Comment

30.04.18

Energy efficiency: not just a matter of more money

Source: PSE April/May 2018

David Reilly, head of cities & regions at the Carbon Trust, reports on the findings from this year’s Low Carbon Cities Conference.

Each year, in advance of the Carbon Trust’s Low Carbon Cities Conference, we reach out to delegates asking them about their current progress on sustainability, the commitments they have made, and the challenges they are facing. Thanks to over 100 responses from this year’s event, we have a very useful snapshot of the state of public sector sustainability in the UK today.

One of the most important findings is that we are seeing a significant climate leadership gap. Although 90% of respondents believe that the public sector will need to play a very important role in meeting international ambitions on climate change, just a quarter of their organisations have actually committed to take action and align themselves with the Paris Agreement.

Of the many barriers to action we explored, the most commonly cited was a perceived lack of available budget or finance. Organisations claim that they are unable to find the money to pay for beneficial projects that will cut carbon emissions. What this tells us is not that there isn’t enough money – it’s that many people are unaware of where to look or how to get their hands on it. There are plenty of options out there.

For example, more than 1,800 public sector bodies across the UK have already made use of the interest-free loans and financing through Salix Finance, which can pay for the installation of over 120 types of technology. Higher Education institutions have also accessed over £90m since HEFCE set up its Revolving Green Fund. And in England and Wales, 139 local authorities have already received subsidised project development support from the Heat Networks Delivery Unit at BEIS, and this year will see the launch of the government’s £320m Heat Networks Investment Project.

This money is made available because investments into cutting carbon emissions often make good business sense – borrowing to save on overheads frees up much-needed budget to pay for frontline services.

Even where grants or interest-free finance are not available, the public sector can still borrow at very attractive rates. There is also a huge amount of interest in green bonds, with city issuances becoming increasingly common and institutional investors eager for long-term, secure, sustainable returns. And the market for energy performance contracts is really starting to take off in the UK.

Of course, there is still good progress being made in taking action, even despite challenges. Over half the delegates we surveyed claimed that their organisation has improved performance on climate change and environmental sustainability when compared to the previous year.

The problem seems to be one of ambition and scale. It’s still only two-thirds of respondents that claim that their organisation has a proper plan in place to take action on the environment. There is also an apparent skills gap, with 46% stating that having stronger internal expertise would help them take more effective action.

There appears to be an expectation that central government should do more of the heavy lifting, with 68% calling for stronger leadership from Whitehall and the devolved administrations. And while this is always very welcome, stronger leadership needs to go both ways.

Speaking at our Low Carbon Cities Conference, the energy and clean growth minister, Claire Perry, provided a different perspective. She insisted that central government will rely on local leadership, which will need to play a key delivery role in implementing the government’s Industrial Strategy and Clean Growth Strategy.

As she – quite correctly – pointed out, public sector leaders know their areas as well as anyone. They know the local building stock, transport needs, and where clusters of energy demand exist. They know the skills that can be found within local businesses, colleges and universities to help drive low-carbon economic development. They know what will and will not work in their areas.

Getting the money is just one element in transitioning the UK to a sustainable, low-carbon economy. It is important, but equally as important is going to be leaders within public sector organisations stepping up, taking responsibility and making things happen. Bold action will help to create a platform for a secure, sustainable, and successful future for Britain.

 

FOR MORE INFORMATION
W: www.carbontrust.com

Comments

There are no comments. Why not be the first?

Add your comment

related

public sector executive tv

more videos >

latest public sector news

Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

19/08/2020Leeds’ Clean Air Zone Plans Suspended for the foreseeable future

Leeds City Council have today (August 19) announced that their plans for a Clean Air Zone within the city may not have to go ahead due to lower e... more >
Colleges set to receive £200m in Funding

19/08/2020Colleges set to receive £200m in Funding

Over 180 colleges are set to receive a share of £200m, in order to repair and refurbish buildings and campuses. The funding makes up p... more >
UK climate change projects to receive £14m funding

18/08/2020UK climate change projects to receive £14m funding

The National Lottery Community Fund has announced the first 14 grants from the Climate Action Fund going to communities across the UK to tackle c... more >

the raven's daily blog

Cleaner, greener, safer media: Increased ROI, decreased carbon

23/06/2020Cleaner, greener, safer media: Increased ROI, decreased carbon

Evolution is crucial in any business and Public Sector Executive is no different. Long before Covid-19 even became a thought in the back of our minds, the team at PSE were looking at innovative ways to deliver its content to our audience in a more dynamic and responsive manner. We’re conscious to take the time to both prot... more >
read more blog posts from 'the raven' >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been th... more > more last word articles >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

public sector focus

LGA: ‘Air pollution is a major public health issue’

17/08/2020LGA: ‘Air pollution is a major public health issue’

The Local Government Association (LGA) has ca... more >
Automating back-office processes for local authorities

29/07/2020Automating back-office processes for local authorities

Words provided by Cantium Business Solutions,... more >