What this means for regulators and industry

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Transcript What this means for regulators and industry

CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
INTRODUCTION
The aim of this climate change mitigation toolbox is to provide:
• Generic help and advice on the consideration of climate change mitigation
in environmentally regulated activities in Scotland and Northern Ireland
• An overview of the main climate change policies affecting environmentally
regulated organisations
• Practical tools for climate change mitigation for both organisations and
regulators to use
• A hub for links to additional guidance, further information sources and
relevant legislation on climate change and energy efficiency
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USING THIS TOOLBOX
• The information that follows is structured into different topics
• Readers can either use the main menu to navigate around the toolbox or
read it from start to finish, like a presentation
• The shapes below are found on the bottom right hand corner of the different
pages and are interpreted as follows
Symbol Meaning
Move to next slide
Return to previous slide
Main menu
Return to main menu
Return to list of climate change policies
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MAIN MENU
Introduction to climate change
Benefits to industry from GHG reduction
Click on area of interest below:
Policy tools for GHG reduction
Practical tools for GHG reduction
What next?
Links to further information
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STRUCTURE OF THE TOOLBOX
Introduction to climate change
Benefits to industry from GHG reduction
Main menu
Policy tools for GHG reduction
Practical tools for GHG reduction
Identify what policies affect your organisation
Energy Efficiency Plans
Climate Change Agreements
Environmental Management Systems
EU Emissions Trading Scheme
Combined Heat and Power
Carbon Reduction Commitment
Training on Energy Efficiency
Strategic Environmental Assessment
Monitoring Energy Use
Environmental Impact Assessment
Housekeeping / Maintenance
Changes in climate change regulation
What next?
Energy Benchmarking
Resource Efficiency Appraisal & Development
Links to further information
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INTRODUCTION TO CLIMATE CHANGE
• Climate change is the greatest environmental
challenge facing the world today. Global temperature
increase is causing serious adverse effects, such as
rising sea levels (DEFRA 2007a).
• Warming is caused by increasing levels of
greenhouse gas (GHG) emissions. Levels must be
reduced if we are to limit the risks (IPCC 2007).
Key GHGs
GWP
Carbon dioxide (CO2)
1
Methane (CH4)
23
Nitrous oxide (N20)
296
HFCs and PFCs
Various
Sulphur hexafluoride (SF6)
22,200
• The UK has a legally binding target of reducing CO2 emissions by 12.5% (compared to
1990 levels) and the proposed Climate Change Bill aims to cut emissions by 60% by 2050.
Key policies include the EU Emission Trading Scheme (EU ETS), the forthcoming Carbon
Reduction Commitment (CRC), and the Climate Change Levy (CCL). Together they make
emitting GHGs increasingly expensive for industry.
• Industry can help mitigate climate change through energy efficiency and reduced GHG
emissions. Regulators can promote and advise on mitigation.
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BENEFITS TO INDUSTRY FROM GHG REDUCTION
Benefits of reducing GHG emission levels can include:
• Lower energy (e.g. electricity and gas) bills – cost reductions are often a key
driver of greenhouse gas mitigation activities.
• Increased efficiency and productivity of business operations – which in turn
leads to improved competitiveness and profitability.
• Corporate Social Responsibility (CSR) benefits – the GHG mitigation options
that an organisation adopts can be highlighted to external stakeholders e.g. in
an annual CSR report.
• Enhanced reputation – customers, suppliers, employees and investors are
increasingly attracted by good environmental credentials.
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CLIMATE CHANGE POLICY TOOLS
Identify which policies affect your organisation (decision tree)
Policy tools to apply to reduce GHG emissions:
Climate Change Agreements
EU Emissions Trading Scheme
Carbon Reduction Commitment
Strategic Environmental Assessment
(policy makers only)
Environmental Impact Assessment
(new developments only)
Changes in climate change regulation
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Which climate change policies affect your organisation? CCAs
Climate
change
agreements
(CCAs)
Is your organisation covered by
PPC or one of Defra’s designated
Energy Intensive sectors?
YES
NO
Not eligible
for a CCA
Your
organisation may
be eligible
to apply for
a CCA
Please check the Defra
website for which
sectors are eligible and
for any future CCA
changes
http://www.defra.gov.uk/environment/climatechange/uk/business/ccl/index.htm
Next policy
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Which climate change policies affect your organisation?
Carbon
Reduction
Commitment
(CRC)
Does your organisation’s total annual
electricity use through 70kVA metering
systems (NI) or half hourly meters*
(Scotland) exceed 6,000MWh?
NO
YES
Is the energy emissions of any
subsidiaries (or the whole organisation if
no subsidiaries exist) less than 25%
covered by CCAs?
Not covered
by CRC
NO
YES
All energy use
outside EU ETS
may be covered
by CRC
*those through which electricity
Please check the Defra website as the
supplied is settled on the half
details
of the CRC are not yet finalised
hourly market
http://www.defra.gov.uk/environment/climatechange/uk/business/crc/index.htm
Those
subsidiaries
may be
excluded
from the
CRC
Next policy
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Which climate change policies affect your organisation?
EU
Emissions
Trading
Scheme
(EU ETS)
Do any combustion
installations in your organisation
exceed the threshold of 20MW
rated thermal input (MWth)?
YES
Installation
will be
covered by
the EU ETS
NO
Does your organisation undertake one of
the covered activities above the threshold
level (refer to Defra guidance
http://www.defra.gov.uk/environment/climatechang
e/trading/eu/operators/index.htm)
YES
NO
Installations
will not be
covered by
the EU ETS
Please check the NetRegs website as the
inclusion threshold is subject to review
Installation
will be
covered by
the EU ETS
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Climate Change Agreements
How do CCAs interact with PPC?
• Climate Change Agreements (CCAs) are voluntary but legally binding once agreed. They can be entered
into by any PPC Part A covered installation or approved energy intensive sector installation that is eligible
to pay the Climate Change Levy (CCL) on fossil fuel use (NetRegs 2007).
• CCA participants have to submit energy and production data for each milestone, even for non-Levy fuels
such as oil (Climate Change Levy Discount Scheme 2000). This information can be submitted to meet PPC energy reporting
requirements.
• Companies subject to CCA can meet their target by reducing emissions and/or by buying verified carbon
credits. An 80% CCL discount is awarded to companies meeting their target; companies failing their binding
target loose their Levy discount. Under Phase I of EU ETS some companies could choose between CCAs
or ETS, but from 2008 the EU ETS is mandatory for all designated companies.
What this means for regulators
• Regulators can emphasise the use of CCAs for meeting advanced PPC requirements.
• Regulators can use the basic energy requirements under PPC to help ensure that CCAs are being
complied with through in-house measures (rather than purely through buying CO2 allowances).
• Regulators must ensure that commercially confidential CCA information is not transferred to other
authorities or published without prior consent.
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Climate Change Agreements
What this means for industry
• Having a CCA helps businesses comply with the energy efficiency requirements of PPC. Similarly,
complying with PPC helps businesses to meet their CCA targets via enhanced operation efficiency.
How do CCAs interact with PPC (Environment Agency 2002)?
PPC energy efficiency requirements
CCA helps
compliance
CCA =
exemption
Effect of CCA
Basic
Provide breakdown of energy consumption,
generation & emissions
Same data can be
used
Basic
Have in place measures for improvement
of energy efficiency
Provides added
incentive
Advanced
Implement further sector-specific measures
based on cost/benefit appraisal
Means exemption
from requirements
BAT
Consider energy consumption when
assessing BAT
Provides added
incentive
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Climate Change Agreements
CCA targets
• CCA targets are set through negotiated agreement with Government.
• Targets are set either at an industry sector level or at an individual business level.
• Targets are set as a level of energy saving against a chosen baseline year. If the agreed target for energy
savings is achieved, an 80% CCL discount is applied to the eligible energy user (NetRegs 2007).
Options to meet CCA targets
• Use more energy efficient appliances that lead to reduced energy consumption per unit product produced.
• Increase process efficiency, e.g. through greater utilisation of raw materials, thereby reducing energy use
during the manufacturing process.
• Purchase CO2 allowances from the UK ETS Registry (separate to the EU ETS) or from UK companies with
verified CO2 allowances. The UK ETS ended in 2006, but CCA holders can continue to trade.
Energy saving benefits
• Implementing energy savings helps meet both CCA and PPC regulations.
• Companies gain up to an 80% discount on the CCL if they meet their CCA targets.
• Companies save on energy bills if they increase efficiency.
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EU Emissions Trading Scheme
How does the EU ETS interact with PPC?
•
Installations requiring a PPC permit may also be required to participate in the EU ETS. Key activities covered
by both include: electricity generation, iron and steel processing, cement and glass manufacturing (DEFRA 2007b).
•
The threshold for combustion installations to be included in the EU ETS is 20MW rated thermal input (MWth),
but this can apply to the aggregated total for combustion activity on a site (DEFRA 2007b; NetRegs 2007). Please note
that the threshold is under review.
•
The EU ETS requires that an emissions allowance is surrendered for all CO2 emissions caused by the
covered activity. The volume of allowances available to participants reflects the emissions cap set by the UK
Government in conjunction with the EC. Emissions must be monitored and reported annually and participants
may use the emissions trading mechanism to buy, or sell, allowances from, or to, other participants.
What this means for regulators and participating organisations
•
Installations in the EU ETS must closely monitor their direct energy uses. Good energy management will help
to reduce the number of allowances that an installation needs to surrender.
•
A de minimis threshold may be introduced for small emitters to be exempt from the EU ETS (Office of Climate Change
2007). Activities that will be exempted from EU ETS will have their GHG emissions controlled via PPC.
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•
EU Emissions Trading Scheme
The EC’s recent EU ETS review is expected to clarify rules for inclusion from 2013 onwards (Environment Agency 2007).
Targets under EU ETS
•
Targets are determined at the EU level, rather than for specific installations or sectors. Installations can
choose whether to reduce their emissions and free up allowances to sell or to increase them and buy extra
allowances.
Options for compliance
•
Improved energy efficiency, leading to reduced energy intensity of output.
•
Use of on-site renewables, leading to reduced carbon intensity of energy use.
•
Purchase of additional CO2 allowances if an installation needs to buy carbon, beyond its initial allocation.
Energy saving benefits
• Organisations can profit by selling excess EU ETS allowances if they perform well.
• Organisations save on energy bills if they increase efficiency.
• EU ETS coverage may broaden in future; investing in energy savings now puts
organisations in a better position if more sites are covered by the EU ETS.
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Carbon Reduction Commitment
What is the CRC?
•
The Carbon Reduction Commitment (CRC) cap and trade scheme will begin in 2010, beginning with a noncapped introductory phase where participants learn how to use the carbon trading mechanisms.
•
It will cover organisations such as water companies, supermarkets, transport operators, large offices,
hospitals, universities, central government departments and large local authorities. At current energy prices, it
will generally involve organisations with annual electricity bills above £500,000.
•
The CRC will target organisations that have total annual electricity consumption through 70kVA HHM systems
(NI) or HHM settled on the half hourly market (Scotland) that exceeds 6,000 megawatt-hours (MWh).
How will the CRC interact with other regulations?
•
EU ETS covers direct emissions which will be exempt from the CRC.
•
Electricity usage will be covered by CRC unless the organisation meets the CCA exemption threshold (see
decision tree).
•
The CRC will require organisations to purchase CO2 allowances for all energy use. By capping emissions, it
will incentivise participants to reduce fossil energy and revenues from the sale of emissions allowances will be
redistributed to participants according to their relative performance (DEFRAd 2007).
•
The anticipated overlap between PPC and CRC is estimated at ~5% of emissions. Hence, CRC will only
influence PPC compliance for a small proportion of organisations.
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Carbon Reduction Commitment
What this means for regulators and participating organisations
•
CRC organisations will need to monitor and report their energy use.
•
CRC increases the financial incentive to increase energy efficiency.
Carbon reduction
•
From 2013 onwards, carbon reductions will be driven by an overall emissions cap. Organisations’
performance will be measured against a baseline year and good performance will be incentivised.
Options to make carbon savings
•
Increase energy efficiency, leading to reduced energy consumption per output unit.
•
On-site generation of renewable energy which is not used to generate Renewable Obligation Certificates
(ROCs) (DEFRA 2007d). This restriction is applied in order to avoid double crediting (through the UK ETS and CCAs
schemes) of each unit of renewable energy produced.
Energy saving benefits
• Implementing energy savings helps performance under the CRC.
• Organisations will get increased recycled revenue if they perform well in CRC.
• Organisations save on energy bills if they increase efficiency.
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Strategic Environmental Assessment
What are Strategic Environmental Assessments?
•
In NI and England SEAs are carried out only on plans and programmes. In Scotland SEAs are also carried
out on policies. SEA requires an assessment of the environmental effects of government plans and
programmes including a review of potential climate change impacts. SEA covers 11 sectors: agriculture,
forestry, fisheries, energy, industry, transport, waste management, water management, telecommunications,
tourism and Land use management.
How does the SEA directive interact with PPC?
•
Plans and infrastructure programmes subject to SEA may include activities that are covered by the IPPC
Directive (UK Parliament 2004). SEA results can be included in PPC application (Environment Agency 2003).
•
SEA includes the appraisal of alternative options in order to identify the least environmentally damaging
approach. The relative climate change impact of each option can be ranked under the PPC environmental
assessment procedure (Environment Agency 2003), and against Best Available Techniques (BATs).
•
The SEA establishes baseline emission values and sets emission reduction targets that are assessed by
indicators. Indicators are also used for monitoring and reporting of trends.
What this means for regulators and industry
•
A range of alternative options with potentially reduced climate change impact are appraised. The selected
option should already be complying with some or most of the PPC energy requirements.
•
Installations to be developed under the selected SEA option may be subject to PPC (ODPM 2005).
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Strategic Environmental Assessment
Approach to achieving climate change objectives through SEA
•
Agree targets to limit potential climate change impacts, plus objectives for mitigation and indicators (UK
Parliament 2004; Office of Deputy Prime Minister 2005).
•
For each key effect establish a baseline and projected emissions (UK Parliament 2004).
•
Identify strategic alternatives that reduce energy consumption and GHG emissions.
•
Consider the overall environmental costs and benefits when choosing the preferred strategy (Levett–Therivel
2007).
•
Choose appropriate monitoring and reporting procedures.
Energy and GHG emissions saving benefits
• Energy efficiency and low emission strategies help meet PPC regulation (Natural Scotland Scottish Executive 2006).
• SEA helps developers to reduce costs of energy use through low energy measures.
• The scope for emissions reductions improves if SEA recommendations are incorporated at the early
planning stages (Environment Agency 2002).
• SEA considers a range of factors, such as transport, which may cause indirect emissions reductions.
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Environmental Impact Assessment
How does EIA interact with PPC?
•
EIA identifies environmental effects including impacts on climate change of a proposed development (Scottish
Executive 1999; NI Planning Service 1999). EIA information may be included in PPC applications (Environment Agency 2002). However,
there is no formal requirement for assessment of GHG emissions.
•
EIA includes the identification of measures to prevent, mitigate or offset adverse impacts (Scottish
Executive 1999; Department for Communities and Local Government 2000). This information may facilitate
the PPC requirement for comparison and ranking of options based on emissions.
•
As part of the EIA the planning authority can impose additional requirements to reduce pollution. The EIA
procedure may improve the project’s chances of meeting PPC requirements if GHG emissions are explicitly
considered.
What this means for regulators and industry
•
EIA requirements may not be sufficient to encourage a full assessment of energy efficiency and climate
change mitigation options. Hence, an PPC procedure should follow the EIA (Scottish Executive 1999).
•
EIA tends to improve the project’s chances of meeting the PPC climate change requirements.
•
EIA does little to incentivise energy efficient measures. Occasionally, renewable energy may be
considered to reduce the climate change impact of the project (EHS 1999).
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Changes in climate change regulation
Chronology of relevant regulations covering mitigation of GHG emissions, since 2000:
Year
Regulation/Directive
2000
Integrated Pollution Prevention and Control (PPC) (Scotland)
2001
UK Emissions Trading Scheme
2001
Climate Change Levy
2002
Renewables Obligation (Scotland)
2003
Integrated Pollution Prevention and Control (PPC) (NI)
2004
The Building (Scotland) Regulations
2005
Phase I EU Emissions Trading Scheme
2005
Renewables Obligation (NI)
2006
The Building (Amendment) Regulations (Northern Ireland)
2008
Phase II EU Emissions Trading Scheme
2008 (expected)
Carbon Reduction Commitment
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Changes in climate change regulation
Key Differences between PPC regulation for Scotland, Northern Ireland and England and Wales
Scotland
Issues
Covered
Schedule 1
definition
Regulator
All PPC
Northern Ireland
Schedule 1
definition
Part A
Part A
All PPC
Principally
Air
Regulator
Schedule 1
definition
Regulator
Part A(1)
EA
Part A(2)
LA
Part B
LA
EHS
SEPA
Part B
England and Wales
Part B
Part C
LA
Overall coverage of industry by environmental regulations in Scotland and NI
SEPA and EHS regulate over a broad range of sectors which account for a major proportion of GHG
emissions. Based on our estimates, sectors which are environmentally regulated account for around 55%
of Scotland’s GHG emissions and around 45% of Northern Ireland’s emissions, though the extent and
influence of regulation varies widely between sectors and there are caveats around this analysis (see note 1).
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Changes in climate change regulation
Forthcoming changes in climate change regulation in 2008
• Proposals for a Scottish Climate Change Bill to have an 80% emissions reduction target by 2050 (Scottish
Government January 2008)
• Climate Change Agreements (CCA) targets are likely to be revised upwards (DEFRA 2007c). CCAs are set to
continue through to 2017 in a revised form. Under the current scheme, the last targeted milestone period
ends 2011, and the CC Levy discount certification period will end in 2013.
• Expansion of the EU ETS to cover more energy intensive industries with increasingly demanding
emissions cap for scheme participants (2008) (DEFRA 2007b).
• The CRC is a light touch cap and trade scheme based on self certification, it will begin with an
introductory phase in 2010, approximately three years later, emissions caps will be set and the CRC will
become fully operational.
• Revision of Scottish and NI (and rest of UK) Building Regulations requirements for energy efficiency
measures in buildings (2009-10) (Communities and Local Government 2007; DFPNI 2006; SBSA 2008).
• The proposals announced by the EC in January 2008 to merge PPC with other industrial regulations,
leading to tighter environmental regulation in some areas.
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PRACTICAL TOOLS FOR GHG REDUCTION
Practical tools to reduce industrial GHG emissions
Energy Efficiency Plans
Monitoring Energy Use
Environmental Management Systems
Housekeeping / Maintenance
Combined Heat and Power (CHP)
Energy Benchmarking
Training on Energy Efficiency
Resource Efficiency Appraisal & Development
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Energy Efficiency Plans
How do energy efficiency plans interact with PPC?
•
All PPC Part A sites must describe proposed measures for improvement of energy efficiency through
•
operating and maintenance procedures;
•
basic physical measures;
•
building services; and
•
appraisal of all applicable measures in an energy efficiency plan (EU 1996).
•
Non CCA sites must further describe proposed measures for energy efficiency that go beyond basic
low-cost physical measures and include process related measures, design considerations etc1.
•
An energy efficiency plan aims to provide the basis for an ongoing energy efficiency improvement
programme. A suitable plan will lead to compliance with all the requirements outlined above.
What this means for regulators and industry
•
An energy efficiency plan is a requirement for Part A sites; it is also a useful tool for Part B sites to
incorporate energy efficiency measures into their standard operation.
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•
Energy Efficiency Plans
The Carbon Trust has an Action Plan tool to help identify the key actions to undertake on site to save
energy and reduce carbon emissions. It can provide sector specific energy saving actions based on
the sector and energy bill size. www.carbontrust.co.uk/APT/
Targets under energy efficiency plans
•
Energy efficiency plans identify techniques for saving energy.
•
They should include estimates of annual CO2 savings of each technique, costed energy savings,
capital cost and payback time and evaluate any adverse environmental impact.
•
Non CCA Part A sites must prioritise techniques within their plan based on cost-benefit assessment.
Energy saving benefits
• An energy efficiency plan is a tool to help identify energy efficiency techniques and provide a
framework to undertake cost-benefit assessment of the different options.
• An energy efficiency plan is essential for companies to meet PPC energy efficiency requirements.
• Companies save on energy bills if they increase energy efficiency.
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Environmental Management Systems
How does EMS interact with PPC?
•
•
An Environmental Management System (EMS) is a structured and documented system used to manage a
business’s environmental performance and responsibilities. Under an EMS a site must (NetRegs 2007):
•
produce an environmental policy
•
identify and monitor the business’ environmental impacts, e.g. through environmental auditing
•
set measurable targets to continually improve environmental performance
•
review its EMS regularly, and keep environmental records and reports
•
provide environmental awareness training for staff.
Energy management techniques are a basic requirement for PPC Part A sites. Incorporating these into an
overall EMS is considered a practical way to comply with the requirements.
What this means for regulators
•
Sites should be credited for having an EMS in place, e.g. through reduced frequency of inspections.
•
Part B sites and SMEs do not have to meet PPC energy efficiency requirements. EMS can be promoted
a way to manage energy use and implement energy efficiency measures.
as
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Environmental Management Systems
What this means for industry
•
Energy management can be incorporated as part of an overall EMS, which aims for continuous
improvement. In this way an EMS will help a site comply with PPC energy efficiency requirements.
Targets under EMS
•
Targets are defined by the organisation itself and should be ambitious but achievable.
Options to meet targets
•
Increased energy efficiency, leading to reduced energy intensity of output.
•
On-site renewables or CHP, depending on the EMS target boundaries.
Energy saving benefits
• One of the strengths of the EMS tool is that it helps to implement energy objectives through the
continuous improvement approach. This approach promotes the integration of energy efficiency
measures and assessment of energy efficiency performance. It has been shown to make a significant
difference for companies of all sizes (EC 2007).
• Achieving EMS targets will help companies meet PPC energy efficiency requirements. Continual and
reliable energy saving through EMS may mean that the regulator can reduce site visit frequency.
• Companies save on energy bills if they increase energy efficiency.
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Combined Heat and Power (CHP)
How does CHP interact with PPC?
•
CHP is a highly fuel-efficient energy technology which simultaneously generates heat and electricity (or
mechanical power) (DEFRA 2000). Energy generated using CHP is considered highly efficient under PPC (DEFRA 2004).
•
PPC baseline energy efficiency requirements can be met using CHP as a core measure.
•
GHG emissions from CHP fossil fuel combustion fall under the PPC climate impact assessment.
What this means for regulators
•
Where the site has a high heat load or an obvious alternative end user, CHP energy can be promoted as BAT
and highly efficient energy under PPC, ETS and CCA (DEFRA 2004).
•
CHP has climate change impacts (emissions from fossil fuel burning) that should be assessed (Energy Systems
Research Unit 2000). Large CHP may be covered by the EU ETS but it is possible to use renewable fuels in CHP.
•
Projects that include CHP should include a feasibility study before a consent is given.
•
Installing CHP could reduce waste heat on PPC sites, if waste heat is first monitored and reported on PPC
sites (e.g. the Environment Agency (2007) Resource Efficiency Appraisal and Development tool).
What this means for industry and other energy using organisations
•
There are financial incentives for ‘Good Quality’ i.e. highly efficient CHP energy such as reduced energy
costs, Climate Change Levy exemption, government funded grants and reduced VAT.
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•
Feasibility studies should be performed prior a decision on CHP is made.
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Combined Heat and Power (CHP)
•
Uncertainty in fuel prices and site-specific heat requirements affect the economics of a CHP plant.
•
Government’s regulatory and fiscal support measures for CHP encourage CHP investment (DEFRA 2000).
However, there is a need for long-term commitment of Government beyond the 2010 CHP strategy.
•
The CHP Association www.chpa.co.uk offers factsheets and the Carbon Trust www.carbontrust.co.uk
summarises CHP suitability, fuel options and financial incentives.
Targets for CHP
•
The national 2010 CHP target for the UK is 10,000MWe (DEFRA 2002, 2004).
Options to meet targets
•
Greater investment by public and private bodies in CHP capacity at all scales (Large >1MW, Small <1MW,
Micro <100KW).
Energy and GHG saving benefits
• CHP helps meet PPC energy efficiency requirements and national Climate Change targets.
• CHP reduces energy use through the improvement in energy efficiency by 30% relative to conventional
energy (DEFRA 2004, Environment Agency 2007b).
• Defra (2004) estimated CHP generates 0.7MtC annual savings per additional 1,000 MWe of CHP
capacity (IPPC H2 Guidance 2001).
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Training on energy efficiency
How does training on energy efficiency interact with PPC?
•
PPC Horizontal Guidance Draft Note H2 (published by EA, SEPA, and EHS, provides cross-cutting energy
information relevant to all PPC sectors. The H2 states that staff must have appropriate skills of energy
management relevant to their area of responsibility, and that these skills should be continuously developed.
•
Relevant energy efficiency training is available on:
•
Bespoke training for process engineering solutions;
•
Energy awareness e.g. monitoring and targeting, metering, energy champions;
•
Technology e.g. compressed air, refrigeration, steam systems, variable speed drives, embedded
generation;
•
Energy regulations e.g. the Energy Performance Certificates (EPBD), the CCL/CCAs.
What this means for regulators
•
Regulators can promote regular training for those in charge of site energy management. In addition, training
for regulators themselves will continue to strengthen their recommendations to industry and understanding of
the options available.
•
Courses available range from general energy efficiency courses through to bespoke courses e.g.
Institution of Mechanical Engineers www.imeche.org professional development and mentoring and
Institution of Chemical Engineers www.icheme.org Training Solutions Department.
CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Training on energy efficiency
Training courses available for industry
•
Training courses on energy management are available to help site engineers and energy managers to
maintain and enhance their competencies and skills.
•
The Carbon Trust offers a range of training events from introductory sessions to technical energy efficiency
training, most of which are free. Training CDs, training course material and a schedule of training courses in
both Scotland and Northern Ireland are also available. GPG085 Energy Management Training, cited in PPC
H2 Guidance (2001), can also be downloaded. www.carbontrust.co.uk
•
Energy Institute www.energyinst.org.uk offers energy management course training from one-day seminars to
distance learning programmes. The European Energy Manager Qualification gave average GHG savings for
each project in the pilot course of 357tCO2/year. The Energy Institute have two branches in Scotland and a
Northern Ireland branch.
•
Bespoke energy efficiency training from energy and environmental consultancies.
Benefits of energy efficiency training
• Bringing new solutions to site to generate cost and energy savings and improved compliance.
• Professional development and improved staff retention from continued training .
CLIMATE CHANGE MITIGATION TOOLBOX FOR
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PRACTICAL TOOLS FOR GHG REDUCTION
Monitoring Energy Use
How does monitoring energy use interact with PPC?
•
All PPC sites must demonstrate that systems or procedures are in place for the continuous measurement and
assessment of energy use within the installation (EA 2002; IPPC General Sector Guidance 2002; PPC Northern Ireland 2003).
•
This is designed to enable collection, analysis and reporting of data relating to energy performance and allow
the setting, review and revision of energy performance targets.
What this means for regulators
•
Monitoring energy use is essential for compliance with PPC for Part A sites.
•
Monitoring should also be encouraged for Part B sites to help them identify efficiency opportunities.
•
The approach to energy monitoring should be made appropriate for the site with advanced energy monitoring
systems for larger plant through to regular meter reading at small sites. Analysis of energy data is key to
identifying energy wastage on sites (e.g. to show energy use outside operating hours and to compare energy
use day to day).
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
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PRACTICAL TOOLS FOR GHG REDUCTION
Monitoring Energy Use
What this means for industry
•
Monitoring energy use particularly through advanced or automatic metering is key to pinpointing wastage,
for example machines left on stand by, production lines operating at inefficient settings, lights left on
overnight and plant lines running whilst empty.
•
The Carbon Trust promotes energy monitoring and targeting through a series of sector specific good
practice guides covering areas such as glass, steel and semiconductor production through to offices.
•
Meters should be read at least monthly, and if half hourly electricity metering is in place, sites should
request this data from their electricity supplier – many provide graphic analysis via websites. Metering can
help to identify 5% of energy savings (Carbon Trust 2008). Sub-metering on energy intensive pieces of equipment
should also be considered.
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Monitoring and targeting
•
Monitoring energy use enables the setting of targets and analysis of progress towards them.
Energy saving benefits
• Monitoring and targets (M&T) is fundamental to good energy management (IPPC General Sector Guidance 2002).
• Monitoring allows identification of efficiency opportunities that can lead to savings on energy bills.
• Monitoring energy use is required for compliance with PPC energy efficiency requirements.
CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Housekeeping / Maintenance
How does housekeeping / maintenance interact with environmental regulations?
•
As part of energy management requirements PPC provides a list of housekeeping and maintenance
measures that reduce energy consumption and enhance efficiency, thereby assist applicants to meet PPC
energy requirements (IPPC General Sector Guidance 2002; PPC Northern Ireland 2003).
•
Although housekeeping and maintenance to reduce energy use is not covered by PPC Part B or in other
regulatory areas, it should be good practice across all environmentally regulated industry, and will play a part
in helping to keep to permit/consent conditions.
What this means for regulators
•
Reviews of PPC applications should examine how and to what extent energy housekeeping and maintenance
measures are incorporated in the energy management plan.
•
The high savings potential and cost-effectiveness of these measures can greatly help meet national climate
change targets (Carbon Trust 2007). Regulators should therefore continue to promote these measures and assist in
their implementation (e.g. through organisations such as the Carbon Trust).
•
On PPC Part B site visits, housekeeping and maintenance should be encouraged.
CLIMATE CHANGE MITIGATION TOOLBOX FOR
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PRACTICAL TOOLS FOR GHG REDUCTION
Housekeeping / Maintenance
What this means for industry
•
The inclusion of housekeeping and maintenance measures within the energy management plan is a PPC
requirement (Carbon Trust 2007). Even if only a few measures are included, PPC applications can be greatly
enhanced.
•
For most sectors these measures are relatively simple and cost-effective, and can achieve significant energy
savings in a relatively short time (e.g. switch off unused equipment, regular cleaning of heat transfer surfaces,
optimised cleaning of filtration equipment, regular maintenance of motors and drives).
•
Early consideration of the appropriate housekeeping and maintenance measures can save costs and
generates earlier savings.
Energy and emissions saving benefits
• Implementing housekeeping and maintenance measures help meet PPC energy efficiency
requirements and can generate significant energy and emissions savings.
• Most housekeeping measures start generating savings immediately and continuously.
• Most maintenance measures generate long-term savings, but not immediately.
• These measures are very cost effective and typically involve little or no capital investment.
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Energy Benchmarking
How does energy benchmarking interact with PPC?
•
Energy benchmarking involves the development of indicators for energy use and management in order to
improve energy efficiency and reduce climate change impacts. It is used by European BAT reference
documents to define baseline energy consumption for each PPC category (e.g. unit of raw material
processed) (Environment Agency 2002). Some, but not all, sectors are also provided with benchmarking under the UK
PPC guidance.
•
Benchmarking helps to determine the climate impact of installations subject to PPC (SEPA 2004).
Energy benchmarking use by regulators
•
Benchmarking is used for establishing Best Practice of energy efficiency and GHG emissions. This facilitates
the comparison of PPC applicants relative to their sector.
•
Benchmarks currently exist for some categories but not others (e.g. emission concentration for CO2, lighting
(lux) levels and climate control systems) (Environment Agency 2002) ..
•
The recently developed Resource Efficiency Appraisal and Development (READ) tool helps companies to
improve their resource efficiency through a benchmarking and cross-sectoral comparison process.
Regulators can promote this tool and assist companies using it.
•
Benchmarks are useful for establishing trends but are limited by uncertainty and case-specific issues.
Where available, benchmarks should be only one part of the evaluation criteria used for PPC applicants.
CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Energy Benchmarking
Energy benchmarking in industry
•
Benchmarking can help industry to assess and improve energy and climate change performance (Environment Agency
2002). Companies can demonstrate environmental commitment by adopting measures that lead to Best Practice
standards. However, progress towards benchmarks does not guarantee that PPC requirements are met.
•
Benchmarking standards are not universally accepted and may create some degree of bias as each sub
sector has will operate under different conditions, and benchmarking relies on comparison across similar
industries. In order to keep their relevance to industry, benchmarks should be reviewed regularly according to
technical advances and market changes.
•
Targets under benchmarking
•
Sector-specific benchmarks are published in some of the UK PPC guidance.
•
Establish base-line, trends and Best Practice measures. Using READ and other tools for benchmarking and
comparisons with other companies.
Energy and emissions savings benefits
• Benchmarking a sector allows industrial plants to compare their energy efficiency progress and to
set energy reduction goals.
• Benchmarking helps to assess site performance under PPC energy requirements.
CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Resource Efficiency Appraisal & Development
How does READ interact with PPC?
•
The Environment Agency has developed a tool called READ (Resource Efficiency Appraisal and
Development) to help industry plan and benchmark their performance.
•
It is a tool which will help any type of organisation improve on reporting and the way it uses resources,
including energy. Operators will be required to report energy usage per unit output and then also report
energy by-product sold externally.
What this means for regulators
•
The READ project is developing tools which will enable participants to benchmark and compare their
performance with peers.
•
It may be possible to cover the assessment and reporting of waste heat under READ for certain operators,
using screening criteria such as combustion capacity and emissions thresholds. Regulators should be able
to develop more joined up strategies using the information such as networks for sharing waste heat.
CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Resource Efficiency Appraisal & Development
What this means for industry
Benefits of the READ tool for the operator include (EA Briefing note 2007):
•
It is quick and easy to use and is suitable for small as well as large organisations,
•
The tool can help improve the organisation’s physical resource performance,
•
The tool will help organisations with their target-setting,
•
Many organisations would use the tool to benchmark within their own group.
Energy and emissions savings benefits
Benchmarking and energy use appraisal will be made easier for operators using READ. Increasing
the participation of industries using the READ tool will benefit all of the sector as it allows industrial
plants to compare their energy efficiency progress and to set energy reduction goals.
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
WHAT NEXT?
Next steps for industry
•
Decide which energy savings measures from the Toolbox would help you and which climate change policies
apply to you.
•
If you need further clarification then refer to specialist web-sites (NetRegs, Defra, the Carbon Trust, EST,
Regional Development Agencies etc.) and experts (regulators, consultants).
•
Assign responsibility for managing energy and compliance responsibilities to a carbon/energy champion
onsite and consult key stakeholders to draft an energy management plan.
•
Set ‘SMART’ (specific, measurable, achievable, relevant and time bound) objectives for energy saving.
•
Ensure full energy monitoring and targeting systems are in place to track progress.
Next steps for regulators
•
Nominate a carbon champion for each sub region and set up an action plan for integrating climate change
objectives into day to day regulation.
•
Keep track of policy developments such as the climate change simplification project (Defra), the PPC H2
Guidance (2001) review, plans for rolling out the CRC in 2010, the structure of “New CCAs” post 2011
and
EU ETS developments.
CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
OVERCOMING BARRIERS TO APPLYING THE CLIMATE CHANGE TOOLBOX
Barriers faced by the regulator:
BARRIER: CCAs may be seen as a barrier to implementing this toolbox as the regulator cannot set out permit
specific energy requirements on sites with a CCA. Only basic energy requirements can be enforced.
SOLUTION: On site visits, regulators may wish to view the CCA evidence pack to review the site’s CCA
Qualitative Requirements, that Defra see as essential for an energy efficiency programme. Defra require that
Participants have in place a formalised and structured energy management system covering: policy, planning
and organisation, monitoring and control, reporting and review. Though CCA company data is commercially
confidential.
Barriers faced by industry:
BARRIER: no time or resources to set up and implement an energy efficiency plan.
SOLUTION: the Carbon Trust may be able to part fund a Carbon Management Study or other support for your
site. Even if this is not possible, resources allocated to reducing energy wastage will rapidly pay back and
save the business money.
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Further information and guidance
Climate change information and policies
Environment Agency (Climate Change): http://www.environmentagency.gov.uk/yourenv/eff/1190084/natural_forces/climate/?version=1&lang=_e
NetRegs (Climate Change): http://www.NetRegs.gov.uk/NetRegs/275207/1018642/?lang=_e
Northern Ireland Environment and Heritage Service (EHSNI); http://www.ehsni.gov.uk/index.htm
Scottish Government (Climate Change): http://www.scotland.gov.uk/Publications/2006/03/30091039/17
PPC and impact assessment regulations
Communities and Local Government (Environment): http://www.communities.gov.uk/planningandbuilding/theenvironment
DEFRA (EIA): http://www.defra.gov.uk/Environment/energy/index.htm
European Union (IPPC): http://europa.eu/scadplus/leg/en/lvb/l28045.htm
IPPC H2 Horizontal Guidance Draft Note: http://www.environment-agency.gov.uk/commondata/acrobat/interimenergy.pdf
PPC information: http://www.ippc-info.co.uk/
IPPC General Sector Guidance (2002). webpage: http://www.sepa.org.uk/pdf/ppc/uktech/ippc_s0_01.pdf
Northern Ireland Environment and Heritage Service (EHSNI) PPC webpage: http://www.ehsni.gov.uk/pollution/ippc.htm
Scottish Environment Protection Agency: http://www.sepa.org.uk/
SEA-info.net: http://www.sea-info.net/
Scottish Government (EIA): http://www.scotland.gov.uk/Publications/1999/10/pan58-root/pan58
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Further information and guidance
Renewable energy
Renewable Energy Association: http://www.r-p-a.org.uk/home.fcm
National Energy Foundation (renewable energy): http://www.nef.org.uk/actonCO2/renewableenergy.htm
Combined Heat and Power Association: http://www.chpa.co.uk/
Carbon Trust: http://www.carbontrust.co.uk/default.ct
Energy Saving Trust: http://www.energysavingtrust.org.uk/
Energy efficiency
Carbon Trust: http://www.carbontrust.co.uk/default.ct
Department for Business, Enterprise and Regulatory Reform (Climate Change):
http://www.berr.gov.uk/energy/environment/climate-change/index.html
Energy Saving Trust: http://www.energysavingtrust.org.uk/
Envirowise: http://www.envirowise.gov.uk/scotland
Additional information on climate change
WWF- research centre climate change: http://www.wwf.org.uk/researcher/issues/climatechange/index.asp
DEFRA (UK climate Change Indicators): http://www.ecn.ac.uk/iccuk/
The Royal Society (UK and EU climate change policy): http://royalsociety.org/page.asp?id=1281
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
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PRACTICAL TOOLS FOR GHG REDUCTION
Further information and guidance
Further guidance
Carbon Trust (2007) Energy
webpage:http://www.carbontrust.co.uk/energy/startsaving/tech_office_equipment_Control_and_housekeeping.htm
Climate Change Levy Discount Scheme (2000) webpage:
http://cobweb.businesscollaborator.com/cclevy/fdf/fdf_info_06.htm
Communities and Local Government (2007) Planning webpage:
http://www.communities.gov.uk/planningandbuilding/buildingregulations/
Defra (2000) Combined Heat and Power webpage: http://www.defra.gov.uk/environment/climatechange/uk/energy/chp
Defra (2004) The Government’s Strategy for Combined Heat and Power to 2010. Webpage:
http://www.defra.gov.uk/Environment/climatechange/uk/energy/chp/pdf/chp-strategy.pdf
Defra (2007a) Climate Change webpage: http://www.defra.gov.uk/environment/climatechange/index.htm
Defra (2007b) Emissions Trading webpage: http://www.defra.gov.uk/environment/climatechange/trading/eu/what.htm
Defra (2007c) Carbon Reduction Commitment webpage:
http://www.defra.gov.uk/environment/climatechange/uk/business/crc/index.htm
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Further information and guidance
Defra (2007d) Consultation on implementation proposals for the Carbon Reduction Commitment (formerly the Energy
Performance Commitment).
DFPI (2008) Building Regulations webpage: http://www.dfpni.gov.uk/index/law-and-regulation/building-regulations.htm
EC (1996) Council Directive IPPC webpage: http://europa.eu/scadplus/leg/en/lvb/l28045.htm
EC (2007) “Small, clean and competitive: A programme to help small and medium-sized enterprises comply with
environmental legislation” Webpage: http://eurlex.europa.eu/Result.do?direct=yes&lang=en&where=EUROVOC:002611&whereihm=EUROVOC:prevention%20of%2
0pollution
Energy Systems Research Unit (2000) webpage: http://www.esru.strath.ac.uk/EandE/Web_sites/9900/bio_fuel_cells/groupproject/library/chp/text.htm
Environment Agency (2002) Horizontal Guidance Note IPPC H2 “Integrated Pollution Prevention and Control (IPPC)
Energy Efficiency”: http://www.environment-agency.gov.uk/commondata/acrobat/interimenergy.pdf
Environment Agency (2007a) EU Emissions Trading Scheme developments webpage: http://www.environmentagency.gov.uk/business/969893/1873980/1878147/1874093/?version=1&lang=_e
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Further information and guidance
Environment Agency (2007b) EA Briefing Note- The READ self-assessment tool, Helping you use resources wisely.
IPCC (2007) 4th Assessment Report: Summary for Policymakers. http://www.ipcc.ch/pdf/assessmentreport/ar4/syr/ar4_syr_spm.pdf
Environment and Heritage Service NI (1999) . Environmental Impact Assessment webpage:
http://www.planningni.gov.uk/AreaPlans_Policy/Supplementary/DCAN/dcan10/Dcan10.pdf
Levett–Therivel (2007) Strategic Environmental Assessment and Climate Change: Guidance for Practitioners.
Natural Scotland Scottish Executive (2006) Strategic Environmental Assessment.
NetRegs (2007) Climate Change webpage:
http://www.NetRegs.gov.uk/NetRegs/275207/1018642/1749607/?version=1&lang=_e
Northern Ireland Planning Service. EIA webpage: http://www.planningni.gov.uk/Devel_Control/info_leaflets/EA/EA.pdf
Office of Climate Change (2007) Analysis paper on EU Emissions Trading Scheme Review Options.
webpage: http://www.occ.gov.uk/activities/eu_ets/analysis-euets-options.pdf
Office of Deputy Prime Minister (2005). A practical guide for the strategic environmental assessment directive.
SBSA (2008). Latest updates and consultations webpage:
http://www.sbsa.gov.uk/latestupdates/ConsultationResponses.htm
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
PRACTICAL TOOLS FOR GHG REDUCTION
Further information and guidance
Scotland and Northern Ireland Forum For Environmental Research (SNIFFER): http://www.sniffer.org.uk/
Scottish Executive (1998) PAN 58 - Environmental Impact Assessment.
SEPA (2004) Benchmark guidance for determining “low impact installations” under IPPC charging scheme.
Webpage: http://www.sepa.org.uk/pdf/ppc/guidance/low_impact_installations.pdf
Scottish Government (2008) Climate Change Consultation On Proposals For A Scottish Climate Change Bill, Scottish
Government, Edinburgh, January 2008, webpage: http://www.scotland.gov.uk/Resource/Doc/210419/0055642.pdf
UK Parliament (2004) Strategic Environmental Assessment webpage:
http://www.parliament.uk/documents/upload/POSTpn223.pdf
The Austrian Energy Agency (2004) Combining IPPC and emissions trading: Energy efficiency and CO2 reduction
potentials in the Austrian paper industry. Webpage:
http://www.umweltbundesamt.at/fileadmin/site/umweltthemen/industrie/IPPC_Konferenz/Starzer.pdf
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
Glossary
BAT
Best Available Techniques
CCA
Climate Change Agreement
CCL
Climate Change Levy
CRC
Carbon Reduction Commitment
CHP
Combined Heat and Power
DEFRA
Department for Environment, Food and Rural Affairs
DFPNI
Department of Finance and Personnel Northern Ireland
EA
Environment Agency
EC
European Commission
EHS
Environment and Heritage Service
EIA
Environmental Impact Assessment
EMS
Environmental Management System
EU
European Union
GHG
GHG
GWP
Global Warming Potential
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CLIMATE CHANGE MITIGATION TOOLBOX FOR
ENVIRONMENTALLY REGULATED INDUSTRY
Glossary
HFC
Hydrofluorocarbons
HHM
Half hourly meter
IPCC
Intergovernmental Panel on Climate Change
IPPC
Integrated Pollution Prevention and Control
kW
Kilowatt
MWh
Megawatt hour
NI
Northern Ireland
ODPM
Office of Deputy Prime Minister
PFC
Perfluorocarbon
PPC
Pollution Prevention and Control
READ
Resource Efficiency Appraisal and Development
SBSA
Scottish Building Standards Agency
SEA
Strategic Environmental Assessment
SEPA
Scottish Environment Protection Agency
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