Towards a Low Carbon Future – Opportunities for Business - CBI Annual Energy Forum 2009

1. Towards a Low Carbon Future –
Opportunities for Business
CBI Annual Energy Forum 2009
Jonathan Eves
NI Innovations & Insights Manager
28 January 2009
Hilton Templepatrick

2. Challenging carbon targets in a
challenged economy
Total UK emissions now stand at around 695 million tonnes of
CO2 (MtCO2), with business and public sector organisations
accounting for 241MtCO2 each year by use
To meet the targets set by the Climate Change Act and the
Committee on Climate Change carbon budgets, total UK
emissions need to drop by 80% to 159MtCO2 in 2050
Huge economic challenges for UK plc and public sector bodies
Support for business and public sector will be
crucial to deliver material carbon and cost savings
and new low carbon technologies, companies and
products

3. The Carbon Trust
We were set up in 2001 by government as a
independent company limited by guarantee
We have a mission to accelerate the move to a low
carbon economy

4. We help business and public sector
organisations to deliver carbon
savings now and in the future
We cut carbon emissions now
By providing business and the public sector with expert advice,
finance and accreditation
By stimulating demand for low carbon products and services
We cut future carbon emissions
By developing new low carbon technologies through project
funding and management, investment and collaboration
By identifying market failures and practical ways to overcome
them

5. We are delivering carbon and economic
benefits as we help make the low
carbon economy a reality
Economic Benefits
Carbon Savings
Carbon Savings to date - We have Cost savings now - we have
helped our customers to save over delivered £1 billion in energy savings
17MtCO2 since 2001 to our customers
Carbon Savings in 2050 - our Over the last 12 months we have
development of low carbon saved our customers over £1m every
technologies is expected to deliver day
savings of up to 23MtCO2 a year in
2050
Green Jobs and Industry – We have
supported the development of over 200
Value for money – National Audit new UK low carbon technology projects
Office, “The Carbon Trust’s advice for and companies
business has proved value for money
and its Innovation Programme
Private Sector Investment - The
appears to be on course to do
Carbon Trust’s £100m of public funding
likewise”.
is leveraging £700m of private sector
investment each year into the UK’s low
carbon economy

6. Cutting carbon now – delivery in NI
Key achievements in 2007/08 include
We helped our customers to save 116,000
tCO2 and over £19m pa
Stimulated £36 million of investment in
energy efficiency and low carbon
technologies
Awarded over £2.9m in interest-free loans
that will reduce energy costs of 35 NI
companies nearly £1m per annum
Over 900 delegates attending our seminars
and workshops.

8. Carbon Trust Publications

9. The Carbon Trust and CBI partnership
Business Opportunities
– to maximise the opportunities that the move to a low carbon
economy will create and deliver significant carbon savings that
will help us meet our national targets.
Emissions Reduction
– To integrate emissions reduction into corporate strategy,
manage and reduce the direct and indirect emissions and
provide a wide range of advice and support for companies of
all sizes.
Policy
– to create the appropriate policy frameworks to enable
business to invest over the long term in low-carbon goods and
services. Areas of of focus include innovation policy, fiscal
incentives, energy-efficient buildings and emissions in
products.

10. Climate change – a business
revolution?
Climate change is a key
strategic issue in most industries
Industries will face different
periods of ‘creative destruction’
Differential access to
technology or capital can be
critical
The greatest value-at-risk and
opportunity may be in niche
parts of the value chain of major
industry sectors
Companies that prepare can
gain value and will avoid risk
Policy makers will significantly
determine the nature of the
transition
The choice of policy framework
and implementation detail is
critical to value

11. Different sectors have different
levels of opportunity and risk
Calculated maximum value-creation opportunities and
transition value-at-risk for companies
Value creation opportunity
(%)
Company value-at-risk (%)
Source: Carbon Trust and McKinsey & Co. analysis

12. Offshore Wind Opportunity for UK
UK may require 29 GW
Investment up to £75bn
70,000 jobs
£8bn annual revenues
Equivalent to peak decade
of North Sea Oil & Gas
Development
Source: “Offshore wind power: big challenge, big opportunity” Carbon Trust 2008

13. Offshore Wind Opportunity for UK
Actions required
Reduce costs
Provide developers sufficient returns with an
efficient incentive mechanism
Remove regulatory barriers to deployment
Government to commit, industry to respond

14. Offshore Wind Accelerator
Aims to cut the cost of energy from
offshore wind by at least 10%
Provisional commitment of £30m (up to
£10m from Carbon Trust)
Areas of focus:
Offshore foundations – novel foundations

with potential for lower costs
Wake effects – improving the optimisation

of offshore wind farm layouts
Access, logistics and transportation –

reducing access costs novel for wind farm
construction and operation
Electrical systems – improving efficiency

of offshore wind farm electrical systems

15. Climate changing opportunities for
NI businesses
Low Carbon Design of Buildings
Provision of Energy Efficiency Solutions
Renewable Energy Supply Chains
Exploiting Waste Heat Opportunities
Waste to Energy projects
Wind Energy on Industrial Estates
Low Carbon Products for Construction &
Engineering Sectors
Decarbonising electricity supplies

16. The Applied Research Grant
We are endeavouring to encourage and support the progress of low
carbon technologies towards large scale deployment.
We aim to support activities that contribute to the development and
commercialisation of technology with the potential to reduce UK
carbon dioxide emissions.
– “the path to commercialisation”
We offer grant funding up to £500k for applied research leading to low
carbon products or services
– Unlikely to fund projects with total value of less than £50k
We expect all the partners to make a contribution to the cost of the
work
– Cash or “in-kind” - In-kind contributions have to be ‘fair and
reasonable’
Open to all organisations including businesses, universities and
individual innovators

17. Carbon Trust Applied Research Space
Technical
Risk Investment
EPSRC
Business Risk
Post Doc
PhD’s VC
TSB Bank
Loans
First Large Testing and Commercial
Proof of
Prototype Prototype Development Unit
Concept
Applied Research Product Development

18. Supporting low carbon innovation in
Northern Ireland
Willis Renewable Energy Systems - Solasyphon
– Highly innovative solar heating system
– 2009 Rushlight Award in the innovative solar
technology category in London
Applied Research Grants
– 70% successful so far in either:
– Secured follow on-funding
– Filed patents,
– Generated sales (or expected to do so shortly)
Seen as “Investor of Choice”
Next R&D Open Call: 16th February – 16th April 2009

19. Conclusion : Where does your
company sit?
Value creation opportunity
(%)
Company value-at-risk (%)
Source: Carbon Trust and McKinsey & Co. analysis

20. Towards a Low Carbon
Future – Opportunities
for Business
The Carbon Trust
Northern Ireland Science Park
The Innovation Centre
Queen's Road, Queen's Island
Belfast, BT3 9DT
Tel: 02890 737919
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