is the online magazine of BSI Group, highlighting the vital role that standards play in today's business environment by helping organizations improve quality, save money, reduce risk and be more sustainable. Features include interviews with leading business figures, as well as news on the latest developments in management systems, standards, testing, healthcare and certification.
Working towards a low-carbon economy
20 Jul 2010
Topics: Low-carbon, PAS 2060, Carbon footprint, Carbon neutral, Climate change, Carbon market, ETS, Emissions trading, Energy management, BS EN 16001, EN 16001, Environment
Where does the world stand on a low-carbon revolution? The British government, for example, is legally bound to cut total greenhouse gas emissions by over a third before 2020. The US is investing billions to encourage "green" industries and infrastructure. But are legislation and investment going to be enough? What is the world doing right now to make our low-carbon future a reality?
Two weeks of international climate change talks took place in Bonn, Germany, in June 2010. Governments were keen to avoid the wrangling that characterized so much of the United Nations COP15 conference six months earlier. The hastily signed Copenhagen Accord, which emerged from COP15, argued action should be taken, but it was not unanimous and did not contain specific emission reduction commitments. The Bonn talks sought to take this process further.
While morale in the climate change community may have improved since COP15, reports suggest key stumbling blocks to consensus remain - not least navigating the interests of the world's leading fossil fuel exporters. There is also the issue of how to finance the seeds of low-carbon economies in those developing countries that still need to escalate their industrial programmes to stay competitive.
New negotiating text has now emerged for leaders to take forward to the conference in Mexico at the end of 2010 but the WWF, present in Bonn, suggested the fundamental problem for politicians of all colours lies in framing discussion of low-carbon options in terms of their economic and environmental benefits (rather than their problematic costs).
"While the UN climate talks still tend to discuss climate action as a burden, more and more people in more and more countries see it as a benefit. Taking on this view is what will allow negotiators to be successful in solving the big challenges," said the conservation group's head of climate policy, Kathrin Gutmann. i
"The performance of a whole range of key players in the negotiations didn't really match the rapid shifts in investment or public opinion in favour of clean technology solutions that have recently occurred at the domestic levels."
A poll conducted by WWF at the event also found a majority of delegates present (53.6 per cent) thought the world would have to wait until the South Africa summit in 2011 for a legally binding new climate change deal.
On the agenda
In the business world, meanwhile, low-carbon learning and development are seen as increasingly exciting opportunities to innovate and gain major market share. In the UK, for example, leaders before and after this year's landmark election highlighted its strong potential as an engine of recovery following the recession. Indeed, the governments of many countries are already working with business and industry across a range of sectors to make a practical difference to sustainable development.
President Obama's 2009 flagship American Recovery and Reinvestment Act has already included US$2.4bn in grants to various companies to develop new advanced battery and electric drive possibilities for next generation vehicles. With the additional aim of boosting employment coming out of the recession, it had also ploughed US$3.4bn in grants to fund "smart" energy grid projects by February this year. Modernization of the US electricity grid is set to involve the installation of around 18 million smart meters and 877 digital sensors across the entire network to improve the management of demand, re-route power and permit the connection of new renewable energy sources.
In early July, President Obama announced nearly US$2bn in conditional commitments to fund two showcase solar projects. First, Spanish-based Abengoa Solar is to build the first US large-scale solar power plant to store energy for later use. Based in Arizona, the company says it will be the largest solar power plant in the world, eventually generating enough energy to power around 70,000 homes and eliminating an estimated 400,000 tonnes of CO2. The second company, Abound Solar Manufacturing, offers two new premises for the manufacture of advanced solar panels.
"After years of watching companies build things and create jobs overseas, it's good news that we've attracted a company to our shores to build a plant and create jobs right here in America," the President explained in his weekly address. "Already, I've seen the payoff from these investments. I've seen once-shuttered factories humming with new workers who are building solar panels and wind turbines; rolling up their sleeves to help America win the race for the clean energy economy."
The US Department of Energy has also committed around US$76m of funding (matched by some US$30m from private industry) for investigating advanced energy-efficient building technology and the training of new technicians. Five of these projects are focusing on the simulation of interaction between different building elements, such as lighting, moisture transfer and envelope heat, to improve understanding of the science involved in smart building design. A further 14 will look to exploit technology to advance window design and four projects involve attempts to improve the efficiency of water heating equipment. The projects are being undertaken by organisations ranging from the Universities of California, Washington and Central Florida to Dow Chemical Company and the energy giant Honeywell International.
"These projects will help the United States lead the world in advancing energy-efficient technologies," explained Energy Secretary Steven Chu on announcing the initiatives. "Energy-efficient commercial buildings will help our country cut its carbon emissions and energy costs." ii
In the UK, meanwhile, the Climate Change Act had already set new green expectations in the UK in 2008. The much-dissected coalition agreement between the Conservatives and the Liberal Democrats named a number of specific policies. These include maintaining a regime of renewable obligation certificates for generators; an offshore electricity grid to maximise wind power potential; a new standard for carbon capture and storage (CCS) technology in coal-fired power stations; and the promise of a "huge increase" in anaerobic energy generation from waste. The two parties in the government are divided on the merits of nuclear energy, with the Liberal Democrats allowed to oppose, but elsewhere climate change policy clearly converges.
The document also stresses the importance of the revised global agreement to replace the 1997 Kyoto Protocol, and the exploration of new international funding avenues for green projects. It promises to update parliament every year with an "energy statement".
Time for action
In November 2009, the UK's Environment Agency had unveiled a new five-year low-carbon plan, with stated aims including the development of new technology and cutting methane emissions from landfill sites.
"Improved environmental performance does not have to mean increased costs," says Graham Ledward, the agency's resources director of the UK's Environment Agency. "In fact, good environmental performance makes business sense because it can cut costs." iii
As just one example, the Environment Agency recently puts its weight behind a "zero-carbon" business park to be built in Cornwall in the UK, where construction of renewable energy schemes could mean the site is entirely self-sufficient in terms of energy - and even able to send excess on to the national grid. The systems (at Wheal Jane, near Truro) are to include a biomass power plant, ground source geothermal heating, a wind turbine, solar farm and two hydropower schemes. The latter even involves drawing on the site's existing condition, with power provided by the treated water already pouring from a de-pollution plant at a decommissioned tin mine. Operating the plant often means using seven electric pumps around the clock - energy expenditure, and costs, that can effectively be recovered through the hydropower initiative.
"This will create more green electricity to feed into the national grid, reducing the amount of fossil fuel derived power which needs to be produced," said the agency's Mark Pilcher. iv
Leading by example, the Environment Agency has also cut carbon emissions by over ten per cent a year itself - installing voltage power optimization (VPO) technology in 33 of its buildings. VPO decreases the voltage of electricity entering a building to the minimum required for powering equipment. In a trial across eight buildings the agency estimates it saved approximately £54,000 throughout the first year, equating to a carbon reduction of some 281 tonnes.
Air force
Aviation, meanwhile, is an entire industry making regular low-carbon adjustments, with airlines as keen to reap reputation benefits for being socially responsible as they are to cut costs in an increasingly competitive market. Flights account for around two per cent of total global carbon dioxide emissions, and this is expected to rise to between five and six per cent by 2050. As big business increasingly goes green, moreover, airlines are anxious not to lose service share to advances in technology, such as telepresence, which have their own convincing sustainable credentials.
For example, British Airway has a full climate change policy to reduce its carbon footprint of some 17,714,897 tonnes of carbon dioxide, and has already made fuel efficiency changes including policies of runway taxiing with engines shut down, flying shorter routes in general, and replacing ageing planes with more fuel-efficient alternatives. BA says the Airbus A380 has a 17 per cent lower fuel burn per seat for carbon dioxide emissions than the Boeing 747, which it succeeded as aircraft of choice at the end of 2007.
In February this year, BA also announced plans to build a new plant capable of converting waste biomass to jet fuel by 2014, creating 1,200 jobs in the process. The airline says the 16 million gallons of greener fuel produced will be over twice the volume needed to make all its London City Airport flights carbon neutral. A good example of a company settings its own benchmarks, BA is aiming to cut its carbon emissions by 50 per cent overall before 2050.
Carbon counting
However, while clearly useful for marketing purposes, it is extremely important that any claims to be carbon neutral (among other sustainability benchmarks) are entirely accurate. Certification to a recognized business standard can be a sign to the outside world that this is indeed the case, and in early June 2010, BSI announced the completion of a new standard - PAS 2060 Specification for the demonstration of carbon neutrality - for just such a purpose. The standard promises to help organisations quantify and offset greenhouse gas emissions from a specific activity, be it construction, manufacturing or even holding an event. Using this standard, sustainability claims will be demonstrably trustworthy and companies can use the same criteria as their competitors and benchmark themselves accordingly.
Monarch is another airline looking to generate energy savings and reduce its carbon footprint on an ongoing basis. It will be introducing six Boeing 787s to the Europe-wide fleet by 2013, and receives regular audits from the Carbon Trust to gauge ongoing performance. The company calculates it increased fuel efficiency by 20.9 per cent between 1990 and 2005, and has a target of boosting this by almost seven per cent by the end of 2015.
However, all airlines' attempts to improve their energy efficiency is now set to become much more complicated in 2011, with the controversial extension of the EU emissions trading scheme to the international aviation sector in January. The Air Transport Association of America (ATA) has recently launched a legal challenge against the move, which will be heard at the European Court of Justice, but as it stands the EU policy means airlines will have to buy credits over and above a carbon emission quota in future. Total carbon emissions on travel in and out of Europe will be capped, and airlines will buy or sell allowances depending on their energy usage. Currently in a pre-trading period, the UK authorities will submit benchmark data from airlines to the EU in a year's time, publishing the free allowance allocation for each operator at the end of next year.
Monarch Airlines turned to BSI Group for verification of its monitoring and reporting activities at this pivotal moment for the industry.
Director of external and industry affairs, Mike Smith, explains: "We were looking for a professional verification partner that could demonstrate expertise within the Greenhouse Gas arena, and quickly immerse themselves within the culture of the aviation industry." v
Signing up with a standard-based solution provider such as BSI effectively smooths this complex compliance process.
Retail revamp
However, there is scarcely a sector that is not keen to be seen in a green light. What differentiates a business in the international marketplace is just how integrated it has made its approach across the organisation, including all relevant activities and reaching down into the supply chain.
For example, in creating PAS 2060, BSI worked closely with a number of household names with strong sustainability strategies already in place. One such business was UK retail giant Marks & Spencer (M&S), which has a global footprint extending as far afield as Russia, Saudi Arabia and China through franchised operations and partnerships.
In 2007, this widely exported British brand published a full strategy for its action to combat climate change in its operations worldwide, and indeed become carbon neutral by 2012. This included 29 separate commitments covering everything from business travel and changing company car policy to building anaerobic digestion and other onsite renewable generation facilities of its own. The company has already unveiled three flagship "green stores" for the UK, is currently piloting a range of energy efficiency measures at five "energy stores" and has plans to open three "sustainable learning" stores in the near future.
In March 2009, M&S then produced a detailed update on progress against all 29 of its pledges, including clarifying whether the business was on track, behind, or indeed ahead of schedule in meeting them. A third of the commitments had already been achieved, with several evolving into revised objectives, but plans to become fully carbon neutral were progressing according to plan. Total net carbon emissions had fallen 18 per cent from 537,000 tonnes in 2006/2007 to 441,000 in 2009.
However, the M&S report explains that the British government had also revised requirements for reporting greenhouse gas emissions since the retailer produced its strategy, forcing it to calculate a figure with no allowance for renewable tariffs. This further underlines the necessity for a clear and consistent approach to assessing sustainability.
Rowland Hill, M&S sustainability manager, explains: "We welcome PAS 2060 as a robust and transparent means of demonstrating carbon neutrality.
"We have found the term 'carbon neutral' highly effective in communicating and engaging our customers, employees and suppliers. To date, we have been working to develop robust measurements and to achieve the necessary improvements in efficiency expected." vi
Where is the point of no return with regards to climate change? No-one seems willing or able to say for certain. However, what is clear is that the world is taking the subject seriously enough to take action - albeit each in their own corner of the world. Will all of these different actions come together in the long run? And if they do, will that be enough? Right now, it's difficult to say, but one thing is certain: when it comes to creating a low-carbon future, every little bit helps.
For more information on low-carbon solutions in the UK, USA or rest of the world.
For more information on PAS 2060.
i http://www.wwf.org.uk/wwf_articles.cfm?unewsid=3996
ii http://www.energy.gov/news/9152.htm
iii http://www.environment-agency.gov.uk/news/112973.aspx
iv http://www.environment-agency.gov.uk/news/119996.aspx?page=8&month=4&year=2008
v http://www.bsigroup.com/en/About-BSI/News-Room/BSI-News-Content/Disciplines/Greenhouse-Gases/Monarch-Airlines-chooses-BSI-for-its-European-Union-Emission-Trading-System-EU-ETS-verification/
vi http://www.bsigroup.com/en/About-BSI/News-Room/BSI-News-Content/Disciplines/Sustainability/Demonstrate-your-carbon-neutrality-status-with-confidence/
Business Standards © 2010. Editorial produced by Caspian Publishing in association with The British Standards Institution. Editorial opinions expressed on are not necessarily those of BSI Group or Caspian Publishing. Neither Caspian Publishing nor BSI Group accept responsibility for advertising or editorial content, nor for that appearing on linked third-party websites. Reproduction in whole or in part is forbidden without written permission from BSI Group or Caspian Publishing.
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