This document provides an agenda and background for a presentation on Scotland's transition to a low carbon economy and potential lessons for Ecuador. The agenda includes an introduction discussing the global energy trilemma, comparing Scotland and Ecuador, and the key building blocks of Scotland's policy framework, energy innovation, and funding sources. Scotland has made progress towards its climate targets through policies targeting emissions reductions in energy supply, homes, industry, transport, waste, and rural land use. Lessons for Ecuador are that even countries highly dependent on fossil fuels can transition to a low carbon economy through innovation that creates new business opportunities and jobs.

2. Agenda
Introduction
•The Energy Trilemma
•Scotland & Ecuador
•Scotland’s journey towards a low carbon economy
•The Building blocks
- Policy Framework
-Energy Innovation
-Funding
•Lessons for Ecuador

3. My Journey
 1975 Liverpool University BSc Chemistry (Hons)
 1975 to 2000 Procter & Gamble UK, Turkey & Germany
 2000 to 2002 PricewaterhouseCoopers (UK)
 2002 to 2008 IBM (Consulting, Software)
 (2006 Al Gore, Stern Review, 2007 IPCC 4AR)
 2008 to 2009 Edinburgh University. MSc Carbon Management
 2009 - set up Carbon Masters Ltd
 Carbon Masters helps organisations to cut their carbon
emissions and build a profitable future based on innovative
clean energy solutions.

4. Oficina Principal - Edimburgo, RU
Carbon Masters
Edinburgh Centre for Carbon Innovation
The University of Edinburgh
Edinburgh
EH9 3JL
Oficina en Asia - Bangalore, India
Carbon Masters
S-717, South Block, Manipal Centre
Dickenson Road, Off M G Road,
Bangalore – 560032
Oficina América del Sur- Quito, Ecuador
Carbon Masters
Av. Humboldt N31-136
y José Gómez
Quito, Ecuador

5. The Global Energy Trilemma

6.  TheThe world of carbon
6
GHG emissions continue to rise globally

7. The cost of energy will only rise going forward
Energy Costs
UK Electricity Market Reform Consultation, Dec 2010
Peak Oil
http://www.peakoil.net/GiantOilFields.html
+
Middle Class Consumers
Source: World Bank 2009
+
Decarbonisation 1
UK proposed carbon floor price
+
Decarbonisation 2
Image: Paul Martin Eldridge /
FreeDigitalPhotos.net
Urbanisation
UN World Population Prospects, 2008
=

8. Scotland vs Ecuador
Land Area: 78,777km2 283,560 Km2
Population 5.2 million 15.7 million
GDP $ 202 billion $91.0 billion
Total exports (excl Oil
and gas) $119bn $11.6bn
Oil and Gas (% ) $ 47bn (28%) $14 bn (54%)

9. The Economic Benefits
Scotland's low carbon market worth around £8.5 billion in
2007-08 and forecast to rise to around £12 billion by 2015-16;
Jobs in the low carbon sector in Scotland could grow by 4%
a year to 2020, rising from 70,000 to 130,000, over 5% of the
Scottish workforce;
Scotland is already an exporter of low carbon technologies,
with £845m worth of low carbon technologies exported in
2009/10 mainly to China, Spain, Malaysia, India and Romania;
Scotland can be the green energy capital of Europe, and
offshore wind alone could bring an estimated £30 billion of
inward investment, and up to 20,000 jobs;
Sales of offshore electricity could value £14 billion by 2050,
the equivalent of £2,700 for each person in Scotland;

11. Climate Change (Scotland) Act 2009
•Act passed unanimously by
Scottish Parliament with
strong support from
business and civic society.
•Act sets world-leading
target for Greenhouse Gas
reductions compared with
1990:
•42% by 2020
•80% by 2050

12. Multiple national energy targets
 Reduce final energy demand by 12% by 2020
 100% of electricity demand from renewables by 2020
 11% heat demand from renewables by 2020
 30% total energy demand from renewables by 2020
 500MW of community and locally owned renewables
 No new thermal power stations without CCS fitted

13. Typical Developed Economy 2050 Fossil Fuel Based
Carbon Emissions
Reduce Demand via
Demand management
Energy efficiency
Change consumer behaviour
Decarbonize the electricity
sector
Decarbonize cars and vans
Develop clean fossil fuels
(carbon capture and storage)

14. Scotland's Total Emissions by Sector
2011
(51.28 MtCO2e)

15. Scotland’s Emissions Reduction
Waste and
Resource
Efficiency
At least 70% of all
waste recycled by
2025
Transport
Almost complete
decarbonisation of road
transport by 2050
Homes and Communities
Policies
A step-change in provision of
energy efficient homes to 2030
Business, Industry and the
Public Sector
Significant progress in
transforming energy use in
industry, business and the public
sectors by 2027
Rural Land Use
Enhanced natural carbon
capture by 2027
Energy
A largely decarbonised
electricity generation sector
by 2030
A largely decarbonised heat
sector by 2050 with
significant process by 2030

16. Emissions Reduction Policies and Proposals
Energy
30% of overall energy
demand met by renewables
by 2020
Equivalent of at least 100% of
gross electricity
consumption met by
renewables by 2020
11% of heat demand met by
renewables by 2020
Reduce energy demand by
12% by 2020
At least 500 MW of local and
community owned
renewable energy by 2020
Demonstrate carbon capture
and storage

17. Emissions Reduction Policies and Proposals
Homes and Communities Energy Efficiency
•Smart Meters for gas and
electricity in every home (UK)
•Domestic Building Energy
Standards
•Green Deal (UK)
•Energy Company
Obligation (UK)
•Green Homes Cashback
Scheme
•National Retrofit
Programme
Heating
•Warm Homes Fund
(renewable heating)
•Renewable Heat Incentive
(UK)
•District Heating Loan Fund
-38%*
Home Energy
Efficiency Programmes
for Scotland (HEEPS)
* Projected change from 1990 baseline

18. Emissions Reduction Policies and Proposals
EU Emissions Trading
System (large, intensive
industries and aviation)
Energy Efficiency
•CRC Energy Efficiency
Scheme (UK)
•Smart Metering
•Building Energy Standards
•Non-domestic Green Deal (UK)
•Green Investment Bank Loans
•EU Products Policy
(performance standards)
•Public sector energy efficiency
Heat
•Renewable Heat Incentive (UK)
•District Heating Loan Scheme
Business, Industry and the
Public Sector
- 45%*
* Projected change from 1990 baseline

19. Emissions Reduction Policies and Proposals
Transport Decarbonising Vehicles
•Emissions standards (EU)
•Biofuels (UK Transport Fuel
Obligation)
•Public sector electric
vehicles
•Electric vehicle
infrastructure
•Green Bus Fund
•EU ETS – aviation
Sustainable Communities
•Education – travel planning
Business Efficiencies
•Fuel efficient driving
•Travel planning
•Freight efficiencies
- 7%*
* Projected change from 1990 baseline

20. Emissions Reduction Policies and Proposals
Waste and Resource
Efficiency • 60% of household waste,
recycled and/or prepared
for re-use by 2020
• Recycle 70% of all
waste (including
commercial and
industrial waste) by
2025
• Maximum of 5% of all
waste sent to landfill
by 2025
• Enhanced capture
of landfill gas
- 86%*
* Projected change from 1990 baseline

21. Emissions Reduction Policies and Proposals
Rural Land Use • Increase afforestation
rate to 10kh per year
• 90% uptake of
fertiliser efficiency
measures
• Restoration of
degraded peatland
• Wood First – Timber
Construction
Programme
-
58%*
* Projected change from 1990 baseline

23. Electricity Generation by fuel
Figure 4.1: Electricity generated in Scotland (GWh), 2000 to 2012
60,000
50,000
40,000
30,000
20,000
10,000
0
Electricity generated, GWh
Other Thermal
Other renewables
Hydro natural flow
Hydro pumped storage
Oil
Gas
Coal *
Nuclear
*Coal includes a small amount of non-renewable waste.
Source: DECC, Energy Trends, December 2013
https://www.gov.uk/government/organisations/department-of-energy-climate-change/

24. Figure 4.4: Installed capacity of renewable electricity (MW), Scotland, 2000 - Q3 2013
Installed capacity of renewables in Scotland
Source: DECC, Energy Trends, December 2013
https://www.gov.uk/government/organisations/department-of-energy-climate-change/
series/energy-trends

25. onwards wind has generated a more electricity than hydro.
Figure 4.6: Electricity generated from renewables, Scotland, 2000-2012
Electricity delivered in Scotland by renewables
Source: DECC, Energy Trends, December 2013
https://www.gov.uk/government/organisations/department-of-energy-climate-change/
series/energy-trends

26. household from 2005 to 2012. Key drivers of this trend include increased
prices and improved energy efficiency of appliances.
Domestic/Commercial Electricity Consumption
Figure 5.3: Domestic electricity consumption per household (kWh), Scotland, 2005-2012
Source: DECC, Sub-National Energy Consumption Statistics, December 2013
https://www.gov.uk/government/collections/sub-national-electricity-consumption-data
39
…has fallen
Source: DECC, Sub-National Energy Consumption Statistics, December 2013
https://www.gov.uk/government/organisations/department-of-energy-climate-change/
series/sub-national-gas-consumption-data
Figure 5.6 shows that domestic gas consumption per consumer decreased in Scotland by 26% between 2005 and 2012. Rising gas and improved energy efficiency in homes and boilers were contributing factors
to this trend.
Figure 5.6: Domestic gas consumption per consumer (kWh), Scotland, 2005-2012
Domestic
Commercial

27. Energy Targets – Summary of Progress
ENERGY
DEMAND
HEAT
TRANSPORT
ELECTRICITY

29. Off Shore wind farms- Scotland has 25% of Europe’s
wind resource
Bi Fab- Scottish company based in FIFE

30. On shore wind farms- Whitelee Wind Farm nr Glasgow
The largest on-shore wind farm in
the United Kingdom( 2nd in Europe)
- 15 miles from Glasgow
- 215 Siemens and Alstom wind
turbines
-Total capacity of 539 megawatts
(MW)
-Operational since 2009 extended
in 2013
-Provides electricity for 300,000
homes

31. Wave& Tidal Technology- generating electricity from
wave and tidal flows
Scotland has an estimated 10% of
Europe’s
Wave and energy resource
UK wave and tidal resurce
Can potentially provide up to 20%
of the UK’s electricity demand
= 30 to 50 GW installed capacity
Wave power is more predictable
than wind power and increases in
the winter where in the UK electricity
demand peaks
AIM
Zero carbon emissions at less than
5p/Kwh

32. Saltires Duck 1974- University of Edinburgh
Pelamis Wave Power
Company based in Edinburgh
developed a device based on duck
design
Now Operating in Orkney

33. Test tank makes waves in
marine energy
A world-class testing facility
for marine energy devices
at the University of Edinburgh
-The circular pool, 25 metres across
and two metres deep
-Recreates waves and currents from
coastlines around the UK, Europe and
beyond.
The FloWave Ocean Energy
Research Facility is managed
by University subsidiary
company FloWave TT Ltd.
It can simulate scale
version equivalents of waves
up
to 28 metres high and currents of
up to 14 knots,
using 2.4 million litres of water.

34. Waste to energy Solutions
Biogas is
purified &
bottled for
electricity &
heat

36. Funding Sources for the transition to a low carbon
economy
 1 Green Investment Bank (UK)
 Head Quarters in Edinburgh Scotland The first bank of its type in the world.
 Created by the UK Government, our sole Shareholder, and capitalized with
an initial £3.8bn of public funds.
 They use this finance to back green projects on commercial terms and
mobilise other private sector investments into the Scottish green economy

 2. Green Deal ( Domestic and non Domestic )
 Loans to invest in energy efficiency measures paid for by the saving in the
energy consumed.
 3. Public Sector Energy efficiency Fund
 Public sector organisations can access capital to invest in energy efficiency
measures where repayments come from the savings in energy expenditure.
Invest to save.

37. Funding Sources for the transition to a low carbon
economy
 4.Scottish Green Bus Fund( $ 7million per year)
 Bus companies ( private and public) can apply for Grants to invest in
Low Carbon Buses ( Electric , hybrid , hydrogen )
 5. Climate challenge fund ( $ 15 million per year)
Grants of up to $ 225,000 available to support COMMUNITY led
projects to
Reduce carbon emissions
Make community improvements.
Help communities adapt to the impacts of climate
change
To date $ 100 million has been awarded to 697 communities across
Scotland

38. Lessons for Ecuador
 Small countries can still play a big role in the transition to a
low carbon economy( even those very dependent today on
Fossil fuels )
 The innovation that this can bring can create new low
carbon products and services providing new business
opportunities, more jobs and increased energy security
 The road to a post oil low carbon future is a challenging one
but Scotland has shown that it can be done.