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Strategic Solutions for Resource Efficiency
Dr Gavin Bunting
Swansea University / Technium
GIN Conference, Cardiff2 July 2006
Presentation Summary
• Resource Efficiency
• Expert Panel on Resources Management (EPRM)
o Terms of Reference
o Work Structure
o Biggest Impact Areas
• Strategic Solutions
• Smarter Support
Resource Efficiency
‘the efficient use of materials or energy throughout the product or process lifecycle’.
• In 2002, organisations within Wales accounted for 53% of Wales’ energy consumption and 60-80% of waste.
• Energy efficiency is cost effective: rates of return around 15%
• Potential to reduce non-domestic emissions by around 20%
• UK businesses lose up to 4.5% of annual turnover every year through avoidable waste
Expert Panel on Resources Management
Terms of Reference
‘Providing well-informed policy and independent evaluation of business and environment support in Wales’
The Expert Panel is tasked with:
Advising the Welsh Assembly Government on resource management current and likely future business best practice.
Comment on progress of the implementation of BEAP.
Advise the Welsh Assembly Government on the formal evaluation of BEAP.
Advise the Welsh Assembly Government on the development of further phases of BEAP.
• Identified Materials & Energy as key themes• Communications critical in delivery
Materials
Energy
Resources managemen
t
CommunicationsDelivery
Work Structure
Biggest Impact Areas
ENERGY
• Energy Efficiency
• Microgeneration
• Construction
• Transport
MATERIALS
• Eco-design
• Reducing and re-using
• Recycling
• Construction
The strategic solutions can significantly influence all of the above areas
Strategic Solutions
Strategic Solutions
These solutions apply to:
ORGANISATIONSBuildingPeople
TransportProducts/services
Finance
Energy
Hard & Soft Infrastructure
Public Sector Lead
Smarter Support
KPI
Grant eligibility
Training and education
Commercial Opportunities
R&D
Materials
Strategic Solutions
HARD AND SOFT INFRASTRUCTURE
To provide the necessary resources that will allow organisations to become more resource efficient. These need to be easily accessible and provided in an integrated, co-ordinated, non-exclusive manner.
• For resource efficiency to be adopted a suitable infrastructure needs to be in place
• Recycling networks
• Business support and public sector policy or finance
Strategic Solutions
PUBLIC SECTOR LEAD
• The public sector in Wales has a procurement budget of £4bn which accounts for 11% of Wales’s GDP
• This spending power has the ability to shape markets
• The public sector can demonstrate best practice
• Public sector services to be better value for money
• Long term targets by the public sector will lead to long term demand
Strategic Solutions
SMARTER SUPPORT
The support and measures provided to encourage better resource efficiency within organisations in Wales, must be easily accessible,
relevant, sector specific and good value for money. In order to achieve this, an integrated, coherent approach is needed.
• A support system that helps organisations in Wales become increasingly resource efficient.
• Regulation and financial incentives that encourage resource efficiency
• The engagement of the private sector
• Effective, innovative and good value support programmes
Strategic Solutions
KEY PERFORMANCE INDICATOR (KPI)
• Make measurement of resource use easy and common-place
• Report against climate change targets;
• Raise awareness of each organisation’s resource-burden; and
• Highlight areas for greater efficiency
A KPI is required to measure the progress of the organisation and the success of the organisational support providers (OSPs), in implementing
better resource efficiency.
Strategic Solutions
GRANT ELIGIBILITY
• To use grant-funding as an incentive for organisations in Wales to measure and continuously improve their resource efficiency.
Drivers are needed to persuade organisations to consider their resource efficiency and adopt a policy of continual improvement. The public
sector can maximise implementation of resource efficiency measures in the terms and conditions of their grants.
Strategic Solutions
TRAINING AND EDUCATION
• Give Welsh organisations a positive global reputation in the provision and use of resource efficiency measures.
• Increase the skills base
• Provide the knowledge required for innovation
• Raise the awareness of the national population of the positive financial & quality of life implications of resource efficiency.
•Drive improvements in resource efficiency through consumer pressure.
• Raise the awareness of the positive economic impacts of resource efficiency and promote voluntary adoption of the measures to achieve this.
Strategic Solutions
COMMERCIAL OPPORTUNITIES
• Make businesses aware and able to take advantage of the positive opportunities that providing resource efficiency products or services can bring.
• Make Wales the foremost provider of products or services that enhance resource efficiency.
• Provide businesses with resource efficient products or services sourced from within Wales
Organisations need to be made aware of the commercial opportunities available in enabling organisations to become more resource efficient,
and the benefits of locating / starting-up their organisation within Wales.
Strategic Solutions
RESEARCH AND DEVELOPMENT
• Promote innovation and a vibrant economy around the technologies and processes that relate to resource efficiency
• Foster the next generation of technologies or processes that will help organisations in Wales, and globally, be more resource efficient.
• Provide the knowledge required for innovation in the field of resource efficiency
R&D is needed to identify more efficient technologies, methods or practices, as well as maximising the commercial viability of current
technologies in the field of resources management.
Smarter Support
Barriers to Smarter Support
• Current business support infrastructure is complex
• Confusion within the private sector of who to seek advice from.
• 48% of businesses want more help to deal with environmental issues
• Businesses are most likely to contact their local authority for guidance on environmental issues.
• The UK Government Sustainable Consumption & Production review recommended:
“that options be explored to provide programme networking, to share information and promote closer working between the various support programmes…..”
Barriers to Smarter Support
Federation of Small Businesses Membership Survey 2006
CarbonTrust
Envirowise
WRAP Wastemin.clubs
Netregs BREW
0
2
4
6
8
10
12
14
% A
war
e of
In
itia
tive
s
Envirowise
Smarter Support
‘the support and measures provided to encourage better resource efficiency within organisations in
Wales, must be easily accessible, relevant, sector specific and good value for money. In order to achieve
this, an integrated, coherent approach is needed’
Smarter Support
Resource Efficiency
Data
Strategy
Network
Funding
Organisations
Sector Specific Advice
Positive economic impacts
Regulation / Incentives
Smarter Support
FUNDING• Grants dictate targets and areas of focus
• Coordination between funders needed to achieve coordination & eliminate duplication.
• Identifying projects where OSPs can collaborate to access funds
• Funding bodies would need consistent, reliable data on:
o the priorities of other funding bodies,
o the OSPs already being funded and their targets,
o the expertise of the OSPs and
o the needs of the client organisations
Smarter Support
STRATEGY
• Responsibility for organisational support is split between WAG depts.
• A single cross-departmental strategy could help lead to:
o Consistent provision of organisational support across depts
o Focus for expenditure as mentioned above.
Smarter Support
DATABASE
a) Information for funders / administrators and auditors
Targeting funding and strategy
Provide a good baseline for monitoring success
b) Information for organisations / OSPs
Tool for organisations looking for advice
Aid signposting of organisations
Support the successful operation of client management systems by the OSPs.
Smarter Support
DATABASE
c) Resource efficiency information for organisations
The cost of technologies / measures to increase resource efficiency is a perceived barrier often cited by organisations
Consistent evidence based data including:
Pros and cons, including payback periods, for resource efficiency technologies
The economic impact of resource efficiency
Best practice guides
Legislation / Strategy
Coordinated supply of services /
technologies
Smarter Support
Network / Forum
Share Best Practice
Supply matching Demand
ID of Commercial Opportunities Joint Initiatives
Private Sector
Potential for Collaboration
Public Sector / OSPs /
Academia
Communication and Engagement
Smarter Support
Sector specific advice
0 500 1000 1500 2000 2500 3000 3500 4000
Other
Communication and Transport
Sport and Leisure
Health
Government
Warehouses
Commercial Offices
Education
Hotel and Catering
Retail
Thousand tonnes of oil equivalent
Catering Computing Cooling ventilation Hot water Heating Lighting Other
Organisations want to know what is relevant to them with regards to resource efficiency
Smarter Support
Positive economic benefits
• How does resource efficiency affect the bottom line?
• This is the basis of BEAP
• What commercial opportunities are available?
o Environmental Goods and Services sector was predicted to increase from $550bn a year in 2002 to $688bn in 2010.
o First mover advantage in this sector is considerable
• These MORI survey, which showed that businesses have manpower and skills at the top of their agenda, followed by competitiveness.
Smarter Support
Regulation / incentives
• Incentives:
o Useful short-term measure to support young markets where economies of scale have not been reached.
• Regulation:
o Correct market failures, promoting fairness and increasing competition
o Create a level playing field and ultimately behavioural change
o Key to building EGS market – Carbon Trading
Summary
These solutions apply to:
ORGANISATIONSBuildingPeople
TransportProducts/services
Finance
Energy
Hard & Soft Infrastructure
Public Sector Lead
Smarter Support
KPI
Grant eligibility
Training and education
Commercial Opportunities
R&D
Materials
Summary
Resource Efficiency
Data
Strategy
Network
Funding
Organisations
Sector Specific Advice
Positive economic impacts
Regulation / Incentives
Effective Communication is Vital
Thank you for your time