London and the low carbon economy

Low-Carbon London

Martin Powell

Director of Projects

2

Shaping Cities in a Complex World

Martin PowellDirector of ProjectsSeptember 2009

3

“the bank we can never bail out” • Editorial New Scientist 18 October 2008

Building a Great Global City

• London is a dynamic, exciting city, a hub for business, a magnet for tourists, a stage for international sporting and cultural events and home to a diverse population.

• London speaks over 300 languages and practices 14 different faiths.

5

The London Development Agency

• The LDA aims to improve the quality of life for all Londoners; working to create jobs, develop skills, and promote economic growth.

•

• The LDA invests to deliver the Mayor’s vision for economic development in London: the Economic Development Strategy (EDS). We have three areas of focus:

• Jobs – promoting business growth

• Skills – providing the skills that employers need

• Growth – developing and regeneration of communities

6

Governance and funding

• The London Development Agency (LDA) has an annual budget of £500m per year, and employs around 500 staff

• It is accountable to the Mayor of London

• Performance targets are set in consultation with the Mayor and agreed by the Secretary of State

7

Working relationships

• We work with the 33 London Boroughs, sub-regional partnerships, Government departments and key partners from the voluntary, community, public and private sector.

• The LDA is one of nine English Regional Development Agencies (RDAs) across the UK. We work with RDAs across England to ensure a wider co-operation, so that our regional work achieves a national impact.

8

Climate Change

• Mayoral commitment to address the challenge of climate change, to improve the quality of London’s environment and to reduce London’s environmental footprint:

• A strategic approach to environmental improvements in London presents both a challenge and an opportunity for London’s economy.

• Key opportunities for the LDA include:

• business case for environmentally responsible business practice

• innovation in sustainable design for London

• Investment in public realm improvements

• New business opportunities and supply chain development in environmental innovation and technology

9

London’s Energy Strategy

• “There is still time to avoid the worst impacts of climate change, if we take strong action now.”

• Stern Review, October 2006.

Be lean – use less energy

Be green – use renewable energy

Be clean – supply energy efficiently

The energy hierarchy

10

Ecolo

gic

al F

ootp

rint (g

ha p

er c

ap

ita)

Human Development Index

Developing countries

Developed countries

Ecological Footprint and Human Development Index, 2003

Challenges - eco footprint

11

1 What kind of City

12

The 21st Century

13

Will effect the ways we live

14

Scale

50 % of the worlds population lives in cities

80% of the world’s GHG are emitted by cities

75% of the worlds energy are consumed by cities

source: Clinton Climate Initiative

15

By 2050 80% of the worlds population will be in cities

16

• Cities are thrilling, exciting, creative, liberating, cruel and inhuman

17

What kinds of city do we want

18

Mumbai - 34,000 people per km (sq)

19

London - 4500 people per km (sq)

20

Rising Urban Stars

Budapest

San JoséBangalore

Tallinn

Raleigh-DurhamAustin

Helsinki

Dalian

Suzhou

technology

Chongqing

Santiago

DelhiMumbai

BeijingShanghai

Guangzhou

Xian

Shenzhen

economy

CopenhagenCalgary

Cape TownPorto Alegre

Barcelona

SE Queensland

environment

21

22

23

24

25

2 Shaping our Obelisks

26

Compact City Principles

• Well designed, compact, connected

• Mix of uses

• Integrated with public transport

• Adaptable for change

• Development on brownfield sites

• Growth based on public transport

• Development on a human scale

The London Plan

27

The shaping of our Investment

• LDA as landowner and developer

• Over 70 sustainability standards to be met:

Energy Efficiency

Renewables

Water Use

Flooding and Surface Water

Open Space & Biodiversity

Materials

Waste & Recycling

Inclusive/Disability

Construction Practice

28

Massive New Transport Investment

29

London’s heat load density distribution

(Source: The London Plan)

30

31North West Passage 2007

wh

ere

we

hav

e to

be

by

205

0World CO2 emissions 2002

Ho

ng

Ko

ng

Lon

do

n

NY

Sh

ang

hai

33

• Tight, ambitious targets set by the London Plan

• Exemplar Sustainability Standards to be achieved

• Alignment to Transport Investment

• Head Load densities to be mapped

• Culturally diverse city

• A real urgency

• A long way to go!

• New Thinking

The Shapers for our interventions

34

The Big Obelisks

• Olympics Park

• Green Grid

• Trees

• Great Spaces

• River Use

• Green Enterprise District

• District Heating

• Zero Carbon Scheme

35

3 The Big Obelisks

36

6 July 2005

37

38

5 Olympic Legacy Venues

Legacy thinking from outset:

Strategic Need Business Planning Financial Sustainability Environmental Sustainability Community Use High Performance Use Fully Inclusive

39

Evolution -

2013

40

41

42

43

The memory of the Games?

44

45

46

47

48

50

51

52

54

55

Zero Carbon development

A zero carbon development is one that achieves zero net carbon emissions from energy use on site, on an annual basis.

56

4 Going Green

57

London’s Carbon Footprint

• 8% of total UK CO2 emissions are from London, primarily from the domestic and commercial sectors

• Improving thermal efficiency in London’s existing housing stock = 10% reduction in total CO2 emissions in London, and much greater reduction would come from increased energy efficiency in existing commercial buildings.

0

2006 carbon dioxide emissions from London

5%

34%

14%25%

22%

Source: London Energy and CO2 Emissions Inventory; DEFRA; TfL Policy Unit AnalysisNote: 2006 figures are based on latest available LECI data (for 2003) projected to 2006 based on projections for each sector

Domestic

Commercial

Industrial

Aviation

Ground BasedTransport

Including Aviation

67 mt CO2 (11% of UK emissions)

Excluding Aviation

7%

22%

38%

33%

Domestic

Commercial

Industrial

Ground BasedTransport

44 mt CO2 (8% of UK emissions)

58

London is committed to playing its role

58

London Mayor’s Climate Change

Target

Today 2020 2025 2050

•Reduction in greenhouse gas emissions by 60% below 1990 levels by 2025

UK Climate Change Act (2008)

• Reduction in greenhouse gas emissions by 80% below 1990 levels by 2050.

European 20-20-20 Target (2009)

• Reduction in greenhouse gas emissions by 20% below 1990 levels by 2020

• 20% increase in renewables

• 20% cut in energy consumption

The Mayor is committed to London becoming the greenest city in the world and to a city that becomes a world leader in improving the environment.

59

London has committed to ambitious carbon reduction targets

Profile of national targets and aspirations

Profile of London’s reductions to achieve 450ppm stabilisation

1DECC modelling for CCC. Sources: CCAP (2006) CCC (2008) * Extrapolation based on CCA trend to 2022 for non-residential buildings

Profile of a BAU Projection for non-residential emissions to 20221

1990 20502020

Car

bon

emis

sion

s

26% by 2020 CCA 2008

80% by 2050 CCA 2008

Target for London = 60%

15%20%

Today

2030

Desired national profile

Desired London profileDesired London profile

BAU*

Emissions profiles for an illustrative public sector building

9

10

20

30

40

50

2000 2010 2020 2030 2040 20501990

Carbon Dioxide

Emissions (MtC

O2

)

Profile of national targets and aspirations (against 1990)

Today

45.1m 44.3m

15%20%

25%

30%

60%(vs 2000)

Required CO2 reductions

Target for London = 60%

10 year target (2016)= 20%

Proposed London reductions to achieve 450ppm stabilisation

600 million tonnes CO2 to

2025

60

Action at all levels

1. Our procurement

2. Broader programmes

3. Planning framework

4. Influencing

61

London Green Fund

Influencing national policy / stakeholder management / communications

Olympic Fringe

Energy Efficiency Energy Supply Waste Transport Low Carbon Economy

Adaptation

Homes Energy Efficiency

Programme

Better Buildings Partnership

Building Energy Efficiency

Programme

Low Carbon Zones

Green500

Green Enterprise

District

Retrofit Academy

London Transport Strategy

Autumn 2009London Cycle

Hire Scheme & Cycle

SuperhighwaysLow Carbon

Buses

Electric Vehicle Delivery Plan

London Mayoral Strategies

London Waste Strategies(municipal &

bsuiness

LDA Owned Energy Supply

Projects

Crystal Palace CHP

London Thames

Gateway Heat Network

Royal Albert Basin

Energy Master Planning

London Waste and Recycling

Board

Park Royal Partnership

London Plan (Autumn 2009)

Economic Development

Strategy

Green Jobs & Skills

Low Carbon Economy Action

Plan

Low Carbon GLA Fleet

Legible London

Traffic flow smoothing

Underground, overground & DLR energy efficiency

LDA Contribution to Energy Supply

Projects

The climate change programmes

Str

ate

gy

Delivery

Climate change, mitigation and

energy strategy

61

62

Why do we need to retrofit

• The commercial and public sector is a significant contributor to London’s carbon dioxide emissions – mostly from heating and lighting

Commercial and public sector

Ground based transport

Domestic

Industrial

GLA (2006 & 2007)

36% Heating

26% lighting

11% catering

7% hot water

6% cooling

4% computing/IT

10% other

38%33%

22%7% Public sector: Health 23%, Education 47%, Offices 30%

London emissions all sectors: 44.3m CO2 (t)

Commercial and public sector: 18m CO2 (t)

63

Homes Energy Efficiency Programme

• Two parallel streams: building up market using housing funds and LDA (next 1-2 years); launch new, large-scale, financed model (next 2-3 years)

• Intensive joint working with London Councils/ boroughs on business case. Build on experience with schemes in london

• £1b could treat nearly 1.8m homes and deliver 3mt of CO2 savings p.a.

• 2,000+ jobs creation potential; “Retrofit Academy”

• 1000 homes trialling “10 easy measures”; Autumn 5x1000 homes demonstrating business model; 2010/11 50-200,0000 homes demonstrate financed model

64

Building Energy Efficiency Programme?

• It is a cost neutral means to reduce energy bills and carbon footprint of your buildings

• Energy service companies (ESCOs) guarantee a set level of energy savings - therefore financial saving - over a period of years

• This guarantees a future income stream to fund investment in improvements

Insulation Building management technologies

Cooling equipmentLow carbon heating

• If all municipal buildings, schools, universities and hospitals were retrofitted, could save 1m tonnes CO2 and represents 2% of London’s CO2 emissions

65

BEEP

• GLA Building Energy Efficiency Programme

• ESCO performance contracting model

• Revolving fund

• 25% CO2 reduction, £1m savings/year

• Available to other public sector bodies by end 2009• Financing aims to remove up-front capital cost

66

Green500

• Unique combination of carbon management service plus performance based annual awards

• Focus is on continuous, practical improvement in the carbon footprint of the organisation (not goods/ services supplied)

• Set a target, agree a plan, implement the plan, annual assessment

67

Better Buildings Partnership

• Comprising major commercial property owners

• Commits members to remove existing barriers

• Leases

• Agents

• Valuation

• Carbon benchmarks for all members on their London portfolios

• Annual public awards by the Mayor for reaching the agreed benchmark

68

Energy supply

Conversion of existing building stock to CHP / district heating

• Installing or upgrading CHP units located within major hospitals and university campuses, and

• Connecting districting heating networks serving the local community to these CHP unit

• There are 37 NHS Acute Trusts and Foundation Trusts in London, and 21 major universities. Assuming:

– if 50% of these schemes are implemented,

– a C02 saving of up to 232,000 tonnes p.a. may be possible

• Potential schemes are likely to be primarily located in the high heat load density areas of central London

London’s heat load density distribution

(Source: The London Plan)

69

Decentralised energy

• Targeting 25% of London’s energy supply from DE by 2025

• Includes Barking power station CHP (renamed Thames Gateway Heat Network), aiming for first heat delivery in 2011

• Three new areas of focus through LDA Decentralised Energy Delivery Team

London-wide energy masterplanning (2-year programme)

Technical and commercial centre of excellence including borough ‘SWAT team’

Part-financing for specific projects

• Low Carbon Zones – prospectus launched May 2009, winning zones announced Autumn 2009

70

Fuel-poverty needs to be addressed

Levels of Fuel-poverty* in London Boroughs, 2008

71

Energy Master Plan for London

72

Waste

• £2b of £12b London’s energy consumption could be delivered through energy from waste

• 3-year, £84m London Waste and Recycling Board fund-142 bids ranging from £5k to £10m; first disbursements expected September 2009

73

Transport

• Bike hire scheme May 2010; 12 ‘cycling superhighways’ by 2012

• Full hybrid conversion of 8,000 vehicle bus fleet

• LED traffic light conversion underway; street lights?

• Securitising Underground electricity use?

• Electric Vehicle Delivery Plan launched June 2009

• Own fleet: Delivery Plan Autumn 2009, start procurement early 2010 (1,000+ ultra low carbon vehicles)

• International EV procurement initiative with Clinton Foundation

74

Local environment

• 10,000 new street trees

• Air quality action plan by Summer

• Range of urban realm improvements (Exhibition Road, shared space, etc)

• 10% increase in central London green space would stabilise temperatures over the next century

• New London Plan including Green Grid extension, green roofs, further protection for green space

75

Low-carbon economy

• Conservatively 10-15,000 jobs potential; £600m gross value added per annum – most jobs from retrofit

• London USP: financial & business services, academic institutes, VC/cleantech funds

• Opportunities created by Olympics include Olympic Legacy Plan, Green Enterprise District in Thames Gateway

• £100m+ ringfenced for climate change/energy programmes (next 3 years)

• Overarching public/private ‘London Green Fund’ being created

Retrofit Fund Commitments

Retrofit Fund Waste Fund

London Green Fund

Project 1 Project 2 Project 3

Banks

Project 1 Project 2 Project 3

Banks

Retrofit Fund Investors Waste Fund Investors

London Green Fund Investors

Financing provided either on a project by project basis or on a programme wide basis

Project Investors

Project level investment could be sought to maximise funds raised – however, this might

lead to over-complication and should be considered by the project managers

London Green Fund Investment Commitments Waste Fund Commitments

The London Green Fund

77

CO2 savings by measure

0.3

PT

driv

er b

ehav

iour

0.4

Nat

iona

l grid

4.4

On-

site

mic

roge

nera

tion

1.5

Bio

mas

s &

w

aste

ene

rgy

CH

P

6.2

Ligh

ting

and

appl

ianc

es

2.1T

herm

al e

ffici

ency

2.2

4.5

0.4

Dom

estic

new

bui

ld

4

6

Car

s bi

ofue

ls &

LC

Vs

2.5S

taff

beha

viou

r ch

ange

Car

s be

havi

our

chan

ge

0.9

Roa

d us

er c

harg

ing

1.5

Fre

ight

mea

sure

s

1.7

Gro

und

base

d av

iatio

n

1.8

PT

LC

Vs,

bio

fuel

s

0.9

PT

infr

astr

uctu

re

ener

gy e

ffici

ency

Bui

ldin

g op

erat

ions

2.8

Ligh

ting

and

appl

ianc

es

3.0

The

rmal

effi

cien

cy

1.81.71.41.72

0

Beh

avio

ural

cha

nge

Com

mer

cial

/ in

dust

rial n

ew b

uild

London on its own

With Government support

Annual million tonnes of CO2 saved (2025)

New Build Domestic Commercial Supply Transport

78

5 The Beautiful City

79

Potters Fields - Before

Potters Fields - After

82

Emissions from Road Lighting

• Estimated that UK has over 5 million road lighting points

• CO2 Emissions for UK 2 million tonnes

• London estimated to account for 12%

• LED street lighting in London could save over 150,000 tonnes CO2 p.a.

83

Press Office City of Munster, Germany

Resource Efficiency

84

85

80 Litres

86

88

Summary

• London has set some challenging targets

• A mix of Interventions is required to deliver these targets

• Varying models of delivery is essential for success

• Cities have the most to do and the most to gain

• All cities are different but the challenges are the same

• We can learn by replicating what is successful and finding the right delivery mechanism to enable action at scale!

89

Thank You!

[email protected]