2. Energy Efficiency and Local Directorate - Public Sector Energy Policy
Leading by example: cutting energy bills and carbon emissions in the public and higher education sectors
Cover style
Energy Efficiency and Local Directorate - Public Sector Energy Policy

3. Change is our new constant
Climate Change
- Paris Agreement
New generation
- no coal by 2025 and falling costs of renewable
New technology
- Smart Systems Plan: Benefits of a smart energy system to be £17-40bn to 2050
- No new petrol or diesel cars or vans by 2040
Investment in Innovation
- £2.5bn Government investment to support low carbon
innovation from
Everywhere you go today I expect you will hear nothing but the incredible level of challenge and incredible level of change we are living through.
The climate challenge has never been more urgent but the world is moving fast:
- Paris was a key watershed but the scale of the challenge should not be underestimated It will take an investment of 13.5 trillion dollars globally in the energy system alone to deliver Paris commitments.
- There is cleaner energy generation - UK committed to no coal past 2025 , contracts for difference, delivering more renewables, cheaper than ever before.
- smart technology to manage energy use – the potential for smart grids to drive down costs and allow us more flexible approaches to energy management are huge
- new cleaner vehicles
- £25bn in innovation funding including £20m for early stage clean technology funds - largest increase in public spending for investment in science, research and innovation in almost 40 years, shows the Government's commitment to more innovation.
The pace of change can be breathtaking but brings with it unprecedented opportunities.

4. Industrial Strategy
The Industrial Strategy sets out a long term plan to boost the productivity and earning power of people throughout the UK. It sets out how we are building a Britain fit for the future – how we will help businesses create better, higher-paying jobs in every part of the UK with investment in the skills, industries and infrastructure of the future.
The Industrial Strategy set Grand Challenges to put the UK at the forefront of the industries of the future. Clean Growth is one of the four identified and puts low carbon at the forefront of the UK economic story.
The IS aims to maximise the advantages for UK industry from the global shift to clean growth – through leading the world in the development, manufacture and use of low carbon technologies, systems and services that cost less than high carbon alternatives.
There are already 430,000 jobs in low carbon businesses and supply chains in the UK.
The low carbon economy could grow 11 percent per year between 2015 and 2030 – four times faster than the rest of the economy.
The UK low carbon economy could grow 4 times faster that the rest of the economy out to 203 and could deliver between £60bn and £170bn of exports by 2030.

5. Clean Growth Strategy
“Government will introduce a voluntary wider public and higher education sector target of a 30 per cent reduction in greenhouse gases by 2020/21, against a 2009/10 baseline, and will publish a Call for Evidence alongside this document to gain views from the sector on the target and a proportionate reporting framework to underpin this, as well as further policies to realise carbon and cost saving potential”.
Chapter 4: Leading in the Public Sector, Policies and Proposals p.117
This is all very exciting.
So what? What does this mean for you and I in the public sector, where budgets are tight and carbon struggles to get to the top of the strategy meeting agenda?
Actually a huge amount.
Since 1990 the public sector (central wider, health, education and emergency services) has already reduced its emissions by 40%. This is fantastic!
However the total public and higher education sectors currently spend over £2 billion a year on energy. By investing in cost effective energy efficiency measures, this could lead to savings of around £860 million a year across the UK.
I think those strategy meetings should be interested in this level of cost saving…investment in energy efficiency had potential to unlock funds tied up in energy bills and divert them into front line services.
The Clean Growth Strategy committed us to some immediate emissions reduction targets You heard this morning from Claire Perry
- central Government has exceeded its 32% target and we are working on anew one and - CGS set a voluntary target for the rest of the public sector and education – a 30% reduction by 2020.
We issued a call for evidence at the end of the last year to support development of detailed guidance on this 30% target. We will be publishing both the summary of the responses and a guidance documents in spring this year

6. Meeting our ambitions for the public sector could deliver 25% of the emissions gap for the 5th carbon budget
The public sector is only 2% of emissions – but by setting high ambition can have a big impact
The Clean Growth Strategy’s lead scenario showed a reduction in public sector emissions by 50% by 2032 relative to today
Delivering this would save 19.4 MtCO2e (non-traded) over CB5.
It will also yield substantial energy savings to the public purse, and – by showing leadership – help drive wider change in non-domestic buildings
Main slide

7. Public sector emissions have been decreasing over time, mainly driven by grid decarbonisation and lower electricity use
Main slide

8. The public sector used about 60Twh of energy in 2017, with the majority being split between education and health
(34%)
(29%)
(18%)
(13%)
(7%)
Main slide

9.   There are three key barriers to action in the public sector; lack of strategic prioritisation, lack of capacity and capability, lack of access to finance 
These barriers are from a range of sources and extensive consultation with the public sector including:
LP Local Energy Managers - online survey and workshops (2014)
London Energy Project workshop (2016)
Building Energy Efficiency Survey (2016)
Call for Evidence responses (2017)

10.   The Sustainable Development Unit is already setting an excellent example:
Launched sustainable development strategy in January 2014.
View to long term sustainable projects.

11. Commitment to a higher target than other public sector bodies:
Our analysis shows that the proposed target of 30% for 2020/21 is within reach of most organisations. For example, the NHS has in place an emissions reduction target of 34% by 2020/21 against 2007/08 levels5.

12. Our current policy suite is helping overcome these barriers
Current policies and activity
Strategic prioritisation 
Decarbonisation in national strategies signals strategic importance: Industrial Strategy (Clean Growth Grand Challenge) and the Clean Growth Strategy.
Greening Government  Commitment’s GHG target for central Government.
Emissions Reduction Pledge 2020 for wider public sector
Capacity and capability
Capacity support to access energy services contracts e.g. via Re:Fit framework 
Project advice, case studies and information sharing e.g. via Salix Finance Ltd
Innovate UK pilot to provide detailed plan to large public sector sites. 
Access to finance 
Public Sector Loan Scheme, delivered by Salix Finance Ltd. provides 0% loans (currently £240m) to the public sector (excluding central Government) install energy efficiency measures.
BEIS is now developing a Green Finance Strategy to ensure the Taskforce's recommendations are explored and facilitate cross-sector investment. 
Main slide

13. Targeting across the public sector
Wider Public Sector
Central Government
Reduce greenhouse gas emissions by at least 30% by 2020/21 compared to a 2009/10 baseline.
Voluntary target applying to the wider public sector and higher education sector in England.
Aims to create a common target or standard that covers all organisations.
Previous target was to reduce emissions by 32% by 2019/20
Target was exceeded with a 33% reduction
New target to reduce greenhouse gases by 43% by 2019/20, against 2009/10 levels
Emissions Reduction Pledge 2020
Greening Government Commitments
- 43%
Target setting
2009/10
2019/20
- 30%
Wider public sector
Central Government
Main slide

14. What does the Pledge involve?
Organisations wishing to take part in the Pledge should:
Develop and implement the business case for measuring and reducing energy use, costs and carbon emissions in their organisation
Implement the Pledge using regular measurement to inform management action
Report annual energy use to BEIS using current reporting mechanisms (if possible)
Share best practice locally and within the sector.
Main slide

15. How do you sign-up to the Pledge?
the mailbox with some key details
Please tell us your support for the Pledge by 31st December 2018
BEIS will publish a list of participants (at institution level) on Gov.UK
Main slide

16. Any questions? Contact:
Main slide