Transcript Slide 1

Procurement and Operations Practitioner’s Forum – Energy
7th March
Manchester Civil Justice Centre
The roles of procurement and
operations in achieving the SOGE
targets
John Cole – Defra
Richard Fountain – DWP
The task ahead…
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What are we trying to achieve?
SOGE targets & mandates;
Policy initiatives;
Support available;
Case studies;
The task today.
What are we trying to achieve?
1.
Ambition to be recognised among the EU leaders in Sustainable Procurement
by 2009;
2.
A low-carbon more resource efficient public sector;
3.
Government Departments visibly ‘walking the talk’;
4.
Ensure public sector purchasing power is used to achieve market
transformation, c. £130B, 10% GDP!
5.
Deliver SOGE targets & mandates.
UK Government Sustainable Procurement Action Plan
designed to support delivery of these goals
underpinned by
Local Gov.
Sustainable
Procurement
Action Plan
Health
Sustainable
Procurement
Action Plan
Energy White
Paper 2007
Waste
Strategy 2007
Water Strategy
2008
Sustainable
Products and
Materials
Strategy
HMT
Transforming
Government
Procurement
SOGE office carbon reduction targets
The Targets
To reduce carbon emissions from offices by 12.5% by 2010-11, relative to
1999/2000 levels;
To reduce carbon emissions from offices by 30% by 2020, relative to 1999/2000
levels.
How are we doing?
•631,000 tonnes carbon (2.3 million tonnes CO2). MOD accounts for 72%;
•Some progress; 4% reduction against 1999/2000 baseline;
•22% increase without MOD;
•Off-track; SDC: “Carbon and energy continue to be poor performing target areas for
most departments”.
Reduction required between 2007/08 and 2010/11 to meet carbon
emissions target 2010/11 (ranked by scale of emissions from left to right)
72% of Government office Estate emissions come from the MoD
20% per cent of Government office Estate emissions come from DWP, HMRC & DCA combined
15 departments with the lowest emissions account for 8% of the total each less than 1.5% of total
70%
60%
50%
40%
30%
20%
The three main carbon emitting civil departments require a reduction of between 25% to 30% to meet
target; Government Office estate as a whole requires an 8% reduction to meet target. Source:
provisional 2006/07 data for the office estate, BRE. Weather-adjusted. Includes illustrative baseline
adjustment for transfer of magistrates’ courts to DCA. Excludes MoD PJHQ. Lead departments shown by bold
outline.
ECGD
F Comm
FSA
DfID
DCMS
HMT
DoH
Cabinet Office
ONS
DfES
Law Office Dept
FCO
Defra
DTI
DfT
Home Office
DCA
Communities
-20%
HMRC (1)
-10%
DWP
0%
MoD
10%
SOGE energy efficiency targets
The Targets
To increase energy efficiency per m² by 15% by 2010, relative to 1999/2000 levels;
To increase energy efficiency per m² by 30% by 2020, relative to 1999/2000 levels.
How are we doing?
•Excellent progress;
•Over 21% improvement against 1999/2000 baseline;
•Overall energy efficiency for the civil estate without MOD over 3% increase in energy use
per m2.
Existing renewables targets
The Targets
To source at least 10% of electricity from renewables (31 March 2008);
To source at least 15% of electricity from Combined Heat and Power (2010).
How are we doing?
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Renewables good progress:
Current data from departments indicates 28% of electricity consumed in 06/07
was provided from renewable sources.
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CHP some progress:
5.7 % of electricity sourced from Combined Heat and Power.
SOGE carbon neutrality target
The Target
1. Central Government’s office estate to be carbon neutral by 2012
How are we doing?
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Will not be reported on until 2012;
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Departmental focus should remain on carbon reduction targets;
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SDC recommend Government produce guidance to help Departments
comply – this is now happening, Defra leading, with a first draft to be
sent to OGD’s for comment by end of March.
7TH SDiG Report 18 March & the Government Response
Cabinet Secretary Sir Gus O’Donnell has set up a
working group of senior officials to examine how
performance against the Sustainable Operations
Government Estate’s (SOGE) target can be improved.
This group will report shortly and is currently looking to
propose a much stronger role for the Office of
Government Commerce - making them accountable for
the delivery of the SOGE targets.
Major Policy initiatives
Climate Change Bill puts into statute the UK’s targets to reduce carbon dioxide
emissions through domestic and international action by 60% by 2050 and 26-32%
by 2020, against a 1990 baseline. Binding public sector targets are likely to be
established.
Energy End Use and Energy Services Directive Article 5 requires the public
sector to fulfil an exemplary role in the context of the Directive. It must introduce
cost effective energy efficiency measures focusing on the greatest improvements in
the shortest time e.g. reporting on energy efficiency goods.
Display Energy Certificates (DECs) will be required in most public buildings to
show the actual energy usage of a building.
Carbon Reduction Commitment (CRC) is a domestic cap and trade scheme
requiring the up front purchase of emission allowances, with revenues recycled
back to particpiants depending on position in a league table. Will appy to
Departments.
Other initiatives which will improve carbon
performance
•Estate rationalisation;
•Construction etc. BREEAM, CLG Strategy;
•Minimum standards for products (“quick wins”) aka “Buy sustainable”;
• CO Green IT Summer 2008;
•Calculating carbon footprints to identify emissions & prioritise actions;
•OGC Projects – xGovernment Collaborative Procurement: ICT, energy &
metering (AMR);
•Forward Commitment Programme for ultra low energy office lighting
using LEDs.
What support is available?
• Carbon Trust Carbon Management Programme;
• Salix Finance interest free loans;
• Low Carbon Buildings Programme;
• Bio-energy capital grants;
• Proposed Centre of Excellence for Sustainable
Procurement (& Ops);
• Carbon Trust Guidance (existing and new) &
SOGE Target Explanatory note.
There are many success stories in need of further
promotion…
• DWP estimating10% energy
reduction in 07/08;
• Alnwick ‘carbon-neutral’
Government office;
• Defra use of voltage optimisation
technology reducing electricity
use by 15%;
• Installation of photo-voltaics and
LEDs in BERR premises;
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Defra’s office in Alnwick, Northumberland, which will replace
its existing Lion House offices. A carbon neutral building with
a BREEAM Excellent rating.
And many more examples from across public sector…
…Procurement Cupboard
• Material now uploaded from CO,
CPS, Defra, DWP, MOD,
DCMS, DCLG and LG;
• Practitioner’ Forum material –
Proposed EMS National
Conference Thursday 10th July
2008;
• Presentations, Green Pages,
Contact list, ToRs etc
http://www.procurementcupboard.org/
Buy Sustainable – the new “Quick Wins”
• “Quick Wins” currently comprise the minimum environmental
specifications for a wide range of 54 commonly purchased products.
Originally based on energy using products – they were expanded to
include products such as paper and clothing
• Poor awareness and accessibility have meant that many procurers
are unaware and not using these specifications even though they are
mandatory
•We are reviewing and updating the list to ensure that product
specifications are at the market average for that particular products.
All minimum specifications are based on robust evidence as
compiled by the Market Transformation Programme and in many
cases include a market evaluation.
Log into the Procurement Cupboard and send your
comments please…
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Buy Sustainable aims to introduce best practice specifications that are
more stretching than the minimum for those that wish to purchase the “best
in class” products in a certain area. These will eventually become the
minimum over different time period depending on the product or product
group.
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We’d like to pilot the new approach with you. Please give as much
feedback as possible:
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What do you think of the specifications?
Can you understand the language? Is it too technical?
How accessible is the format?
How should products be organised – i.e. categories – if so which ones?
Where would you expect the document to be hosted?
[email protected]
Task for today
• Bring together procurement and operations (with
common aim of meeting SOGE targets);
• Practical - not theoretical;
• Explore how can work together to reduce carbon;
• Facilitated discussion;
– Identify new ideas, and re-invigorate some old ones;
– Consider priorities;
– Develop initial ideas for implementation of priorities.