Introduction

A mock carbon trading scheme with other participating organisations

Objectives and target audience

What was the project trying to achieve? Who was the project targeted at (if applicable)?
The aim of the scheme is for Councils to reduce their energy usage. All organisations are given a carbon reduction target, and must lower their emissions to this level. If they do not reach the level, they must buy ‘credits’ from other organisations. As this is a pilot scheme, real money won’t change hands. The scheme leads to economically efficient carbon savings, by putting a price on carbon. The program will also help Councils prepare for the Carbon Reduction Commitment (CRC), which is a mandatory trading scheme which is scheduled to begin in 2010. The target audience is the employees of the Council, but once completed the experiences gained can be shared with other Councils or organisations.

Financial Resources and Partners involved

Please give an overview of the budget, and an outline of the funders.
Which organisations were involved in shaping and delivering the project.
The Local Government Information Unit (LGIU) manages and administrates the scheme. The annual membership fee is £1,000. This was provided by Oldham Council. In order to help deliver carbon savings, we have been working with representatives from the Carbon Trust and colleagues from The Unity Partnership, who manage the Council’s Energy Conservation section.

Process

Individual organisations can define the scope of their involvement in the scheme. Three of our Council buildings were chosen that represented the Councils operations. Baseline energy usage information was sought from the Unity Partnership’s Energy Conservation Section. Half-hourly metered data was used to calculate carbon emissions. The LGIU then provided a carbon reduction target for the year. The Council has been working hard to reduce its energy usage in these key buildings, by schemes such as awareness raising and improving technologies. Carbon trading takes place quarterly, over an internet platform. Carbon emissions are also reported quarterly to ensure fair play. At the end of the year, there will be a league table of the best performing authorities.

Results

The project is still ongoing, but thus far we have been able to identify many potential energy saving projects, which would benefit not only the environment, but would help the Council save money. The scheme has helped raise awareness within the Council, not only about energy conservation, but also about the forthcoming Carbon Reduction Commitment (CRC), which will affect the Council. The project has helped enforce the idea of considering environmentalism in economic ways. There has been improved communication links with the Unity Partnership, who manages the Council’s energy contracts. Through the LGIU, we have made links with other authorities, and have been able to share ideas for energy management.

Critical Success Factors / Challenges

To belong to this scheme an organisation must have well managed half-hourly metered data. This is needed to report to the LGIU and to discover the changes in energy usage. For membership of the scheme to be successful, there needs to be forward thinking with regard to energy usage. For example, if an organisation believes that energy usage is due to increase, they must buy credits from other organisations. Taking part in this process has provided a valuable learning experience which could be shared with other organisations. Case studies could be prepared for other Authorities and organisations which would fall under the support of the Carbon Reduction Commitment.