Years may be selected by the party GHG = greenhouse gas; LULUCF = land use, land-use change and forestry. a Parties should use an asterisk (*) to indicate that a mitigation action is included in the ‘with measures’ projection. b To the extent possible, the following sectors should be energy, transport, industry/industrial processes, agriculture, forestry/LULUCF, waste management/waste, other sectors, cross-cutting, as appropriate. c To the extent possible, the following types of instrument should be economic, fiscal, voluntary agreement, regulatory, information, education, research, other. d To the extent possible, the following descriptive terms should be used to report on the status of implemented, adopted, planned. e Additional information may be provided on the cost of the mitigation actions and the relevant timescale. 100 7th National Communication 3.4.1 UK Climate Change Act 2008 The UK passed the Climate Change Act in November 2008, introducing the world’s first long- term legally binding framework to reduce GHG emissions. The Act is the central piece of legislation that governs the UK approach to tackling climate change. The Act specifies that the UK must reduce its emissions by at least 80% by 2050 relative to 1990 levels (the international baseline) and by at least 34% by 2020. The Act requires carbon budgets be set providing a framework for meeting our statutory targets by setting a maximum emissions limit over each five-year period. The Act established the Committee on Climate Change (CCC) – an independent body that advises the government on emissions targets, and reports to Parliament on progress made in reducing GHG emissions, which the Government is required to respond to. Scotland has set targets to reduce Scottish emissions of greenhouse gases by 80% by 2050 with an interim target of 42% by 2020 in the Climate Change (Scotland) Act 2009. Delivery of these targets is supported by a framework of annual targets set in secondary legislation. In October 2017 , the Government published its Clean Growth Strategy 1 provides an updated version of the Clean Growth Strategy’s summary of performance against carbon budgets100 with the initial estimates of a subset of new early stage policies and proposals The updated projections for the fourth and fifth carbon budgets (including estimates of emission reductions from a subset of Clean Growth Strategy policies and proposals) suggests that the UK could deliver 97% and 95% of the required performance against 1990 levels – for carbon budgets which will end in ten and fifteen years’ time respectively. 99 Clean Growth published in October 2017. 100 The Clean Growth Strategy quoted the latest available projections at the time of publication (EEP 2016). Emissions projections from the Clean Growth Strategy are therefore not directly comparable to the projections

Chapter 3 – Policies and Measures 101 Actual Projection Projection Projection Projection Carbon Budget level, cumulative emissions 3,018 2,782 2,544 1,950 1,725 Average required reduction vs 1990 emissions, % -25% -31% -37% -51% -57% 101 Projected emissions, Mt 2,982 2,657 2,401 2,044 1,921 Projected emissions, Mt 2,982 2,657 2,401 2,014 1,841 emissions, Mt -36 -125 -143 64 116 Result vs. Budget, % -1.2% -4.5% -5.6% 3.3% 6.7% Energy and Emissions Projections Report due to be published January 2018. Based on the ‘with additional measures’ scenario, progress against future carbon budgets is • The 2017 projections show that the second and third carbon budgets, covering 2013 to 2022, are likely to be achieved. The reference case projection would meet the second carbon budget with a margin of 125 MtCO2e and the third carbon budget with • There are projected shortfalls for the fourth carbon budget. These projections are highly uncertain and only some of this uncertainty is captured in modelling and presented in the ranges here, and do not include emissions savings from all policies and proposals in the Clean Growth Strategy. • As policies and proposals in the Clean Growth Strategy are developed more fully, their impacts will be included as appropriate in future EEP editions. Further details on this QEWER target are contained in the Biennial Report. 3.4.3 The European Emissions Trading System The European Union Emissions Trading System (EU ETS) was established in 2003 by Directive 2003/87/EC and was launched in 2005. It is the largest emissions trading system in the world. The system covers approximately 45% of the EU’s greenhouse gas emissions and is designed to meet an EU target to cut emissions by 40% below 1990 levels by 2030. The EU ETS incentivises participants to reduce emissions by placing a cap on total EU GHG emissions from the power and industrial sectors and enabling trading of allowances to ensure emissions reductions are delivered cost efficiently. The current phase of the EU ETS (phase III 2013–20) builds upon the previous two phases and is significantly revised to make a greater contribution to tackling climate change, including an EU-wide cap on the number of available allowances and an increase in auctioning of those allowances. From 1 January 2012, the EU ETS has also included aviation emissions flying into and out of an airport in the European Economic Area (EU plus Norway, Iceland and Liechtenstein). Phase IV of the EU ETS will run from 2021–2030. 101 This represents the ‘with additional measures’ scenario, i.e. including planned policies but not including new policies and proposals from the Clean Growth Strategy. 102 Includes emissions reduction estimates of a subset of new early stage policies and proposals from the Clean Growth Strategy showing an additional potential reduction of up to 30Mt and 80Mt over the fourth and fifth carbon budget periods respectively. 102 7th National Communication In order to further increase the effectiveness of the EU ETS a number of strengthening measures have been agreed. For example, from 2019 the Market Stability Reserve (MSR) will act to help address the imbalance between the supply and demand in the market by removing a number of surplus allowances from circulation on an annual basis (or re-introducing them in the case of high demand). This will act to strengthen the carbon price, and create a meaningful low-carbon investment signal.
The MSR will be further strengthened through the improvements to the EU ETS agreed as part of the phase IV negotiations. At the time of writing, these improvements have been informally agreed between Member States and the European Parliament and await The phase III EU cap for stationary installations reduces the number of available allowances by 1.74% each year, delivering an overall reduction of 21% below 2005 verified emissions by 2020. The cap for aviation is set at 5% below the average annual level of aviation emissions over 2004–2006. Many sectors covered by the EU ETS are provided with free allocation of allowances in order to assist with their transition towards a low carbon economy and protect 103. Throughout phase IV the cap is set to reduce by 2.2% each year. Installations in the EU ETS can meet their obligations by purchasing allowances, which might come from installations in other EU countries, government auctions, free allocation to mitigate the risk of carbon leakage104, or credits from the Kyoto Protocol project mechanisms. This means that the emissions reductions in the EU ETS will not necessarily take place in the UK. In phase IV the option to use Kyoto Protocol credits for EU ETS compliance will expire. The Government is considering the UK’s future participation in the EU ETS after UK exit from the EU and remains firmly committed to carbon pricing as an emissions reduction tool whilst ensuring energy and trade intensive businesses are appropriately protected from any detrimental impacts on competitiveness. In the event that UK leaves the System, the government will seek to ensure that any future approach is at least as ambitious as the existing scheme and provide a smooth transition for the relevant sectors. 3.4.4 Auctioning under the EU ETS Auctioning is an effective way of distributing allowances to the market and reinforces the ‘polluters pay’ principle. It encourages businesses to take account of the full cost of carbon in the decisions they make. For phase III at least 50% of allowances are auctioned across the EU. This includes full auctioning for the power generation sector in the UK and most member states and for all member states by 2020. In phase IV, the auctioned amount is set to be 57% of allowances, which can be reduced by a limited amount if necessary to protect industries at risk The European Commission’s Auctioning Regulation governs the auctioning of phase III European Union allowances (EUAs) and European Union aviation allowances (EUAAs). It provides for the establishment of a common EU auction platform and grants member states the right to opt out and set up national platforms – the UK, Germany and Poland exercised this 103 ‘Carbon leakage’ refers to the process where production and/or investment moves abroad to areas with a lower carbon price or regulatory standards. 104 Carbon leakage’ refers to the process where production and/or investment moves abroad to areas with a lower carbon price or regulatory standards. Chapter 3 – Policies and Measures 103 Market-based solutions to price carbon are at the heart of delivering the UK’s climate change objectives at the lowest possible cost, by providing incentives for behaviour that protects or improves the environment, as well as deterring actions that are damaging to the environment. By internalising environmental costs into prices, they help to signal the structural economic changes needed to move to a more sustainable economy. They can provide the right incentives for investment, encouraging innovation and the development of new technology. 3.4.6 Non-domestic and domestic renewable heat incentive The Renewable Heat Incentive (RHI) opened for Non-domestic applicants at the end of November 2011. The Domestic scheme opened for applicants in April 2014. Both schemes are designed to incentivise uptake of renewable heat by paying owners of eligible technologies tariffs to assist with the costs of installing and running the systems. The RHI pays participants of the scheme that generate and use renewable energy to heat buildings or water, carry out processes involving heat or to generate and inject biomethane into the national gas grid. The reformed RHI is expected to deliver 22TWh of renewable heat in 2020–21 and carbon savings up to around 2e over each of Carbon Budgets 4 and 5. The Non-Domestic Renewable Heat Incentive (RHI) provides subsidy, payable for 20 years, to eligible non-domestic renewable heat generators based in England, Scotland and Wales. The technologies supported biomass boilers, biomass CHP , biogas combustion, biomethane injection to the grid, ground-, water-source and air-water heat pumps, solar thermal and The non-domestic sector includes industrial, commercial, public sector and not-for-profit organisations – e.g. businesses, hospitals and schools, and district heating schemes. The scheme is also open to producers of biomethane injecting to the gas grid. The Domestic RHI scheme is targeted at, but not limited to, offgas grid households in England, Scotland and Wales. Support is paid at a set rate per unit of renewable heat produced (per kWh), over seven years, to the owner of the heating system. The level of support reflects the expected costs of renewable heat generation over 20 years. The technologies supported are biomass boilers, air- and ground-source heat pumps, and solar thermal panels. The scheme is open to homeowners, private and social landlords, third party owners of heating systems and people who build their own homes. In 2013, the Government announced in the introduction of degression as a mechanism to control the RHI budget, consulted on tariff levels for some of the technologies covered by the scheme and simplified metering requirements. At the same time, air quality requirements were introduced, requiring all applicants with biomass boilers to submit an RHI emissions certificate or a valid environmental permit with their application. In 2014, the Domestic RHI was opened. The Non-domestic scheme was expanded to include air-water heat pumps and commercial and industrial energy from waste. Tariffs were increased for biomass CHP , biomass boilers of 1MWth capacity and above, deep geothermal, ground source heat pumps, solar thermal and biogas combustion.
Government also published final decisions relating to a review of the tariff for biomethane injection to grid, following consultation. In 2015, Government introduced sustainability requirements to the RHI, similar to those in use by the Renewables Obligation. The Government also confirmed continued funding for the RHI until 2020/21 and committed to reforming the scheme. Participants on the Domestic RHI must

104 7th National Communication now purchase their biomass fuel from a supplier on the Biomass Suppliers List, a register of sustainable suppliers. The Government also confirmed continued funding for the RHI until 2020/21 and committed to reforming the scheme. In 2016, the Government consulted on reforms to the RHI scheme and published its response. • Contribute directly to decarbonisation of heating in the UK and to meeting Carbon • Contribute to renewable energy in order to help meet the UK’s 2020 renewable energy target for sourcing 15% of energy demand from renewable sources; • Develop the renewable heat market and supply chain so that it is in a position to support the mass roll out of low carbon heating technology required in the 2020s and onwards in order to meet the UK’s Carbon Budgets. In 2017 , the Government consulted on implementing a power efficiency threshold for biomass CHP and implemented the first tranche of the 2016 reforms. The reforms implemented • The alignment of the different tariffs available for small, medium and large biomass in the Non-domestic RHI with revised tiering for all sizes of plant. This includes changing the tiering threshold from 15% to 35% of heat load for small and medium biomass and introducing a 35% threshold for large biomass; • Increases to biomass and heat pump tariffs on the Domestic scheme; • The introduction of heat demand limits for biomass and heat pumps on the Domestic • The extension of expenditure and growth thresholds for both schemes, for the calculation of degression out to July 2018. The Government aims to implement the remaining reforms announced in the 2016 Government response later in 2017/early 2018, subject to Parliamentary scheduling. As at the end of September 2017 , there were 17 ,636 accreditations to the Non-domestic scheme, representing nearly 3,703 MW of installed capacity. The 16,855 Non-domestic installations that had received RHI support had generated 13,954 GWh of renewable heat. The Domestic scheme had 58,338 accreditations. The 58,449 Domestic installations that had received RHI support had generated 2,056,044 MWh of renewable heat. The RHI scheme is implemented and administered by Ofgem. According to Ofgem’s public reports, £991.33 million of RHI payments have been made to the Non-domestic scheme since it began, and £217 .76 million of RHI payments to the Domestic scheme. The scheme helps to strengthen security of energy supply by increasing diversification of heating technologies and sources, and reducing dependence on imports. It aims to encourage the development of a sustainable renewable heat market and supply chain in the UK, which is in a position to support the mass roll-out of low carbon heating technology required in the 2020s and onwards to help meet the Government’s ambitious long-term carbon reduction targets. A separate RHI operates in Northern Ireland and was introduced on 1 November 2012. The scheme is largely similar to the Great Britain RHI, however, has differing tariff levels designed specifically for the Northern Ireland market. Chapter 3 – Policies and Measures 105 Since 1990, emissions from business and industry have almost halved, mainly due to efficiency gains and a shift in manufacturing to cleaner fuels, as well as changes to the industrial structure of the UK economy. Much of this reduction has taken place in the most energy intensive industries. For instance, each tonne of steel produced in the UK requires 40% less energy to produce than 40 years ago155. In addition, we have also improved the energy efficiency of non- domestic buildings since 1990 with emissions 18% lower in 2015156. The number of properties registering as having the lowest Energy Performance Certificates (EPC Bands F and G) has dropped from 19% to 13% between 2010 and 2016157 . Overall, business and industry now account for approximately 25% of the UK’s emissions (excluding fluorinated gases or F-gases)159, with around two thirds of industrial emissions coming from a small number of energy intensive sectors (for example chemicals, iron and steel)160. Businesses and industry are also major users of electricity, accounting for over 50% of UK Government analysis says that up to £6 billion162 could be saved in 2030 through investment in cost-effective energy efficiency technologies. Roughly half of these savings are available through improving the efficiency of buildings and processes, including by fitting better insulation and smarter energy controls. The other half can be realised through eliminating electricity waste in business for example using better lighting and energy management systems. This is consistent with research from EEF, the manufacturers’ trade association, which found that a 14% reduction in electricity consumption could be made across the manufacturing sector, equivalent to over £1 billion a year in savings163. It is essential for business that the policy framework is clear, flexible and non-prescriptive. The Government has put in place a range of instruments that cover economic instruments, regulation, market improvement measures and access to information. Businesses are an essential component in delivering climate change objectives in all sectors and in particular 3.5.2 CRC Energy Efficiency Scheme The CRC Energy Efficiency Scheme, launched in April 2010, is a UK-wide mandatory emissions trading scheme covering 2,000 large users of energy across the business and public sector.. The CRC has been designed to complement existing policy by covering emissions outside CCAs (see below) and direct emissions outside the EU ETS. Analysis indicates that, by driving energy efficiency, the CRC will deliver emissions reductions cost-effectively while saving The CRC aims to improve energy efficiency and cut emissions in the targeted large public and private sector organisations. It is a tailored blend of three 1. Information – awareness of energy use (it requires participating organisations to report on 2.
Reputational – organisations’ aggregated emissions data are published annually; and, 3. Financial – organisations must buy allowances for the emissions from their energy use. The Department for Business, Energy and Industrial Strategy (BEIS) is, in partnership with the Devolved Administrations (Scotland, Wales and Northern Ireland), the government policy lead. The Environment Agency is the UK Scheme Administrator and responsible for auditing and enforcement of the scheme in England. The Devolved Administrations’ regulators, the Scottish

106 7th National Communication Environment Protection Agency (SEPA), Natural Resources Wales (NRW) and Northern Ireland Environment Agency (NIEA), are responsible for auditing and enforcement in their countries. The UK Treasury (HMT) is responsible for setting the allowance price for the scheme. In 2015 the UK Government carried out a consultation on reforming the business energy tax landscape. The UK Government recognised that the range of energy efficiency policies created complexity and added burden to business consumers and in March 2016 the UK Government announced reforms to improve the tax and reporting regime. This included the announcement that the Government has decided to close the CRC energy efficiency scheme following the 2018-19 compliance year, with no purchase of allowances required to cover emissions for energy supplied from April 2019. The Government will work with the devolved administrations on scheme closure arrangements. The price signal from the CRC would be absorbed into the Climate Change Levy and a consultation on a simplified energy and carbon reporting framework for introduction by 2019 was published in October 2017 . 3.5.3 Non-domestic Green Deal and energy efficiency The Sixth National Communication reported on the establishment of the Green Deal, which enables consumers to take out loans to pay for energy efficiency improvements in their properties, with repayments made through their energy bill. Repayments are made on a Pay- As-You-Save (PAYS) after the improvement has been made, the consumer begins to save energy, their energy bills are less than they would have been without the improvement, and these savings are used to repay the loan. The National Communication reported some early interest in the Green Deal. At that stage, there had been over 100,000 Green Deal Assessments in properties (the first step before taking out a Green Deal loan). The initial interest was in domestic properties, and the Government had envisaged that the non-domestic Green Deal market would take longer than the domestic In the event, uptake across both sectors was significantly below expectations. In July 2015, the Government announced there would be no further public investment in the scheme. The Framework set up to support the programme, however, remained in place to service existing Green Deal Plans and for any private finance providers wishing to enter the market. The Government is now considering options for the future of the Green Deal Framework in the light of a number of factors. There may be several reasons why the uptake of the Green Deal was below expectations, and the Government will learn from these. The Government believes, however, that the PAYS mechanism at the heart of the Green Deal could still play a valuable role, in both the domestic and non-domestic market. A key factor for optimism that PAYS can play a role is the interest from a number of finance providers, not least from the new owners of the Green Deal Finance Company, which was the vehicle originally created to finance Green Deal loans and in which the Government ended public investment during 2015. In October 2017 , the Government launched a “Call for Evidence on the reform of the Green Deal Framework”. The outcomes of this call for evidence will help to inform Government decisions on the future of the Green Deal, including for the non-domestic sector. 3.5.4 Climate Change Levy (CCL) and Climate Change Agreements (CCA) The Climate Change Levy (CCL) and Climate Change Agreements (CCA) were described in detail in the third National Communication. The levy is a tax on the supply of energy in industry, commerce and the public sector and has been a central policy in encouraging energy efficiency. Climate Change Agreements (CCAs) are part of a package of government measures aimed at encouraging UK business to save energy and reduce CO 2 emissions. The CCA scheme allows

Chapter 3 – Policies and Measures 107 energy intensive participants to pay significantly reduced rates of CCL in exchange for signing up to energy efficiency or carbon reduction targets agreed with Government. Participants can remain compliant with the CCA Scheme and retain their entitlement to a reduced rate of CCL by meeting their targets or by paying a buyout fee if they fall short of meeting their targets. 3.5.5 Energy Savings Opportunity Scheme (2014) Government established the Energy Savings Opportunity Scheme (ESOS) to implement Article 8 (4 to 6) of the EU Energy Efficiency Directive (2012/27/EU)105. The ESOS Regulations 2014106 give effect to the scheme. ESOS is a mandatory energy assessment scheme for organisations in the UK that meet the qualification criteria. The Environment Agency is the UK scheme administrator. Organisations that qualify for ESOS must carry out ESOS assessments at least every 4 years. These assessments include energy audits of the energy used by their buildings, industrial processes and transport to identify cost-effective energy saving measures (including those done under the implementation of energy management systems under Article 8(6)). Organisations must notify the Environment Agency by a set deadline that they have complied with their ESOS 3.5.6 Building regulations (energy efficiency) 2 emissions come from non-domestic buildings, principally space heating and cooling, water heating, lighting and other fixed building systems – energy uses which are covered by building regulations. 3.5.7 The Industrial Emissions Directive The Industrial Emissions Directive (2010/75/EU) replaced the Large Combustion Plant Directive (LCPD, 2001/80/EC) on 1 January 2016. It sets limits on emissions of sulphur dioxide, nitrogen oxides, and dust from combustion plants with a thermal capacity of 50 MW or greater. In the UK, a Transitional National Plan has been agreed to allow plants to reduce emissions before tightened limits apply from 2020.
3.5.8 The UK Green Investment Bank The UK Green Investment Bank (GIB) started operating in October 2012, as a 100% government owned company, following state aid approval. Its role was to provide finance on commercial terms, alongside private sector partners, to mobilise additional capital into UK green infrastructure and help the UK achieve its environmental policy targets. By the end of 31 March 2017 , GIB had committed over £3 billion into 100 UK green infrastructure projects with a total value of over £12 billion, mainly in the offshore wind, waste to energy and non-domestic energy efficiency sectors. Its work in the offshore wind sector included establishing the world’s first dedicated offshore wind fund and Europe’s largest dedicated renewable energy fund. The fund passed its initial £1 billion target in January 2017 . Previously, in March 2016, the UK government launched a sale process for GIB. It had proved itself a successful commercial enterprise but it needed a greater volume of private capital, and freedom from the constraints of public sector ownership, to grow and increase its green impact. In August 2017 , the government completed the sale of GIB to Macquarie Group Limited in a £2.3bn deal, which ensured that all taxpayer funding invested in GIB since its creation was returned with a gain of approximately £186 million. 105 106

108 7th National Communication The deal secured the future of GIB with an ambitious new owner committed to growing the business. GIB, now known as the Green Investment Group to enable it to expand outside the UK, has become Macquarie’s primary vehicle for renewable energy investment in the UK and Europe, and will target at least £3bn of new investment into the green economy over the next 3 years. Macquarie has also committed to maintain GIB’s green purpose and green objectives, in line with the special share arrangements to safeguard GIB’s green purposes which will be held The UK is also targeting increased domestic green finance action in order to mobilise additional private investment into sustainable and environmental projects and infrastructure. The UK has an established reputation in green finance innovation and leadership, and is considered to be a thought leader on green finance. The City of London Corporation’s Green Finance Initiative (GFI) was established in 2016 at the request of Government. The Initiative acts as a hub for private sector-led innovation, and promotes London and the UK as the global centre of green finance. The UK also partnered with China to co-chair the G20 Green Finance Study Group, making the links between climate risks and opportunities and global financial stability. The UK has established a UK Green Finance Taskforce consisting of senior leaders from across the financial sector and academia. This Taskforce will work with their industry peers to provide Government with recommendations on how accelerate the growth of green finance; deliver the investment required to meet the UK’s domestic carbon reduction targets; and to consolidate the UK’s leadership in financing international clean investment. The UK government has formally endorsed the recommendations of the Taskforce on Climate-related Financial Disclosure. These recommendations establish a new voluntary reporting framework that helps align climate-related risk management with wider financial The UK government is working with the British Standards Institute (BSI) to develop a set of voluntary green and sustainable management standards to promote responsible investment practices globally. The BSI will be working with industry to identify a suitable scope for these standards, and will have the first standard in production by the first half of 2018. In order to support the commercialisation of innovative clean technologies, the UK Government will also be providing up to £20 million to support a new clean technology investment fund. The UK Government is working with mortgage lenders to promote the development of green lending products that reflect the lower risk associated with more efficient energy use, and the associated reduction in bills. 3.5.10 Local Enterprise Partnerships (LEPs) It is important that economic growth and the housing and wider infrastructure needed to support that growth is low carbon. To support them in this the Government has provided support to the development of Local Energy Strategies in each of the LEP areas. These will identify and prioritise the opportunities both for low carbon energy industries across the area but also the decarbonisation of heat power and transport to allow wider economic growth to be clean. The National Government are also providing support for a range of national tools to reduce costs and investing in developing expert project development support locally to unlock existing opportunity in local areas. Chapter 3 – Policies and Measures 109 3.5.11.1 Business carbon reduction support Business Wales is the Welsh Government Business support scheme supporting individuals to start a business and established businesses to grow107. The service provides resource efficiency support through specialist advisers and has a close working relationship with the Carbon Trust in respect of their energy efficiency loan scheme. Welsh Government officials meet with the Carbon Trust on a quarterly basis to review the operation of the loan scheme in Wales and to ensure that Business Wales are working with For the agriculture industry in Wales, the Welsh Government will integrate the delivery of energy efficiency and renewable energy advice through the existing Knowledge Transfer, Innovation and Advice provision, Farming Connect. The aim of the Farming Connect Advisory service is to provide independent, bespoke advice to improve the sustainable management and the economic and environmental performance of farming and forestry SME’s operating in rural areas. Advice will be available on a one-to-one or group basis.
It is envisaged that the service 3.5.11.2 Wales national tourism strategy A Partnership for The Welsh Government Strategy for Tourism 2013-2020 was reviewed in November 2016, taking into account the Wellbeing of Future Generations (Wales) Act 2015 Following recommendations made through the Sustainable Tourism Framework and Forum, a Business Resilience document and online self-assessment toolkits were produced to assist businesses in future-proofing their investments and be mindful of minimising their environmental In line with the Strategy Visit Wales is supporting projects to improve sustainable transport options for tourists wishing to travel around Wales. The opportunity to broaden collaborative working with external partners is also being realised. This broader working is also being delivered in the food and drink sector with the promotion of produce being sourced and delivered locally improving the short supply chains, local economy and Sense of Place. Additionally there continue to be activities undertaken with national partners both along the coast of Wales and in the grounds management of sites aimed at consolidating and conserving the quality and biodiversity of Wales. In delivering funding programmes for capital expenditure on large scale works, the requirements for all developments to comply with the latest BREEAM (Building Research Establishment Environmental Assessment Method) standards has been made a stipulation of grant, with area-changing destination projects assessed by and in line with Wales European Funding Office (WEFO) on their contribution to the three cross-cutting themes, Energy standards within building regulations in Scotland were reviewed and improved in 2002, 2007 , 2010 and, most recently, 2015. New buildings constructed to current standards produce approximately 75% less GHG emissions than those built to the standards applicable in 1990. 107

110 7th National Communication The most recent improvements to energy standards within building regulations were introduced in October 2015108. These reduce emissions, on aggregate, from new homes by approximately 21% for new homes and 43% for new non-domestic buildings, when compared to standards Further review of these standards is planned to commence in early 2018. 3.5.12.2 Reducing emissions in existing non-domestic buildings Action to improve the emission and energy performance of Scotland’s non-domestic building stock has commenced. Regulations introduced in September 2016 require the assessment and, ultimately, improvement of larger non-domestic buildings109. These regulations apply to existing building in both the commercial and public sectors. The Assessment of Energy Performance of Non-domestic Buildings (Scotland) Regulations 2016110 apply to buildings over 1,000 m² and are triggered by sale of the building or rental to a new tenant. Assessment sets moderate improvement targets for both energy performance and greenhouse gas emissions. Owners then have 3.5 years to complete improvement or may defer completion where annual operational energy use is reported. Review of these regulations, as part of broader action within Scotland’s Energy Efficiency Programme (SEEP), is proposed for 2020. 3.5.12.3 Business carbon reduction support The Scottish Government continued to invest in improving energy and resource efficiency across business and public sector and to continuing sustainable economic growth for Scotland. The Resource Efficient Scotland programme offers comprehensive information, advice and support to business, the third sector and public sector organisations to implement energy, material resource and water efficiency measures that will translate into cost savings, increased competitiveness and reduced emissions. Resource Efficient Scotland provides specialist assistance and loans to businesses of all sizes, but has a particular focus on SMEs. 3.5.12.4 Research and innovation for low carbon energy Scotland has world-class research and innovation capacity and facilities to support the energy sector, including the Oil & Gas Technology Centre, European Marine Energy Centre and the Power Network Demonstration Centre. Renewable energy plays a huge part in powering Scotland’s homes and economy – provisional statistics for 2016 show 54% of Scotland’s electricity needs met by renewables, more than three Scotland is home to the world’s leading wave and tidal test centre, the world’s largest planned tidal stream array and the world’s largest tidal turbine. In October 2017 , the First Minister of Scotland opened Statoil’s Hywind Pilot Park – the world’s largest floating windfarm – 25km off 108 109 See 110

Chapter 3 – Policies and Measures 111 Scotland is leading the rest of the UK in supporting innovative local energy solutions and community ownership and involvement in energy developments with over 600 mwMW of installed renewable energy capacity which is under community or local ownership. Scottish Enterprise (SE) recognises low carbon as an important area of opportunity for driving greater innovation in Scotland in the positive shift towards a low carbon economy. Scotland already has competitive advantages in low carbon technologies and important strategic assets including our academic excellence and our expertise in oil and gas which will form the basis for long-term growth by companies. Even with the current uncertain economic conditions, the market opportunities relating to low carbon are continuing to grow, providing a platform for innovation for Scottish companies in energy, resource efficiency and renewables. SE recognises opportunities for Scotland in emerging sectors such as low carbon energy transition, industrial biotechnology, sustainable construction and water and waste water, which In support of the Scottish Government’s forthcoming Energy Strategy, SE will continue to work with companies to capitalise on new and emerging opportunities in the low carbon economy. 3.5.12.6 Highlands and Islands Enterprise The Highlands and Islands region is home to some of Europe’s best wind, wave and tidal resources and is internationally recognised for the advancement of offshore renewable technologies, not least due to the unique offering of the European Marine Energy Centre (EMEC). The region is also an exemplar in local, low carbon energy systems built upon a sustained focus on community ownership and revenue generation from renewable deployment. Significant employment and business opportunities remain in the planned build out of large scale offshore wind projects in the Moray Firth, and in continued testing and pilot array demonstration of marine technologies.
Reflecting the changing UK and Scottish Government policy landscape, there will be an increasing focus on demand reduction and decentralised, low carbon energy systems providing increased opportunities for innovation in supply and demand- side activities, and wider dispersal of benefits throughout communities. In further developing the renewable energy sector, HIE will focus efforts on 3 main areas of • Test and demonstration opportunities associated with further development of offshore renewables, primarily in wave, tidal and floating wind. This will include the continuing development and securing the long term sustainability of EMEC, capturing the international opportunities arising out of Wave Energy Scotland (WES), and support for demonstration of technologies at pre-commercial sites around the region; • Securing supply chain opportunities from marine and offshore wind developments. As projects are built out around our coast, there will be significant and long term opportunities for ports and harbours and the local supply chain. The primary focus for this will be the offshore wind farms being developed in the Moray Firth and the build out of the MeyGen project in the Pentland Firth, with these two projects alone presenting the region with an opportunity to develop a real cluster of expertise, innovation and wider supply chain development; • Development of local energy systems – as Scottish Government policy evolves to support creation of more localised energy systems there will be opportunities to both demonstrate the approach and integration of technologies across the region, but also to support the roll-out of such projects at both a community and business level. 112 7th National Communication 3.5.13.1 Business Carbon Reduction Support Invest Northern Ireland’s technical consultancy support helps Northern Ireland businesses to determine areas of cost savings through energy and resource efficiencies. Through the Energy Efficiency Loan Fund, interest free loans of between £3,000 and £400,000 are available to assist businesses to install new energy saving equipment with the aim of identifying annual carbon savings in businesses of 10.10ktCO The Building Regulations (Northern Ireland) 2012 came into operation on 31 October 2012. These included enhanced thermal standards for all new buildings and those undergoing renovation. Consideration is being given to further amendments in 2018-19 to enhance energy efficiency standards with a view to meeting the cost-optimal and nearly zero-energy building requirements of the Energy Performance of Buildings Directive 2010/31/EU. 3.6.1 Highlighted domestic policies and measures Homes now account for 13%of the UK’s emissions (rising to 22% once electricity use is taken into account). The average household’s energy consumption has fallen by over 17% since 1990. This has been driven by a combination tighter building and products standards, in particular better boilers; the uptake of insulation and other energy efficiency measures, mainly delivered through obligations on energy suppliers; and greater awareness of potential energy savings. While there are now approximately a quarter more homes than in 1990, the overall total of emissions from the sector has reduced by about a fifth over this period176. Actions taken to tackle emissions have helped to reduce average energy bills for households as efficiency savings have more than offset the cost of financial support provided for developing low carbon technologies. The cost of policies delivering cleaner energy, support for vulnerable households and investing in upgrading our buildings accounts for around 12% of an average gas and electricity bill. However, these costs are on average more than offset by savings from improvements to the energy efficiency of people’s homes, delivering a saving of £14 on average By 2022 it is expected that around half of all UK households will have had at least one major insulation measure (loft, cavity wall or solid wall insulation), the vast majority of which have been delivered through government policies, saving between £25 to £270 on their annual energy bill. Government policies, saving between £25 to £270 on their annual energy bill. The government has put in place a range of policies to improve domestic (residential) energy efficiency. These include building regulations, a energy supplier energy efficiency schemes, minimum energy performance standards for the private rented sector, and advice to consumers. This broad approach aims to empower the consumer to make changes to behaviours and 3.6.3 Household energy efficiency The government has already taken significant action to address the barriers to energy efficiency take up in households. The measures the government has introduced are aimed at helping

Chapter 3 – Policies and Measures 113 households to insulate their home and reduce fuel bills; empowering households to take control of their energy use and providing households with access to trusted information and advice As set out in the Clean Growth Strategy published in October 2017 , the government set out a number of new policies and proposals to go further. The government is committed to upgrading all fuel poor homes to Energy Performance Certificate (EPC) C by 2030. In addition, the government set out in the Clean Growth Strategy an aspiration for as many homes as possible across the whole housing stock to reach a similar standard by 2035 where practical, cost-effective and affordable. 3.6.4 Minimum Energy Performance Standards Since the publication of the previous National Communication, the government has introduced a requirement for privately rented homes that, from April 2018, landlords of the worst performing properties will need to improve those properties to a minimum of EPC E before they can be let, lowering bills for some of the most vulnerable private tenants while ensuring costs of improvements are reasonable and affordable. The government will consult shortly on amending these regulations so they can work as effectively as possible, maximising the benefits to tenants. Building on this, the government also announced in the Clean Growth Strategy its intention to consult on setting a long term trajectory for energy performance standards across the private rented sector, with a view to reaching EPC C by 2030 for as many homes as possible, where practical, cost effective and affordable.
The government also committed to consult on equivalent standards for social housing, subject to the independent public inquiry into the fire at Grenfell Tower in London in 2017 , and the government’s separate work looking at wider social housing The government is also pressing ahead with the implementation of the Each Home Counts review which aims to look at issues around consumer advice, protection, standards and enforcement in relation to home energy efficiency and renewable energy measures. 3.6.6 The energy savings advice service The Government has provided telephone based advice through the Energy Saving Advice Service since 2012, with over 930,000 calls received over this period. Development work on a digitally led service (with appropriate assistance for those unable to use a web based service). The new service is currently being prototyped with extensive user testing and is expected to be available to the public in Spring 2018. The last National Communication reported on the establishment of the Green Deal, which enables consumers to take out loans to pay for energy efficiency improvements in their properties, with repayments made through their energy bill. Repayments are made on a Pay-As-You-Save (PAYS) after the improvement has been made, the consumer begins to save energy, their energy bills are less than they would have been without the improvement, and these savings are used to repay the loan. The National Communication reported some early interest in the Green Deal. At that stage, there had been over 100,000 Green Deal Assessments in properties (the first step before taking out a

114 7th National Communication In the event, uptake across both sectors was significantly below expectations. In July 2015, the Government announced there would be no further public investment in the scheme. The Framework set up to support the programme, however, remained in place to service existing Green Deal Plans and for any private finance providers wishing to enter the market. The Government is now considering options for the future of the Green Deal Framework in the light of a number of factors. There may be several reasons why the uptake of the Green Deal was below expectations, and the Government will learn from these. The Government believes, however, that the PAYS mechanism at the heart of the Green Deal could still play a valuable role, in both the domestic and non-domestic market. A key factor for optimism that PAYS can play a role is the interest from a number of finance providers, not least from the new owners of the Green Deal Finance Company, which was the vehicle originally created to finance Green Deal loans and in which the Government ended public investment during 2015. In 2017 , private finance began operating through the framework on a limited scale. In October 2017 , the Government launched a “Call for Evidence on the reform of the Green Deal Framework”. The outcomes of this call for evidence will help to inform Government decisions on 3.6.8 Energy Company Obligation The Energy Company Obligation (ECO) funds energy saving improvements in vulnerable and low-income households and those living in harder to treat properties, such as solid walled ECO is a statutory obligation placed on larger energy suppliers to meet a series of targets relating to carbon savings and reducing home heating costs. ECO was reformed so that from 1 April 2017 a greater proportion (70%) is focussed on low income households with the remainder having a greater carbon-saving focus and open all 2 emissions come from domestic buildings, principally space heating and cooling, water heating, lighting and other fixed building systems – energy uses which are covered by building regulations. These regulations are devolved in all four UK administrations, with a similar agenda being pursued across the UK in response to the need to reduce emissions arising from the built environment. This is achieved though minimum performance standards applicable to new buildings and when new work is carried out to existing buildings. The Government has commissioned an independent review of Building Regulations and fire safety in England, being led by Dame Judith Hackitt. The review will report in Spring 2018. Following the outcome of the independent review, and subject to its conclusions, the Government intends to consult on improving requirements for new homes in England where the evidence suggests that there are cost-effective and affordable opportunities, and it is safe and practical to do so. This will look to ensure that new homes are futureproofed for the installation of lower carbon heating systems where this is cost-effective and affordable. This will help to phase out high carbon fossil fuels in the future, starting with homes off the gas grid. New standards for domestic boiler installations, known as Boiler Plus, will keep England’s UK’s boiler standards higher than anywhere else in the world, and will save more than 5.2 MtCO

Chapter 3 – Policies and Measures 115 3.6.10 Raising product standards and encouraging consumer engagement Policy on improving the performance of energy-using products is dominated by two pieces of European framework law and the product-specific measures that implement them (which take the form of either regulation or voluntary agreements between the European Commission and The EU Eco-design of Energy Related Products Directive sets the framework for developing minimum energy performance standards (MEPS) for energy-using and energy-related products, banning the least-energy efficient products from either production for the EU market, or import into the EU. Standards are a cost-effective way of saving consumers and businesses money on energy bills and reducing GHG emissions. The EU Energy Labelling Framework Regulation (formerly a directive) allows for mandatory ‘A to G’ energy labels that rank products in terms of relative energy efficiency and provide consumers with information on energy during use, and other information.
Labelling can be an effective ‘pull’ of markets for efficient products, increasing their penetration in the market as well as consumer There are currently 28 Eco-design and 16 Energy Labelling Regulations, plus two industry Currently agreed performance and labelling measures are estimated to lead to savings of 2 in 2020, and to save the average dual-fuel household around £100 on their annual energy bills by 2020. These measures are estimated to have a net present value of around £23 billion to the UK for the period 2015–2030. They represent one of the most cost- effective ways to meet our carbon targets and reduce energy consumption. On the basis of emerging analysis from long-term work programme to improve the evidence base (which is still subject to quality assurance), it is expected these figures to be revised downward, although savings will still be sizable. The UK is also working with two international collaborations to promote harmonised product standards (testing and minimum energy performance energy labelling): • The International Energy Agency Efficient End-use Electrical Equipment (4E) • The Super-Efficient Appliance Deployment Initiative (SEAD), which is a work stream under the Clean Energy Ministerial process. • The Welsh government continues to fund the EST to deliver an enhanced energy advice service within Wales and, following a review of advice services, the Welsh government is establishing an integrated resource efficiency service from April 2014. The revised and simplified service will provide resource efficiency and microgeneration support through a single contact number for the domestic, community and public Smart meters are the next generation of gas and electricity meters. They will offer a range of intelligent functions and provide consumers with more accurate information, bringing an end to estimated billing. Consumers will have near real-time information on their energy consumption to help them control and manage their energy use, save money and reduce emissions. 116 7th National Communication The Government is committed to ensuring that every home and smaller business in Great Britain is offered a smart meter by the end of 2020. The roll-out of smart meters is an important national modernisation programme that will bring major benefits to businesses and the nation as The roll-out is making significant progress with nearly 7 .7 million smart and advanced meters operating up to the end of June 2017 . It is expected that investment by the energy industry in smart metering will yield a net benefit of around £5.7 billion over the lifetime of the Programme. It estimated that this will result in annual reductions in UK emissions of about 2.8 MtCO2e by 2020. There are two elements to this reduction. The first will be annual savings of about 1.8 MtCO2e from reductions in residential combustion of natural gas; in addition, the UK will save the annual equivalent of about 1 million tonnes of EU ETS CO2 allowances which the government would, otherwise, have needed to buy. The Government published a fuel poverty strategy for England in March 2015 which sets out how it intends to meet the fuel poverty target set in legislation since December 2014. The target states that as many fuel poor homes as reasonably practicable have to have an energy efficiency ranting of band C by 2030 with interim milestones of band E by 2020 and band D by Beyond this, a range of policies are already in place to ensure there is targeted support for low income and vulnerable • The Warm Home Discount scheme provides £140 off energy bills to over 2 million low income and vulnerable households each winter. The scheme is due to continue until 2021 with spending of £320m per year (2015 prices). • Since April 2017 , around 70% of spending under the Energy Company Obligation (ECO) is directed towards low income and vulnerable households. ECO is due to continue until 2022 at £640m per year (2017 prices) and is due to be reformed further • The government provides Cold Weather Payments of £25 to low income and vulnerable households on certain benefits for each seven day period of very cold weather. All pensioner households aged up to 79 years get a £200 Winter Fuel Payment each winter (£300 for those aged over 80). These payments help around 9 million households each winter. • Each year, the government provides funding and support for the Big Energy Saving Network. The network pools the expertise of a number of trusted third sector organisations and aims to deliver proactive, assisted action encouraging vulnerable consumers to engage with the energy market and realise the savings possible through • In 2015, the government provided £25m of funding to local authorities under the Central Heating Fund. Through the scheme, local authorities installed around 6,000 first time central heating systems in low income and vulnerable households. 3.6.13 Nest energy efficiency scheme The Welsh government’s Nest scheme, which replaced the former Home Energy Efficiency Scheme (HEES) in April 2011, installed free energy efficiency improvements in over 4,900 of the most energy inefficient homes in Wales in 2012-13, helping these households to save energy,

Chapter 3 – Policies and Measures 117 reduce their fuel bills and reduce carbon emissions. The improvements are estimated to deliver energy use savings averaging over 14,000 kWh per annum and total lifetime savings of over In addition to improving the homes of low income private-sector households, Nest also provides advice to all households on reducing energy bills. In 2012-13, Nest provided energy saving advice to over 21,500 households, helping these households to reduce their energy use, lower their energy bills, and reduce their carbon emissions. The Arbed 2 European Regional Development Fund (ERDF) project aims to provide social, economic & environmental benefits for Wales along with tackling fuel poverty within communities where it is most needed. The three year project is now in its second year with over 2,500 properties across Wales approved for a range of energy efficiency measures to be implemented.
The Arbed programme contributes to the eradication of fuel poverty, cutting GHG emissions and to improving the energy performance of homes in Wales. Arbed 2 ERDF takes a ‘whole-house’ approach when assessing potential energy efficiency measures for a property; this approach considers the nature of the property, the occupancy, the potential impact of different measures and value for money. Potential measures within Arbed can include external wall insulation, heating system upgrade, solar hot water, heating controls The introduction of the Welsh Housing Quality Standard (WHQS) in May 2002 provides a common target standard for the physical condition of all existing social housing within Wales to be originally achieved by 2012 (now 2020). The WHQS provides for the annual energy consumption for space and water heating to be estimated using the SAP (Standard Assessment Procedure) method and specifies the minimum WHQS specifies a single SAP score of 65 out of a possible 100 and the energy efficiency targets within WHQS are challenging in relation to the difficulties faced in improving the older The latest published statistics on achievement of the WHQS shows that (at 31 March 2012) over 159,000 dwellings (nearly 72%) are fully compliant in achieving an EPC rating of 65 or above, and over 170,000 dwellings (nearly 77%) are fully compliant in having a central heating system. For new social housing energy efficiency is defined by Planning Policy Wales and is required to meet Code for Sustainable Homes 3+. From December 2013, Part L of the Building Regulations Wales will apply to new social housing. 3.6.14 Fuel poverty and domestic energy efficiency in Scotland The Scottish Government is currently developing a long term Fuel Poverty Strategy, including setting new statutory targets and putting in place a revised definition of fuel poverty that will help inform where action is most needed across the country. Further details on this are provided in Whilst work to develop the new strategy is ongoing, the Scottish Government will continue to deliver support to householders through the Home Energy Efficiency Programmes for Scotland (HEEPS). HEEPS is designed to tackle fuel poverty, reduce carbon emissions and support jobs

118 7th National Communication • H Area Based Schemes will deliver provide a range of insulation measures helping to reduce heat loss and save households money. They are delivered by local authorities and prioritise fuel poor areas. Warmer Homes Scotland, offered to vulnerable households in receipt of certain benefits. Those receiving assistance must either be homeowners or tenants of private sector landlords. Warmer Homes Scotland (WHS) has a strong focus on fabric measures, such as heating and insulation, but also includes micro-generation to offer a wider range of heating options to off-gas households. Loans, available to all private sector households in Scotland (both owner occupiers and private sector landlords) who wish to install energy efficiency measures. The scheme offers an interest-free loan of up to £15,000 per household. The loans can be combined with ECO, and ABS. The Scottish Government has designated energy efficiency as a National Infrastructure Priority, which in future will be delivered through Scotland’s Energy Efficiency Programme (SEEP), a transformational and integrated approach to improving the energy efficiency and provision of heat to all types of buildings across Scotland. The Scottish Government is committed to ensuring that fuel poverty is prioritised and supported throughout SEEP. Heating our homes, businesses and industry accounts for nearly half of all energy use in the UK and a third of our carbon emissions. Nearly 70% of our heat is produced from natural gas. Meeting our target of reducing emissions by at least 80% by 2050 implies decarbonising nearly all heat in buildings and most industrial processes. Reducing the demand for heat through improved energy efficiency will have an important role to play but will not by itself suffice to meet There are a variety of fuels, technologies and distribution systems with potential to deliver the transformation necessary to meet 2050 targets – including heat networks, heat pumps, hydrogen and biogas, which can be used separately or in combination. But it is not yet clear which approach will work best at scale and offer the most cost-effective, long-term answer. Officials at The Department for Business, Energy and Industrial Strategy are currently conducting work to better understand the options and to lay the groundwork to support decisions in the first half of the 2020s on the long-term future of heat. There are active measures in place to reduce our emissions from heat and are developing policies to address issues that aren’t affected by complex decisions about decarbonisation of the gas network. The heating and cooling proposals set out in the Clean Growth Strategy to achieve the ambitious 5th carbon budget include action to phase out all oil-based heating systems off the gas grid, a sustainable market for heat networks, and strong action on new build and in the business and industrial sectors. 3.6.16 Domestic Renewable Heat Incentive The Domestic RHI policy is set out along with the non-domestic policy on page 103 of this 3.6.17 Renewable Heat Premium Payment scheme The Renewable Heat Premium Payment (RHPP) scheme opened in August 2011 and closed in March 2014. The scheme provided cash back vouchers for householders (mainly those not connected to the gas grid) in England, Scotland and Wales in order to incentivise the purchase of eligible renewable heat generating installations. Chapter 3 – Policies and Measures 119 Registered social landlords could also bid for money to support the installation of cost- effective renewable heating systems in social housing stock. Again, the focus was on areas not The scheme’s purpose was to support the take-up of renewable heating technologies in the domestic sector prior to the introduction of the Domestic Renewable Heat Incentive in April 2014. The technologies supported by the RHPP were ground-, water- or air-source pumps, biomass boilers and solar thermal. The RHPP scheme supported over 15,000 installations across England, Scotland and Wales and generated an estimated 232,959MWh of heat annually.
The scheme allowed the Government to learn more about what people thought of the technologies supported, and how these technologies performed in a variety of conditions. Recipients of RHPP support were able to subsequently apply for support under the Domestic RHI scheme, but the level of their RHI payments was correspondingly reduced in order to avoid DECC (now BEIS) provided grant funding for the Energy Saving Trust (3.8.7) to deliver the Renewable Heat Premium Payment (RHPP) scheme.] The CGS published in October 2017 makes it clear that heat networks will play a vital role in the long term decarbonisation of heating. In the Strategy’s three illustrative pathways to 2050, heat networks are projected to meet around 17% of heat demand in homes and up to 24% of heat demand in industrial and public sector buildings (up from around 2% today). To help deliver this, the 2015 Spending Review allocated £320m of capital funding out to 2021 to grow the UK heat networks market through the Heat Networks Investment Project (HNIP). This will help create the conditions necessary for a sustainable heat network market to emerge First payments for the pilot HNIP scheme were announced in April 2017 , with 9 Local Authorities awarded some £24m of funding over two years across London and South East, Sheffield, Yorkshire and Greater Manchester. The nine successful bids are expected to leverage in over £50m of wider investment and provide heat to over 5000 domestic customers and 50 non-domestic buildings, saving over 200,000tCO The Heat Network Delivery Unit (HNDU) in BEIS continues to provide specialist support and guidance to local authorities. £14m of funding has now been provided since 2013/14 for feasibility and early stage project development for over 200 schemes across 131 local authorities. BEIS also ran a £7m Heat Network Innovation Small Business Research Initiative (SBRI) over 2013-16, to stimulate innovation to improve efficiency of heat networks and reduce The government continues to take steps to ensure that heat network customers are treated fairly and to reduce risks for investors. Heat metering and billing regulations were passed into law in 2014 to ensure meters are fitted where it is cost effective and bills are transparent. BEIS is supporting industry-led initiatives to improve consumer protections and drive up technical standards, eg the Heat Trust consumer protection scheme and Code of Practice for Heat Networks. Further interventions will be necessary to create an effective long-term market framework to deliver sustainable and subsidy-free market growth after the HNIP funding ends in 2021. Following the publication of recommendations from an industry task force in January 2018 Government will examine the measures required to deliver this in more detail. 120 7th National Communication 3.6.19 Supporting green skills In the green paper ‘Building our Industrial Strategy’, the Government set out the importance of raising skills to support industries and consumers. The existing technical education system can be complex and confusing, which often does not deliver either for individuals, for the skills needs of employers, or for the wider economy. Through the Sainsbury Review and the Skills Plan, the Government has set out its plan to radically simplify the thousands of vocational qualifications into a smaller number of high quality The government have also made the following • Creating a proper system of technical education, to benefit young people and provide better options for those already in the workforce. • Committing £170m of capital funding to the creation of prestigious new Institutes of Technology to deliver higher technical education in STEM subjects. • Exploring how to give technical education learners clear information, which could include a way of searching and applying for courses similar to the UCAS process. • Working towards a joined-up, authoritative view of the sector specific skills gaps that the UK faces now and in the future. 3.6.20 Rural communities energy fund DECC (now BEIS) and Defra have jointly funded a £15 million initiative which provides grants and loans for communities in rural areas to carry out feasibility and pre-planning work to ready community-scale renewable energy projects for private investment. Communities have developed a range of power and heating solutions, many owned or part owned by the community which serve to reduce their carbon and provide an income. The scheme remains open and is currently being reviewed to include new technologies and storage. The Government also ran an Urban Community Energy Fund from 2014-2016. This allocated just under £2m to community groups. This has been replaced by local authority schemes in Bristol, Manchester and London. 3.6.21 Future framework for heat in buildings Beyond the RHI, the government intends to design a clear framework for domestic and non- domestic buildings through to the 2030s • Reduce barriers to take up of low carbon heating and cooling with reduced reliance on • Sustain a viable supply chain for low carbon heating beyond the RHI whilst not closing off options on the longer term decarbonisation pathway. The CGS has a very clear focus on the challenges and opportunities involved in decarbonising heat in buildings. It sets out the UK’s ambition to phase out high carbon fossil fuel heating such as oil and coal during the 2020s in off gas grid buildings, starting with new build. The 850,000 households heated by oil in England resulted in 8MtCO 2e in 2013. More detail on how this might be achieved will be set during in 2018. The government will also set out its intention to consult on improving the energy efficiency of new and existing buildings (subject to the conclusions of the independent review of Building Regulations and fire safety). Chapter 3 – Policies and Measures 121 Alongside the CGS, the government also published new standards for domestic boiler installations, known as Boiler Plus. These will keep the UK’s boiler standards higher than anywhere else in the world, and will save more than 5.2 MtCO2e over the next decade.
Welsh Government Warm Homes is the Welsh Government’s flagship energy efficiency and fuel poverty programme, made up of the Warm Homes Nest and Warm Homes Arbed schemes. The programme is designed to tackle fuel poverty and reduce carbon emissions by improving the energy efficiency of the homes of those on low income homes or living in the most deprived Since 2011, Warm Homes has improved the energy efficiency of over 45,000 homes, helping these households to save energy, reduce their fuel bills and reduce carbon emissions. Warm Homes takes a ‘whole-house’ approach to energy efficiency improvements, taking account of the nature of the property, its occupancy, the potential impact of different measures and value for money. Potential measures can include insulation, heating system upgrades, renewable technologies, heating controls and energy efficiency advice. Warm Homes Nest is a demand-led scheme, where households throughout Wales can contact the scheme for support. In 2016/17 , Nest installed free energy efficiency improvements in over 45,500 of the most energy inefficient homes in Wales. This is estimated to deliver total lifetime In addition, Nest has provided advice and support to over 98,000 households since 2011, helping them to reduce their energy use, lower their energy bills, and reduce their carbon Warm Homes Arbed is an area-based scheme which levers in and co-ordinates investment into the energy performance of Welsh homes, prioritising the most disadvantaged areas and low income areas with a high number of off-gas or hard to treat homes. Welsh Government has announced investment of a further £104 million in the Warm Homes Programme over the next 4 years to improve the energy efficiency of up to a further 25,000 homes in Wales. This will include the delivery of a new Nest scheme and a new Arbed ERDF scheme, levering in up to £24 million of EU funding. The Welsh Government requires all social homes to meet the Welsh Housing Quality Standard (WHQS) by 2020 and to be maintained afterwards. The WHQS provides for the annual energy consumption for space and water heating to be estimated using the SAP (Standard Assessment Procedure) method and specifies the minimum WHQS specifies a single SAP score of 65 out of a possible 100 and the energy efficiency targets within WHQS are challenging in relation to the difficulties faced in improving the older The latest published statistics on achievement of the WHQS shows that (at 31 March 2017) over 197 ,000 dwellings (88%) are fully compliant in achieving an EPC rating of 65 or above, and over 212,000 dwellings (95%) are fully compliant in having a central heating system. For new social housing energy efficiency is defined by Planning Policy Wales and is required to meet Code for Sustainable Homes 3+. From December 2013, Part L of the Building Regulations Wales will apply to new social housing. 122 7th National Communication 3.6.23.1 Energy Savings advice In Northern Ireland the public can obtain information through the NI Direct website ‘Energywise: Get in the know’111. The website contains advice and guidance on steps that can be taken to be more energy efficient, renewable technologies available and what may be most suitable for the home, grants available, tips on central heating and home insulation measures. The Department for Communities (DfC) Affordable Warmth Scheme targets households most at risk of fuel poverty and provides a range of heating and insulation measures to improve the energy efficiency of households with an annual gross income of less than £20,000. The targeted scheme replaced the Warm Homes Scheme from April 2015. The Warm Homes Scheme was a self-referral scheme which relied on social security benefit entitlement as a passport and invested on average £1,400 per household on energy efficiency improvements. The new Affordable Warmth Scheme is finding and helping households which need more intensive help and is spending on average almost £4,000 per household on energy efficiency improvements. The Affordable Warmth Scheme aims to assist about 4,000 low income households each year. The DfC’s Boiler Replacement Scheme provides a grant towards the cost of replacing old and inefficient boilers over 15 years old. This continues to be a very popular scheme. The DfC’s fuel poverty strategy “Warmer Healthier Homes” was launched in 2011 and ran until 2016. The Department is committed to producing a new fuel poverty strategy and this will centre on the themes of “paying less, using less and wasting less energy”. The strategy will include a commitment to continue with an area based and targeted approach to tackling fuel poverty by assisting those households most at risk. 3.6.23.3 Renewable Heat Incentive in NI On 1 November 2012 a separate RHI scheme for business customers was introduced in Northern Ireland. The scheme was largely similar to the Great Britain RHI, however, had differing tariff levels designed specifically for the Northern Ireland market. The scheme was suspended On 24 May 2012 the Renewable Heat Premium Payment (RHPP) scheme was launched in Northern Ireland. The scheme closed on 24 November 2014 having received approximately 2168 applications requesting support, with 1220 receiving payments. 1162 of the RHPP recipients migrated to the Northern Ireland Domestic Renewable Heat Incentive Scheme following its introduction in December 2014. The scheme was suspended from 29 February The transport sector consists of emissions from domestic aviation, road transport, railways, shipping, fishing and aircraft support vehicles. This sector produced around 24% of UK 111

Chapter 3 – Policies and Measures 123 greenhouse gas emissions in 2015, almost entirely through carbon dioxide. The main source of emissions from this sector is the use of petrol and diesel in road transport, in particular Between 1990 and 2015, transport greenhouse gas emissions have reduced by around 2%. Given the importance of road transport to the sector, changes in this area have had the most impact over this time. New cars in the UK are up to 16% more efficient than they were in 2000.
However, this improvement has been largely offset by a nine % increase in road traffic to 2015, with the number of registered vehicles increasing over the same period from 28.9 million to 36.5 The continued move to a low carbon transport system will be central to meeting the targets set under the UK’s Climate Change Act. 3.7.2 Reducing Emissions from Road Transport Transport emissions in 2015 were down two % compared to 1990198,199. While new cars in the UK are up to 16% more efficient than they were in 2000200, this improvement has been largely offset by a nine % increase in road traffic to 2015201, with the number of registered vehicles increasing over the same period from 28.9 million to 36.5 million202. The transport sector now accounts for 24% of the UK’s emissions203. 3.7.2.1 Accelerating Take up of Ultra Low Emission Vehicles (ULEVs) • To meet the UK’s 2050 target, almost every car and van will need to be zero emission • The Government has announced an end to the sale of all new conventional petrol and • The government want to have one of the best electric vehicle (EV) charging networks The Government is spending nearly £1.5 billion in the period 2015-20 to drive the uptake of ULEVs. Support includes both supply side and demand side policy measures. The UK now has over 120,000 ULEVs on the road. ULEV uptake has been driven through a combination of grants together with improved charging infrastructure and new approaches like the £40 million Go Ultra Low Cities scheme and Go Ultra Low public education campaign. The UK’s Plug in Grants currently offset the upfront cost of buying a ULEV by up to £4,500 for cars, £1,500 for motorcycles, £8,000 for vans and £7 ,500 for taxis. If battery prices continue to fall there will be less need for Government subsidies for new vehicles in the future. Central Government is leading the way with a commitment to electrify 25% of its fleet by 2022. The Government provides financial support for the installation of charging infrastructure via • Electric Vehicle Homecharge Scheme – up to £500 towards the cost of installing electric vehicle chargepoints at domestic properties. • Workplace Charging Scheme – businesses, charities and public sector organisations can secure grants of £300 per socket for up to 20 charging sockets for

124 7th National Communication • On-street Residential Chargepoint Scheme – for local authorities towards the cost of installing on-street residential charge points for plug-in electric vehicles. • A £400m Charging Infrastructure Investment Fund (£200m Government investment to be matched by private investors) to accelerate the roll out of charging infrastructure by providing access to finance to companies that deliver chargepoints. In addition, £15 million from Highways England to ensure rapid charge points every 20 miles across 95% of England’s Strategic Road Network. New powers under the Automated and Electric Vehicles Bill will allow the Government to set specific requirements for the provision of EV charge points or hydrogen refuelling infrastructure at motorway service stations and large fuel retailers, as well as ensuring that charge points are convenient to access and work seamlessly right across the UK. The Bill will also allow the Government to require all new charge points sold or installed in the UK to be ‘smart’ enabled. This will help shift charging away from peak times of the day, reducing demand on the electricity system and keeping costs lower for everyone. Since March 2001, a system of Graduated Vehicle Excise Duty (VED) has been in operation for new cars based primarily on their level of CO 2 emissions. A reformed VED system was implemented this year for cars first registered from April 2017 . The reformed system strengthens environmental incentives to purchase the very cleanest cars. First year VED is clearly based on environmental standards, and evidence from car purchase decisions across Europe suggests this is when the environmental signals are most effective in influencing people’s choice of car. It creates five new First Year Rate bands in the 0–100 g/km of CO 2 range to distinguish between zero-emission cars, Plug-In and hybrid vehicles and efficient conventionally fuelled cars. The very cleanest zero-emission cars pay nothing while rates on the most polluting cars are Provision of a company car, made available for an employee’s personal use, is a Benefit in Kind that is subject to Income Tax (for the employee) and Employer National Insurance Contributions (NICs). Since being reformed in 2002, this tax is graduated according to the vehicle’s CO2 emissions – the less CO2 the vehicle produces, the lower the benefit on which tax must be paid. The Government is committed to maintaining a differential in rates for the lowest emitting cars – those that emit 75g/km of CO2 or less. The Government announced at Autumn Statement 2016 that new, lower bands will be introduced for the lowest emitting cars in 2020–21. The new bands will provide stronger incentives for the purchase of ULEVs, in particular those with higher zero emission ranges. In the same year, the appropriate percentage for cars emitting more than 2 will rise by 1 percentage point. The Government has provided £11 million through the Hydrogen for Transport Advancement Programme to create a network of 12 hydrogen refuelling stations, and support 50 hydrogen fuel cell electric vehicles on the UK’s roads. A new £23 million fund was announced in March 2017 to boost the creation of hydrogen fuel infrastructure and encourage roll-out of hydrogen The ‘Go Ultra Low’ communications campaign brings the Government and leading vehicle manufacturers together to explain the benefits of ULEVs to motorists and businesses, and its success has been internationally recognised. The Government will continue to work with industry on consumer communications on ULEVs until at least 2020. The Government will set out further detail on a long term strategy for the UK’s transition to zero road vehicle emissions by March 2018.
Chapter 3 – Policies and Measures 125 3.7.2.2 Improving the efficiency of conventional vehicles Mandatory CO2 emissions targets set at EU level are in place for both new passenger cars and new light commercial vehicles registered in the EU and are driving innovation from vehicle manufacturers and their suppliers. For passenger cars a combination of regulation, high oil prices and a trend to smaller cars has led to a steady decrease in fleet average CO2 emissions since EU regulation was first proposed in late 2007 . The 130g target in 2015 represents an 18% reduction on 2007 levels and the 95g target in 2020 a 40% reduction. In 2012 the UK fleet average CO2 emissions from vans in 2009 for new cars sold was 133 g/km of CO2. This represents a fall of 3.6% on the previous year and an overall 26.5% reduction since 2000. As the UK leaves the EU, it should continue to be a world leader in low carbon transport, and Government will look for opportunities to strengthen further the controls on vehicle CO2 emissions. The UK will pursue an approach which offers certainty to industry, and is at least as ambitious as current arrangements. The fuel used in cars is also lower carbon, with the Renewable Transport Fuel Obligation (RTFO) driving the greater use of biofuels. Biofuels now account for around three % of fuel sales, with around half of that derived from wastes. Average greenhouse gas savings from biofuels are around 70% compared to petrol and diesel. In September the Department for Transport published proposed amendments to the RTFO which will set a trajectory for the supply of renewable fuels in transport that will meet the 10% target for transport set under the Renewable Energy Directive target. The level will be increasing to 9.75% in 2020, rising to 12.4% in 2032. The changes will approximately double the use of renewable fuels, reduce reliance on imported fossil diesel, and deliver greenhouse gas emissions savings equal to taking another one million cars off the road in the most cost effective way. 3.7.2.3 Developing a More Efficient and Low Carbon Freight System • Emissions from heavy goods vehicles (HGVs) will also need to reduce significantly to make a meaningful contribution towards meeting the UK’s overall 2050 target. Ultra low emission vans and HGVs between 3.5 and 44 tonnes have been eligible since late 2016 for plug-in grants worth up to £20,000 for the first 200 vehicles bought using the grant. After the first 200, grants still apply in line with current Plug-in Van Grant levels; 20% off the price, up to a maximum of £8,000. The Government has consulted on proposals to allow category B (car) licence holders to drive slightly heavier vans if they are powered by a low emission technology, effectively offsetting the additional weight of the powertrain. This may help achieve payload parity with conventionally fuelled vehicles and encourage further uptake of cleaner goods vehicles. The Government’s Freight Carbon Review, published in February 2017 , identified a range of measures to help fleet operators reduce their emissions, including through improved fuel efficiency. The Energy Saving Trust is piloting a scheme to advise HGV fleet operators on The Government is conducting an operational trial of longer semi-trailers, which is authorising up to 2,800 longer articulated goods vehicles to run on Great Britain’s roads. Results from the trial to date suggest considerable benefits by way of improved efficiency and potential CO

126 7th National Communication Our 2016 Rail Freight Strategy highlighted the potential to reduce emissions by growing rail freight and reducing HGV journeys. As stated in the Clean Growth Strategy, the Government will accelerate activity to enable cost effective options for shifting more freight from road to rail, including using low emission rail freight for deliveries into urban areas, with zero emission last 3.7.3 Encouraging Low Carbon Alternatives to Car Journeys • By 2040, the Government wants cycling and walking to be the natural choices for shorter journeys, or as part of a longer journey. The Government will continue to invest in our public transport network, and help people to cycle, walk or travel by bus or train. The Cycling and Walking Investment Strategy identifies £1.2 billion which may be invested in cycling and walking from 2016-21. Under this new strategic approach, Local Cycling and Walking Infrastructure Plans identify improvements required at the local level, and enable a long-term approach to developing local cycling and walking networks, ideally over a ten year As announced in the 2016 Autumn Statement, the Government will provide £100 million for a national programme of support for retrofitting and new low emission buses in England and Wales, including hundreds of new low emission buses and retrofitting of thousands of older As part of its strategy to improve public transport as an alternative to private road transport, government is investing over £9 billion in the rail network between 2014 and 2019. Rail passenger journeys are now at their highest level since the 1920s. The Government will seek more use of electric, bi-mode (electric and diesel hybrid) and alternative fuel traction on the railway. The Government will continue to invest in rail electrification where it provides benefits to passengers. The industry is also developing trains powered by alternative fuels, for example using battery and hydrogen power. 3.7.4 Modernising the Aviation and Shipping Sectors • Continued modernisation of aviation and shipping sectors, both through international action, such as standards and offsetting schemes, and domestically, for example through support for sustainable alternative fuels, improved efficiency and new It has long been the Government’s position that strong action at a global level is the best means of addressing carbon emissions from aviation, given the international nature of the aviation

Chapter 3 – Policies and Measures 127 For example, in October 2016, at its 39th Assembly, the 191 Member States of the International Civil Aviation Organisation (ICAO) agreed to implement a global market-based measure for international aviation.
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is the first worldwide scheme to address CO2 emissions in any single sector. Under the deal, airlines will offset their international aviation emissions with reductions from other sectors with the aim of delivering ICAO’s goal of carbon-neutral growth of international aviation from 2020. The outcome is a success for the UK, which has long pushed to address aviation emissions at the global level. The UK has volunteered to participate in the measure from the beginning in 2021. The focus now will be to ensure that this measure is implemented effectively both in the UK and around the world, and the UK is working with other States to achieve this. In 2016, the UK was actively involved in ICAO’s agreement of a CO 2 standard for civil aircraft. From 2020, the standard will set the technology level around the world to ensure only lower emission technology will be used on aircraft in future. Along with CORSIA, the standard forms part of ICAO’s ‘basket of measures’ to tackle aviation’s climate impacts. At the European level, the European Commission published a proposal on the future of the aviation EU Emissions Trading System following agreement on the CORSIA at the 39th ICAO Assembly in October 2016. Following trilogue negotiations, agreement was reached that continues the current scope of the scheme until the end of 2023. The UK strongly supported the continuation of reduced scope to allow time for the implementation of CORSIA in the EU. Domestically, industry and the Government have made a joint £3.9 billion commitment between 2013 and 2026 to the development of new aircraft technology with the Aerospace Technology Institute. The UK is also committed to making operational improvements in air traffic navigation services in order to increase fuel efficiency and reduce emissions. NATS has committed to 2 emissions per flight by 10% by 2020 compared to 2006. On alternative fuels, it was announced that Government will extend the Renewable Transport Fuels Obligation (RTFO) to include incentives to use renewable fuels in aviation. The Future Fuels for Flight and Freight Competition (F4C) is aimed at increasing domestic production of advanced low carbon fuels capable of tackling emissions from the hard- to-decarbonise aviation and heavy goods vehicle sectors in pursuit of long-term UK decarbonisation targets. The scheme will provide up to £20 million in capital grant funding over 3 years (2018-21) and up to £2 million of Project Development Funding in 2017-18 to support the The industry is also working to reduce airport-related emissions through a range of measures including more efficient operation of aircraft, introducing efficient new technology, using landing charges to incentivise cleaner aircraft, reducing vehicle emissions within the airport boundary, and encouraging sustainable surface access. The Government will set out its strategic approach to the aviation sector in a series of consultations over the next 18 months, including a paper on how to support growth while tackling the environmental impacts of aviation. This will culminate in a new Aviation Strategy for the UK which the Government intends to publish by the end of 2018. 128 7th National Communication On international shipping, the UK continues to engage in the International Maritime Organisation (IMO) activities on the ‘Roadmap for Developing a Comprehensive IMO Strategy on Reduction of GHG Emissions from Ships’. This process provides for the adoption of an Initial Strategy in spring 2018, and a Revised Strategy in spring 2023. The Government is looking to deepen its technical expertise to further support the development of innovative technologies and fuels to reduce maritime emissions, ultimately helping create a zero-emissions maritime sector. On domestic shipping, the Government will continue to work with industry to develop improved fuel efficiency technologies, including new propulsion systems, hull design and aerodynamic The Government will work with ship owners and ports to identify the barriers faced in supplying and using sustainable alternative fuels and cleaner emissions technologies, to explore possible solutions. In addition, it is expected that operational improvements will play a role, including 3.7.5 Government Innovation Investment The Government expects to invest around £841 million out to 2021 in innovation in low carbon transport technology and fuels, primarily through programmes run by DfT, OLEV, the Research Councils, Innovate UK, and BEIS. The Government will build on this investment to make the UK one of the world’s leading innovators in new low carbon technologies. Investments • Electric vehicle and battery technology. Government investment will help bring down the cost of EVs and increase their range. Through the Industrial Strategy Challenge Fund (ISCF), the Government will invest £246 million over four years in the design, development and manufacture of batteries for the electrification of vehicles, as part of the ‘Faraday Challenge’. The Government has also awarded £10 million to build UK capability in the development and commercialisation of automotive battery packs. • Innovative charging technologies. Government announced in November 2017 £40m for R&D into innovative new charging technologies, supporting a low cost scalable solution for on-street charging, and wireless charging. • Smart energy. Up to £70 million to 2021 to support innovation in energy storage, demand side response and other smart energy technologies. Other technologies include innovative electric vehicle-to-grid projects, up to £20 million for vehicle-to-grid products, services and knowledge, and non domestic smart energy management, innovative smart meter data led approaches to energy management tailored to three smaller hospitality, retail businesses and schools. • Advanced fuels. There are fewer options for reducing emissions in the freight and aviation sectors, and here innovation in fuel technology can play an important role. The Government is providing £38 million out to 2021, to fund the development of advanced low carbon fuels derived from wastes or industrial and agricultural by-products. In August 2017 the Government relaunched the Future Fuels for Flight and Freight Competition – a £22 million industry competition to encourage development and deployment of low carbon HGV and aviation fuels. • Zero emission HGVs.
In January 2017 , the winners of over £20 million for the Low Emission Freight and Logistics Trial were announced. Twenty different projects are

Chapter 3 – Policies and Measures 129 receiving funding to demonstrate and trial low and zero emission vehicles in UK fleets, for example using hydrogen, electric and biogas technologies. In the longer term, there is an opportunity to take forward projects to support innovative technologies such as ‘dynamic charging’ as a potential solution to decarbonising freight. • HGV platoons. HGV platooning, using advanced vehicle technologies, enables lorries to move in a group and could deliver significant fuel and emissions savings. The Government will be delivering trials of HGV platoons, with joint funding from Highways England, to assess the feasibility and potential costs and benefits of this technology on UK roads. In August 2017 , it was announced that a trial of HGV platoons, jointly funded with Highways England, will see up to three HGVs travelling in convoy, with acceleration and braking controlled by the lead vehicle, and with a driver ready to take control at any time in all the HGVs. Platooning trials have been conducted across Europe and the USA, and these trials will assess whether the technology is appropriate and beneficial on UK roads. • Government has also established the Centre for Connected and Autonomous Vehicles (CCAV) and invested over £250 million, matched by industry, to position the UK at the forefront of research, development, and demonstration of automated vehicle technologies. These technologies have the potential to smooth traffic flows and increase efficiency of road transport, indirectly reducing emissions. CCAV is also coordinating engagement with the wider research base and industry, identifying and reducing barriers to innovation or business expansion. The statutory Wales Transport Strategy includes clear objectives to reduce GHG emissions from transport and for climate change adaptation in the transport system. The Welsh Government is committed to supporting shift to more sustainable modes by continuing to invest in public transport, including bus grants and measures reflecting the Active Travel (Wales) Act. The Welsh Government is also committed to promoting the uptake of ultra low emission vehicles (ULEVs) in Wales. It will be providing £2 million to help secure a network of charging points throughout Wales, with the focus on infrastructure which will serve users of our strategic road network in order to alleviate range anxiety in respect of longer, through journeys. The Welsh Government is also looking to revise its statutory planning policy guidance to help support the uptake of ULEVs. The Scottish Government has published its draft emissions reductions strategy in 2017 with the final version due in early 2018. This contains a number of measures to address transport emissions including support to increase electric vehicle uptake and the creation of low emission zones in Scotland’s 4 largest cities by 2020. The Scottish Government is also introducing measures to green commercial vehicles such as buses and HGVs by supporting fuel efficiency programmes, moving freight from road to rail and introducing low emission solutions at Scotland’s airports and ports. National Planning Framework 3 and Scottish Planning Policy (both published in 2014) strongly support patterns of development and land use that promote walking and cycling. Scottish Planning Policy states ‘Plans should identify active travel networks and promote opportunities for travel by more sustainable modes in the following order of walking, cycling, public transport, cars.’ By law decisions on applications for planning permission must be made in accordance with the development plan for the area unless material considerations indicate

130 7th National Communication 3.7.7.1 Buses and local sustainable travel Low carbon buses emit at least 30% fewer GHG emissions than comparable diesel buses. Since 2009, four rounds of the Green Bus Fund in England have provided £87 million of funding to bus operators and local authorities to help them purchase around 1,200 new low carbon buses. Each year, by switching to low carbon alternatives, bus services in England operated by these 1200 buses are expected to save around 28,000 tonnes of CO government operates a similar scheme, the Scottish Green Bus Fund, which to date has provided £16.2 million of funding to support the introduction of 362 low carbon buses across Scotland. The Scottish Green Bus Fund is being extended and will start from 2019-20 to allow time for development and for the industry to ramp up in terms of demand and supply. In the meantime a further round of the existing Green Bus Fund is being considered. In Scotland, the Scottish Government has worked with local authorities, stakeholders and delivery partners to publish an updated Cycling Action Plan for Scotland (CAPS) in January 2017 . This sets out actions to meet our vision of 10% of everyday journeys being by bicycle by 2020. Additionally, the Scottish Government has committed to doubling spend on active travel annually The draft Northern Ireland Programme for Government (2016-2021) includes an indicator for the reduction in greenhouse gas emissions. In recognising the contribution which transport makes to greenhouse gas levels, the draft PfG includes an indicator to increase the percentage of all journeys made by walking, cycling and public transport. The following actions are focused on The Department for Infrastructure (DfI) is working with local councils to ensure that Local Development Plans and planning decisions take account of existing regional strategic planning and transport policies and guidelines to encourage the use of walking, cycling and public transport. This includes building a safe and accessible cycling infrastructure by delivering a Belfast Bicycle Network, a bicycle network for other urban areas and a Strategic Plan for Greenways. Promoting the increased use of public transport is also progressing through projects such as the Belfast Rapid transit, development of the Belfast and Foyle Transport Hub and the creation of more Park & Ride facilities. The Translink companies have been set a target to increase passenger journeys to 81 million in 2017/18. In addition, a charging network of 336 charging points for electric vehicles has already been established across Northern Ireland.
Work is being taken forward to support the introduction of Ultra Low Emission Vehicles to the Northern Ireland market by adapting the broader UK Ultra Low Emission Vehicle Strategy, which is under development, to reflect the Northern Ireland Power sector emissions have fallen 49% since 1990 as there has been a switch from coal to gas and renewable power such as wind and solar, with biomass conversions also playing an important transitional role, alongside improvements in the efficiency of our economy242. Last year, 47% of our electricity came from low carbon sources, with the rest mainly coming from coal and gas243. Coal use fell to record low levels last year, and on 21 April 2017 , for the first coal was not used for a 24-hour period244. At the same time, the UK Government has ensured a secure supply of electricity. Chapter 3 – Policies and Measures 131 The costs of low carbon and more efficient technologies have fallen significantly since 2010 through a series of innovations and growth in deployment. Solar photovoltaic modules are now almost 80% cheaper, LED lightbulbs over 80% cheaper, and batteries for electric vehicles (EVs) over 70% cheaper. Average household electricity bills in 2016 were around 10% lower than in 2008, when the Climate Change Act was introduced. While policy costs on bills have increased over this period, this has been more than offset by reduced electricity use, thanks in part to tightening standards on electrical products. The carbon price support (CPS) is a tax on fossil fuels used to generate electricity. It came into effect on 1 April 2013. When the CPS is added to the EU Emissions Trading System (EU ETS) price, it sums to the Carbon Price Floor (CPF), a minimum carbon price for the power sector. A minimum carbon price sends an early and credible signal to incentivise billions of pounds of investment in low-carbon electricity generation now by providing certainty on the carbon price for UK electricity generation and helps ensure the UK’s long-term energy security. The carbon price support (CPS) uses rates for CCL and fuel duty to make up the price floor and reflect the differential between the future market price of carbon (i.e. the EU ETS futures prices) and the CPF trajectory. Each year since 2013 the Budget has announce and the Finance Bill legislate for the rates two years ahead to provide certainty to the market and set out the provisional rates for the following two years to give an indication of the likely rates required to 3.8.2 Electricity Market Reform Carbon price to provide a clear economic signal to drive the move towards a low carbon economy by adding a cost to emitting CO 2 to set a floor to the carbon price for electricity supply so as to (1) reduce the use of emissions intensive fossil fuels (2) increase in the proportion of electricity generation and supply from renewables CPS rates 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 4.94 9.55 18.00 18.00 18.00 18.00 18.00 18.57 Combined heat and power (CHP) is supported by a range of policies depending on size, fuel type and sector. Support for CHP is provided to improve the commercial case for investing in CHP because of its relatively long payback period and technical complexity. This is done through a range of measures including Enhanced Capital Allowances, CCAs and business rate exemptions. Modelling suggests that gas CHP will be higher carbon than the electricity it is displacing by 2032. Gas CHP is consequently supported as a transitional technology towards Support is also provided for renewable CHP , given its added decarbonisation benefits, including through the Renewable Heat Incentive and Contracts for Differences (CFD). The Renewables Obligation is used to support renewable electrical output, however was closed to new capacity in April 2017 as the UK transitioned to CFD becoming the main mechanism for supporting electrical outputs of CHP plants. 132 7th National Communication The Renewables Obligation (RO) has been the main mechanism for supporting large-scale renewable electricity projects in the UK since 2002. It is a market-based support mechanism and works by placing an obligation on licensed electricity suppliers to produce a certain number of Renewables Obligation Certificates (ROCs) to Ofgem, the administrator of the scheme, in respect of each megawatt hour of electricity supplied each year. Ofgem issue ROCs to generators in relation to the renewable electricity they generate. Generators sell those ROCs to suppliers or traders, with or without the electricity generated, as tradable commodities. This allows them to receive a premium in addition to the wholesale price of their electricity. The value of a ROC is a matter for negotiation between generator and Suppliers present ROCs to Ofgem to demonstrate their compliance with the Obligation or paying a buy-out price, set at £45.58 per ROC for 2017/18 (linked to RPI), or by a combination of both. Money paid into the buy-out fund is recycled to ROC holders at the end of the 12-month Obligation period on a pro rata basis. The level of the obligation for 2017/18 in England, Wales and Scotland is 0.409 ROCs/MWh and 0.167 ROCs/MWh in Northern Ireland. As part of the transition to the more cost effective and competitive Contract for Difference support mechanism, the RO closed to new capacity on 31 March 2017 (with some exceptions that extend the deadline for certain projects to January 2019 in Great Britain and March 2019 in Northern Ireland). Accredited capacity will usually receive support for 20 years or until the final closure of the scheme on 31 March 2037 , whichever is the earlier. Since its introduction in 2002, over 23,500 generating stations have been accredited under the Renewables Obligation, comprising 25GW of installed capacity. The scheme has played a key part in increasing the proportion of UK electricity generated from renewables from just above one percent in 2002 to 24.5% in 2016.
3.8.5 Carbon abatement technologies The focus of the UK government’s approach on carbon abatement technologies is the development of carbon capture usage and storage (CCUS). CCUS is a chain of technologies 2 from power and industrial sources and either use it as a feedstock, or transport it for safe permanent storage in saline aquifers or depleted oil and gas fields. It is the only approach that has the potential to turn high carbon fuels into genuinely low carbon electricity and to decarbonise many industrial activities. The UK government believes CCUS could play a significant role in low carbon electricity generation, low carbon hydrogen production, and decarbonising energy intensive industry. The Government has set out the approach to CCUS in the Clean Growth Strategy112, including the ambition to have the option of deploying CCUS at scale during the 2030s, subject to global cost The key components outlined in the Clean Growth Strategy • To progress our commitment to deploying CCUS in the UK, subject to cost reduction. o Establish a CCUS Cost Challenge Taskforce, reporting to Ministers in autumn 112

Chapter 3 – Policies and Measures 133 o Produce a deployment pathway by the end of 2018, setting out the steps Government intends to take to realise its ambitions for deploying CCUS; o Review the delivery and investment models for CCUS in the UK, covering industry, o Test the development of CCUS industrial decarbonisation, working with ongoing initiatives in Teesside, Merseyside, South Wales, and Grangemouth; and o Establish a Ministerial-led CCUS Council to review our progress and priorities. • The Government will convene and lead a new international working group to drive down the cost and accelerate deployment of CCUS, including o Continuing to participate in Mission Innovation and its Carbon Capture Challenge; o Working closely with private sector-led initiatives such as the Oil and Gas Climate o Developing closer collaborative working with countries such as Norway, the US, Canada, and Australia, including joint working on CO solutions, and working multilaterally through the Carbon Sequestration Leadership Forum and North Sea Basin Task Force; o Continuing to be a global leader in CCUS investments through the UK’s £60 million international CCUS programme which has been running since 2012, by investing a further £10 million in the programme; and o Organising a Global Carbon Capture Usage and Storage Conference in 2018, with • The Government will spend up to £100 million from the BEIS Energy Innovation Programme to support industry and CCUS innovation and deployment in the UK, and support cost reductions. The Government o Provide £20 million of funding for a CCU demonstration programme; o Support next generation capture technologies, with an aim to lower the cost of o Support small-scale industrial capture demonstrations to reduce the risks associated with CCUS on an industrial site; o Support the application of CCUS in low carbon hydrogen production; o Further our understanding of the role of Greenhouse Gas Removal (GGR) technologies, including BECCS (bio-energy with CCS); and o Support studies and technologies that reduce costs of transporting and storing Approaching 2050, remaining emissions are likely to be in sectors where it is most difficult to decarbonise – in industry, agriculture, aviation and shipping. Greenhouse Gas Removal (GGR) technologies are likely to play an important role in offsetting difficult-to-cut emissions. GGRs include afforestation, BECCS, and direct air capture. The Government’s strategic approach to GGRs will include a programme of R&D, to help overcome uncertainties around costs, deployment potential, and impacts on the environment. The Government will also consider the scope for removing barriers and strengthening incentives to support the deployment of GGRs, to position the UK at the leading edge of GGR development. 134 7th National Communication The Government will work to realise the opportunities CCUS could provide in supporting decarbonisation across the economy, while maximising economic opportunities. The Government wants the UK to become a global technology leader in CCUS and work internationally with industry and Governments to bring about global cost reductions. 3.8.6 Ending Unabated Coal power generation The Government has committed that there will be no unabated coal generation in Great Britain by 2025. While a combination of poor economics, age, the effects of a more intermitted electricity system and carbon pricing has meant that there now remain only nine coal power stations. Coal generation has fallen from 39% in 2012 to 9% in 2016 and in May 2017 there was the first 24 hour period of no coal generation. However, it is uncertain when the remaining coal generators will close, and so to improve the investment case for new, flexible, clean capacity and end date has been set for coal generators unless emissions can be abated to below 2 per kWh of electricity generated. Planning requirements mean that no new coal generator can be constructed without Carbon Capture and Storage technology being demonstrated on 300MWe of capacity. The Energy Act 2013 also introduced the Emissions Performance Standard on new fossil fuel capacity, at an equivalent rate of 450gCO2 per kWh. The UK is also working with other countries to support a movement away from a reliance on The Feed-in tariffs (FITs) scheme was introduced on 1 April 2010, under powers in the Energy Act 2008. The intention of the FITs scheme is to encourage deployment of small-scale (up to 5MW), low-carbon electricity generation, particularly by organisations, businesses, communities and individuals that have not traditionally engaged in the electricity market. The technologies supported under FITs are solar PV, wind, hydro, anaerobic digestion and micro (less than 2 kW) The person investing in a renewable energy installation, such as solar PV panels, can benefit from FITs in three a payment for every unit of electricity generated – the ‘generation tariff’; a payment for any surplus electricity not used on site, and exported to the local grid – the ’export tariff’; and savings on the electricity bill for each unit used in the property.
The FITs scheme is administered by Ofgem and the payments are made to generators by the FITs suppliers, who recover the costs through the electricity bills of their customers. The scheme has been a success since its launch in April 2010, with over 900,000 installations (6 GW capacity) registered on either the Central Feed-in Tariff Register (CFR) or the Microgeneration Certification Scheme (MCS) by the end of August 2017 . Of these, around 99% Hydrogen is an energy carrier which has the potential to decarbonise the electricity, heat and transport sectors and offer an option for, electricity grid balancing and energy storage. Improved energy system modelling is needed so that the potential benefits and costs can be properly UK activities on hydrogen include strengthening the evidence base on its potential use in the heat sector as part of wider work to assess heat decarbonisation options, support for innovation across the spectrum from basic research, through to development and demonstration (including a £25m project to establish the technical feasibility of using hydrogen for heat in homes), as well

Chapter 3 – Policies and Measures 135 as a specific programme on hydrogen transport (UK H2Mobility). The UK also participates in international activities, including the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE), the IEA Hydrogen Implementing Agreement, and the (European) Fuel Cells and Hydrogen Joint Undertaking. The Transport section has further information. 3.8.9 Electricity Market Reform The UK government reformed the electricity market to attract investment in low carbon electricity generation while maintaining security of supply and minimising consumer bills. Electricity Market Reform (EMR) provides support for low carbon technologies in the short to medium term, working towards a long term vision of a competitive market where all technologies participate on a level playing field without direct financial support. The Government published its White Paper on EMR, Planning our electric a White Paper for secure, affordable and low-carbon electricity on 12 July 2011. This set out the government’s commitment to transform the UK’s electricity system to ensure that our future electricity supply is secure, low carbon and affordable. The White Paper was informed by previous recommendations made by the CCC. The key elements of EMR • Contracts for difference (CFDs) to stimulate investment in low carbon technologies by providing predictable revenue streams that encourage investment and make it easier and cheaper to secure finance. • Capacity market (CM) to ensure security of supply. • Carbon price floor (CPF) to provide a clear economic signal to drive the move towards a low carbon economy by increasing the cost of emitting CO • Emissions performance standard (EPS) to provide a regulatory backstop to prevent the construction of the most carbon intensive forms of electricity generation, such as unabated coal fired power stations. Updated CFD contract terms and strike prices for renewable technologies, and the EMR Delivery Plan were published in December 2013. The first CFDs under the enduring regime were signed in 2014; and the first capacity auction was run in the same year, for delivery of capacity in winter 2018-2019. Both policies received state aid approval. Since that time a further allocation round has been run for CFDs in 2017 and a further series of capacity auctions have been run. 3.8.10 Electricity Transmission The innovative regulatory regime for offshore transmission, jointly developed by the government and Ofgem, has been established. There have now been 15 Offshore Transmission Owner licences granted by Ofgem under the regime, securing over £2.2 billion of investment in offshore transmission, with another £700m currently in the tender process. To ensure the timely connection of new generation projects in the meantime, the Government introduced enduring ‘connect and manage’ grid access reforms in August 2010. These have proved successful, particularly in reducing the grid connection times for renewable projects by an average of five years. The regime now forms a standard part of the grid connection arrangements in Great Britain. The independent regulator, Ofgem, has agreed up to £21.5 billion of funding for Great Britain’s onshore transmission network under the RIIO-T1 electricity transmission price control that sets out funding for transmission owner activities, including investment in new and replacement

136 7th National Communication assets. RIIO-T1 started in April 2013 and runs until 2021 and will help ensure that new generation can be accommodated in a timely and cost effective manner while maintaining network security and reliability. In 2015 Ofgem approved over £26 billion of funding for the distribution network operators (DNOs) for the 2015–2023 RIIO ED1 price control. The DNO role is vital for the delivery of smaller-scale renewable projects, since 2012 generation connected to the distribution network has nearly doubled from 14GW to just under 28GW. [Source DUKES]. Further the regulator has taken steps to increase competition in electricity distribution connections which has brought cheaper and quicker connections for renewable generators. According to Ofgem in 2011, 14% of connections were provided by independent connection providers. By 2015 this had risen to 36%. In July 2017 the Government and Ofgem published the paper Upgrading our energy Smart Systems and Flexibility Plan. This set out the guiding principles of our approach to enable the transition to a smarter, more flexible energy system in GB, followed by 29 actions that BEIS, Ofgem and others are undertaking across three broad • removing barriers to smart technologies including storage; • smart homes and businesses; and • markets which work for flexibility. Government is also continuing to deliver the smart meter programme, which ensures that that every home and small business in the country is offered a smart meter by the end of 2020. The Welsh Government’s energy policy is set out in Energy A Low Carbon Transition. The priorities for energy are; to use energy more efficiently, reduce our reliance on fossil fuels and ensure Wales benefits from this low carbon transition.. Energy Wales sets the Welsh Government priorities for leading the transition to a low carbon economy in a way that delivers long term benefit for the people of Wales.
Energy Wales covers a range of actions to realise economic, social and environmental benefits from energy efficiency and renewable energy, and in the longer term from marine energy and the innovative initiatives that will deliver smart living. The Welsh Government’s intention is to maximise the role of renewable generation in delivering secure and affordable low carbon energy for Wales, which will form an important part of delivering carbon budgets. In order to achieve this, Wales will require a mix of different technologies and sizes, from community scale to major projects. In September 2017 the Welsh Government set stretching but realistic targets for renewable energy in Wales. 3.8.12.1 The energy savings advice service Scotland’s Energy Efficiency Programme (SEEP) which will operate across Scotland will be launched in 2018 with substantial annual public funding drawing on the commitment to provide over half a billion pounds over the next four years and by the end of 2021 Scottish Government will have allocated over £1 billion since 2009 on tackling fuel poverty and energy efficiency

Chapter 3 – Policies and Measures 137 measures. It will be a co-ordinated programme to improve the energy efficiency of homes and buildings in the commercial, public and industrial sectors. Initial estimates suggest required overall investment of around £10bn from a range of public and private sources. The Scottish Government’s existing advice, support and loan services for residential (Home Energy Scotland) and the business and public sectors (Resource Efficient Scotland) will continue to deliver during the design phase of SEEP . As SEEP develops over the longer term, the future provision of advice and information to homes, businesses, and the public sector, to support them in improving the energy efficiency and decarbonising the heat supply of their buildings will 3.8.12.2 Fuel poverty and domestic energy efficiency in Scotland Scottish Government has always prioritised tackling fuel poverty and has a clear aspiration to eradicate poor energy performance as a cause of it. Scottish Government is delivering its commitment to make half a billion pounds available over the next 4 years and, by the end of 2021, will have allocated over £1 billion pounds since 2009 on tackling fuel poverty and improving energy efficiency. In response to recommendations put forward by the Fuel Poverty Strategic Working Group and the Scottish Rural Fuel Poverty Task Force, which both reported in October 2016, the Scottish Government are consulting on a new draft fuel poverty strategy. In particular, the consultation • a new definition of fuel poverty and indicators and sub-targets (launched 9 November • Responses to the consultation will inform the new strategy and the development of a Warm Homes Bill, due to be introduced in 2018, and development of a new framework for tackling fuel poverty in Scotland. The sub-targets being proposed in the consultation include setting a minimum energy efficiency rating. Further work is being done to set a long term direction for SEEP , including looking at minimum standards of energy efficiency across different tenures. Scottish Government will be engaging further on some of these issues in the coming months and will provide further details next year, publishing a SEEP Route Map in 2018 to set out its long-term ambition. As part of the wider development of SEEP Scottish Government will continue to consult on proposals and will consider appropriate mechanisms to bring forward resulting new legislation and regulations as appropriate – a wider SEEP Bill in the third year of this Parliament. 3.8.13.1 NI Strategic Energy Framework Northern Ireland’s Strategic Energy Framework (SEF) 113 has set a target of 40% of electricity consumption to be met from renewables by 2020. An interim target of 20% was met in 2015 113 114 Renewable Generation-in-Northern-Ireland-April-2016-to-March-2017 .pdf

138 7th National Communication resulting from the Northern Ireland Renewables Obligation (now closed), together with two tidal energy projects115 off the North Antrim coast come to fruition, the 40% target is likely to be The SEF has been reviewed and is to be replaced by a new energy strategy which will (subject to Ministerial agreement) set out Northern Ireland’s energy ambition for the period to 2050. This new strategy is expected to encompass future direction in relation to both renewables and energy efficiency policy which, in turn, will be informed by the changes brought about through the European Union’s Clean Energy Package 3.9 Agriculture, land use, forestry, waste and F-gases The UK is generating more value from the use of our natural resources (covering livestock, crops, trees, land use and waste) while also cutting emissions. The UK has halved its emissions from these sectors since 1990 and they now only account for 15% of total UK emissions. During this time emissions from the waste sector have decreased by 73%. This has been driven by taxing waste to landfill, increased recycling and more and better waste infrastructure. The UK has seen household recycling rates increase from 11% to 44% between 2000/1 and 2015/16269. At the same time, the UK waste sector has become an important contributor to electricity generation. Waste helped to generate 14% of UK renewable electricity in 2015, enough to power 2.3 million homes. The UK government and Devolved Administrations have each developed a policy framework to reduce all GHG emissions from the agriculture, forestry and land management sector to enable the sector to fulfil its potential to in contributing to climate change mitigation. The Clean Growth Strategy (CGS), published in October 2017 , affirms the UK government’s ambition to play a significant role in low carbon growth, supported through a system of incentives to improve efficiency and improve the natural environment. The UK’s exit from the European Union and the Common Agricultural Policy will give the UK government the opportunity to address climate change more directly. A new system of support will be designed, with a strong focus on delivering better environmental outcomes, including climate change mitigation and adaptation. The Greenhouse Gas Action Plan (GHGAP), is a voluntary, industry-led initiative to reduce the level of GHG emissions produced from agriculture in England.
The Defra review of the GHGAP in 2016 concluded that progress has been made, with a reduction of 1MtCO achieved. The review also recommended in order to achieve the GHGAP target of 3MtCO2e by 2022, the GHGAP should focus on increasing uptake of mitigation measures already proving effective. The GHAP should also identify opportunities to encourage the take-up of new technology that will increase the potential for further emissions reductions. Transformative technologies also present opportunities for emissions reductions. The Government’s ambition is for the UK to be at the forefront of land-based innovation, at the cutting edge of agricultural and bio-based technology development. This aspiration will be supported through the forthcoming bioeconomy strategy as well as through the existing £160 million Agri-Tech Strategy. 115 and 116

Chapter 3 – Policies and Measures 139 All this work is supported by a strong Farming and Food Science Programme which includes a specific programme of research on agriculture and climate change. The Scottish government continues to fund an expanding range of research to understand the role of land use in GHG emissions and their mitigation, and on adaptation to the impacts of climate change. Including impacts upon biodiversity, water, soils, and the implications for ecosystem functioning, adaptation of farming systems (including crops, livestock and their diseases), changes in land capability under climate change, land use planning for delivering integrated responses across sectors, the costs and benefits of biomass energy crops, the role of forestry in relation to carbon sinks, changes in consumer demand in the move to a low carbon economy, visualisation of future landscapes and stakeholder perceptions of these changes, understanding policy instruments to reduce GHG emissions, evaluation of uncertainty related to climate scenarios and the scope for risk-based approaches. Scottish government’s approach to reducing emissions from the rural land use sector is guided by the Land Use Strategy, which sets out three objectives relating to the economy, environment and communities. These support an integrated approach to managing the competing demands placed on the land resource. They seek to balance a productive land-based sector and a successful tourism and leisure industry, with the vital role that land plays in maintaining Scotland’s rich biodiversity and in storing carbon. The transition to low-emission agriculture is aided by a number of linked initiatives developed and supported by the Scottish government, as well as by industry-led • research provides innovative and sustainable solutions and advice on improving efficiency and reducing emissions from farming systems • advisory initiatives promote sustainable farm practices focusing on resource efficiency and advise on cross-cutting benefits of on-farm action • support mechanisms like the Scotland Rural Development Programme (SRDP) aid uptake of sustainability measures in agriculture. 3.9.2.1 Farming for a Better Climate Farming For A Better Climate (FFBC) is an advisory programme aims at influencing farming and land management practices through a programme of best practice advice and demonstration. Scottish government launched the FFBC initiative in 2009. The programme is delivered by Scotland’s Rural College (SRUC) and targeted at land managers to help them take action to mitigate and adapt to impacts of changing climate. FFBC activity includes web-based advice, technical guidance, demonstration events, seminars, conferences and knowledge exchange through farming press. It is designed to encourage voluntary uptake of actions in five • Using energy and fuels efficiently • Locking carbon into soils and vegetation • Optimising use of fertiliser and manures • Optimising livestock management practices through a programme of best practice

140 7th National Communication 3.9.2.2 The Farm Advisory Service (FAS). Provides information and resources aimed at increasing the profitability and sustainability of Launched in 2016 as part of the SRDP FAS activities include providing events, case studies, guidance notes, carbon audits (including around 200 free audits per annum) and integrated land management plans which are designed to take a holistic approach to review of the whole farm business with increased emphasis on public good such as climate change and other environmental aspects. The FAS programme is made up of two the one to many advice service delivered by SAC consulting and the one to one advice service delivered by 3.9.2.3 The Beef Efficiency Scheme (BES) A five-year SRDP climate change scheme that aims to help beef breeders improve their efficiency, sustainability and quality of their beef herd. Launched in 2016 this scheme will help farmers increase their genetic value of their herd whilst reduce greenhouse gas emissions through improved efficiency. The scheme will deliver a range of improvements focusing on cattle genetics, management practices and giving members access a free advisory service to assist in developing the suckler herd. It is expected that the principal impacts will be reduction in GHG emissions through improved genetic selection in respect of growth rates, feed conversion, maternal behaviour, nutrition practice and disease 3.9.2.4 Agri-renewables strategy Scotland Scottish government’s Agri-renewables Strategy aims to encourage the uptake of renewable technologies by agricultural businesses and to promote engagement with local communities so as to increase community benefits from renewable energy development. The Community And Renewable Energy Scheme (CARES) is offering loans for the pre-planning costs of renewables projects to land managers, farmers and SMEs. 3.9.2.5 Farm energy auditing and resource efficiency in Scotland (still active) Practical advice on carrying out a farm energy and fuel audit and developing an action plan is available on the FFBC website. This aims to ensure that farm equipment, vehicles and buildings are using energy and fuel as efficiently as possible in order to reduce greenhouse gas emissions and provide cost savings for farm businesses. Advice on zero and low cost options that can be implemented immediately and bring about noticeable savings is also available. Advice and support in relation to energy and water efficiency, as well as waste, is available to farmers and agricultural businesses through the Scottish government funded Resource Efficient Scotland programme.
Resource efficiency and energy audits provided through the programme are only available for diversified activities of a farm operation, such as processing activities for retail ready produce, as well as farm shops, cafés and a farm visitor centre. The Environment Act (Wales) 2016 gives a clear legislative framework in which to set policy. The principles of Sustainable Natural Resource Management Policy are at the core of all future policy making and schemes implementation to ensure it achieves multiple benefits and delivers an array of public goods and services which is not at the expense of food production. Following the review of the Land Use and Climate Change report 2013, the Welsh Government has actively been working with the industry to develop a robust evidence based action plan

Chapter 3 – Policies and Measures 141 which sets the pathway for agriculture to mitigate greenhouses gases and also adapt to the opportunities and challenges of tackling climate change. The focus on reducing carbon intensity in the livestock sector, Animal Health and Welfare and improving Soil Health are central to this 3.9.4 Agriculture in Northern Ireland The Department of Agriculture Environment and Rural Affairs (DAERA), working in partnership with key environmental, agri-food, forestry and governmental stakeholders through a Greenhouse Gas Implementation Partnership, launched Phase 2 of the ‘Efficient Farming Cuts Greenhouse Gases Implementation Plan 2016 – 2020’ 117 in September 2016. Building on Phase 1 (launched 2011), this plan focuses on supporting and promoting on-farm implementation of efficient technologies, best practice measures and knowledge transfer programmes that help reduce the carbon intensity of food production in Northern Ireland. The Northern Ireland Rural Development Programme 2014–2020, through a range of schemes, provides financial and business development supports to incentivise on-farm adoption of measures that increase efficiency and build resilience to climate change. Key among these Farm Business Improvement Scheme - Capital, supporting investments in efficient and emission reducing technologies; Environmental Farming Scheme, supporting environmentally beneficial farming practices including carbon conservation and sequestration; and DAERA Forestry Schemes, supporting establishment of new woodlands and sustaining existing woodlands. 3.9.5 Reducing nitrous oxide emissions The use of inorganic nitrogen as a fertiliser is a major source of nitrous oxide, which can also arise from manures during storage and application. Defra has invested significant resources to reduce the uncertainties attendant on estimating emissions from soils. Our new inventory model will become operational this year (2017) and will improve the characterisation of this important emissions source. Although some loss of nitrogen from agriculture is inevitable, such losses represent missed opportunities for food production and contribute to the costs of production. The practices needed to reduce these emissions are, in many cases, similar to those required to address other negative impacts of the use of nutrients. Measures aimed at protecting soils, water quality and biodiversity such as Soils for Profit, Catchment Sensitive Farming and Environmental Stewardship can therefore provide co-benefits for GHG mitigation. The UK government is improving the advice it gives concerning nutrient management planning and the efficient use of fertiliser and manures. In January 2009 under the revised Nitrates Action Programme it published Protecting our Water, Soil and A Code of Good Agricultural Practice for farmers, growers and land managers (the CoGAP) which offers advice on minimising risk to pollution while protecting natural resources and allowing economic agriculture to continue. The AHDB has also recently updated the Fertiliser Manual (RB209) which will act as a key point of reference in support of a range of policies aimed at improving nutrient management on farms. It is the Government’s stated intention to ensure that mitigation and adaptation to climate change are key features of future agriculture policy. As part of this approach, the potential and viability of new technologies to improve nutrient use efficiency will be explored. 3.9.6 Reducing methane emissions 4 result from diffuse sources and through variable biological processes. Major sources include landfill, enteric (digestive) emissions from ruminant livestock, and agricultural 117

142 7th National Communication manure management. Research funded by the UK government is examining a range of options for decreasing emissions from livestock. Areas currently being researched include ruminant nutrition regimes to reduce enteric CH4 and nitrogen emissions from livestock, research to improve the productivity of livestock systems, and research on beef and sheep breeding for better economic and environmental outcomes. This work is all part of our broader aim of achieving a thriving farming and food sector with an improving net environmental contribution. 3.9.7 Anaerobic Digestion and Action Plan The UK Government recognises that Anaerobic Digestion (AD) can play a role in contributing to the UK’s 2050 carbon reduction targets, as well as in the management of certain forms of To date, the focus of Government policy in relation to AD has been on the development of the technology as a distributed energy source. The UK produces about 100 million tonnes of food and farm waste per year that is suitable for treatment by anaerobic digestion. On that basis the majority of development has been at a sub 1MW scale, with a focus on “on-farm” AD. More recently larger facilities for treatment of industrial and municipal food waste have been developed, however the UK Government discourages the use of dedicated biofuel crops for AD, as the primary purpose of agricultural land is for food. Building on the conclusions of the Anaerobic Digestion Strategy and Action Plan (2011), which estimated that AD has potential to deliver between 3 and 5 TWh of electricity by 2020, the Government has included AD within the various UK renewable and low carbon energy financial incentive schemes (i.e. the Feed in Tariff, the Renewables Obligation and Contracts for The UK Feed-In-Tariff is the principal means of support for AD projects under 5MW and has helped the sector to continue development.
In 2016, the Government also announced that payments under both the Renewable Heat Incentive and the Feed-In Tariff would be restricted in instances where anaerobic digestion (AD) installations are producing over 50% of heat or electricity from feedstocks other than wastes or residues. In February 2017 , as part of a wider review of the operation of the FIT scheme, Government set out amendments to the scheme to ensure that only the most efficient installations receive support, ensuring that customers receive AD projects over 5MW are eligible for support through the Contracts for Difference (CfD) scheme, implemented in 2015. AD sits in within the less established technologies part of scheme, known as “Pot II”, competing against technologies such as offshore wind, advanced conversion technologies, energy from waste with CHP and others. Two CfD auction rounds have been carried out to date, in 2015 and 2017 . 3.9.8 Rural development regulation and environmental stewardship Rural development programmes for Scotland, Wales, Northern Ireland and England are being implemented using expenditure under the EU Rural Development Regulation for 2014-2020, of which environmental stewardship is a key part. Addressing climate change is a cross cutting Actions under the Scottish Rural Development Programme (SRDP) that help address climate change includes the Farm Advisory Service and Beef Efficiency Scheme as discussed in section 3.9.3 and supports woodland creation as referred to in section 3.9.10. Chapter 3 – Policies and Measures 143 In Wales, capital and revenue from the RDP provides significant investment in the farm modernisation sustainable production scheme, Glastir suite of land management programmes, Sustainable Land Management scheme, Agricultural Strategic Initiative, Climate Smart Agriculture (Wales) and Farming Connect advice service. The UK Government’s bioenergy strategy, published in 2012, provides four key principles to • That policies that support bioenergy should deliver genuine carbon reductions that help meet UK carbon emission objectives to 2050 and beyond • Support for bioenergy should make a cost effective contribution to UK carbon emission objectives in the context of overall energy goal • Support for bioenergy should aim to maximise the overall benefits and minimise costs (quantifiable and non-quantifiable) across the economy • When policies promote significant additional demand for bioenergy in the UK, beyond that envisaged by current use, policy makers should assess and respond to the impacts of this increased deployment on others areas, such as food security and wider environmental impacts such as water, air and biodiversity. Bioenergy is both cost-effective and versatile, with a significant role to play in meeting the UK’s climate change and renewable energy obligations. As such, the Government has indicated in its Clean Growth Strategy its intention to invest and explore the potential of bioenergy in, for example, the decarbonisation of heat and transport. Wheat and maize make up the bulk of bioenergy crops cultivated in the UK, with sugar beet, miscanthus, oilseed rape and short rotation coppice also grown. In 2016, bioenergy crops occupied 132 thousand hectares – just over 2% of the UK’s arable land – 53% of which was for biofuel in the UK’s road transport market. The cultivation of purpose-grown crops for bioenergy must be balanced with the demand for food production. The primary purpose of agriculture remains the production of food. In light of this position, the UK Government has recently announced that it plans to introduce a cap of 4% on crop-based biofuels under the Renewable Transport Fuel Obligation (RFTO), decreasing year-on-year to 2% by 2032. As noted in 3.8.9, in 2016, the Government also announced the Renewable Heat Incentive and the Feed-In Tariff would be limited in instances where anaerobic digestion installations are producing over 50% of heat or electricity from feedstocks other than wastes or residues. While it is the UK Government’s position that biomass production must not undermine either domestic or international food security, the Clean Growth Strategy sets out the UK government’s intention to incentivise woodland creation and afforestation on marginal land, including where bioenergy is one potential end-use. Scotland is well placed to develop the use of bioenergy as it has significant forest resource. There are a range of measures in place to support bioenergy from expanding the resource to installing woodfuel systems. The Scottish Rural Development Programme supports woodland creation and management, and a range of support is available to help grow the sector including support for supply chain development and installation of biomass boilers. The Scottish government has set a target for 11% of the heat consumed in 2020 to come from renewable sources. The Renewable Heat Incentive is providing significant support for

144 7th National Communication the installation of biomass heating plants. The aim is to encourage investment to help achieve renewable heat targets, whilst balancing the demand for construction and other timber from the 3.9.10 Sustainable forestry policy UK forestry policy is devolved in the UK. All four countries have established policies for woodland creation, currently co-financed through the EU Rural Development Programme. The development of the Woodland Carbon Code, including its launch on an international carbon registry is attracting private and corporate funding to complement the Rural Development Programme. A revised UK Forestry Standard (UKFS), including Guidelines on Forests and Climate Change, was published in July 2017 . The requirement for climate change mitigation is that ‘forest management should contribute to climate change mitigation over the long term through the net capture and storage of carbon in the forest ecosystem and in wood products’. Meeting the requirements of the UKFS is a condition of grant-aid, and also underpins both the Woodland Carbon Code and forest certification under the UK Woodland Assurance Standard. A strong regulatory framework continues to protect existing woodland from deforestation and In England, objectives for forestry are set out in the Forestry and Woodlands Policy Statement (2013), including an aspiration to increase woodland cover from 10% to 12% by 2060.
The policy statement recognises the need to make woodland planting more attractive to landowners and attract private investment to fund it, particularly through the development of payments for ecosystem services as set out by the Ecosystems Market Task Force. In England, the Environmental Impact Assessment (Forestry) Regulations were revised in May 2017 , requiring more information be provided by proposers of afforestation projects, while increasing the EIA threshold in areas mapped as low risk if a UKFS woodland creation plan is submitted. The objective of raising the threshold was to encourage the planting of larger woodlands, in part, to contribute to emissions reduction. The design of larger scale productive woodlands is supported through the Woodland Creation Planning Grant (from 2015), while their establishment is financed through the Woodland Carbon Fund (from 2016). A policy on when to convert woods and forests to open habitats in England is in place, which includes as assessment of implications for carbon balance in the process of prioritising sites for restoration. The development of a thriving forestry sector, through an industry-led action plan (Grown in Britain), is highlighted as an essential element to achieve woodland planting aspirations and deliver emissions savings in other sectors through the sustainable use of woodfuel as a source of renewable energy and harvested wood products substituting for other materials. The Clean Growth Strategy (CGS) was published in October 2017 and sets out broad aspirations to enhance the rate of afforestation and use of timber in construction in an illustrative pathway to meet the fifth carbon budget (2028-32) and longer term emissions reduction. The CGS also committed to ‘set up a stronger and more attractive domestic carbon offset market that will encourage more businesses to support cost effective emissions reductions, such as through planting trees’ and to ‘We will unlock private finance to invest in forestry by establishing forestry investment zones to offer investors streamlined decision making and more certainty, In Scotland, forestry is recognised as having an important role in contributing to emissions reduction targets through carbon sequestration which is a specific objective of woodland creation. The Scottish Government is committed to expand this important carbon sink and the Programme for Government spells out the support to a growing forestry industry to contribute to climate change targets. The draft Climate Change Plan (third report on policies and proposals) sets out how the Scottish Government will meet its greenhouse gas emission reduction targets

Chapter 3 – Policies and Measures 145 2017-2032 and includes a policy on increasing the long term annual woodland creation target from the current 10,000 hectares of new woodland per year to 15,000 hectares per year from 2024/25. To complement woodland creation, a framework to better control woodland removal is also in place with a proposed policy to further increase emissions abatement through greater use of Scottish timber in building construction and refurbishment. These targets will be taken forward in a sustainable way and require the creation of a range of different woodland types, on different sites, with different objectives. The Scottish Government is committed to supporting the creation of at least 3,000 hectares of new native woodland a year (Scottish Biodiversity Route Map 2020). To support the delivery of the draft Climate Change Plan, the Forestry Grant Scheme offers financial support for the creation of new woodland and the sustainable management of existing woodland. All applications are assessed against the UK Forestry Standard and associated The Scottish Government has recently introduced the Forestry and Land Management (Scotland) Bill to replace the 1967 Forestry Act in Scotland. The Bill includes duties on Ministers to promote sustainable forest management and to publish a forestry strategy which will set out the Government’s priorities in relation to the economic, environmental and social benefits of The Forestry (Environmental Impact Assessment) (Scotland) Regulations 2017 came into force in May 2017 , driven by EU EIA Directive 2014 that aims to streamline aspects of the EIA process and improve transparency and consistency in EIA practice across a number of regimes. The main changes include an increase of the threshold for afforestation projects outside sensitive areas from 5 to 20 hectares to secure a more effective way in assessing woodland creation applications to contribute to emission reductions. The 2017 Regulations have been reflected in England, Scotland and Wales also have established Woodfuel Strategies that aim to maximise the contribution of both existing and new woodlands to renewable energy production. For example, the supply of small to medium scale heat in off gas grid areas is the focus of Forestry Commission England’s Woodfuel Implementation Plan, which is supported by renewable energy policies including the Renewable Heat Incentive. To promote sustainable land use, “Woodlands for Wales” is the Welsh Government’s fifty-year Strategy. The Welsh Government has set a new short term target over the life of the current action plan of 10,000 hectares of new woodland by 2020. This will require an average of 2,000 hectares of tree planting per annum. In 2015 GHG emissions from waste contributed to 4% of total UK emissions; representing a decrease of 73% since 1990. Approximately 67% of emissions from this sector are attributable Consistent with the EU Waste Framework Directive, the government and the devolved administrations have published waste management and prevention plans aiming to reduce the quantity of waste produced and to increasingly recover value from it. In addition to these, the UK government has recently published its Clean Growth Strategy, where it set its long- term ambition to move towards zero avoidable waste by 2050 and a commitment to publish a renewed Resources and Waste Strategy in 2018. 146 7th National Communication In 2015 households in the UK produced 26.7 million tonnes of waste. This has remained relatively flat since 2010. The latest commercial and industrial arisings show a significant decrease in arisings, with 27 .7 million tonnes in 2014 compared to 33.9 million tonnes in 2010. That is a decrease of 18%. The industrial sector accounts for 12.6 million tonnes and the commercial sector 15.1 million tonnes.
In 2015, 44.3% of UK household waste was recycled, having slightly fallen from 44.9% in 2014. in England, local authorities recycled, composted or reused 111 million tonnes of the waste they collected, far outweighing the 5.1 million tonnes that were landfilled. UK waste policy contributes to emission reductions via several waste prevention efforts such as voluntary industry agreements; reductions in CH 4 emissions from landfill; emission reductions from efficient use of materials, waste prevention, reuse and recycling; and, via energy recovery from waste, which offsets fossil fuel energy generation elsewhere in the economy. Methane emissions from biodegradable waste in landfill alone account for 32% of all UK CH4 emissions (2015) and 2% of all UK GHG emissions (2015). The EU Landfill Directive stipulates a reduction of biodegradable municipal waste (BMW) landfilled to 35% of the volume of BMW waste generated in 1995 by 2020 (with interim targets in 2010 and 2013 The UK comfortably met interim BMW targets for 2010 and 2013 and the value of BMW tonnages landfilled in 2015 was 22% of the 1995 baseline. The single most important driver for diverting waste from landfill is landfill tax. This is currently set at £86.10/tonne landfilled (non-inert) waste and is scheduled to increase in line with the Retail Price Index from April 2018 rounded to the nearest 5 pence. The landfill tax not only encourages diversion of wastes from landfill, but also encourages waste prevention through an increase in the cost of disposal. Food waste has been identified as a priority under the Clean Growth Strategy, with the UK government committing to working towards no food waste entering landfill by 2030. The government and devolved governments in Wales, Scotland and Northern Ireland are providing advice to consumers through WRAP’s ‘Love Food Hate Waste’111 campaign and working with the industry to improve products and practices through the Courtauld 2025 Commitment.112 The UK continues to be seen as a leader in the EU on food waste prevention, having reduced food waste across households and the supply chain by 11% between 2007 and 2015. The UK government and devolved governments have worked successfully with industry to reduce foodwaste arising at manufacture by nearly 10% between 2011 and 2014 while household food waste is down by even more – 12% in 2015 since 2007 . The Courtauld Commitment results show that the voluntary approach can deliver real reductions in waste, while allowing businesses to be more efficient and competitive. In 2015 the UK government and devolved governments in Scotland, Wales and Northern Ireland launched the Courtauld Commitment 2025. The scheme aims increase to further reduce the weight and carbon impact of household food waste, grocery product and packaging waste, both in the home and the UK grocery sector. Courtauld 2025 is expected to result in a 20% reduction of food waste across households and the supply chain by The new Hospitality and Food Service Agreement is a voluntary agreement between the four governments across the UK and the hospitality and food service sector, which includes restaurants, hotels, caterers and pubs. This agreement supports the sector in preventing and recycling food and packaging waste. There is now over 20% coverage of the sector by food and drink sales. The target is 25%. If 25% of businesses in the sector measured by turnover, sign up to the agreement, they could save a total of £76 million and reduce their CO

Chapter 3 – Policies and Measures 147 570,000 tonnes over the period of the agreement. It aims increase the overall rate of signatories’ food and packaging waste that is being recycled, sent to anaerobic digestion or composted to Further incentives for recycling arise from the EU Packaging Directive targets for packaging recovery and recycling. The Packaging Recovery Note (PRN) scheme enables compliance with these targets, allowing obligated parties to acquire PRNs (generated through verified recycling/ recovery of packaging) in order to demonstrate compliance. Further, in 2010 the revised EU Waste Framework Directive stipulates a minimum household recycling target of 50% of household waste, to be achieved by 2020. Alongside instruments to reduce landfilling of waste, regulations on the landfill sites themselves, and an incentive through the Renewables Obligation, have helped to increase the capture 4) – up to 70% of this gas is now captured and is either utilised for energy generation (which is supported by receiving 0.25 Renewable Obligation Certificates per MWh), or is flared. This ensures not only a reduction in CH4 emissions escaping to the atmosphere, but also produces electricity, offsetting the need for other electricity generation. All UK waste policies are based around the waste hierarchy with the aim of driving waste out of landfill to avoid the CH4 emissions and towards reuse or recycling. However, for genuinely residual waste, energy from waste is supported. The biogenic content of waste used for energy production is counted towards renewable energy targets and is eligible for renewable financial incentives. England currently has about 40 operational EFW plants with a capacity of nearly 10 million tonnes a year. In 2016 2.7 TWh of waste derived renewable electricity was produced The incineration of energy from waste (EfW) is supported under the RHI through the biomass tariff and so links to the energy supply section. The RHI pays a tariff for the proportion of heat generated from the biomass in municipal solid waste (MSW), which is typically 50% or higher. Currently, other types of waste, such as commercial and industrial waste are excluded. However, other types of waste are supported under the Renewables Obligation (RO). Energy from waste has the dual benefit of producing renewable energy and avoiding harmful 4 emissions when the biodegradable proportion of this waste decays in landfill. The main input fuels for incineration are currently waste collected by local authorities , commercial and industrial waste, and in some cases construction and demolition waste. The Government wishs to align the RO with the RHI and not present additional barriers to participants already complying with the RO requirements.
It will therefore extend support under the RHI to energy from commercial and industrial wastes where not more than 90% of the waste is, or is derived, from fossil fuel (i.e. waste has a biomass content of at least 10%). Participants will receive support only on the biomass proportion of their waste and will therefore have to demonstrate what proportion of the waste is biomass. Wales’ recycling rate has increased from just under 5% to 64% – the third best in the world. The final recycling figures for 2016/17 show the average combined reuse, recycling and composting rate across Wales’ 22 Local Authorities was 64%, an increase of 4 percentage the data was first collected following devolution. It is also 6 percentage points higher then the current Statutory Recycling Target of 58%. 148 7th National Communication Wales leads the way in the UK when it comes to recycling, with these latest figures confirming Wales are exceeding their ambitious 58% target. The Welsh Government intends to introduce regulations in 2019 under the Environment (Wales) Act – Part 4 that will substantially reduce the landfilling of biodegradable waste from businesses and the public sector, in order to help achieve the Towards Zero Waste goal of ‘zero landfill’ by 2025. Together with the statutory 70% recycling target for local authorities for 2024/25 and the residual waste treatment programme for local authority collected waste, this will almost eliminate the landfilling of biodegradable waste by 2025, significantly further reducing the emission of Wales is in the process of finalising an evaluation of its Waste Strategy, ‘Towards Zero Waste’. Views on the update, a Route Map for a Resource Efficient Economy’ will be sought during consultation in the summer of 2018. A proposed reduction target to halve food waste by 2025 (from a 2006-07 baseline) has been proposed for Wales. The proposed target will be consulted upon as part of the update on The Welsh Government has commissioned a study on options for extended producer responsibility for key types of food and drink packaging. This will include exploring the merits of introducing a deposit return scheme (DRS) in Wales. The project will scope out a trial for a DRS in Wales, which has budget provision in 2018/19. The Welsh Government is providing support for alternative treatment of Local Authority Municipal Waste via the Waste Infrastructure Procurement Programme which was established to support groups of local authorities working together to develop sustainable long-term • residual (black bag) waste treatment. There are seven hubs formed of local authority partnerships involved in food waste treatment procurement using anaerobic digestion technologies. Six food waste contracts have been awarded to date, with five facilities built and operating across Wales. One further contract is due Three residual waste contracts have been awarded for long-term energy from waste solutions, diverting non-recyclable waste from landfill over a 25-year period. Eight local authorities in South East Wales are sending their residual waste to the Trident Park energy recovery facility in Cardiff. Five local authorities in North Wales will send their waste to Parc Adfer facility in Deeside which is due to start operating in 2019/20. The food waste treatment solutions will provide an annual net benefit estimated carbon saving of 2e in comparison to continued landfill. The overall environmental impact of the energy from waste solutions for residual waste will deliver a significant improvement on the former landfill-based disposal. Most notable is the reduced net carbon emission. It is estimated that annual carbon savings from energy from waste solutions will total up to 645,000 2e when the Parc Adfer facility is operational. The Collaborative Change Programme supports local authorities to evaluate their waste management performance and produce robust business cases, with a view to ensuring that all local authorities optimise their potential to operate sustainable waste management services. Many local authorities have been assisted by the programme since its inception in late 2011. Chapter 3 – Policies and Measures 149 The option appraisals, which are undertaken with authorities as part of the business plans process, identify potential carbon savings. The actual savings made will be dependent upon the waste service configuration that an authority chooses to implement. This data will become available as the programme progresses. The incineration of energy from waste (EfW) is supported under the RHI through the biomass tariff and so links to the energy supply section. The RHI pays a tariff for the proportion of heat generated from the biomass in municipal solid waste (MSW), which is typically 50% or higher. Currently, other types of waste, such as commercial and industrial waste are excluded. However, other types of waste are supported under the Renewables Obligation (RO). Energy from waste has the dual benefit of producing renewable energy and avoiding harmful 4 emissions when the biodegradable proportion of this waste decays in landfill. The main input fuels for incineration are currently waste collected by local authorities , commercial and industrial waste, and in some cases construction and demolition waste. The Scottish Government wishes to align the RO with the RHI and not present additional barriers to participants already complying with the RO requirements. The Scottish Government will therefore extend support under the RHI to energy from commercial and industrial wastes where not more than 90% of the waste is, or is derived, from fossil fuel (i.e. waste has a biomass content of at least 10%). Participants will receive support only on the biomass proportion of their waste and will therefore have to demonstrate what proportion of the waste is biomass. In May 2013 the UK Government and devolved governments in Scotland, Wales and Northern Ireland launched a third phase of the Courtauld Commitment. The scheme aims increase to further reduce the weight and carbon impact of household food waste, grocery product and packaging waste, both in the home and the UK grocery sector.
During the three phases of the Courtauld Commitment, it is expected that a 20% reduction in household food waste to be 3.10.4.2 Scottish government ambition for decarbonising waste The Scottish government’s Circular Economy Strategy “Making Things Last” (2016) sets out ambitions and priorities to keep products and materials in high value use for as long as possible. The strategy has four priorities, where the biggest impact can be food/bioeconomy, construction, remanufacture and energy infrastructure. • 70% recycling/composting and preparing for re-use of all waste by 2025 • 70% recycling and reuse of construction & demolition waste. 2020 • No more than 5% of all waste to go to landfill. (Following ban • On biodegradable municipal waste to landfill from 2021) 2025 Reduce food waste by 33% by 2025: the first such target in Europe, and will consult on whether the target Measures cover waste prevention, design, reuse and repair, remanufacturing, recycling, producer responsibility, biological resources, energy recovery, landfill, communication, skills and

150 7th National Communication Landfill gas is the main waste related contributor to our territorial greenhouse gas emissions. In 2012, the Scottish Parliament passed the Waste (Scotland) Regulations 2012. These regulations introduced measures to transform how waste and recyclables are processed in Scotland. Specific measures introduced by the regulations • a requirement for businesses to present dry recyclables (metals, plastics, paper, card and glass) and food waste for collection; • a requirement on local authorities to provide householders with a collection service for dry recyclables and food waste; • a ban on materials collected separately for recycling going to landfill or incineration; • a ban on biodegradable municipal waste going to landfill by the end of 2020. These regulations will progressively change both the amount and composition of waste going to landfill, and largely eradicated CH 4 producing bio-degradable material from landfill. 3.10.5 Waste in Northern Ireland The Northern Ireland Waste Prevention Programme “The Road to Zero Waste”, published in September 2014, was one of a number of key policy interventions signposted in the NI Waste Management Strategy (2013). It encompasses a number of actions to assist in driving waste up the Waste Hierarchy and deliver resource efficiency, including targeting at-source waste production and extending a product’s lifetime through re-use, repair or refurbishment. Another policy intervention contained in the Strategy was the restriction on the landfilling of separately collected food waste. The Food Waste Regulations (Northern Ireland) 2015 came into operation in February 2015 and prohibited the landfill of separately collected food waste from 1 April 2015. From 1 April 2016 large producers of food waste have been required to take measures to ensure the separate collection of their food waste, and from 1 April 2017 district councils have been required to promote the separate collection of food waste and provide receptacles to householders for separate food waste collection. Support has been provided to district councils for reuse and recycling projects through the Rethink Waste Capital Fund since 2010. For the most recent support to councils £2.3m was made available through the Rethink Waste Capital Waste Fund 2016-17 and in particular supported the new requirement for the separate collection of food waste by helping with the purchase of new refuse vehicles, additional recycling bins, food waste caddies and liners and promotional materials. Additional funding is also planned in 2017-18 to increase the rate of capture of non-food recyclates. The most recent official statistics show that in the year April 2015 to March 2016, 42.2% of household waste was recycled or composted, or prepared for reuse, against the Waste Framework Directive target of 50% by 2020. The Department has initiated a review of the NI Waste Management Strategy and district council waste management plans, which will take account of the proposals for more challenging targets for the landfill and recycling of municipal waste proposed in the EU circular economy package. Since 1990, the public sector – including central and local government, health, education and emergency services – has reduced its emissions by 40% as a result of energy efficiency and rationalisation of the central government estate. Central government and its agencies have led by example through the Greening Government Commitments (GGC), which include a greenhouse gas reduction target. As of 2015/16, the UK

Chapter 3 – Policies and Measures 151 has succeeded in meeting the target by delivering a 27% emissions reduction and £127 million of savings against 2009/10 levels. The original target was a 25% reduction compared to the 2009/10 baseline so new targets were set in January 2017 , with the aim of achieving a 32% 3.11.1 Public sector procurement Public sector procurement amounts to £230 billion, around a sixth of purchasing power in the UK. The government is committed to using this purchasing power sustainably, building on the work that has been done since the Sustainable Procurement Action Plan (2007) was put in The UK government continues to promote a number of tools to support sustainable procurement. These include a suite of Government Buying Standards for a range of products and services commonly purchased by the public sector which are mandatory for central government; the Flexible Framework and Prioritisation Tool, as well as product/sector specific guidance and training modules. Government also seeks to ensure its framework contracts embed sustainability considerations into their tenders and that departments do the same. Additionally, there is the 2012 Public Service (Social Value) Act which also requires all public bodies to consider, before entering into any service procurement over OJEU levels, the potential they have to leverage social, economic and environmental value in the design of the services The Government has also provided support to the programme which provides a national procurement framework for local authorities on energy efficiency.
Local authorities and social housing providers are also developing and managing low carbon procurement frameworks to The Greening Government Commitments require departments to report annually on the processes they have in place to ensure sustainability is taken into account in all procurement activity, including embedding the Government Buying Standards and monitoring and reporting on the sustainability of their supply chain. 3.11.2 Central government (including the government estate) The Greening Government Commitments deliver the estates and operations element of government’s Vision for Sustainable Development. Updated in 2016, these targets require 22 central government departments to reduce GHG emissions, water consumption and waste by 2020, and to procure more sustainably and report transparently on their actions in relation to climate change adaptation; biodiversity; sustainable construction and sustainable food and catering. By 2020, compared to a 2009-10 baseline the government has committed • Reduce GHG emissions by 32% from its estate and business-related transport • Cut domestic business travel flights by 30% by 2020 • Reduce the amount of waste that government sends to landfill to 10% or less; increase recycling and reduce overall waste • Reduce the amount of paper it consumes by 50% Work is currently under way to make sure the government-wide GHG reduction target is sufficiently stretching, with a view to raising the level of ambition of the 2020 target. 152 7th National Communication Article 5 of the EU Energy Efficiency Directive requires central government departments either to renovate annually 3% of the total floor area of buildings over a certain size that do not meet minimum energy performance requirements, or take alternative measures to achieve an equivalent amount of energy savings. This requirement started in January 2014 and runs until 2020. The UK government is is using the Greening Government Commitments target to reduce GHG emissions from its estate as the mechanism by which it will comply with Article 5. 3.11.3 Public sector procurement Public sector procurement amounts to £230 billion, around a sixth of purchasing power in the UK. The government is committed to using this purchasing power sustainably, building on the work that has been done since the Sustainable Procurement Action Plan (2007) was put in The UK government continues to promote a number of tools to support sustainable procurement. These include a suite of Government Buying Standards for a range of products and services commonly purchased by the public sector which are mandatory for central government; the Flexible Framework and Prioritisation Tool, as well as product/sector specific guidance and training modules. Government also seeks to ensure its framework contracts embed sustainability considerations into their tenders and that departments do the same. Additionally, there is the 2012 Public Service (Social Value) Act which also requires all public bodies to consider, before entering into any service procurement over OJEU levels, the potential they have to leverage social, economic and environmental value in the design of the services The Government has also provided support to the programme which provides a national procurement framework for local authorities on energy efficiency. Local authorities and social housing providers are also developing and managing low carbon procurement frameworks to The Greening Government Commitments require departments to report annually on the processes they have in place to ensure sustainability is taken into account in all procurement activity, including embedding the Government Buying Standards and monitoring and reporting on the sustainability of their supply chain. 3.11.4 The role of local government Local authorities are uniquely placed to provide vision and leadership to local communities, to raise awareness, and to help change behaviours. Through their powers and responsibilities (housing, spatial planning, local transport) they are uniquely placed to bring together local partnerships of public and private sectors and to deliver integrated low carbon plans. The Government is committed to supporting local leadership and has already given additional powers and responsibilities through the Cities and Local Government Devolution Act 2016; many of the Local Devolution deals agreed to date include energy commitments. The Government will work with local areas to support delivery, develop partnerships, and enable access to low carbon procurement frameworks. BEIS is currently consulting on a voluntary target for carbon emissions in the public and higher education sectors through a Call for Evidence associated with the Clean Growth Strategy. The intention is to produce a clear carbon emissions reporting framework for use by participating

Chapter 3 – Policies and Measures 153 BEIS have funded Greater Manchester to develop a reporting mechanism on behalf of the Core Cities network, which will reflect Covenant of Mayors reporting requirements. This is in development and hopefully will be available to pilot cities in 2018. Some 35 UK places have signed the international commitments on carbon reduction and almost 80 have signed a national pledge for 100% clean energy by 2050 under the UK100 partnership. All of the Local Enterprise Partnerships now have funding to develop an energy strategy. Government has also launched a new Local Energy Programme to support local areas in England to play a greater role in decarbonisation. This programme is will support regional hubs to increase local capacity and capability; provide a range of toolkits and guidance; provide some support and expertise to unlock local energy opportunities. The programme will start to support delivery of the Industrial Strategy and Smart Systems Plan, working with local areas to demonstrate that deep decarbonisation can be achieved through local system change in a way that keeps costs down and maximises economic benefit. Local Authorities are now also looking at new financial models. Two UK cities have created arm’s length energy supply companies and many have arm’s length housing companies. This commercialisation of services allows the LAs to play a more direct role in designing and delivering low carbon projects which are integrated into local communities. The statutory land use planning system is complemented by a framework of national planning policies issued by the government and the devolved administrations. The government published a new National Planning Policy Framework in 2012, replacing most previous Planning Policy Statements.
It recognises the importance of the planning system in helping to shape places that minimise vulnerability and provide resilience to the impacts of climate change. It makes clear that local authorities should proactively plan to mitigate and adapt to climate change, taking full account of flood risk, coastal change and water supply and demand. Scotland’s third National Planning Framework and associated Scottish Planning Policy were published in June 2014 and represent the up to date suite of national planning policies for Scotland. Sustainable development remains at the heart of our policy approach which has a vision for Scotland as a successful, sustainable place, a low carbon place, a natural resilient This approach supports the continued decarbonisation of the energy system, principally through the development of renewable energy technologies (for heat and electricity) but also through other approaches such as carbon capture and storage. The approach to transport continues the long standing emphasis on non-motorised modes of travel allied with the creation of high quality, compact, walkable settlements. The Scottish Government continues • Include policy on managing and reducing flood risk, looking in the policy to landscape scale water management approaches. • Implement Strategic Environmental Assessment and Environmental Impact Assessment as required by legislation for a range of plans and developments. 154 7th National Communication This ensures consideration of climatic factors at an appropriate level in decision making. The Spatial Planning Assessment for Climate Emissions (SPACE) tool remains available. The Scottish Government has announced its intention to review National Planning Framework and Scottish Planning Policy from 2018. Scotland’s Climate Change Plan will be used to shape the planning policy approach emerging from the review. Planning Policy Wales (PPW), Wales’ national land use planning policy document has always been written in the context of seeking to achieve sustainable development, including contributing to decarbonisation. PPW is kept under review and updated where evidence points to a need for amendments. PPW is currently being completely redrafted to align it with the goals and ways of working enshrined in the Well-being of Future Generations (Wales) Act 2015 and to embrace the concept of Placemaking as part of our overall vision to create Sustainable Places. The Welsh Government is also in the process of developing the National Development Framework, a national land use plan which will address the continued need for 3.11.5.4 Funding schemes for public sector organisations The Welsh Government provides substantial decarbonisation and green growth support for the Welsh public sector, through the Green Growth Wales initiative, which supports the development of a significant pipeline of energy efficiency and renewable energy projects in the Our support is provided 1. Technical, commercial, financial and procurement support that develops high quality projects, identifies commercial routes for delivery and removes barriers; 2. Cymru – which enables the public sector to take an estate wide approach to energy efficiency and renewable energy. Crucially the energy savings are guaranteed, transferring the risk to the private sector. Paybacks are typically in the order of 6–8 years, though the assets installed typically have lives of over 20 years; 3. Finance – in the form of 0% interest loans or repayable grants that are repaid from the energy savings achieved. This finance is delivered in-house through Invest to Save Green Growth, and via Salix Finance, specialists in public sector energy efficiency loan funding. The Green Growth Wales recycles funding repaid into future projects. The Welsh government expect to have approximately £70m invested in public sector energy projects by the end of the current government term, delivering £650m in cash savings to the public sector, avoiding 2, and providing a substantial economic opportunity for the low carbon 3.11.5.5 Welsh Government sustainable development – Well-being of the Future Wales has had a longstanding commitment to taking action around sustainable development. The unique Well-being of the Future Generations (Wales) Act 2015 has allowed us to legislate on this important agenda and bring focus and coherence to our activity. Chapter 3 – Policies and Measures 155 The Well-being of Future Generations (Wales) Act is about improving the social, economic, environmental and cultural well-being of Wales. It will make the public bodies listed in the Act think more about the long-term, work better with people and communities and each other, look to prevent problems and take a more joined-up approach. To ensure visions are aligned, the Act puts in place seven well-being goals. The seven well-being goals show the kind of Wales the Welsh Government wants to see. Together they provide a shared vision for the public bodies listed in the Act to work towards. The Act makes it clear the listed public bodies must work to achieve all of the goals, not just one or two. The Act puts in place a ‘sustainable development principle’ of ‘Ways of Working’ which tells organisations how to go about meeting their duty under the Act. Public bodies need to make sure when making their decisions they take into account the impact they could have on people living their lives in Wales in the future. The ‘Ways of Working’ or ‘Sustainable Development Principle’ within the Well-being of the Future Generations Act ensures that Public Bodies are making decisions o Take an integrated approach; o Collaborate together with others; o Involve people and communities affected by their decisions; o Focus on taking preventative measures. • The Well-being of the Futures Generations Act in at the heart of all work across the Welsh Government, including decarbonisation and is embedded throughout our carbon reduction work. The Well-being of the Future Generations Commissioner of Wales has identified climate change is one of her key priorities and the Welsh Government are working closely with her office to work together in this important area. 2 emissions from the Welsh Government’s Administrative Estate have fallen 51% since 2010/11, including a 10% reduction in 2016/17 . This substantially exceeds the The Create Your Space programme is an £8.8m programme funded by the Big Lottery Fund (£6.6m) and Dormant Account funding £2.2m).
Dormant Accounts contain money which has lain dormant in bank and building society accounts for at least 15 years and whose owners cannot be traced. Its use in Wales is subject to Directions issued by Welsh Ministers which state that 20% of the available funding must be used on projects relating to community-led action on climate change and sustainability. The aim of Create Your Space is to make a real difference to people and • People are fully involved in shaping the transformation of their local outdoor spaces and genuinely strong partnerships formed between local people and organisations. • By enabling people to transform the way they view and use outdoor spaces, they o Have the confidence and ability to influence and get involved in decisions about their communities with more control over their local environment. 156 7th National Communication o Have a greater understanding and appreciation of the value of outdoor spaces, in particular their contribution to health and well-being, and the potential for creating sustainable business, jobs and leisure opportunities. • As a result of the programme and what communities learn, organisations and communities will have the confidence and desire to take further action to get involved in activities to improve their local communities. The six supported projects • ‘Welcome to our Woods’ – led by Interlink, Upper Rhondda, RCT – £1,016,880 • ‘The Vision for our Valley’ – led by Ynysybwl Regeneration Partnership, RCT – • ‘Woodland Routes to Wellbeing’ – led by Duffryn Community Partnership, Newport – • ‘Cwlwm Seiriol Bond’ – led by Menter Môn, Anglesey – £1,098,000 • ‘Roots to Shoots, Recasting Our Industrial Spaces’ – led by Brymbo Heritage Trust, • “Our Back Yard” led by Groundwork North Wales, Connah’s Quay, Flintshire £649,941 The programme has a duration of seven years for delivery. The successful projects will bring about the large scale and long-term transformation of six community landscapes in Wales. Between them, the projects will connect people with their local environment through a wide range of activities including biodiversity enhancement through tree and flower planting, learning new skills, green health initiatives, community food growing on allotments and waste ground, renewable energy measures, the creation of cycling, walking and pony paths, clearance of former industrial areas and facilitating access to local green spaces. The aim of the Renew Wales programme is to support communities across Wales to design and deliver their own adaptation and mitigation projects to tackle climate change and promote sustainability. Dormant account funding administered by the Big Lottery Fund enables the programme to provide a range of free advice, training, mentoring and peer and technical support to community groups. Experts in the field (Co-ordinators) provide skills, knowledge and experience. Role models from projects which have already delivered successful projects act as Mentors. As each project is community-based, local people are empowered to make lasting changes through their own efforts. The Renew Wales programme has been highly successful and has been extended to 31 March 2020. It has engaged with and provided advice to over 600 community organisations on climate change and sustainability projects. Around half of these bodies had not previously taken any action in these areas – this focus on dealing with bodies new to taking climate change action will Not all the contacts with the community bodies resulted in a fully worked-up project intervention. However, over 100 projects have been completed and many more are ongoing. They cover a wide range of activities including renewable energy schemes (hydro, wind and solar), energy efficiency retro-fitting of local halls and social hubs, energy saving advice, community woodlands and food growing, electric car clubs and flood prevention. Chapter 3 – Policies and Measures 157 These projects have delivered energy savings and ongoing income to many hard-pressed voluntary and community groups and levered in over £3.5m of additional capital through community share offers. They have enhanced local woodland habitats and food growing projects have cut carbon emissions by reducing “food miles”. Social cohesion has been improved by involving hundreds of local volunteers. 3.11.6 Funding schemes for public sector organisations In 2004 the public sector energy efficiency loan scheme, manged by Salix Finance Ltd. was established to accelerate public sector investment in energy efficiency technologies through interest-free loans. It established a zero-interest, recycling loan fund with public sector bodies, including local authorities, universities, hospitals and schools. The aim of the scheme is to remove the upfront capital barrier to energy efficiency investment. Loans are provided for projects with a payback period of 5 years (8 years for schools). To date, the loan scheme has funded over 16,000 projects, improving public sector and higher education buildings for its users and is projected to save the sector around £55 million on energy bills this year (2017). The scheme delivers good value for money and catalysing markets in energy efficiency by implementing measures at scale. The Eco Schools movement is an initiative designed to encourage whole-school pupil-led action for the environment across a range of issues, including water and energy use, waste minimisation, bio-diversity and sustainability. It also helps support pupil learning through linking environmental and sustainable development issues with curricular areas. Scotland is a leading player in the international Eco-Schools movement, The number of schools and pre-schools centres registered and participating with Eco-Schools Scotland currently stands at over 4,100, with around 97% of local authority schools participating in the Programme. To date over 1,700 schools in Scotland have been awarded the prestigious Green Flag, making the Scottish Eco-Schools programme amongst the best performing in the world. The Welsh government, either directly or via Natural Resources Wales and Waste Awareness Wales, funds the Eco-Schools programme which is delivered in Wales by Keep Wales Tidy. Some 90% of Welsh schools take part in the programme. There are over 750 Green Flag schools in Wales (almost 8% of the global total) and a further 120 have also achieved a platinum award for receiving four Green Flags.
Platinum schools act as beacons in mentoring other schools in their locality to move through the award stages towards a Green Flag. Eco-Schools is managed in England by Keep Britain Tidy, which has the most Eco-Schools in the world – with 70% of all schools in England currently registered with the programme. There are currently 1,736 schools in England that have been awarded the Green Flag. 4,863 schools have achieved the bronze award and 5,292 the silver award. 3.11.7.2 Schools in Northern Ireland Northern Ireland has 100% of schools registered on the Eco-Schools Programme. The Eco-Schools Green Flag, awarded to schools with high achievement in their programme, is a recognised and respected eco-label for environmental education and performance. In Northern Ireland, the Eco-Schools Programme is operated by Keep Northern Ireland Beautiful, an environmental charity, and is supported by the Department of Agriculture, Environment & Rural Affairs and other organisations. 158 7th National Communication Northern Ireland is ranked ninth out of the sixty-four participating countries for number of Green Flag Status Schools and was also the first country in the world to award a Green Flag to one of The Students’ Green Fund provided £5 million for student led sustainability projects between 2013 and 2015. In addition to engaging over 121,700 HE students and 7 ,600 staff, a saving of 4608.6 tCO2e was achieved across the 25 projects. 3.11.8.2 Revolving green fund (RGF) A fourth round of the HE revolving green fund was introduced in 2014, providing recoverable grants to universities for projects investing in energy-efficiency and low-carbon technologies. Projects at 41 universities are estimated to deliver an annual carbon saving of 14,111 tCO2e. HE institutions can also access the Salix interest-free loan scheme (as mentioned above). 3.11.8.3 Guidance on sustainable development and the HE curriculum In 2014 the Quality Assurance Agency (QAA), in conjunction with the Higher Education Academy, guidance was published for HE providers on the inclusion of education for sustainable development as part of the student academic experience. Further information, including the targets of the project, can be found in Chapter 8. The National Health Service (NHS) in England, Europe’s largest employer, is responsible for around a third118 of public sector carbon emissions and is a leader in local communities across the country. Work in carbon reduction and sustainable development across the sector is supported and coordinated by the Public Health England and NHS England co-funded Sustainable Development Unit (SDU). In 2014 the SDU launched a Sustainable Development 119 running to 2020 – aimed at the creation of social value, improvement of health and working towards reducing the carbon footprint of the NHS by 80% by 2050. Emissions from energy and travel alone have an annual carbon footprint of 7 .4 million tonnes120 demonstrating the important role of the NHS and the health supply chain in reducing the UK’s emissions. By 2015 from a 2007/08 baseline, the data suggests the NHS has achieved already an 11% reduction in emissions121 achieving the 2015/16 interim Climate Change Act target. Despite the challenges in the sector, over the last ten years the health system has reduced its annual carbon emissions by 3.6 million tonnes and saved almost £2 billion in energy costs 118 Sustainable Development Unit (2016) Carbon Footprint update for NHS in England uk/policy-strategy/reporting/nhs-carbon-footprint.aspx 119 Sustainable Development Unit (2014) Sustainable Development Strategy strategy/engagement-resources.aspx 120 Sustainable Development Unit (2016) Carbon Footprint update for NHS in England uk/policy-strategy/reporting/nhs-carbon-footprint.aspx 121 Sustainable Development Unit (2016) Carbon Footprint update for NHS in England uk/policy-strategy/reporting/nhs-carbon-footprint.aspx 122 Sustainable Development Unit (2016) Securing Healthy Returns engagement-resources/fnancial-value-of-sustainabledevelopment.aspx

Chapter 3 – Policies and Measures 159 Health organisations have in place mandatory Sustainable Development Management Plans which include recommendations on the health co-benefits of sustainable development, promoting health and reducing health impacts through reducing carbon emissions and reducing air pollution arising from NHS travel123. Health organisations are encouraged to build their Management Plans using the NHS Sustainable Development Assessment Tool124, ensuring that they are aligned with the UN SD goals as well as contributing to carbon reduction, resource efficiency, health and social value. NHS organisations are required to report annually on sustainability activity with 85% of providers and Clinical Commissioning Groups meeting minimum standards. Health organisations are also strongly encouraged to adopt and report on progress against a carbon reduction target of 34% in line with the Climate Change Act with an NHS baseline of 2007/08125. Thirty-nine%126 of trusts already report they are on track to meet the 34% target by 2020/21. The NHS national 5 year strategy the ‘5YFV Next Steps’127 encourages commissioners and those designing local health and care systems to ‘take account of wider social, economic and environmental benefits of the sort referenced in the Social Value Act’ ‘As they think about how to develop their local health and care systems’. The SDU is working with the National Institute of Clinical Excellence on embedding carbon emissions and resource use alongside costs in new clinical guidance.128 The NHS along with higher Education have been highlighted for focus in terms of the importance of their contribution to achieving UK carbon targets, through their direct and supply chain impacts, in the DBEIS Clean Growth Strategy.129 In leading by example the NHS and the wider health system can help mitigate climate change, prepare for the impacts of climate change and improve our health tomorrow as well as today. The NHS continues to act as an exemplar for the rest of the public sector in Wales in terms of reducing greenhouse gas emissions. NHS Wales generates approximately 20% of its electricity demand through on-site combined heat and power which is lower carbon as it is co-generating heat and electricity. A number of biomass woodchip installations have also been set up across Health Boards and NHS Trusts have progressed a number of schemes that have helped to improve energy efficiency and reduce greenhouse gas emissions. Hywel Dda University Health Board entered into an energy performance contract with British Gas in 2012/13.