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Policy for the Implementation of Carbon Reduction in Capital Projects

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<strong>Implementation</strong> <strong>of</strong> <strong>Carbon</strong> <strong>Reduction</strong> <strong>in</strong> <strong>Capital</strong> <strong>Projects</strong>IntroductionThis <strong>Policy</strong> has been developed to <strong>in</strong>tegrate susta<strong>in</strong>able energy managementpr<strong>in</strong>ciples and carbon reduction <strong>in</strong>to <strong>the</strong> plann<strong>in</strong>g, design, construction and purchase<strong>of</strong> all College assets that consume energy related to <strong>Capital</strong> <strong>Projects</strong> regardless <strong>of</strong>value. In <strong>the</strong> future this policy will apply to all College Assets.This <strong>Policy</strong> applies to:new build<strong>in</strong>gs, extensions, major alterations and refurbishments;new assets o<strong>the</strong>r than build<strong>in</strong>gs (e.g. hard and s<strong>of</strong>t landscap<strong>in</strong>g, fit out workon behalf <strong>of</strong> <strong>the</strong> Queen Mary Students Union, QM Bio Enterprises and o<strong>the</strong>rsp<strong>in</strong> <strong>of</strong>f companies);new plant and equipment (e.g. boiler and heat<strong>in</strong>g plant, electrical<strong>in</strong>frastructure, air condition<strong>in</strong>g (where essential and agreed as an exception toQM policy), <strong>of</strong>fice equipment, outdoor light<strong>in</strong>g etc); andvehicles.The <strong>in</strong>clusion <strong>of</strong> energy efficiency or carbon reduction measures will <strong>in</strong> somesituations lead to an <strong>in</strong>crease <strong>in</strong> capital costs. However, <strong>the</strong>se will be <strong>of</strong>fset by lowerrunn<strong>in</strong>g costs and are likely to be fur<strong>the</strong>r <strong>of</strong>fset by improved amenity and lowercapital costs <strong>of</strong> o<strong>the</strong>r build<strong>in</strong>g elements. A bus<strong>in</strong>ess case justification should beprepared <strong>for</strong> all capital projects <strong>for</strong> <strong>the</strong> <strong>in</strong>clusion <strong>of</strong> carbon reduction measurestoge<strong>the</strong>r with <strong>the</strong> whole life cost<strong>in</strong>g analysis <strong>of</strong> <strong>the</strong> work proposed. The College hasan obligation <strong>in</strong> its Strategic Plan to reduce its carbon emissions and is prepared to<strong>in</strong>cur reasonable additional costs to achieve this.<strong>Policy</strong>1. All replacement facilities (<strong>in</strong>clud<strong>in</strong>g plant and equipment) must deliver a carbonemission p.a. reduction <strong>of</strong> at least 50% at design stage (with <strong>the</strong> aim <strong>of</strong> achiev<strong>in</strong>goperational reductions <strong>of</strong> at least 40%). This reduction should be below that <strong>of</strong><strong>the</strong> average emission <strong>of</strong> exist<strong>in</strong>g equivalent facilities. In addition, all build<strong>in</strong>gsmust achieve a m<strong>in</strong>imum <strong>of</strong> EPC 40 (B), an energy per<strong>for</strong>mance consistent withachiev<strong>in</strong>g BREEAM Excellent.2. Additionally all new capital projects shall comply with <strong>the</strong> follow<strong>in</strong>g mandatory<strong>in</strong>clusions:a. All domestic hot water shall be delivered through solar or geo<strong>the</strong>rmal wherethis can be demonstrated to be feasible; if boost<strong>in</strong>g is required via centralisedplant gas should be considered <strong>the</strong> preferred option and localised waterheat<strong>in</strong>g options should also be fully explored and utilised where appropriate.b. All appliances and <strong>of</strong>fice equipment shall be <strong>the</strong> highest energy per<strong>for</strong>mancerat<strong>in</strong>g available at <strong>the</strong> time or purchase.


c. All o<strong>the</strong>r miscellaneous purchases <strong>for</strong> items that that use energy shall complywith HEFCE’s Purchas<strong>in</strong>g <strong>for</strong> Susta<strong>in</strong>ability: Guidance <strong>for</strong> Higher EducationInstitutions.3. <strong>Carbon</strong> reductions need to be “real” reductions <strong>in</strong> order to meet <strong>the</strong> College'scommitment to reduce carbon emissions through <strong>the</strong> <strong>Carbon</strong> Management and<strong>Implementation</strong> Plan, and should not be achieved through <strong>the</strong> purchase <strong>of</strong>renewable energy products from energy retailers or through <strong>of</strong>fsett<strong>in</strong>g.ObjectivesThe objectives <strong>of</strong> this <strong>Policy</strong> are to: Contribute to achiev<strong>in</strong>g <strong>the</strong> College target to reduce Scope 1 and 2 carbonemissions (direct fuel and electricity consumption) by 34% from a 2005/6basel<strong>in</strong>e by 2020. This essentially means capp<strong>in</strong>g its total greenhouse gasemissions at 16,000 t/CO 2 p.a. (see <strong>the</strong> College <strong>Carbon</strong> Management and<strong>Implementation</strong> plan <strong>for</strong> more <strong>in</strong><strong>for</strong>mation). Guide College staff and consultants deliver<strong>in</strong>g projects on <strong>the</strong> <strong>in</strong>corporation <strong>of</strong>susta<strong>in</strong>able energy management pr<strong>in</strong>ciples <strong>in</strong>to <strong>the</strong> design <strong>of</strong> build<strong>in</strong>g andplant assets, construction and procurement. Create assets that m<strong>in</strong>imise energy consumption and promote renewableenergy alternatives. Fur<strong>the</strong>r develop <strong>the</strong> system <strong>for</strong> management <strong>of</strong> energy across <strong>the</strong> College. Ensure that suppliers and contractors are also work<strong>in</strong>g <strong>in</strong> a susta<strong>in</strong>ablemanner e.g. reduc<strong>in</strong>g <strong>the</strong> total mileage travelled by vehicles and suppliesused <strong>in</strong> College projects.Guidel<strong>in</strong>es:The follow<strong>in</strong>g is a list <strong>of</strong> susta<strong>in</strong>able energy management pr<strong>in</strong>ciples that are to beconsidered <strong>in</strong> <strong>the</strong> development <strong>of</strong> all assets.Build<strong>in</strong>gsAll build<strong>in</strong>gs:<strong>in</strong>corporate passive solar design to maximise daylight<strong>in</strong>g and passive heat<strong>in</strong>gand cool<strong>in</strong>g opportunities; <strong>in</strong>corporate energy efficient design to m<strong>in</strong>imise light<strong>in</strong>g, active heat<strong>in</strong>g andcool<strong>in</strong>g requirements; optimise opportunities to use renewable energy sources and <strong>in</strong>corporaterenewable energy technologies wherever possible; provide efficient control and effective ma<strong>in</strong>tenance systems that <strong>in</strong>corporatemonitor<strong>in</strong>g <strong>of</strong> energy consumption; m<strong>in</strong>imise embodied energy <strong>in</strong> construction materials; <strong>the</strong>re is a presumption aga<strong>in</strong>st provid<strong>in</strong>g cool<strong>in</strong>g plant and heat<strong>in</strong>g andcool<strong>in</strong>g is to be with<strong>in</strong> <strong>the</strong> limits prescribed by <strong>the</strong> College.Plant and equipment: Specify energy efficient equipment and light<strong>in</strong>g systems.Vehicles: Ensure <strong>the</strong> m<strong>in</strong>imum use <strong>of</strong> each vehicle.Page 2 <strong>of</strong> 3


Where <strong>the</strong>re are alternative vehicles <strong>of</strong> equivalent usefulness, select <strong>the</strong> onewith <strong>the</strong> lowest fuel use.RequirementsThe follow<strong>in</strong>g requirements <strong>of</strong> <strong>the</strong> <strong>Policy</strong> apply to all capital works projects regardless<strong>of</strong> value, location or use:1. All replacement facilities (<strong>in</strong>clud<strong>in</strong>g plant and equipment) must have anannual greenhouse gas emission reduction <strong>of</strong> at least 50% at design stage(with <strong>the</strong> aim <strong>of</strong> achiev<strong>in</strong>g operational reductions <strong>of</strong> at least 40%). Thisreduction should be below that <strong>of</strong> <strong>the</strong> average emission <strong>of</strong> exist<strong>in</strong>g equivalentfacilities. In addition, all build<strong>in</strong>gs must achieve a m<strong>in</strong>imum <strong>of</strong> EPC 40 (B), anenergy per<strong>for</strong>mance consistent with achiev<strong>in</strong>g BREEAM Excellent.2. Designers may use any methods to achieve <strong>the</strong> target <strong>in</strong>clud<strong>in</strong>g energyefficiency, fuel substitution and/or renewable energy systems.3. The threshold cost-benefit <strong>for</strong> projects is a net life-cycle cost benefit <strong>of</strong>£50/tCO 2. <strong>Projects</strong> which do not meet this f<strong>in</strong>ancial criterion will be consideredby <strong>the</strong> Director <strong>of</strong> Estates on a case by case basis.4. All implementation plans and subsequent project plans must show predictedsav<strong>in</strong>gs <strong>of</strong> at least 125% <strong>of</strong> <strong>the</strong> required carbon reduction to m<strong>in</strong>imise <strong>the</strong> risk<strong>of</strong> sav<strong>in</strong>gs not be<strong>in</strong>g achieved.5. All new major build<strong>in</strong>gs must have an <strong>in</strong>dependent review <strong>of</strong> carbon reduction<strong>in</strong>clusions, <strong>in</strong>clud<strong>in</strong>g f<strong>in</strong>ancial assessments, with<strong>in</strong> <strong>the</strong> Feasibility Assessment.These reviews must be carried out by a suitably qualified energy consultantand be provided to <strong>the</strong> Head <strong>of</strong> Energy and Environment <strong>for</strong> comment.6. Any modification <strong>of</strong> plant and/or equipment us<strong>in</strong>g more than 20% <strong>of</strong> <strong>the</strong>energy consumption <strong>in</strong> a major build<strong>in</strong>g must also have an <strong>in</strong>dependentreview.7. All capital projects are expected to deliver <strong>the</strong>ir target. An excess carbonreduction <strong>in</strong> one asset may be used to <strong>of</strong>fset <strong>the</strong> reduction <strong>in</strong> ano<strong>the</strong>r assetonly where <strong>the</strong> latter cannot meet <strong>the</strong> target with<strong>in</strong> <strong>the</strong> f<strong>in</strong>ancial constra<strong>in</strong>ts setabove.<strong>Policy</strong> Approved by Estates and Services Committee 22 March 2011Rebecca MaidenHead <strong>of</strong> Energy and EnvironmentPage 3 <strong>of</strong> 3

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