The Victorian Local Government Guide to Reducing Carbon Emissions

Transcription

1 1 The Victorian Local Government Guide to Reducing Carbon Emissions 1

2 2 ForEwOrd Janet Bolitho Rob Spence For more than a decade, Victorian local government has been working to reduce its greenhouse gas emissions, largely through the development and implementation of mitigation strategies. The focus of initiatives has been to reduce emissions from day-to-day operations. Councils have also worked closely with their local communities to progress household and business emission reductions; often through partnerships and incentive programs for improved practices. The MAV acknowledges the work of ICLEI s Cities for Climate Protection Program in supporting councils in this endeavour. With the introduction of a price on carbon, councils seeking to reduce their exposure will look for further opportunities to improve the efficiency of their activities. In collaboration with the other levels of government, they will provide strong community leadership and education on the implications of a carbon price. Collaborative action will assist communities to make a smoother transition to a lowcarbon economy. This plain language guide outlines a clear process for councils to manage and reduce carbon emissions; providing a range of carbon management tools and resources for local government and assisting council to report emissions reduction progress. The Guide strongly aligns with the Victorian Local Sustainability Accord s objective of building local government capacity to respond to climate change and indeed, is a response to consistent local government requests for such a tool. In addition to the clear process, a range of valuable references are provided. The Guide cuts a clear path through what can seem a daunting and confusing area. Confusion is no longer an argument for inaction. I hope that council will find the Guide a helpful tool and that it will assist the sector to reduce and manage emissions. This Guide is another step towards assisting the Victorian local government sector to better understand their greenhouse gas emissions footprint and introduce further measures to manage and reduce emissions. The MAV thanks the Department of Sustainability and Environment for providing funding to enable the production of this Guide. We look forward to further collaboration on climate change initiatives between all levels of government to deliver positive climate change outcomes for Victorian communities. Janet Bolitho, Chair Victorian Local Sustainability Accord Committee Rob Spence, CEO Municipal Association of Victoria 2

3 3 Contents Introduction 4 Greenhouse Gases The National Approach to Tackling Climate Change 6 Relevant Victorian State Policies 7 Step One: Identify Your Carbon Footprint 9 Step Two: Reduce Emissions 14 Step Three: Purchase Offsets 19 Reporting 23 Glossary 24 Resources 25 Endnotes 26 Municipal Association of Victoria November This publication is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act Disclaimer: The opinions and recommendations expressed in this publication are those of MAV and do not necessarily reflect those of the Department of Sustainability and Environment, nor the Government of Victoria. Whilst care has been taken in compiling the Victorian Local Government Guide to Reducing Carbon Emissions, the MAV does not warrant or guarantee that this publication is without flaws or is wholly appropriate for your particular purpose and therefore shall not be held responsible or liable for any error, loss or other consequence which may arise from reliance on any information in this publication. The Guide has been printed on Tudor RP. Tudor RP is made from 100% recycled FSC Certified fibre and is Australian made. Tudor RP is also Certified Carbon Neutral by the Department of Climate Change & Energy Efficiency s National Carbon Offset Standard (NCOS). No chlorine bleaching occurs in the recycling process. This Guide was printed by Mystique Print Pty Ltd, under the strict controls of ISO Environmental Management System. Mystique Print Pty Ltd is an FSC certified Printer and Australia s only Greenhouse Friendly Carbon Neutral Printer. All Greenhouse Gas emissions associated with printing this product have been offset. This printed product is 100% Carbon Neutral. 3

4 4 INTRODUCTION Who is this Guide for? The intent of the Guide is to provide councillors with an introduction to emissions reduction and to support local government officers as policy makers; guiding council to make informed decisions regarding their greenhouse gas (GHG) reduction options, obligations, and reporting requirements. The Guide contains high level advice on how council can align carbon management strategies with evolving policy and legislative requirements and may also be used as a step-by-step process for the development of carbon mitigation strategies; providing definitions and additional resources to assist in the process. Importantly the Guide has been designed to encourage regular review and revision of council carbon management approaches. The basic carbon management process outlined involves four simple steps as below: Monitor & Report Offset Consider offsetting residual emissions Carbon Management Identify your carbon footprint Reduce Emissions Avoid Reduce Switch Overview The most recent assessment of the Intergovernmental Panel on Climate Change (IPCC) concluded that warming of the climate system is unequivocal. This, along with evidence of increased global temperatures and more frequent intense storm events, 1 has raised the general awareness and understanding of climate change and increased the emphasis on reducing carbon emissions. Although councils are actively responding to the emissions reduction challenge (mitigation) and the present and future climate change impacts on both operations and communities (adaptation), in this instance the Guide only discusses the role of local government in mitigating GHGs and focuses on the reduction of corporate emissions, rather than those of the community. Over the last decade Victorian local government has made significant efforts to reduce corporate carbon emissions, particularly under the ICLEI Cities for Climate Protection (CCP) Program. Today, councils are increasingly collaborating with residents, business and industry to pursue opportunities associated with the emerging low carbon economy. In this way they are able to both engage with local industry and reduce emissions across council operations and community. ICLEI Cities for Climate Protection For close to twelve years ICLEI - Local Governments for Sustainability has been working with councils to support and guide them toward their carbon goals through the Cities for Climate Protection (CCP) Program. Approximately 70 Victorian councils have been active participants in the Program; collecting data, establishing policies and strategies, and taking steps towards reaching their emission reduction targets. ICLEI continues to provide councils with emissions reduction and climate adaptation support on a fee-for-service basis. Terms to know Global Warming GHGs are naturally occurring and have historically been an important part in the maintenance of the earth s stable atmosphere. Experts believe that human activity has significantly increased this concentration of GHGs in the atmosphere, causing a warming of the earth s temperature. Carbon and Greenhouse Gas Emissions The term carbon is often used interchangeably with the phrase greenhouse gas emissions. For example carbon is used within the phrases carbon neutrality and carbon management although these include all six key greenhouse gases, not just carbon dioxide. Similarly quantities of greenhouse gases are often expressed as carbon dioxide equivalent or CO2e. 4

5 5 GREENHOUSE GASES 101 There are six GHGs which are considered to be key contributors to global warming. These are: Victorian 2007 Emissions by Sector Figure 1 Carbon dioxide (CO 2 ) Methane (CH 4 ) Nitrous oxide (N 2 O) 85% Energy 2% Industrial Processes Hydrofluorocarbons (HFCs) Perfluorocarbons (PFCs), and Sulfur hexafluoride (SF 6 ). Carbon dioxide is considered the most significant GHG due to its increasing prevalence within the atmosphere. As an example, global annual emissions of CO 2 grew by around 80 per cent between 1970 and % 3% Agriculture Waste -2% Land Use, Land Use Change and Forestry Sources of Greenhouse Gases Figure 1 provides an indication of GHG sources by sector for Victoria in Note that the carbon emissions from energy production account for the majority of the total emissions, primarily due to Victoria s reliance on brown coal for electricity generation. Local governments contribute to energy-related carbon emissions through normal business activities such as heating, cooling, and lighting. Percentage of energy sector 65% 19% 8% Energy Industries Transport Other (including other sectors and lubricants) 6% 2% Manufacturing Industries and Construction Fugitive Emissions from Oil and Natural Gas 5

6 6 THE NATIONAL APPROACH TO TACKLING CLIMATE CHANGE Carbon Price Framework The Australian Government has legislated the carbon price framework and released a complementary measures package, Securing a Clean Energy Future. The carbon price framework is the central component of the scheme, with a price starting at $23 per tonne of carbon dioxide equivalent (CO2e) on 1 July The carbon price will be will be fixed for three years until 1 July 2015, when the price will be determined by the market under a cap-and-trade emissions trading scheme. The price will be payable by Australia s 500 most carbon-intensive entities across the stationary energy, waste, transport and industrial sectors for each tonne of CO2e they produce. This will include local government with certain landfills. This additional cost will be passed on through to businesses and households. Key elements of the Clean Future scheme Cut greenhouse gas pollution by at least five per cent compared with 2000 levels by 2020, with a view to 80 per cent cuts by 2050 Commences 1 July 2012, with three years as a fixed scheme before moving to a full cap-and-trade emissions trading scheme in Price $23 per tonne of CO2e in , increasing by 2.5 per cent per year until emissions trading commences A new independent Climate Change Authority and a new Clean Energy Regulator to administer the carbon pricing scheme More than 50 per cent of revenue from the carbon price will be used to assist households through tax cuts and Government payments Several funding programs to support renewable technologies and energy efficiency across industry, households and local government. International Commitments In December 2007 the Australian Government ratified the Kyoto Protocol, signalling a new era of climate change strategy and policy in Australia. The Kyoto Protocol commits nation states to reduce carbon emissions and intensities. Through the 2009 Copenhagen Accord, Australia is committed to an unconditional emission reduction target of 5 per cent on 2000 levels by 2020, aimed to be achieved through the carbon price framework. Renewable Energy Target (RET) The Renewable Energy Target (RET) supports the Australian Government s commitment to sourcing 20 per cent of Australia s electricity supply from renewable energy by As of January 2011, the scheme has been separated into the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET). A key part of the RET is the creation of tradeable Renewable Energy Certificates (RECs), each representing one mega-watt hour (MWh) of electricity from renewable sources. RECs can be traded between liable entities (i.e. wholesale electricity providers) and eligible parties, thereby creating a de facto renewable energy market. Councils that install renewable energy generation sources can create and sell the generated RECs under the SRES. Eligible systems include solar panels, small wind turbines, solar water heaters and mini hydroelectric systems. National Greenhouse and Energy Reporting (NGER) Act and Protocol The 2007 National Greenhouse and Energy Reporting (NGER) Act established a national framework for the collation and reporting of carbon emissions, carbon projects and the energy use of corporations. Currently, only corporations which meet pre-defined carbon thresholds are able to register and participate. To ensure consistency within the local government sector (and the economy in general), the MAV recommends that council transition towards the NGER framework and associated protocols. Under the carbon price framework councils with landfills that meet participation thresholds are required to report through NGER. Online System for Comprehensive Activity Reporting (OSCAR) The Online System for Comprehensive Activity Reporting (OSCAR) is an online reporting tool established for corporations and businesses that are required to report emissions under NGER. At the time of writing, councils not required to report under NGER are unable to access OSCAR. However, the MAV is seeking voluntary access to OSCAR for local government so they can familiarise themselves with the system. 6

7 7 VICTORIAN CLIMATE CHANGE ACT The Climate Change Act was passed by the Victorian Parliament in September 2010 and came into effect on the 1 July The Climate Change Act creates a legal framework for key actions and initiatives in response to climate change in Victoria. The Act provides the basis for key actions to be implemented including: A carbon reduction target of 20 per cent by 2020 A framework for measuring and reporting climate change actions, and Embedding climate change considerations into a range of Victorian Government programs and legislation. Review of the Climate Change Act The introduction of the Federal Government s Clean Energy Package into Commonwealth Parliament triggered section 19 of the Victorian Climate Change Act, requiring the Minister for Environment and Climate Change to undertake a review of the Act. The Review examined the Act with respect to the impact of a national carbon price on the Victorian Government s climate change policy objectives as outlined in the Act, and appropriate policy mechanisms to achieve these objectives. At the time of writing the outcomes of the review were not known. RELEVANT VICTORIAN GOVERNMENT POLICIES The following briefly outlines some of the more relevant policies for council in areas such as future energy options, renewable energy, energy efficiency, regional planning, transport and planning, and ecologically sustainable design. Victoria s Climate Change White Paper Actions in the former Victorian Government s Climate Change White Paper 3 released in July 2010, are supported by the Climate Change Act. Victoria s Energy Future Victoria s Energy Future Statement examines current and future energy issues. It identifies the impacts of the continuing energy sector reforms and new climate change policies. Renewable Energy In 2007 the Victorian Government amended existing legislation to support a feed-in tariff for micro energy generation from solar, wind, hydro and biomass sources. The tariff rate is no less than the rate customers pay for electricity from the retailer up to an installed capacity of 100kW. The feed-in tariff helps to provide certainty regarding the introduction of renewable energy technologies by defining prices for generators, thereby supporting the business case for investment. This is particularly relevant for councils and communities which may pursue renewable energy bulk-buy schemes. At the time of writing the Victorian Treasurer has asked the Victorian Competition and Efficiency Commission to conduct an inquiry into feed-in tariffs and barriers to distributed generation. Energy Efficiency The Victorian Energy Efficiency Target (VEET), promoted as the Energy Saver Incentive scheme was introduced in 2009 as a means of encouraging carbon reductions within the residential sector through the uptake of energy efficient technology. Energy and gas retailers are required to purchase and surrender Victorian Energy Efficiency Certificates (VEECs) each year. These certificates are created from a range of activities such as energy efficient lighting or the implementation of solar hot water systems. Recipients of such technologies may then sign over the generated VEECs to eligible providers to receive discounts on the price of the product. VEET has been expanded to include business and other non-residential premises, including local government. The expansion includes the existing household activities with the addition of a number of new activities. 7

8 8 Figure 2 Understanding council emissions scope 1 scope 2 scope 3 Council waste Waste water treatment (non council) Waste water treatment (council owned or managed) Council owned and/ or managed landfill Purchased electricity for heating and energy Unmetered lighting Taxis used by council staff for work purposes Council fleet Gas for heating and energy Metered lighting such as security lighting on the civic centre Council pumps and irrigation Public transport and flights by staff for work purposes Leased buildings such as leisure centres *Please refer to Section 5 for further discussion of boundaries. 8

9 9 IDENTIFY YOUR CARBON FOOTPRINT A consistent and recognised carbon management and reporting approach should be adopted when managing council operational carbon emissions. This Guide provides a high level outline of how council may measure and reduce carbon emissions in line with NGER and is broadly structured using the EPA Victoria Carbon Management Principles ( Revising Carbon Assessments The creation of NGER established new boundaries for emissions and requires a refreshing of carbon baselines. This includes reassessing organisational and operational boundaries and appropriate targets. As many councils have already stepped through the milestones of the ICLEI CCP Program, council may wish to revisit CCP data and update as needed. Revising Carbon Assesments The creation of NGER established new boundaries for emissions and requires a refreshing of carbon baselines. This includes reassessing organisational and operational boundaries and appropriate targets. As many councils have already stepped through the milestones of the ICLEI CCP Program, council may wish to revisit CCP data and update as needed. STEP ONE: IDENTIFY YOUR CARBON FOOTPRINT Identifying carbon emissions is the first step towards improving a council s emissions profile. This process involves the following broad steps: 1. Assign resources 2. Establish a methodology 3. Commit to carbon accounting and reporting principles 4. Define organisational and operational control 5. Establish a baseline, then collect data 6. Set objectives 7. Develop a data collection and management system 8. Measure emissions, and 9. Seek third party verification. 1. Assign Resources Carbon accounting is an iterative process and so councils are encouraged to review and revise their emissions strategy annually; assigning appropriate resources and clear responsibilities. Depending on the size of the council it may be more efficient to allocate responsibility for managing the process to a single, suitably skilled individual to ensure data, resources and communications are coordinated. Ultimate resource allocation will depend upon the breadth and depth of activities to be included in the scope. Terms to know Scope 1, 2 and 3 Emissions The protocols governing GHG calculations categorise emissions from an organisation s operations into the following scopes: Scope 1: The release of GHGs into the atmosphere as a direct result of the activities of a facility which is under the direct control of the organisation e.g. council owned or managed landfill. Scope 2: The release of GHGs into the atmosphere through off-site activities which are under the direct control of the organisation e.g. electricity generation. Scope 3: The release of GHGs into the atmosphere through off-site activities which are not under the direct control of the organisation e.g. flights by staff for work purposes. Refer to Figure 2 for council-specific examples. 9

10 10 2. Establish a Methodology There are a number of national and international methodologies which may be used to guide participants through the carbon management process. The Greenhouse Gas Protocol (GHG Protocol), developed by the World Resources Institute and the World Business Council for Sustainable Development, is an internationally recognised methodology for determining an organisation s emission profile; establishing clear standards for each stage of the carbon accounting process 6 and forming the basis of nearly all carbon reporting frameworks. Drawing on the GHG Protocol, the NGER Act introduced a national framework for the reporting and collation of information relating to carbon emissions and projects as well as energy production and use. To effectively manage data and reporting obligations, council should align emission reduction approaches with this standard through application of the NGER Streamlining Protocol and Reporting Guidelines. This approach will equip council to understand direct and indirect exposure to a possible carbon price and align with potential mandatory reporting under the NGER Act. Operational Control-Facilities All corporations registered under NGER are required to report the carbon emissions, energy production and energy consumption of facilities within their operational control. An activity or series of activities can be referred to as a facility if one of the following apply: Activities produce carbon emissions, or produce or consume energy Activities are part of a production process Activities occur at one site, and Activities are attributable to a single industry sector. The National Greenhouse and Energy Reporting (NGER) Act The NGER Act applies to constitutional corporations, or organisations which meet the established corporate or facility thresholds. Councils that own or manage landfills which trigger emissions thresholds will be required to report through NGER. Updates on the status of NGER are available from the Commonwealth Department of Climate Change and Energy Efficiency (DCCEE) website. 10

11 11 3. Commit to Carbon Accounting and Reporting Principles The NGER is underpinned by the following internationally accepted accounting and reporting principles. These should be central to a council carbon inventory. 7 Transparency - All data reporting must be accurate and verifiable. Comparability - Council adoption of a particular methodology must be consistently applied throughout the carbon management process to enable comparison. Accuracy - Emission estimates must be recorded and reported as accurately as possible. Any estimates which are less than 95 per cent certain must not be included. Completeness - All emissions within a chosen scope must be accounted for Community Emissions - Identifying council operational control will provide the basis for understanding a council s carbon footprint and will enable alignment with NGER methodology. The NGER defines operational control as the organisation with the best ability to implement operating, health and safety and/or environmental policies. 8 Council owned and operated facilities such as civic centres, or park lighting are two such examples Define Organisational and Operational Boundaries Identifying council operational control will provide the basis for understanding a council s carbon footprint and will enable alignment with NGER methodology. The NGER defines operational control as the organisation with the best ability to implement operating, health and safety and/or environmental policies. 8 Council owned and operated facilities such as civic centres, or park lighting are two such examples. Once operational control has been determined, council may further assess its carbon management boundaries by considering the financial aspects associated with relevant facilities or services. Street lighting operated by an electricity distribution business, or a leisure centre operated by a third party are potential examples of limited council operational control. Despite this, a council may elect to include them within their carbon management boundary. The NGER Fact Sheet on contracts and leasing provides further explanation. Refer to Figure 2 for further council examples. Scope consideration Due to the inherent difficulties in reliably measuring the success of strategies which focus upon scope 3 community emissions, MAV suggests council should only set formal targets for scope 1 and 2 emissions. Nevertheless, council should consider including scope 3 emissions that fall within the organisational boundary for which it has legislated responsibility. For example, public street lighting that is managed by electricity distributors, or third party leased sites such as leisure centres or libraries operated by regional corporations. 11

12 12 5. Collect Data and Establish a Baseline Year Data collection enables council to: Establish a baseline or benchmark against which progress can be measured Set targets and monitor the effectiveness of different carbon reduction initiatives, and Develop a business case for particular initiatives which require resources and/or investment. 9 Data for energy and waste may have to be collected from different departments such as Infrastructure and Finance and can be difficult to access. It may be useful to use existing green teams or other cross-organisational groups to understand where data is available. As gathering and collating the data may be time consuming, appropriate project planning allowances should be made. When collecting data it is important to ensure that the information is relevant, complete, reliable, and can be reproduced. 11 This will allow effective assessment of progress. At the commencement of the process, council should set a baseline year against which council s emissions management performance can be measured. The Kyoto Protocol adopted 1990 as the international baseline year and within Australia the year 2000 is used as a starting point. When selecting a baseline, it is important to consider the year from which appropriate data will be available Set Objectives and Targets It is important for council to establish clear, measurable carbon reduction objectives and targets. The target, often expressed as a per cent reduction within a certain timeframe, is important for planning actions and reporting on the progress of activities 7. Develop a Data Collection and Management System The next step is for council to select a management system that will enable data to be effectively organised and collated. A well structured and maintained data management system can provide a uniform basis to track emissions. Sustainability Victoria s Utility Tracker is used by a number of councils to manage utility data. Council may also decided to seek third party assistance with this stage. ( The MAV is able to discuss any council needs in this area. Terms to know Carbon Neutral An activity or product is commonly considered carbon neutral when the net emissions arising from the specified product or activity are zero through a combination of emission reductions, energy switching and the offsetting of residual emissions. The Australian Competition and Consumer Commission (ACCC) warns that to ensure credibility, carbon neutrality claims should be supported by evidence of the nature and method of offset, or potentially independently verified by a credible standard or certification scheme. As an example, in becoming carbon neutral EPA Victoria took the following steps: Measurement of carbon footprint Development of draft Carbon Management Principles Analysis of carbon offset options through a financial and environmental perspective, and Independent verification of emissions inventory and plan. For further information on EPA Victoria s experience in becoming carbon neutral visit 12

13 13 8. Calculate Emissions Once data has been collected and organised, council emissions can be calculated. This essentially involves multiplying council data by the appropriate emissions factor to determine the emissions attributed to the particular source. Emission factors vary by scope, activity and location to reflect differences in the global warming potential and carbon intensity of the particular source. As an example, for every KWh of electricity consumed in Victoria, 1.23 kg of CO2-e is emitted into the atmosphere. In South Australia 0.72 kg of CO2-e is produced for the same amount of electricity consumed. This difference reflects the high carbon intensity of Victoria s energy, with brown coal providing the majority of the state s electricity. Comparatively South Australian energy sources include gas and renewable energy such as wind. The Commonwealth Department of Climate Change and Energy Efficiency (DCCEE) provides up to date emission factor publications which inform the NGER technical measurements. Energy Efficiency Opportunity Program Energy Services Directory To complement the Energy Efficiency Opportunity (EEO) Program, the Commonwealth Government developed an Energy Services Directory which details a range of services and skills to assist EEO participants. The directory details service providers in areas such as energy monitoring and reporting, business base development, data management and analysis. Terms to know Emission Factor A factor which identifies the per kilogram carbon dioxide equivalent (CO2e) arising from a particular activity. 9. Seek Independent Verification Finally, it is good practice for council to seek independent verification of emission calculations to assess whether the process is robust; exhibiting the principles of relevance, completeness, consistency, transparency and accuracy. Where appropriate, independent verification can determine whether or not council calculations meet criteria to align with NGER or programs such as EPA Victoria s Environment and Resource Efficiency Plan. 13

14 14 REDUCE EMISSIONS Once council carbon emissions have been calculated, it can be relatively simple to identify which activities have the most associated emissions and may be the focus of future reduction strategies. Emissions reduction strategies should support established council objectives and targets and ideally be incorporated across all council processes. This is important to ensure staff members are engaged and will support the implementation of measures. As a point of comparison, Sustainability Victoria s Resource Smart Government Program ( suggests that participating state agencies should establish a team to assist, develop and implement carbon reduction strategies. The resources devoted to the carbon management process will depend on the size of council, although assigning at least one person to manage the process will allow greater consistency and reduce repetition. STEP TWO: REDUCing EMISSIONS strategies A series of actions to assist council to reduce emissions are detailed across the following themes: Electrical Heating, Ventilation and Air Conditioning (HVAC) Building Fabric Fit-out Indoor Environmental Quality (IEQ) Management, and Transport. Each of the detailed actions has been assigned an estimated carbon reduction potential and financial cost; 14 broadly reflecting EPA Victoria s carbon management principles - avoid, reduce, switch. This hierarchical approach encourages no or low cost strategies before the commencement of capital intensive measures. Councils are encouraged to consider the following questions when developing and prioritising emissions strategies: Can council avoid generating emissions? Can council activities change to reduce emissions? Can council switch to less carbon intensive energy sources? 14

15 15 Cost Estimate No cost Nil Minor cost $ Considerable cost financed under an annual budget $$ Substantial cost, financed over a number of years $$$ CARBON REDUCTION POTENTIAL Switch dimming according $$$ to available daylight Daylight sensors can be installed as part of lighting control systems. According to the amount of daylight available, sensors can dim or switch-off lights according to occupancy needs therefore reducing operating costs. Energy efficient lamps, $$ luminaires, ballasts The installation of energy efficient lighting such as T5 fluorescents lamps can lead to reductions in energy consumption and operating costs. The internal heat load from lights may also be reduced. Minor Electrical cost estimate CARBON REDUCTION POTENTIAL Considerable Substantial LIGHTING cost estimate Clear light switch labelling $ CARBON REDUCTION POTENTIAL Energy efficiency appliance $$$ The selection or replacement of old appliances with energy efficient appliances can significantly reduce energy consumption. Upgrade all motors to high efficiency High efficiency motors improve the performance of equipment wherever a motor is used. $$ Clearly label all light switches so staff are aware of the need to turn them off when leaving a room. De-lamping $ Replacing old or inefficient fluorescent tubes with high efficiency triphosphor lamps (de-lamping) can reduce energy consumption associated with lighting. Fewer tubes can be used as the lamps have a higher light output and longer life. LED lighting $$ Installation of LED lighting (light-emitting-diodes) in buildings or outdoor lamps to reduce energy consumption, provide better lighting (reduced flickering) and increase lifespan whilst also reducing operating costs. GreenPower $$ GreenPower involves the purchase of electricity from a supplier that sources energy from renewable sources such as solar, wind or hydro. Solar Photovoltaics (PV) $$$ Solar Photovoltaics, more commonly known as solar PV panels, may be installed onto the facades or roofs of buildings to generate solar energy. Combined heat and power $$$ Combined heat and power utilises the by-products of electricity production to provide heating or cooling energy to a building. This system utilises gas (a low emission source of fuel), to provide electricity, heating and cooling to one or more buildings. 15

16 16 heating, Ventilation and Air Conditioning (HVAC) cost estimate CARBON REDUCTION POTENTIAL Replace existing air conditioning $$$ Ensure controls are working correctly $$$ Modern air conditioning systems are more efficient compared to many older building systems. Replacing existing air conditioning may improve thermal comfort and reduce energy consumption. Controls for HVAC systems can positively impact energy consumption and the thermal comfort of occupants. Implement a comprehensive maintenance program The implementation of a comprehensive maintenance program can ensure that equipment is operating efficiently leading to cost savings and extended product life. Gas sub metering $ Gas sub metering allows the council to better monitor consumption within buildings and facilities and support energy reduction initiatives. Zone existing air conditioning system Zoning an air conditioning system will ensure that the relevant parts of a building are being cooled; improving thermal comfort and improving energy consumption. Replace electricity with gas for central hot water and boilers In the energy generation process, gas is relatively less carbon intensive when compared to energy generated from sources such as brown coal. As a result, central hot water and boilers have fewer associated emissions. $ $$ $$ BUILDING FABRIC cost estimate Automatic blinds $$ CARBON REDUCTION POTENTIAL Automatic blinds can be set to close or provide shade to windows when the level of solar radiation reaches a maximum. Upgrade wall and roof insulation $$ Where required, an upgrade of insulation in walls and roofs can greatly increase the thermal efficiency of a building. This leads to reduced energy consumption by decreasing heating and cooling requirements. Double skin façade $$$ A double skin façade generally consists of an inner double glazed unit, a cavity and a second outer pane of glass. This system reduces wind pressure and noise and allows natural ventilation in summer. Internal blinds and shading $ Internal blinds and shading used in council buildings can reduce solar gain leading to reduced heating or cooling requirements. Mixed mode ventilation $$$ Mixed mode ventilation involves using natural ventilation where possible by setting air conditioning to operate only during peak times therefore reducing energy consumption and costs. 16

17 17 Information Technology (IT) Time switches or similar on small equipment cost estimate $ CARBON REDUCTION POTENTIAL Time switches can be installed on equipment to automatically switch off computers when not in use thereby preventing unnecessary energy use. LCD screens $ Local Government Sustainability Resource Locator The Local Government Sustainability Resource Locator is an on-line ResourceSmart tool which assists local government to identify ways to reduce environmental impacts. Key topics addressed by the Locator include behaviour change, biodiversity, climate change, energy, organisational planning, procurement, and sustainable buildings. Liquid crystal-display (LCD) screens are significantly more energy efficient compared to cathode-ray tube monitors. LCD screens are also more space efficient and emit no harmful radiation. Server virtualisation $ $ Server virtualisation technology reduces the need for server hardware in turn increasing energy efficiency and creating financial savings. MAV Local Sustainability Website The MAV website provides a place for local government to share information for local goverment regarding sustainability in the natural and built environments and within council operations. Indoor Environmental Quality (IEQ) cost estimate Natural office ventilation $$$ CARBON REDUCTION POTENTIAL Appropriate increases to natural office ventilation improve indoor air quality and reduce the need to artificially mange indoor air flows. Chilled beams or underfloor supply $$$ Chilled beams or underfloor supply can improve air change effectiveness (i.e. the age of air in a building) in both new and old buildings. Sustainability Victoria s Best Practice Tracker The Best Practice Tracker is an online tool designed to: Benchmark a facility s energy performance against data from other Victorian local government facilities, and Estimate how much energy can be saved by taking energy conservation actions. The Tracker allows users to generate a number of simple comparative graphs across themes such as annual energy use (GJ), electricity use (kwh), gas use (GJ), energy use by number of full time staff, and energy use by m 2 (building area). Best Practice Tracker also identifies a range of options to help an organisation improve energy efficiency; reporting the best energy saving actions for a facility as well as estimated payback periods. 17

18 18 Transport cost estimate Efficient vehicles $$$ CARBON REDUCTION POTENTIAL Efficient vehicles can lower the transport emissions associated with staff travel. Consider replacing older fleet vehicles with low carbon options such as hybrids. Alternative fuels $$$ Where appropriate, consider switching to cleaner fuel sources such as biodiesel. Provision of bicycle storage, accessible showers, changing facilities, and lockers The provision of appropriate bicycle infrastructure such as storage facilities, showers, change rooms and secure lockers will encourage staff to ride to work; reducing the associated council emissions and contributing to improved staff health. Dedicated parks for car pooling Dedicated spaces reserved for staff car pooling vehicles will reduce the number of cars travelling to and from council buildings. $$ Nil Staff bicycle fleet $$ Consider investing in a bicycle fleet for council staff. This will not only reduce transport associated emissions but also improve staff health. Transport education and support $ Establish educational workshops to highlight alternative transport options and provide financial support such as bicycle and public transport ticket loans. LOW CARBON SUPPLY OPTIONS Once council has established efficiency strategies, consider measures to source and/or develop a low carbon electricity supply. There are three options that are particularly relevant to council: 1. The purchase of certified GreenPower electricity from an electricity provider 2. Generation of onsite energy through investment in low-carbon technologies, and/or 3. Work with local community and businesses to invest in larger scale low-carbon energy at a precinct or community scale. Regarding the latter option, the installation of buildingintegrated wind or solar PVs are common examples of onsite energy generation. Under the Victorian feed-in tariffs, council may receive money from the export of surplus electricity back to the grid. Eco-Buy Eco-buy is an online guide to environmentally sustainable products and services. The web-site details products across themes such as lighting, fleet management, IT and office equipment. 18

19 19 GreenPower Managed by the Australian Government GreenPower is a nationally accredited renewable energy product where electricity providers purchase energy from renewable energy sources such as wind and solar, and supply the requested energy to residential and business sectors. The National Carbon Offset Standard considers the purchase of GreenPower equivalent to the direct use of renewable energy. Importantly the carbon reductions achieved through GreenPower are additional to those required of electricity providers under the RET. Refer to the website for a list of GreenPower products available from your electricity provider. ADDRESSING COSTS There are a range of strategies that can be implemented by council with relatively little expense. Often these require behaviour change such as turning off light switches when not in use. Despite this, a large number of measures still require significant capital investment and ongoing expense. When considering whether such investment is appropriate for council, the following should be considered: Net present value - the value of an investment at today s prices Payback period - the length of time it will take to make the investment back Emissions reduction and wider environmental benefits, and Co-benefits not included within the economic analysis such as improved physical fitness. The financial investment which council decides to make may be supported by funding in the form of Australian and state government rebates and grants. Possible options are: Solar Photovoltaics Community Hubs Zero Emission Neighbourhood program Commonwealth rebates and programs PURCHASING OFFSETS STEP THREE: PURCHASING OFFSETS A carbon offset is any project that indirectly reduces carbon at one source by investing in emission reductions elsewhere. 15 Council may elect to offset the emissions of all operations or specific activities or events. Carbon offsets may be derived from activities which sequester carbon such as forestry plantation, energy efficiency projects or renewable energy developments. 16 Recognising that carbon offsets should be the last resort in a carbon management strategy, council should always consider opportunities to avoid, reduce, and switch before pursuing offset options. Drawing on the increasing prevalence of carbon offsets, a range of national and international standards have been developed to ensure the integrity of the offsetting process. Each of these standards recognises certain types of offsetting projects. 19

20 20 CARBON OFFSET STANDARDS National Carbon Offset Standard The National Carbon Offset Standard is an Australian guide designed to provide assistance to those wanting to achieve a genuine, additional voluntary offset. It details specifications on the verification and retirement of voluntary carbon credits and outlines requirements for calculating the carbon footprint of an organisation or product to achieve carbon neutrality. Voluntary Carbon Standard The Voluntary Carbon Standard is an international standard based on the Clean Development Mechanism framework. The standard includes projects in the areas of renewable energy, energy efficiency and industrial gases. Gold Standard The Gold Standard Foundation registers projects that sequester and reduce carbon whilst improving social and environmental sustainability. Projects within this standard include those with energy efficiency and renewable energy characteristics. Councils should carefully consider the achievements of each type of offset product alongside additional benefits such as social sustainability. The MAV recommends consideration of the National Carbon Offset Standard (NCOS) principles as the preferred standard when purchasing carbon offsets. In line with the NCOS principles, council should ensure that offset activities and/or carbon neutral products are: Additional Permanent Measurable Transparent Independently audited, and Registered. Carbon Farming Initiative The new Carbon Farming Initiative (CFI) allows landholders to receive carbon credits for reducing emissions from agriculture, land use and landfills, and increasing carbon stored in vegetation and soils. People and businesses will be able to buy CFI credits to offset their emissions. The CFI is a voluntary offsets scheme and councils should take the time to understand requirements of participation before choosing to be involved. How to Purchase and manage Offsets The process of purchasing and managing offsets has five basic elements: 1. Measure The total carbon emissions produced will have been measured by council. 2. Search Explore providers, brokers and projects that could be used to offset residual council emissions. The Carbon Offset Guide Australia details possible offset providers which adhere to the NCOS. The Guide also outlines the types of projects that these providers use to sequester or reduce carbon emissions. 3. Purchase Buy carbon offsets through reputable providers and consider the possibility of securing longer term contracts for annual delivery. 4. Check Verify the offsets using a process to confirm the emission reduction potential of the project. The NCOS recommends appropriate auditors are registered under the Greenhouse and Energy Audit Framework, have demonstrated knowledge and expertise in Australian and international standards, and are accredited to the international standard ISO 14065: Retire To ensure that carbon offsets are appropriately disposed when expired, council should use a retirement registry. The registry records the certification details of the credits and ensures they cannot be resold. 20

21 21 Additional Considerations Councils should be careful to select offset providers that adhere to the NCOS. The following questions provided by EPA Victoria may assist to identify a credible offset: 18 Can the offset provider demonstrate that the offsets meet quality requirements? Does the offset provider create offset credits in line with a recognised standard or regulation? Is it clear what is being offered? At a minimum, only once these questions have been satisfied should council purchase a carbon offset. Carbon Offset Guide Australia Carbon Offset Guide Australia is an independent directory of Australian carbon offset providers, developed in collaboration with EPA Victoria and Global Sustainability at RMIT. It is a resource for council, businesses, government agencies, NGOs and individuals seeking information about carbon offsets and offset providers. 21

22 22 Resources A range of resources are available to assist council make decisions regarding GHG reduction options, obligations and reporting requirements. The MAV suggests council become familiar with the following resources in this recommended order (Table 1). Table 1: MAV recommended resources RESOURCE DESCRIPTION WEB LINK National Carbon Offset Standard Provides a useful overview of carbon management elements including Scopes and boundaries. NGER Streamlining Protocol Provides guidance on national standards of greenhouse and energy accounting and reporting. NGER Fact Sheets Provides useful examples and further explanation of key areas within NGER. NGER Measurement Technical Guidelines 2009 Identifies the latest methods for estimating emissions. national-greenhouse-energy-reporting/publications/factsheets.aspx DCCEE Calculators Calculators are available to determine emissions arising from waste water and solid waste. initiatives/national-greenhouse-energy-reporting/calculators. aspx Below are a selection of additional resources and programs which council may also find helpful. 22

23 23 REPORTING It is likely that both state and local government stakeholders, as well as various community members and businesses, will be interested in council carbon accounting process and outcomes. Progress and regular updates could be communicated to interested parties in a variety of ways such as public forums, newsletters and sustainability reports with a focus on carbon reductions. The NGER Streamlining Protocol outlines a standard reporting approach comprising the following elements: Calculation of all six GHG emissions Reporting of GHG emissions in terms of carbon dioxide equivalents (CO 2 -e) Identification of the chosen carbon baseline (year and total emissions) Identification of the methodology used within a council carbon accounting process, and Continual adherence to the carbon principles of relevance, consistency, completeness, transparency and accuracy. 23