ANTECEDEN TES

3.5.1 Carbon neutrality

Carbon offsets have been defined by the Carbon

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“Carbon offsets are generated from projects that avoid or absorb/sequester carbon dioxide, or any of the other main greenhouse gases. These projects can take various forms, including renewable power, energy efficiency, fuel switching (e.g. from oil to natural gas), reforestation, or destruction of greenhouse gases (e.g. methane, HFC 23).” Carbon offsets (sometimes called ‘carbon credits’) are available from quite separate sources: the

compliance market, which is a product of the legal

instruments created to support the United Nations Framework Convention on Climate Change (UNFCCC)

and the Kyoto Protocol; and the voluntary market,

which has developed in response to consumer and business demand for carbon offsetting services.

Currently, the only formal mechanism available

to departments is the Government Carbon Offsetting

Fund (GCOF – see Case study 3.8 for further details). However, GCOF is principally for offsetting air travel and a more comprehensive, pan-government

offsetting scheme should be considered.

It is not possible for carbon offsetting projects

to be delivered in the UK, as this would lead to the

double-counting of any reduction in emissions (as all reductions are already claimed by government in helping to meet our international obligations).

The SDC believes that in the absence of a viable international carbon capping framework covering

all countries or sectors, there is a potential role for

carbon offsetting in helping to stimulate additional

low carbon investment in developing countries,

whilst providing low cost emissions reductions for the

offset purchaser. As stated above, carbon offsetting

should be done as part of a comprehensive carbon management strategy.

There are a number of sustainable development

benefits that offsetting can deliver to less developed

countries; for example funds for projects such as

new sources of low-carbon energy, and a reduction

of local air pollution. This was the logic behind the establishment of the Clean Development Mechanism

(CDM) as part of the Kyoto Protocol. Furthermore,

carbon offsetting may raise carbon awareness

among individuals and businesses, helping to put

a cost (albeit a small one) on carbon-emitting activities.

It is also important that carbon offsets deliver

verifiable reductions in greenhouse gas emissions

in a way that is consistent with the principles of

sustainable development. For government, this

can be achieved by purchasing high quality carbon

offsets through the compliance market, as done by

the GCOF.

“Some businesses and individuals already take measures to ‘offset’ the carbon impacts of their air travel. The UK made a commitment to offset emissions arising from official and ministerial air travel from April 2006. This commitment was made by the Prime Minister as part of the wider UK Sustainable Development Strategy, which was launched in March 2005.

To deliver this commitment, the UK has developed a Government Carbon Offsetting Fund (GCOF). Whilst recognising offsetting is no substitute for reducing emissions at source, this carbon offsetting initiative should be viewed as a complementary measure for mitigating unavoidable climate change emissions from aviation on a voluntary basis. It also works to raise awareness of the climate change impacts of activities both within government and also with the general public.

The Government Carbon Offsetting Fund is the first of its kind in the world. The Fund involves 37 participants across central government and the wider public sector and associated bodies, including the Royal Household and Transport for London. Though designed to cover air travel emissions it is flexible enough to include other transport, events and one-off requirements.

A two-year project, the GCOF has been developed through an Inter-Departmental Working Group and is available for all central government departments to offset emissions from official and ministerial air travel. This joint approach began with a self-assessment of air travel emissions, aided by advice from the Civil Service Travel Group and subsequently embedded in Pan-Government Travel Contracts,

where Defra led on sustainability and carbon management contractual issues.

The fund developed a coordinated

approach to investing in high standard robust offsetting projects that create emissions reductions of an equivalent amount of greenhouse gases at an alternate location. It had to ensure that departments could offset in a simple and cost effective manner that will also ensure high environmental integrity. Major barriers included maintaining a high standard for the credits purchased whilst still being able to meet the large quantity of credits the fund requires.

The GCOF consists of a flexible portfolio of projects, where it will purchase and cancel Certified Emission Reductions (CERs) from small-scale energy efficiency and renewable energy CDM projects with strong sustainable development benefits.

Using rice husks to generate heat and electricity in the Philippines, turning human sewage in Manila into clean electricity and creating power from pig waste are amongst the ways the government will offset emissions. The projects are located across the Philippines, Thailand, Vietnam, India, China and Brazil. They will help to cut emissions on site and ensure developing countries are not impoverished by carbon-cutting measures.

Operating from 2006 to 2009, the GCOF will offset around 305ktCO₂e. It will cost around £3m; when put in comparison to £120m annual spend on air travel, it demonstrates good value for money for the tax payer, as well as Whitehall taking responsibility for its impact on the environment.

Looking to the future, the government has committed to a carbon neutral government office estate by 2012. Offsetting will play an integral part of this over the next few years and will provide an effective way for government to mitigate the effects of the remaining emissions from essential business practices. Furthermore, it aims to drive the procurement of sustainable services, products and buildings and show how the government can lead by example.”

GCOF, 2007.

For further information please see the GCOF webpage,

www.defra.gov.uk/environment/climatechange/uk/ carbonoffset/government.htm

Case study 3.8 The Government Carbon Offsetting Fund (GCOF)

© EE A Fund M anagement Lt d.

Solid filter prior to entering pig waste water lagoon.

While the focus for government must be on

reduction of carbon emissions, it should also provide

departments with guidance on when and how to

offset. This guidance should be in line with its own sustainable development principles and priorities.

3.5.3 Carbon neutrality and offsetting – overview

• The focus must be on continued effort

in finding efficiencies through carbon

management programmes and behaviour change.

• SPOB should define carbon neutrality and advise departments on how and when offsetting can be used to help achieve it. This should indicate how carbon emissions will be avoided and reduced, and ensure that any offsetting is used only as an interim measure.

• Each department should understand and

quantify its total carbon footprint, including

all buildings and travel. This could be done using the Carbon Trust’s Carbon Footprint Calculator or appropriate equivalent.

• SPOB should review the SOGE energy

efficiency target as it causes a conflict between office rationalisation and the

reduction of energy consumption.

The possibility of setting a target based on energy use per FTE (rather than per m2_),

or setting targets for absolute reduction of

energy use, should be considered.

• Government should take a leading position in implementing self-generation renewable energy and departments should explore the

potential for Salix finance backing.

• Government should consider the introduction of a climate change adaptation mandate

for new builds, major refurbishments and

relocations.

• Departments should agree on a

government-wide sustainable travel policy to encourage travel avoidance through smarter working, and more sustainable travel where there is no practical business alternative to travelling.

• If the SOGE target on travel is to be truly

outcome-focused, government’s aim should

be a target to reduce carbon emissions from all forms for transportation, not just road vehicles. However, in the short term, SPOB should introduce an air travel target to encourage travel by alternative, more sustainable, modes whenever travel is unavoidable.

3.6 Recommendations

The SDC makes the following recommendations on Climate Change and Energy. The key recommendations are highlighted in bold:

Sustainable