Sustainable energy procurement: myths and legends

1. Sustainable energy procurement: myths and legends Shaun McCarthyFounder/Director, Action Sustainability

2. Sustainable Energy Procurement Myths & Legends

3. Offshore wind-the new North Sea oil Maria McCafferyChief Executive, BWEA

4. Shaun McCarthy

5. What � Sustainability�? �Development that meets the needs of the present without compromising the ability of future generations to meet their own needs� Brundtland Definition This is the best recognised definition of sustainability. It is sometimes also referred to as �living off the earth�s income without spending it�s capital�This is the best recognised definition of sustainability. It is sometimes also referred to as �living off the earth�s income without spending it�s capital�

6. What � Sustainability? Living within environmental limits 1.8 Global hectares per capita 2 Tonnes CO2 per capita per year Living in an equal world Gini coefficient 0.25 to 0.35 Ratio of most advantaged to least advantaged These are two widely recognised macro measures of sustainable development. The purpose of this slide is to help the audience understand that the world has a problem, not to debate the measures in detail. The limits for CO2 were developed out of the Rio Earth Summit and Kyoto process. The Gini coefficient is much older. Gini was an Italian economist who liver over 100 years ago. The process involves dividing the population fo a country up into quintiles and developing an understanding of the resources available to the richest quintile compared to the poorest. A Gini coefficient of zero would indicate perfect equality, a Gini coefficient of 1 means the upper quintile have everything and the rest nothing. Politicians are divided on the �ideal� number but it is generally accepted that a figure between 0.25 and 0.35 correlates well with a well ordered societyThese are two widely recognised macro measures of sustainable development. The purpose of this slide is to help the audience understand that the world has a problem, not to debate the measures in detail. The limits for CO2 were developed out of the Rio Earth Summit and Kyoto process. The Gini coefficient is much older. Gini was an Italian economist who liver over 100 years ago. The process involves dividing the population fo a country up into quintiles and developing an understanding of the resources available to the richest quintile compared to the poorest. A Gini coefficient of zero would indicate perfect equality, a Gini coefficient of 1 means the upper quintile have everything and the rest nothing. Politicians are divided on the �ideal� number but it is generally accepted that a figure between 0.25 and 0.35 correlates well with a well ordered society

7. Inter-Governmental Panel on Climate Change CO2 levels highest for 650,000 years Climate change �unequivocally� happening Global temperature will rise between 1.8oC and 4oC in the next century, worst case 6.4oC In the worst case, Trafalgar Square would be under water These are two widely recognised macro measures of sustainable development. The purpose of this slide is to help the audience understand that the world has a problem, not to debate the measures in detail. The limits for CO2 were developed out of the Rio Earth Summit and Kyoto process. The Gini coefficient is much older. Gini was an Italian economist who liver over 100 years ago. The process involves dividing the population fo a country up into quintiles and developing an understanding of the resources available to the richest quintile compared to the poorest. A Gini coefficient of zero would indicate perfect equality, a Gini coefficient of 1 means the upper quintile have everything and the rest nothing. Politicians are divided on the �ideal� number but it is generally accepted that a figure between 0.25 and 0.35 correlates well with a well ordered societyThese are two widely recognised macro measures of sustainable development. The purpose of this slide is to help the audience understand that the world has a problem, not to debate the measures in detail. The limits for CO2 were developed out of the Rio Earth Summit and Kyoto process. The Gini coefficient is much older. Gini was an Italian economist who liver over 100 years ago. The process involves dividing the population fo a country up into quintiles and developing an understanding of the resources available to the richest quintile compared to the poorest. A Gini coefficient of zero would indicate perfect equality, a Gini coefficient of 1 means the upper quintile have everything and the rest nothing. Politicians are divided on the �ideal� number but it is generally accepted that a figure between 0.25 and 0.35 correlates well with a well ordered society

8. Stern Report

9. Stern Report

10. Stern Report

11. Stern Report

12. The challenge

13. It�s not just about carbon�! Resources If the whole world lived like Western Europe we would need 3 planets resources to sustain life Inequality 25% of London�s Black Caribbean community is unemployed compared to 2.5% of the Indian community 25% of the UK population has a physical or mental disability 3.8M children were living in poverty in the UK in 2005/6 Health UK childhood obesity is increasing at the same rate as the USA, we are breeding a generation that will have a shorter life expectancy than their parents Average male life expectancy in Tower Hamlets is 7 years shorter than Kensington Waste Landfill capacity is likely to be non-existent within 7 years This is the best recognised definition of sustainability. It is sometimes also referred to as �living off the earth�s income without spending it�s capital�This is the best recognised definition of sustainability. It is sometimes also referred to as �living off the earth�s income without spending it�s capital�

14. The challenge � to purchasers This is an extract from the Foreword. It is important in that it sets out the notion that using spending power can do good and move markets. A good example of this was the Sweedish government specifying vehicles that can run on biofuels as well as conventional petrol. This created a significant enough market for the motor industry to respond. There is a good socio-economic benefit too, in that their indigenous manufacturer, Saab, now have a product that is being successfully marketed throughout the word, improving employment and tax revenues. More virtuous cycle thinking.This is an extract from the Foreword. It is important in that it sets out the notion that using spending power can do good and move markets. A good example of this was the Sweedish government specifying vehicles that can run on biofuels as well as conventional petrol. This created a significant enough market for the motor industry to respond. There is a good socio-economic benefit too, in that their indigenous manufacturer, Saab, now have a product that is being successfully marketed throughout the word, improving employment and tax revenues. More virtuous cycle thinking.

15. Myths�

16. Myths�

17. Myths�

18. Myths� How big is theirs�?

19. Myths� How big is his�?

20. Myths� How big is his�? What proportion of global emissions is the UK responsible for? 2% 17% Both None of these It depends

21. Myths�

22. Energy issues Scope Direct (owned) Indirect LAA London CO2 per capita CO2 from all operations Embodied (e.g. construction, Olympics) Other Greenhouse Gasses Refrigerants Methane

23. Forecasting How much energy? At what cost? Energy CCL, EU ETS, future instruments Carbon price

24. Strategy for energy users Options Buy? Invest? Trade? Hedge? Offset? Global? Local? Head in the sand?

25. Myths� This is the most efficient converter of vegetable matter into energy Biofuel not the whole answer But the �Duckweed Energy Company� may help

26. Legends�

27. Legends� Swedish vehicle contract Created a market for bio-ethanol vehicles

28. Legends Zero waste prison mattress Market leading initiative

29. Legends M&S Plan A Vision Leadership Research Marketing led Delivery?

30. Legends� Environment Agency Want to know everything And check it Concerned about plastic membranes in Jiffy Bags (among other things)

31. Legends� Manchester City FC Wind power Biomass CHP Local procurement Except the players �and manager

32. Legends� Premier Farnell 3 clear priorities with plans and measures Responded to jiffy bag challenge No more tungsten bulbs Presentation to a major global manufacturer resulted in objective to double turnover through this distributor Top 10 product hit list

33. Olympic Delivery Agency ODA procurement Forward commitment Did what they said they would Changing the industry: Concrete Timber Recycled materials Embodied energy

34. Policy rant� Too many financial instruments Too much blunt taxation Lack of hypothecation Limited opportunity for community ESCOs Centralised infrastructure Green tariff

35. Thank you for your attention