1. James Fiske – Head of the Mott MacDonald Economics
Research Unit
The future of Carbon: The tools and skills that will be
required by the next generation

2. Presentation Content
• Introduction
• Drivers
• Terminology
• Our Tools: CapIT
• Our Tools: LifeCYCLE
• Benefits and differentiators

3. Introduction
• We are under pressure to evaluate
and reduce carbon emissions
• We are under pressure to reduce
costs
• Currently two different teams
measure carbon and cost
• Availability and understanding data

4. Drivers - environmental
• Climate change and global warming has been attributed to
increased levels of carbon and greenhouse gas emissions
• Association of British Insurers predicts an 8%, 14% and
25% increase respectively for inland flooding for a 2, 4 and
6 centigrade increase in temperature
• The Thames barrier was raised on average three times a
year until 2001, a year in which it was raised 15 times. By
2030, the environment agency expect that it will need to be
raised 30 times per year

5. Drivers - environmental
• As well as the more obvious strain on existing
infrastructure and flood defences, climate change is
expected to impact on health and workforce productivity to
name but two areas
• Increased temperatures are also expected to increase
building subsidence, water shortages, dangers of wildfires,
and major agricultural and ecological implications
• Believe the research or not but the ‘do nothing’ option is
not supportable – nor is it reversible
• If we act now we can still make a difference

6. Drivers – energy availability
• Recent Times headlines:
– “demand for energy could outstrip supply by almost one quarter
within eight years”
– “Britain faces blackouts within ten years as power stations go out of
service”
– “In 2005, the UK became a net importer of gas. By 2010, imports
could account for 40 per cent of British gas needs; by 2020, 80 per
cent to 90 per cent”
• With a continual growing demand outstripping supply,
prices will continue to rise

7. Drivers – current legislation
Legislation in place NOW:
• Climate Change Act 2008
• CRC Energy Efficiency Scheme
• The UK Low Carbon Transition Plan
• Part L Building Regs
• Government policy statements set targets for Zero carbon
homes, schools and other non domestic buildings

8. Drivers – future legislation
Legislation for the future:
• Current legislation will not address the levels of reduction that we
have signed up to deliver (26% by 2020, 80% by 2050)
• By 2019, embodied carbon should make up 100% of a buildings
carbon footprint
• A recent government report recommends the inclusion of whole
life carbon appraisals into the Treasury’s Green Book
• CEN TC350

9. Drivers – financial
• The ‘cost’ of carbon in the future is going to be much higher as
legislation tightens and trading becomes more important
• What you are ‘building’ now sets what you will be subjected to in
the future.
• The initial footprint is only a small part of the totals over the life
e.g. 1:5:200
• Grants and feed in tariffs for renewable technologies
• Tax relief through higher capital allowances for renewables
• CRC charges are currently small, but associated PR damage
may be more significant to the bottom line

10. Terminology
Boundaries:
• Embodied / direct CO2 emissions
• Cradle to gate / Cradle to site / Cradle to grave / Cradle to Cradle?
Calculation Considerations:
• Quantify and calculate weight of each material used
• Get CO2 data for construction products
• Don’t forget to quantify the waste and its disposal
• Calculate direct carbon from transporting materials from gate to site
• Quantify direct emissions from running any Plant
• What about Labour?

11. Terminology

12. Terminology
(Defined by BS ISO 15686-5)
Whole Life Cost
(WLC)
Non-Construction
Costs
Life Cycle Cost
(LCC)
Income Externalities
Construction End of LifeOccupancyOperationMaintenance

13. Our Tools
• Capital cost and CO2 online estimating
system
• Includes buildings and civils data
• Allows users to view and change build-
ups from library
• Allows users to add their own data –
securely
• Allows users to export data
• Report as cost, CO2 or both

14. • Subscription based licences
– For buildings database = £350/user/annum
– For civil engineering database = £350/user/annum
– For both = £600/user/annum
• Discounts for multiple user licences
– For 1- 5 = 0% discount
– For 6-10 = 20% discount
– For 11-20 = 30% discount
– For 20+ = 40% discount
Our Tools:

15. • Internet based model that
calculates Capital and LCC for
Buildings
• Quantifies direct and indirect carbon
for capital works, maintenance and
occupancy
• Calculates resource requirements
and waste, for each year of the
buildings life
• Reports to compare different
building designs
• Delivered as part of MM service
Our Tools:

16. Benefits and Differentiators
• Efficiencies and speed
– Measure once, output Cost and Carbon
• Accuracy
• Auditability
• A fast start (until own data is available)
• Future-proofing for legislation
• All to the highest International Standards

17. www.franklinandrews.com