INDUSTRY COMMENT
T
Low carbon energy
he United Nations reported that by 2030, emissions must be reduced by 45% to be Net Zero by 2050. In the UK, the previous Conservative government set the ambitious target to reduce emissions by 68% by 2030 – and the new Government has similar plans.
Labour plans to make Britain a clean energy superpower – delivering zero-carbon electricity by 2030 through a proposed publicly- owned clean energy provider. Despite these commitments, there is still work to do. The Climate Change Committee’s 2024 report concluded that despite significant emission reductions in the last year, only one-third of the reductions required by 2030 are covered by credible plans.
There is significant pressure on businesses to lead the way in decarbonisation and clean energy strategies – but how can they do this in a meaningful and transparent way?
Low-carbon technologies and decarbonisation strategies need to become the norm in the private sector. However, the pressures to align with mandated regulations and voluntary standards can make long-term sustainable decisions difficult. This is especially true when a volatile energy market and uncertain economy provide the backdrop businesses operate against. Popular decarbonisation methods like carbon offsetting are under more scrutiny than they were just a few years ago, which means that many businesses may need to change their approach. Varied stakeholder demands for sustainable practices are also upping that pressure – customers, employees, shareholders and the media are a significant force calling for change. The publicity of sustainable practices can make it tempting to embellish work on ESG reporting – in fact, 58% of CEOs and C-suite leaders anonymously interviewed in 2022 reported that they were guilty of greenwashing. Even more alarmingly, Software AG surveyed decision-makers in the UK, US, Germany and France, and found that 82% of respondents would accept regulatory penalties to evade sustainability requirements, despite viewing sustainability as a priority.
Organisations need to ensure their longevity by honestly reporting on their ESG and sustainability work or they risk incurring stakeholder distrust, which can ruin an organisation’s reputation. Carbon reduction needs to be conducted in a meaningful way, reported robustly and thoroughly, and implemented wherever possible.
Carbon offsetting has been a popular emission reduction strategy for over a decade now. Carbon Brief reported that two-thirds of the world’s biggest businesses used carbon offsets to meet climate goals. However, carbon offsetting is not without its faults. Some major carbon offset credits have been reported as worthless, while popular tree planting schemes may take place without proper thought on which species will suit the current biodiversity of an area. Decarbonisation should be the priority because this will actually reduce emissions, rather than carrying on as usual and using offsetting to balance it out.
It’s true that most businesses will not be able to reduce their emissions to absolute zero. However, the focus should be on reducing emissions by a set target each year and offsetting can be used to offset the final emissions that cannot be removed.
Decarbonisation needs to enhance the efficiency of an organisation while transitioning away from fossil fuels, either by optimising or replacing existing assets. This could include transitioning to electric fleets, safely installing new equipment and technologies that consume less energy, and removing gas and oil- consuming plant. Power Purchase Agreements (PPAa) are another way to facilitate the transition without significant upfront costs. PPAs provide long- term contracts between energy generators and customers, and these energy generators are often using renewable energy resources, like solar or wind farms. These agreements support offsite renewable energy production, but they can also support onsite installation of renewable systems. In a market where energy costs often fluctuate, agreeing upon a flat rate or negotiating a price that works best for businesses can reduce unexpected future costs. The new Government is also planning for increased offshore and onshore renewable energy resources, which could help facilitate more renewable energy production sources or
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companies in the future. Adapting and creating these strategies is increasingly important to address now, as many businesses’ internal 2030 Net Zero goals are looming – some will only have these next five years to implement effective decarbonisation strategies. Energy price risk management is another important strategy to identify optimal energy contracts and protect yourself against future market volatility. Working with an energy procurement specialist will pay for itself with the expertise that you will have access to. Elsewhere, smart building optimisation can best monitor assets. Collation of data needs to be maximised for as many systems as possible across an estate, so that truly strategic decisions on energy and space use can be made.
It is essential to be transparent when reporting sustainable initiatives – that way, a business can be credible and avoid greenwashing. Standardised reporting frameworks could include the Global Reporting Initiative or the Sustainability Accounting Standards Board to increase transparency between companies and stakeholders.
For organisations that have an annual ESG or carbon report, credibility will be supported by strong data and referencing benchmarks from previous reports. A lot of technology already lends itself to data collection. For example, there have been half-hourly metered electricity supplies for all sites with a demand exceeding 100 KW for approximately 30 years. This allows businesses to review their daily profiles, which informs decisions on energy efficiency.
Though sustainability has become a major goal for industries across the built environment, like every industry, poor reporting methods and misrepresentation can make carbon reduction strategies seem more effective in reporting than in reality.
It is essential to not only invest in sustainable
sources of energy but to correctly and clearly report on progress, even if it shows an organisation has not yet met its goals.
BUILDING SERVICES & ENVIRONMENTAL ENGINEER NOVEMBER 2024 43
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