Investing in a low carbon society Richard Rugg MD, Carbon Trust Programmes November 2013

1. Investing in a low carbon society Richard Rugg MD, Carbon Trust Programmes November 2013

2. The Carbon TrustThe Carbon We are a not for profit group with the mission to accelerate the move to a sustainable, low carbon economy • We advise businesses, governments and the public sector on their opportunities in a low carbon world • We measure and certify the environmental impact of organisations, supply chains and products • We help develop and deploy low carbon technologies and solutions, from energy efficiency to renewable power

3. An increasingly compelling case for action Environmentally, socially and economically

4. We need act to on climate change nowMarch 2013; climate-warming gas in atmosphere passes 400ppm milestone

5. Intergovernmental Panel on Climate Change Confirms global warming trends & that human action is the dominant cause of climate change • The IPCC is an international body created by the UN in 1988 to collect and synthetize the latest science on climate change • Overall, the report represents a confirmation of global warming trends and the expected negative impacts of current emission pathways on the global climate • Scientists are now all but certain that climate change is mostly caused by human action, and that it is already leading to changes in regional weather patterns, with extreme events on the increase

6. Economic growth supports a bigger, healthier, better educated and aspirational population • UN projects world population will grow from 6.1 billion in 2000 to 8.9 billion in 2050 • OECD forecasts that the global middle class will increase by three billion people over the next 20 years • Demand for energy, food, water and materials (such as steel) is expected to increase by 30% to 80% by 2030

7. But stress on energy, water, land and material resources will put new pressures on organisations • Economic impacts driven by scarcity • Resource price increases • Increased price volatility • Environmental impacts driven by use • Increased carbon emissions • Water stress • Land use • Resulting in…. • Reduced security of supply • New regulations

8. Energy prices are rising Electricity & gas costs have nearly doubled over the last seven years Source Castle Cover 2011

9. Investing in a low carbon society What can you do?

10. Investing into a low carbon society5 things you can do….. • Make sure you can articulate the latest business case for investment • Update your financial value at stake analysis • Augment you own internal budgets with external funding • It takes time and effort but material funding is available • Buy only low carbon & demand sustainability from your suppliers • Use available advice and support to get more • Demonstrate the investment case to your employees and community • Educate your community and empower them to follow your lead • Collaborate for biggest impact & actively support community partners • Partnerships and outreach

11. 1.) Make sure you can articulate the latest business case Typical investment returns 40-50% 10-15% 5-10% Source: Carbon Trust analysis

12. Revisiting your financial Value at Stake….

13. 2.) Augment your own budget with external funding • Heat Network Grants • Grants available to develop self-sustaining heat network projects that are already strong enough to attract a range of finance options, including commercial investment. • Local Enterprise Partnership funding • Get involved in your Local Enterprise Partnership – significant ERDF & ESF funding available to lead local low carbon energy efficiency projects • Green Investment Bank • Funding to drive large scale and high impact carbon reduction projects in the public sector

14. Updated Carbon Trust GuidePublic Sector Financing of Low Carbon Programmes

15. 3.) Buy only low carbon & demand sustainability from your suppliers • Government Buying Standards Makes it easier for buyers to buy sustainably by: • Providing minimum and best practice standards for around 50 different products; • Giving you straightforward specifications you can insert directly into tenders; • Asking suppliers to prove their compliance with these standards; • Enabling more suppliers to develop products that meet the standards – so increasing competitiveness. • Energy Technology List • Encourage your suppliers to provide top quartile energy efficiency technologies from DECC’s Energy Technology List • Your suppliers can benefit from tax relief on the technologies they use on their own estate

16. Global businesses are becoming conscious of the resource scarcity risksUse your purchasing power to shape the market Source: Carbon Trust survey of senior executives in Brazil, China, Korea, UK and USA, Oct 2012 Answer to: “When do you think these areas will become of critical importance to you effectively running your business?”

17. 4.) Demonstrate the investment case and give practical advice to your employees, partners and wider community

18. Track organisational and partner engagement But make it personal

19. 5.) Collaborate for biggest impact & actively support community partners • SME outreach • Low Carbon Kent is a Kent County Council SME environmental management programme • Provides structured advice, certification and loans • School partnerships • Solihull Council is helping reduce its schools carbon emissions • Focus on installation of AMR, training , competitions within schools and clearly communicated results • Engaging local developers • Warwick District Council is setting clear policies and targets to developers - 10% energy from onsite renewables for any new developments • But it also providing essential advice, guidance and support…

20. Our mission is to accelerate the move to a sustainable, low carbon economy Keep in touch: • 020 7832 4614 • Richard.Rugg@carbontrust.com