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Carbon Ready Procurement III

C a r b o n R e a d y. Carbon Ready Procurement III. C a r b o n R e a d y. Background. Carbon Ready is working with a number of different organisations to reduce their carbon footprint.

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Carbon Ready Procurement III

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  1. C a r b o n R e a d y Carbon Ready Procurement III

  2. C a r b o n R e a d y Background • Carbon Ready is working with a number of different organisations to reduce their carbon footprint. • Many organisations have calculated their internal/direct carbon footprint but are becoming aware of the external/ indirect emissions arising through the supply chain. • The Carbon Disclosure Project has been highly successful in reporting direct emissions but organisations are struggling to report indirect (‘scope 3’) emissions accurately. • ‘Green’ procurement can help reduce emissions in two ways: • offering goods that have been manufactured, delivered and can be recycled/disposed of with low environmental impact • identifying goods that will reduce emissions in use, this will have a direct affect on costs in terms of energy consumed and associated carbon taxes

  3. C a r b o n R e a d y Key Legislation – the Carbon Reduction Commitment • Mandatory emissions trading scheme focusing on large non-energy intensive organisations: • – minimum electricity consumption of 6000MWh; • equivalent to >~£500k spend • – up to 10,000 organisations (and many more sites) • – minimum cash outflow will be £38,000 in April 2011 • – typical organisations include, universities, local authorities, hotel and retail chains, banks • – excludes those covered by the EU ETS and CCAs, (refineries, power stations, steel mills, etc.) • Organisation based scheme, including direct and indirect emissions • – ultimate UK parent responsible for all subsidiaries emissions; • including electricity and other direct fuel use • Simple and revenue neutral design • – government refer to it as ‘light touch admin’ • – auction style, with proceeds recycled to participants • Roll out • Phase 1: Learning Phase April 2010 – March 2013 • Phase 2: First Capped Period with Auction April 2013 - March 2016

  4. C a r b o n R e a d y Key Dates: 2008 – benchmark year, suppliers monitored how much energy was consumed Up to April 2010 – this is a key time for consumers to ‘get ready’ (inc. purchasing efficient equipment) Then every year: April 2010 – April 2011 – first year of scheme where your consumption will be compared with 2008 April 2011 – consumers pay for allowances for 1st and 2nd year of scheme (~ 20% of energy bill) April 2011 – April 2012 second year of scheme July 2011 – consumers report their carbon footprint to the Environment Agency October 2011 – good performers receive rebate and performance reported in national press repeats until April 2013....then.... Instead of allowances being fixed at £12/tonne a limited number are issued and consumers trade between themselves. Experts predict allowances could hit £90/tonne (equivalent to double the cost of energy at today’s rates), however current EU trading system collapsed after permits were over issued.

  5. C a r b o n R e a d y Calculating cost and footprint of goods These figures are usually given in the technical specification

  6. C a r b o n R e a d y Examples *http://paperless-productivity.org/ecoimpact.htm

  7. C a r b o n R e a d y Developing Useful Carbon Metrics

  8. C a r b o n R e a d y Organisation Specific Data Required • More data will be required to enable users to compare the emissions and costs of their purchasing decisions: • cost per kWh of energy - 10p /kWh • CO2 emissions per kWh of energy – 530g of CO2 per kWh • cost of CO2 emissions (if they are part of the carbon tax schemes, CRC or EU ETS) - £12 per tonne of CO2

  9. C a r b o n R e a d y Automating the Lifecycle Calculations for Buyers

  10. C a r b o n R e a d y Reporting Supply Chain Emissions

  11. C a r b o n R e a d y Summary • Providing carbon and energy data associated with suppliers will: • enable buyers to quickly evaluate the lifecycle costs associated with products and make ‘green’ purchasing decisions rapidly • will enable a more accurate contribution to ‘scope 3’ emission reporting across the supply chain

  12. C a r b o n R e a d y Further thoughts • Although reducing indirect emissions (supply chain) is discretionary large organisations often prefer to buy a low-carbon footprint than change the way they operate • Carbon labelling and information is set to become more commonplace:

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