An overview of low carbon policy, the UK energy trilemma and what this means for Cambridgeshire. Presented to Cleantech members on 10 October 2011 by Sheryl French, CRIF

1. Low Carbon Policy &
Cambridgeshire Renewables Infrastructure
Framework (CRIF)
This project is being developed as part of the Climate Change Skills Fund. The fund is
managed by Sustainability East on behalf of Improvement East

2. The Key Driver for Change
• The Climate Change Act 2008 legally binds
the UK to deliver its commitment of 80%
reduction of CO2 emissions by 2050
• The Coalition Government has committed to
deliver the 4th carbon budget which covers
the period spanning 2023 to 2027 and
commits the UK to cut its emissions by 50%
on 1990 levels, on course for emissions cuts
of 80% by 2050.
“By making this commitment, we will position
the UK as the leading player in the global low-
carbon economy, creating significant new
industries and jobs,” said the Prime Minister.
Huhne added that the announcement will give
investors the certainty they need to invest in
clean energy”.

3. The Policy Framework
Carbon Emissions Targets for 2050
Zero Carbon Policy for New Homes
Electricity Market Reform
Presumption in Favour of Sustainable
Development
Affordable Warmth
The Green Deal
Carbon Budgets
Feed-in Tariffs
The Green Investment Bank
Energy Bill
Strategy to Promote Microgeneration

4. The UK Energy Trilemma
Affordable Energy
£200 billion energy
investment required in Britain Global competition for energy
over the next decade
(Ofgem, 2009) Reducing supply of fossil
fuels
Securing alternative
energy supplies
UK
Energy Security Low carbon energy
Global demand for energy Climate Change Act 2008,
forecast to increase by 45% reduce CO2 emissions by 80%
between 2006 and 2030, (IAE 2008) by 2050 from 1990 levels

5. Global – Energy Demand

6. Source: E.ON
The energy challenge
ELECTRICITY
SUPPLY
GAP
Page 6

7. What does this mean for
Cambridgeshire?
• We need to find a way of dealing with rising fuel prices.
• We need to find a way of responding to targets – and the policy
framework it offers. If we don’t we’ll find investment and
opportunities go elsewhere.
• We need to know what options are on the table
- how much energy will we need to generate,
- how much will we have to rely on energy efficiency and
- what investment, skills and resources do we have to tackle these
problems
• CRIF is Cambridgeshire’s attempt to deal with this in an honest,
sensible and transparent way.

8. Government is implementing policies to ensure that new homes are
increasingly resource efficient
Government is seeking to address the resource efficiency and CO2 emissions of new
buildings.
The Building Regulations, the principle tool for controlling energy use in new developments,
are being progressively tightened on a pathway to introduction of Zero Carbon Policy.
Pathway to Zero Carbon Homes
CO2 emissions from new
25% reduction Regulated emissions
developments
44% reduction – heating, hot-water,
lighting& ventilation
100% reduction
Unregulated emissions
– appliances & cooking
2009 2010 2013 2016
Zero Carbon
The Zero Carbon policy could potentially increase the role of local authorities in delivering
low carbon growth.

9. The zero carbon policy introduced the concept of allowable solutions –
this creates the role for community energy funds
Allowable Solutions – A range of on-,
near- or off-site measures to mitigate
the remaining regulated emissions.
Carbon Compliance – the
level of CO2 reduction that
must be delivered through
on-site measures

10. Community energy fund is a means of channelling developer
investment in carbon reduction into the local area
Developer CO2 reduction
obligation
On-site CO2 reduction Payment to Fund
% of target met through on- % of target met by payment
site measures into an Energy Fund
The Community Energy Fund
Developer Fund invests in local
Fund invests in local
investments are
COlow carbon projects
2 reduction
pooled in the Fund
Potential revenue
into the Fund

11. The Community Energy Fund is a mechanism for ensuring the
substantial Allowable Solution investment is retained locally
Based on Cambridgeshire’s growth projections, the Allowable Solutions payments could
reach substantial sums.
The Community Energy Fund will ensure this money is invested locally.
Allowable Solutions investment raised in Cambridgeshire
Cumulative investment (£ million)
70
60
50 Allowable Solutions payments
40 – potential investment in the
local economy
30
20
10
0
2009
2011
2013
2015
2017
2019
2021
2023
2025

12. The framework envisages a mix of Community Energy Funds and
private initiatives delivering Allowable Solutions projects
Developer requires Allowable
Solutions to comply with zero
carbon policy
Submits plans to
local authority
LA with a prescribed set of Allowable LA without a prescribed set
Solutions of Allowable Solutions
Route A Route B
Either Or
Contract a Third- Private Energy Fund
Pay into Community
party to deliver is contracted to
Energy Fund
Allowable Solutions manage delivery
In both cases, Allowable Solutions projects The Private Energy Fund can
will be delivered in the local area deliver projects anywhere in
the country

13. The work to-date on a Cambridgeshire Community Energy Fund
An initial scoping study into the development of a Community Energy Fund in
Cambridgeshire was carried out in 2010. This study:
•Assessed the monetary size of a fund operating at a county-wide geographic scale.
•Examined potential mechanisms for collecting developer payments
•Proposed a structure for the local fund holding body – a company limited by
guarantee.
A further stage of detailed development of Fund proposals is now underway, focussing
on:
•Detailed governance structure – provisions for oversight by local authority members
•Measurement and accounting for carbon savings delivered
•Need for an evidence base and nature of local planning policy required.

14. CRIF Aim & Objectives
• To be proactive about addressing the known energy issues facing
us in Cambridgeshire
• Identify opportunities for renewables investment by communities,
private sector and use of public sector assets
• Make best use of the growth agenda to support renewables and
investment in existing housing stock
• Creating and supporting green jobs
• Involving stakeholders in developing the CRIF

15. Scope of Work
• Step 1: Identify a baseline of energy use

16. Scope of Work
• Steps 2+3: Three pathways for community, commercial
and public sector investment
• Identifying a supporting policy framework
• Developing a coordinating plan for investment
• Identifying how the community can benefit

17. Who is involved?