The journey to and benefits of Scope 3 emissions reporting

Last year saw many businesses contending with the challenges of SECR (Streamlined Energy and Carbon Reporting) for the first time. 2021 does not promise any respite however and Scope 3 emissions remain a contentious issue.

What are the scopes?

Reporting on Scope 1 and 2 emissions is mandatory for many organisations. Any ‘large’ company must report if they meet the following criteria:

  • 250+ employees
  • Turnover more than £36m
  • Balance sheets totalling over £18m

As well as reporting the emissions themselves, organisations must show the steps they have taken to reduce emissions over the course of the financial year.

The key distinction between Scope 1, 2 and 3 emissions is how directly they relate to your business operations. Scopes 1 and 2 concern direct emissions made by your organisation. Scope 3 takes a holistic view of business operations, including your supply chain, and how embedded carbon emissions can be reduced throughout it.

Firms have typically avoided reporting on Scope 3 emissions unless required to do so. Yet, they are missing out on a range of benefits afforded by going the extra mile in their carbon reporting.

 

End-to-end control

Conducting a robust analysis of your supply chain’s carbon emissions can provide insights that would otherwise be unavailable. Such as GHG (Greenhouse Gas) emissions and cost reduction opportunities that exist outside of the organisation.

Generally, sources of Scope 3 emissions provide support to your business without existing directly under your control, however, there are a couple of exceptions.

Scope 3 emissions can include:

  • Business travel
  • Employee commuting
  • Investments
  • Leased assets and franchises
  • Purchased goods and services
  • Transportation and distribution
  • Use of sold products
  • Waste disposal

While many of these represent elements of a supply chain others can be tackled more immediately. Business travel, commuting, investments, and waste disposal are all subject to the influence of your management team.

Choosing to report means you can engage with sustainability culture across all levels of your organisation. Engagement can include a ride-to-work scheme to encourage greener travel options, divestment from fossil fuels, or taking on a waste disposal contractor that can reduce both your costs and carbon emissions.

Scope 3 emissions matter on the global scale

Thinking globally

After ensuring that your in-house Scope 3 emissions are under control, it is wise to next look to your supply chain and the environmental impact of your business on a global scale.

Despite not being a direct consumer, your firm still possesses the buying power to influence the behaviour of its collaborators and the power to choose who not to collaborate with based on their carbon profile.

In addition, the data you gather in order to report may highlight potential weak points in your supply chain vulnerable to events like pandemics or climate change. Just last year, we saw Brent Crude, the international standard for oil prices, drop to zero. All because of a sudden and unforeseeable fall in demand triggered by the pandemic, and with suppliers losing millions in the process.

Assessing these factors gives you the opportunity to adjust or replace links in the chain to ensure future resilience. Since Rishi Sunak promised that the UK will be a leader in climate risk disclosure, having a strong Scope 3 dataset will help bolster the confidence of future investors.

It is likely that abiding by TCFD (Task Force on Climate-Related Financial Disclosures) regulations will become mandatory for an increasing number of businesses in the future. Securing Scope 3 data now can give you a head start in the process.

Finally, an understanding of your Scope 3 emissions will empower you to choose suppliers whose priorities align with your own brand. Given that 84% of consumers in 2020 stated that being environmentally friendly is important to them, consistency in brand values is becoming more important than ever.

 

How can EIC help?

EIC offers expert guidance on a range of compliance processes including SECR for all emissions scopes, as well as consultative services for carbon management assisting routes to carbon neutrality, energy management, UK ETS, CCA, and ESOS.

We will provide you with a dedicated carbon consultant, annual and bi-annual energy and carbon reports, and we’ll completely oversee both the compliance process and any energy audits and evidence collection required.

Since we view the goal of sustainability completely, we also offer packages of complimentary services like ESOS and SECR to encourage our clients to do the same.

To find out if one of these packages might suit your organisation, and how our compliance services can work for you, get in touch.

4 Types of Carbon Offset Projects

Resource efficiency and sustainability are already integral to a business’s resiliency. All evidence points to carbon offsets becoming the next piece of the puzzle.

Climate-related policy change and litigation are on the rise across the world. It is clear that the involvement of the business sector in reducing global emissions will soon be unavoidable. This means that companies will have to take responsibility for their carbon footprint. Becoming eco-conscious will give a reputational advantage, as well as future security.

There are concerns around carbon offsets being used as a tool for “greenwashing”. This is a term used for a company masking its unethical behaviour with a green veil of traded carbon credits or PPAs. This is a valid concern, and shouldn’t be taken lightly. But as we move further and faster towards a net zero economy, genuine “greenness” will carry more weight.

While there are shades of green when it comes to the carbon market, carbon offsetting projects can facilitate valuable environmental and social projects. The benefits of which can extend above and beyond the initial reduction in carbon.

How do carbon offset projects and credits work?

Every tonne of emissions reduced by an environmental project creates one carbon offset or carbon credit. Companies can invest in these projects directly or buy the carbon credits in order to reduce their own carbon footprints.

Carbon credits are tradeable on the market and can be controversial in how easy they are to attain. However, the concept is the same: a company is more or less investing in a green project in order to balance their own emissions.

 

Four main types of carbon offset projects

Forestry and Conservation

Reforestation and conservation have become very popular offsetting schemes. Credits are created based on either the carbon captured by new trees or the carbon not released through protecting old trees. These projects are based all across the world, from growing forests right here in the UK to replanting mangroves in Madagascar, to “re-wilding” the rainforests of Brazil.

Forestry projects are not the cheapest offset option, but they are often chosen for their many benefits outside of the carbon credits they offer. Protecting eco-systems, wildlife, and social heritage is significant for companies offsetting their carbon emissions for the corporate social responsibility (CSR) element.

There is some grey area in forestry offsetting. In the past, it has been difficult to distinguish just how much carbon is being reduced through forestry projects. Fortunately, thanks to emerging new technologies, methods of sustainable reforestation and calculating the benefits have greatly improved.

Renewable energy

Renewable energy offsets help to build or maintain chiefly solar, wind or hydro sites across the world. By investing in these projects, a company is boosting the amount of renewable energy on the grid, creating jobs, decreasing reliance on fossil fuels, and bolstering the sector’s global growth.

Take, for example, The Bokhol Plant in Senegal. This project is one of the largest of its kind in West Africa, providing 160,000 people with access to renewable energy. It also saves the government $5 million a year and creates jobs in the region. Plus, the profits from selling carbon credits are often fed back into local community projects.

Community projects

Community projects often help to introduce energy-efficient methods or technology to undeveloped communities around the world. There are many potential benefits to these projects that far surpass carbon credits. Projects like this do not only help to make entire regions more sustainable, they can provide empowerment and independence that can lift communities out of poverty. This means that projects that were, at one time, purely philanthropic can now provide organisations with direct benefits like carbon credits.

For example, the female-led Water, Sanitation and Hygiene (WASH) project in Ethiopia provides clean water to communities by fixing and funding long-term maintenance for boreholes. How does this reduce carbon emissions? Families will no longer have to burn firewood to boil water, which will protect local forests, prevent carbon emissions and reduce indoor smoke pollution. In addition to the health and environmental benefits, the project is managed by female-led committees who provide work to local women.

The Darfur Sudan Cookstove Project replaced traditional cooking methods like burning wood and charcoal often inside the home, with low smoke stoves in Darfur, Sudan. This works to reduce the damaging health effects and emissions of indoor smoke, as well as the impacts of deforestation. This project also employs women in the region and helps to empower women and girls who now spend less time collecting firewood and cooking.

Waste to energy

A waste to energy project often involves capturing methane and converting it into electricity. Sometimes this means capturing landfill gas, or in smaller villages, human or agricultural waste. In this way, waste to energy projects can impact communities in the same way efficient stoves or clean water can.

One such project in Vietnam is training locals to build and maintain biogas digesters which turn waste into affordable, clean and sustainable energy. This reduces the methane released into the atmosphere, and helps protect their local forests which would otherwise be depleted through sourcing firewood.

When and why are carbon offsets used?

Energy efficiency, clean energy usage, and sustainable business strategies can be very effective in reducing an organisation’s emissions. But there are various scopes to the greenhouse gas emissions that organisations must consider.

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

Completely eliminating carbon emissions through mitigation methods is not always possible. That’s where carbon offsetting comes in.

How can EIC help reduce your carbon footprint?

It is important to take steps to reduce your carbon footprint as much as possible before considering carbon offsets. Carbon credits should certainly not be used to buy an organisation a clean conscience or create a mirage of sustainability for consumers and/or clients. Carbon offsetting is a valuable tool, and when used to supplement a company’s mitigation efforts, creates a genuinely sustainable and resilient foundation.

At EIC, we offer comprehensive energy and carbon services to help reduce our clients’ carbon footprint in a sustainable way. Our team of experts can help advise on energy efficiency, clean energy solutions, monitoring carbon emissions, and carbon credits.

To learn more about our services contact us at EIC.

Could your organisation benefit from onsite generation?

Access to clean electricity is becoming increasingly important for UK businesses. Onsite generation can provide a source of clean energy, whilst also protecting firms from supply chain disruptions and market changes. We break down the major benefits of generating your own electricity, as well as the advantages it will grant businesses on the road to net zero.

Onsite generation: What do you have to gain?

The immediate boons of onsite generation fall under three categories: energy security, increased flexibility, and a heightened reputation for corporate social responsibility.

Energy security

Energy security can be defined in two ways; the first is the physical security of the resource reaching your business from supply. Fortunately, UK supplies are relatively undisturbed by inclement weather conditions compared with other regions of the world. Despite this, any total loss of energy – no matter how brief – can be costly. This can be avoided by having a safeguard like onsite generation in place.

The second security threat refers more to the commercial landscape than the physical one. Energy wholesale contract prices are subject to change at the best of times. Depending on a variety of factors like peak demand times, supply chain disruption, or, in the case of big oil earlier this year, complete loss of demand.

2018 was a stark example of how sudden and dramatic these price changes can be. In just a six-month period, between March and September, winter electricity contract prices increased by over 40%.

The fact is that the majority of this price hike was due to non-commodity costs like transmission and distribution. These are practically absent when generating onsite, meaning you are less at the mercy of market changes.

Increased flexibility

As with supply security, onsite generation gives you greater control over all aspects of your energy usage. You can scale back your reliance on the grid during high-generation days and, when combined with your own battery storage, even remove your dependence on the grid completely. In a way this gives you the best of both worlds. It removes your attachment to swings in the market but allows you to use the grid as a safety net for low-generation periods.

UK manufacturing has already seen huge gains by combining generation and battery storage technology. A 2018 report from CBS indicated that this sector alone could save over £500m annually by adopting such systems.

Installing your own generation equipment also makes it easier to scale and budget your energy needs as your business grows. Moreover, it improves the value of your business real estate by turning passive roof space into an asset.

Improve your green reputation

Corporate social responsibility is climbing the priorities list of commercial businesses. Onsite energy generation is an excellent way to demonstrate your commitment to reducing your carbon footprint. It also shows your allegiance with a growing section of the energy industry – one that will be centre stage for the global fight against climate change.

Additionally, most UK firms will be required to uphold TCFD standards of reporting the potential risks climate change poses to their functionality. Potential investors will feel confident knowing that you are not only bolstering your own energy supply but actively reducing your contribution to climate change.

Finally, your customers will thank you and new customers will seek you out for reflecting their values. Research conducted in 2020 showed that out of 10,000 global respondents, 50% say they only buy products from brands that ‘try to be eco-friendly’.

Beginning onsite generation and other considerations

At EIC, we provide guidance on the installation and integration of onsite generation into your business model. We recognise the value of such technologies in isolation. However, we also believe that parallel technology working in tandem can release even greater returns for you.

As such, alongside battery storage and onsite generation options we also offer intelligent energy management services. After all, it would be a shame to make savings from your own energy generation and then lose them to inefficiency. To find out more about these services and how they can work for you, get in touch.

TCFD: 4 key points from the recommendations

The Task Force on Climate-related 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.

Energy management: a profitable path to net zero

While the UK may be just barely climbing out of a recession, we remain in the throes of a global pandemic and on the brink of a major political separation. In the broader business environment, it seems uncertainty is the only certainty we have in the coming year. It is, therefore, vital for UK businesses to look inward for opportunities to save and survive. We look at how energy management could provide a clear path to profitability and carbon neutrality, even in hard times.

 

Waste not, want not

David Attenborough has said one thing everyone can do to help save the planet is “don’t waste anything, don’t waste electricity, don’t waste food, don’t waste power”. Unfortunately, this is more difficult than it sounds. Waste is intrinsically wrapped up in the convenience of our daily lives in small but impactful ways.

Thankfully, it’s becoming common knowledge that a wasteful life isn’t a sustainable one, and a wasteful business plan isn’t a profitable one. Since energy is one of an organisation’s largest costs, efficiency is key in building a resilient foundation for the long term success of a company.

Intelligent energy management is a holistic approach to energy optimisation, involving smart metering, identifying inefficiencies and managing energy-saving solutions. At EIC we don’t just find and fix problems, we seek out opportunities that will support sustainable growth.

Data-driven energy optimisation

The energy grid is evolving, and systems will have to adapt as we move towards a flexible energy landscape. Data-driven energy optimisation could be the key to business profitability as well as deep carbon reductions.

Gathering and understanding data through advanced metering provides insight into how energy is being used and possibly wasted. Identifying these areas of inefficiency is essential for finding solutions that reduce consumption and lower costs. This provides businesses with savings they didn’t know were there, a crucial service in uncertain times such as these.

At EIC we offer a range of services that can revolutionise your utilities. From installing sub metering and innovative lighting solutions to our next generation smart building controls. These systems integrate our clients’ critical energy systems in a single, remotely-managed platform. This means businesses can manage their buildings in real-time, saving valuable time, money, and hassle.

How can we achieve net zero through energy optimisation?

As carbon and climate change risk reporting is made mandatory for companies across the UK, reducing carbon emissions will become a top priority. Whilst carbon capture has been a large part of this conversation, energy efficiency cannot be overlooked as a powerful and cost-efficient decarbonisation tool.

“Energy efficiency is not just about saving energy, it’s about tackling economic, environmental and social issues at the same time.” – Harry Verhaar, Philips lighting

If mitigation methods such as energy efficiency were more widely adopted, they could provide stable carbon reductions across the UK. Over time, this would reduce our reliance on fossil fuels as well as future carbon capture and storage efforts. Not to mention carbon offsets and credits which have their varying degrees of ‘greenness’.

This isn’t to say that capturing carbon won’t have a pivotal part to play in decarbonisation. But these methods can’t be solely relied upon as a silver bullet. Especially not when there are mitigation methods that offer businesses sustainable savings and future economic stability.

The whole package

At EIC we offer comprehensive sustainable energy management. Our goal is to completely optimise our clients’ energy usage, going beyond monitoring and finding sustainable, cost-efficient solutions. These services include green energy procurement and exploring decentralised energy options such as onsite solar generation and battery storage.

Generating your own renewable energy supplies in tandem with battery storage can significantly cut your emissions. As well as generate additional revenue through Demand Side Response (DSR) schemes.

We can also help maximise your CO2 savings and simplify the compliance process so that you don’t get tied up in tricky legislation.

“In this next phase of the energy and carbon markets’ evolution, it will be imperative for UK businesses to get ahead of the legislative curve to maintain and drive profitability. This will mean adopting energy management solutions that pair upstream procurement strategies with downstream optimisation and sustainability strategies.” – Luke McPake, Director of Sales at EIC

Transforming your wider energy strategy to encompass not only efficiency but self-sufficiency will become vital in a recovering economy. And reducing waste of any kind will also be vital in protecting a healing planet. Contact us to learn more about how we can help you build a sustainable future for your organisation.

Climate risk disclosure and the new green bond

Earlier this week, Rishi Sunak and the FCA announced that climate risk disclosure would become mandatory for many of the UK’s largest organisations by 2025. As part of the announcement, Sunak also revealed a new green bond designed to stimulate sustainable growth and reinforce Britain’s position as a global green finance centre. We explore what these two developments mean for UK businesses and how best to prepare.

Doubling down

Climate risk disclosure describes a voluntary process whereby large organisations would assess how the effects of global warming could influence their practices and success in the near-midterm future.

The purpose of these disclosures is to better prepare both companies and their investors for unforeseen circumstances due to climate change. On Monday, Rishi Sunak announced a roadmap that would see these disclosures become mandatory for a wide range of organisation types.

This roadmap dictates that the fulfillment of new criteria will arrive gradually over the next five years. The FCA will publish the first set of rules at the end of 2021.

The FCA’s decision most immediately affects financial institutions with a premium listing. It will foster investor confidence as the UK tries to rebuild its economy. Banks, building societies, insurance companies, and occupational pension schemes worth more than £5bn are among the types of organisations affected. They will be expected to provide their reports by late 2022.

The roadmap then stipulates how these requirements will be extended across other sectors leading up to 2025.

The UK is the first G20 country to introduce mandatory climate disclosure and it’s an interesting gambit from the FCA. Obviously, the hope is that investors will recognise the long-term risk of climate change and that the shift will bolster their confidence in UK finance.

If this is the case, the disclosures will advertise the UK as a financing powerhouse despite climate change uncertainties.

“Mandating climate disclosure in alignment with the TCFD recommendations will increase the critical mass of data needed by investors and other stakeholders to accelerate measurement and management of a broad set of environmental issues…”

-Paul Simpson, chief executive of CDP

As climate risk increases, we must prepare to weather the storm

Green funding and future intelligence

Unlike mandatory climate risk disclosure, green bonds are not a new concept. The UK will be following countries like Germany and Sweden in opening this new avenue for green investment.

The bond becomes available in 2021 as a part of the government Covid-19 stimulus package. The announcement came after vocal support from a group of major UK investors. Collectively, the 30 individuals that lent support for a green bond manage over £10 trillion in assets.

Sunak also announced that the UK would deliver a universal framework for determining the sustainability of different economic activities. The intention is to create objective criteria to judge which projects should be deemed appropriate to benefit from the bond.

The takeaway from both these announcements is that the value of data on carbon emissions and usage continues to grow. Current plans for disclosure only include financial institutions. However, the momentum of action on climate change suggests that more and more companies will need to disclose.

Our metering service can help you build interactive reports on energy usage, as well as identify areas for improvement. Our energy management services include procurement expertise as well as guidance on carbon compliance schemes that can maximise the value of any current or future metering technology you may invest in.

Active engagement with your carbon footprint and its reduction demonstrates a commitment to mitigate climate risk to would-be investors. For further information on these services get in touch.

 

 

Carbon Neutral: the newest Climate Change war cry

In 2019 EU leaders endorsed the European Commission’s Green Deal, a strategy through which to achieve climate neutrality by 2050. Since then there’s been a slow but steady rise in legislation around, and investment in, renewable energy, low carbon solutions and, more recently, carbon sequestration and storage. The objective has recently been embraced by other global leaders, with recent 2050 pledges from Japan and South Korea. Even China has announced a net zero commitment by 2060.

We break down what carbon neutral means, why it is crucial in the fight against climate change, and how we can achieve carbon neutrality by 2050.

 

What does carbon neutral mean?

When we hear the word carbon, we often think of something harmful that needs getting rid of, which isn’t entirely accurate. Carbon, after all, is a part of all living things, and there is a natural cycle that balances the carbon emitted with the carbon absorbed by plants and soil.

The problem is that humans have disrupted this balance by emitting more carbon than can be absorbed. Through the use of fossil fuels, the deforestation of rainforests, massive population growth, overfishing, and harmful agricultural developments, we are essentially poisoning our planet.

Carbon neutral means there’s a balance between carbon emissions and absorption, so to achieve this we have to emit less and absorb more. This can be done through the adoption of renewable energy, carbon sequestration, reforestation projects, and regenerative farming practices. This holistic approach to fighting climate change could put us on a path towards a more sustainable future.

What it means for the energy industry

Achieving carbon neutrality will require action from all sectors of the economy, the most important being the energy industry. Energy production and use is currently responsible for 75% of greenhouse gas emissions in the EU. Large-scale policy will play a large part in propelling the necessary transformation across the energy industry in order to cut and even capture carbon emissions. However, it will take action from every sector within the energy industry, from buildings being made more energy efficient to our energy sources themselves.

This will mean more commitments to renewable energy options in the UK, more efficient utility monitoring and management, as well as improved energy storage options. We will have to move towards an integrated, flexible energy system that exploits local resources and reduces our reliance on imported oil and gas. There are also recent advancements in carbon sequestration and storage that can be joined with energy generation itself which can make zero or low carbon energy options carbon negative.

As with any sector, change in the energy industry requires action on the parts of everyone who produces, invests in, or consumes energy. Every building and organisation can make a difference, and EIC can help.

 

How EIC is working towards Carbon Neutral

Major changes have to be made in every sector of the economy, from the food we grow to the way we travel. We at EIC are doing everything we can to support the changes needed within the energy industry. By helping organisations monitor and reduce their carbon footprints, navigating tricky compliance legislation, and advising on green energy procurement options, we are simplifying sustainability for businesses.

Public Sector Decarbonisation Scheme: Time running out

The launch of the Public Sector Decarbonisation Scheme last week presents an opportunity for public sector organisations to reduce their emissions using government funding. Organisations should begin formulating applications now to have the best chance of being funded.

Subsidising Energy Efficiency

Salix Finance is backing the scheme and it combines two major funds. First, the Capital Grant Scheme (CGS) aims to support heat and electricity decarbonisation efforts in certain public sector buildings. The second will help create thousands of jobs within the green development sector.

Under the CGS, public sector bodies can apply for financing for up to 100% of the costs of capital energy-saving projects fitting certain criteria. The criteria are split into four categories, which, in tandem, take a holistic view of decarbonising building heating.

This scheme will act as a non-domestic version of the Green Homes Grant, helping to address the carbon footprint of heating in UK commerce and public bodies.

Since applications to the fund will be subject to Salix’ discretion, organisations must have a robust understanding of their current energy expenses as well as accurate means to estimate the savings they stand to make.

The technologies supported by CGS are all focused on driving down the CO2 emitted in building heating. Naturally, low-carbon heating solutions like heat pumps and heat networks are deemed eligible.

Technology able to reduce heat demand or offset energy from the National grid also qualifies. Solar PV, battery storage, and metering systems fall under this category.

Window closing fast

Organisations can use this fund to subsidise the cost of external support for decarbonisation projects in a variety of ways. This includes the employment of technical expertise in putting together applications for the fund, support for project delivery, and guidance on creating a long-term decarbonisation plan.

However, applications must be submitted by the 11th of January and any planned projects delivered by the end of March 2021. Organisations should take this timeline into account when considering the scale of any project they wish to undertake.

Four months is a considerably small window for an infrastructural overhaul. That means organisations with a decarbonisation framework already in place will have a head start over those that don’t.

However, that is all moot unless applications are in before the deadline in just over ten weeks’ time. It is important to note that the scheme has been open since September 30th and that there is no ceiling on how much of the fund individual projects can apply for.

£1bn might sound like a lot, but it is still finite and approvals are on a first-come, first-served basis.

Organisations are already in a race against time and will want to start approaching sustainability specialists as soon as possible.

At EIC, our 360° Strategic Review offers a variety of channels through which you can boost your decarbonisation efforts. Key amongst these is a focus on implementing appropriate infrastructure for your organisation. A comprehensive solution that includes sub-metering, lighting solutions, on-site solar generation and CHP.

For further information on how we can support your decarbonisation journey, contact us.