildings. The primary objective is to incentivise widespread improvement of their energy efficiency. The beauty of this that its criteria apply more to industrially developed nations due to their carbon intensity.

What legislative requirements are covered by EPBD?

The UK governments interpretation of embedding EPBD recognises 3 streams of certification, required by both the private and public sectors:

  • DECs (Display Energy Certificates) – required by publicly-owned or funded buildings on an annual or ten yearly basis
  • TM44 / Air Conditioning Inspections – required for all buildings with installed comfort cooling
  • EPCs (Energy Performance Certificates) – required for both domestic and non-domestic new builds, majorly refurbished, sold or let out. The certificates are valid for 10 years from issue and underpin the MEES standard, whereby a building cannot be sold or let with an energy rating below E.

power lines at sunsentBuilding better

As lockdown restrictions ease, and the ‘Build Back Better’ initiative gains momentum, compliance with EPBD will only become more relevant.

The most recent recast of EPBD, in 2010, focuses on new builds and major renovations thereby adopting a long term view of the situation.

EPBD also protects consumers, it requires disclosure of efficiency measures within a property to buyers, to inform them of running costs.

The requirement led to the widespread introduction of Energy Performance Certificates (EPC), one of the major successes of EPBD to date. First introduced in 2007, the UK national database now contains energy performance information on a staggering 40% of homes.

Last year marked the EPBD deadline for all member states to have NZEBs – or Nearly Zero Energy Buildings. The criteria for an NZEB is simply that it has a very high energy performance, made possible by quality insulation and on-site renewable generation.

Since Zero Carbon Homes was scrapped in 2016, EPBD is one of the few legislations that targets the energy performance of buildings.

The fervour in reaching net-zero means that this legislation is here to stay and so firms should be asking how they could ensure they are taking part.

Upgrading for EPBD

Improving the energy performance of a structure needn’t be a complex process, however, it must be an informed one.

EIC’s approach to structural efficiency is twofold, assessing pre-existing assets using integrated metering and monitoring technology. Next, EIC adopts an end-to-end approach, carrying out initial certification, devising and implementing improvements. Finally undertaking a certificate review to demonstrate progress.

Depending on site limitations, EIC can consult on the installation of on-site generation, with a particular focus on solar generation. Thereby lessening a structure’s energy consumption, lowering your utility bills and improving its overall energy profile. View full details of these services, as well as testimonials from past clients.

Summer Economic Update

EIC explores Rishi Sunak’s Summer Economic Update and what it means for businesses looking to gain a head start in the green revolution in the UK’s future.

A brave new world

The build back better campaign received a large, public endorsement from Chancellor of the Exchequer Rishi Sunak this week, who pledged in the Summer Economic Update that £3bn would be committed to the new green economy. While this is only a drop in the proverbial bucket of the £160bn Covid-19 recovery package, it has been met with great enthusiasm from both business leaders and the public.

An E.on survey conducted earlier this year, polling 500 UK-based business leaders, demonstrated that 72% felt that the pandemic has given them cause to re-evaluate their organisations priorities regarding the environment.

During the announcement, the Chancellor revealed the two major fields of improvement to be energy efficiency in public structures and a £2bn Green Homes Grant for those not in social housing. The remaining £1bn will be invested in improving the carbon usage and profile of public sector buildings through measures including double or triple glazing and smart energy meters.

“Improving the energy efficiency of buildings is crucial for reducing our emissions…. this announcement of £3bn is a welcome first step… This funding needs to be part of a comprehensive plan to improve the whole of the UK’s building stock, creating tens of thousands of jobs for the long term, not here-today-gone-tomorrow.”

UKGBC chief executive Julie Hirigoyen

Sunak also announced that £50m worth of funding would be used to support trials into early-stage energy efficiency and flexibility technology for the UK’s least efficient sectors.

The majority of respondents to E.on’s survey believe that the primary responsibility for the UK’s green revolution lies with business leaders, and the UK public, it seems, agrees.

Dancing in the dark

One of the unforeseen gifts of the pandemic has been a heightened awareness both of our potential effects on each other within our society but also the affect that our species is having on the planet. It is no secret that human behaviour is partially responsible for large-scale disease outbreaks and as a result, consumers are becoming ever more cautious about which companies to whom they declare allegiance.

The Capgemini Research Institute has also conducted a recent survey that showed almost 70% of respondents are concerned the effect that their spending habits are having on the natural world. The institute also reports that 80% have altered spending habits in the last year in response to social and environmental issues.

However, while there is clearly a market trend developing in favour of sustainable business practices, ‘greenwashing’ and a lack of transparency threaten to shake consumer trust on a mass scale. Six in ten business leaders consider their clients to be well informed of their sustainability efforts but over half of consumers have stated difficulty in confirming corporate sustainability claims.

“…when baked into an organization’s mission and purpose, sustainability has the potential to entirely change an organization’s relationship with its customers and partners… As businesses focus on transformation in the wake of the pandemic, they should put sustainability at the heart of their efforts.”

Capgemini’s VP for consumer goods and retail Kees Jacobs said.

Getting a head start

Legislation will be one of the major lynchpins in the UK’s approach to a green economic recovery, however clearly signposted legislation could also help to bolster consumer trust.

SECR stands as not only an ethical benchmark for firms that are invested in a cleaner economy, but also a declaration of intent to consumers. Compliance to such legislation demonstrates to consumers that emissions reductions is a company-wide objective and therefore representative of your brand as a whole.

The palatability of SECR is also a major benefit, while it is a complex piece of legislation; the objective is simple and easily explained to non-energy professionals. Employment of the strategies necessary to ensure compliance, be they energy efficiency measures, supply chain reorganisation or on-site generation raises a green flag to would-be clients.

Fortunately, each of these listed strategies is covered under EIC’s carbon management team, who are able to utilise over four decades of experience to create a bespoke carbon strategy for your firm. The EIC services page contains full details of its compliance offering.

 

 

 

Pause for thought: CCA extension consultation closes

Following the closure of the government’s consultation on reforms and an extension to the Climate Change Agreements (CCA) scheme on Thursday, EIC explores the success of the scheme so far and the opportunity that this extension presents to business leaders.

Laying a foundation

During the Spring Budget announcement, Chancellor Sunak made it clear that while the economy would be strained during and after lockdown, its recovery could not come at the expense of UK climate goals.

Little over a month after the budget announcement, the Department for Business, Energy and Industrial Strategy (BEIS) proposed an extension to the Climate Change Agreements (CCA) scheme.

No doubt, this move was designed to engage with businesses that already fit the criteria of the scheme but were unable to join it previously and in doing so allow them to benefit from the reduced CCL cost and the environment to benefit from reduced carbon emissions.

2017 saw the Government aim its sights at a 20% improvement in commercial and industrial energy efficiency by 2030, this goal has informed the consultation with that target being upheld in regards to the extension.

The popularity and effectiveness of the scheme are undeniable, with recent analyses demonstrating that 80-100% of businesses were participating in most eligible sectors.

A consensus of this magnitude inspires hope for the UK’s climate goals, given that, of the UK’s total greenhouse gas emissions, 25% are business-driven. An evaluation for the 2017 Clean Growth Strategy also showed that up to 22m tonnes of CO2 could be saved through investments in energy efficiency technology.

looking through a gate and seeing horsesAn open forum

The BEIS has made clear that facilities that do meet the current criteria would now be able to join the scheme for the first time since its initial closure in October 2018.

The Target Period being proposed, in addition to remaining in line with periods 1-4 of the scheme (running from the 1st January 2021 until 31st December 2022), will be supported by a variation of the certification period. Initially planned to end in March 2023, it would be pushed back to June of the same year to allow participants to gain certification for CCL discounts between April and June 2023. The added certification period, for which facilities will only be certified having met obligations in Target Period 5, will begin on 1 July 2023 and end on 31 March 2025.

The CCA’s closing in 2018 had shut out new entrants to the scheme; however, businesses fitting the eligibility now have an opportunity to recoup up to 92% on electricity and 83% on gas CCL charges.

Applications to the CCA can be long-winded and complex, however, the return on an initial investment of time is huge. Especially considering that an average energy-intensive business the added certification period, for which facilities will only be certified having met obligations in Target Period 5, will begin on 1 July 2023 and end on 31 March 2025.

Based on these figures, the opportunity presented by Sunak and the BEIS has the potential to dramatically change the landscape of the UK energy industry post-COVID-19. Alongside legislation like ESOS, MEES and SECR, the CCA calls for expertise rather than direct action. EIC oversees the entire CCA application process and subsequent management of the service following approval of the application. We will be able to show the fiscal savings based on individual business’s energy consumption and ROI against our typical fees.

EIC offers a comprehensive range of compliance services as well as ancillary strategies that can help improve your carbon profile while reducing utility costs.

 

Here comes the Sun

EIC explores the benefits and future of on-site solar generation for businesses, how COVID-19 has highlighted and bolstered the strengths of solar power and how EIC can help businesses engage with the technology.

The wild blue yonder

Lockdown, while effective, has been a source of ongoing financial and emotional strain for many in the UK and businesses are no exception. However, there have been a number of benefits to this economic slowing that perhaps are going overlooked.

Chiefly, air pollution, in proportion with industrial energy demand, has dropped significantly. Combined with the severe oversupply of Oil and faltering resilience of fossil fuels generally, this has given solar generation the opportunity to enjoy a moment in the sun. 

However, solar is not a recent arrival to the energy scene, existing theoretically since at least 1839 thanks to French scientist Edmund Bacquerel. Bacquerel’s work was groundbreaking because it was the first time that solid material with no moving parts had been used to convert sunlight directly into electrical energy.

A guiding light

Since 1839, we’ve come a long way and furthest perhaps in the last five years, during which time the costs of solar have halved while storage options have improved consistently with the introduction of graphene and vanadium technology.

The conditions of lockdown have demonstrated that renewable energy sources are likely to be the most resilient to the supply chain disruptions that a major crisis can create. 

In fact, EU solar generation jumped by 28% year-on-year, between March 28th and April 26th of this year compared to 2019, breaking generation records while doing so. 

Energy security is a basic necessity for the survival of any business and, as such, will be a subject of great scrutiny throughout lockdown and in its aftermath. Novel technologies like on-site generation will become more attractive, not only for their resilience but for the savings that their flexibility offers. 

The use of on-site photovoltaics can also improve a company’s carbon profile while providing a measure of protection against supply failure. 

EIC manages around 12TWH each year and with over 40 years industry experience, we are able to create bespoke energy solutions for your needs. We can help you engage with on-site generation, saving you as much as 20% on your energy usage or 40% when combined with on-site battery storage. Better still, in times of plenty, you’ll be able to sell excess energy back to the grid and further offset energy costs. 

Our solutions page contains full details of our on-site generation and storage offerings, as well as further information on the compliance service we provide that can be bolstered by such technology.