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REVIEW OF THE SCOTTISH CLIMATE CHANGE PROGRAMME: A CONSULTATION

DELIVERING EMISSIONS REDUCTIONS

Energy sector

Figure 2: Energy supply emissions(Kt)

Box 4: Energy emissions trends³¹

68. Responsibility for energy issues is shared with the UK Government, with responsibility for overall energy policy effectively being reserved to the UK Government and with the Scottish Executive having responsibility for renewable energy generation and the promotion of energy efficiency in Scotland.

69. The Scottish Programme indicated that in the energy sector, the Executive had set a target to increase further the use of electricity from renewable sources in Scotland by 2010, taking the total to around 18% (Figure 5 below sets out Scotland's electricity generation mix 2000-2002). The target remains - and between 1990 and the publication of the Executive's Securing a Renewable Future: Scotland's Renewable Energy³² in 2003 a little over 200 MW of new renewable generating capacity had been developed and installed around Scotland (the figure of 200 MW represents an increase around 1-2% of the total capacity for generation in Scotland in 2003). However, the 18% target is now a milestone for a far more ambitious aspiration to generate 40% of Scotland's electricity from renewable sources by 2020, as set out in Securing a Renewable Future.

70. To identify the actions necessary to capitalise on Scotland's huge renewable energy potential and to secure the optimum economic development opportunities for Scotland, the Forum for Renewable Energy Development in Scotland³³ (FREDS) has been established. FREDS will draw on the wide range of experience and expertise within industry, academia and government to identify opportunities for promoting the growth of Scotland's renewables industry. FREDS has established several sub-groups to examine the development of specific renewables industries in Scotland. One of these sub-groups is examining how hydrogen technologies can contribute to the development of renewable energy in Scotland. The hydrogen sub-group will assess the current status of these technologies within Scotland and identify possible opportunities for Scotland within the hydrogen technologies supply chain. The group will also consider what demand side opportunities hydrogen can offer for improving the quality of energy supply in remote areas.

Figure 3: Energy generation by source

71. The policies set out in National Planning Policy Guideline (NPPG) 6: Renewable Energy³⁴are intended to ensure that the planning system supports the Executive's wider renewable objectives. It makes positive provision for new developments whilst at the same time recognising the need to ensure that adequate protection is given to the built and natural heritage, particularly areas of national and international importance, and that impacts on local communities are minimised. A routine review of NPPG 6 will commence shortly. This will focus on how guidance can best ensure the planning system facilitates the development of all forms of renewable resources in a way that best resolves community and environmental concerns.

72. Currently, there are two nuclear power stations in Scotland. The Executive is in the course of a long-term process to decide future radioactive waste management policy - key to this is the need to address the issues of future acceptability, environmental protection and safety. The Executive jointly published a consultation document with DEFRA and other Devolved Administrations in September 2001. The Executive will not support further development of nuclear power stations while waste management issues remain unresolved. Where decommissioning of nuclear power stations occurs, we will aim to use and develop best practice.

73. The Executive operates within - and is supportive of - the UK Government's framework for promoting Combined Heat and Power (CHP). The UK target is to achieve CHP capacity of 10 GWe by 2010. Scotland has installed capacity of around 770 MWe, which is around 16% of the total UK installed capacity. The Executive also supports UK objectives on CHP through its promotion of schemes such as the Community Energy Programme and the Scottish Community and Household Renewables Initiative.

74. The EU Emissions Trading Scheme, due to start on 1 January 2005, will apply to and impact upon the energy supply sector, though is covered in this consultation paper in the business sector chapter, which follows this one.

75. The UK Energy White Paper, Our Energy Future³⁵, highlighted the importance of energy efficiency measures - noting that these were expected to deliver around half of the target set by the UK government for a 60% reduction in carbon emissions by 2050. Energy efficiency sits within a complex policy environment - with energy efficiency also contributing, for example, to improving business efficiency, reducing fuel poverty, and reducing pollution emissions. A broad range of measures are already in place to encourage improvements in energy efficiency - many of these funded and promoted by the Scottish Executive. In addition, at the UK level, an Energy Efficiency Implementation plan is in place. In order to maximise the positive impact of the Executive's investment in energy efficiency the Executive proposes to develop an Energy Efficiency Strategy for Scotland. The strategy will set a direction, define objectives and priorities, and aim to create a more joined up approach for public sector-led energy efficiency interventions in Scotland.

Box 5: Consultation question on action to reduce GHG emissions in the energy sector

Business sector

Figure 4: Business sector emissions (Kt)

Box 6: Business emissions trends

Figure 5: Industrial process emissions (kt)

76. The Scottish Programme highlighted the importance of promoting energy efficiency in the business sector as a means of reducing Scotland's greenhouse gas emissions. It indicated that the Executive would strengthen the promotion of its interest-free energy efficiency loan scheme ( Loan Action Scotland³⁶), for small to medium sized companies and the work of its Scottish Energy Efficiency Office (SEEO) ³⁷. Since 1999, 80 companies have been awarded loans totalling 1.2 million, while in 2003/04, the SEEO and the Carbon Trust³⁸ carried out over 360 energy audits in Scotland. This work when allied to partnership work with major private and public sector organisations identified potential carbon reductions of around 200,000 tonnes.

77. In Scotland, additional revenues both from the Scottish Executive and from the Climate Change Levy (CCL) have been used to increase investment in the work of the SEEO. This has been used not only to increase funding of Carbon Trust energy efficiency programmes in Scotland, for example, to expand free consultancies to business and to establish partnership agreements with large energy users, but also to enable the SEEO to launch major initiatives, including the 20m investment over the next two years in the Public Sector Energy Efficiency Scheme³⁹. The Carbon Trust Annual Report for 2003/2004 indicated that their energy efficiency programmes overall have helped identify 7.5 million tonnes of CO ₂, making cost-savings of 70-135 million. Scotland has contributed substantially to these results.

Integrated Pollution Prevention and Control Directive

78. The Integrated Pollution Prevention and Control Directive (96/61/EC)⁴⁰has been implemented in Scotland through the Pollution Prevention and Control (Scotland) Regulations 2000 (PPC). IPPC includes energy efficiency requirements which are designed to minimise pollution arising from the consumption of energy in industrial processes. Around 750 installations will be subject to IPPC controls in Scotland by October 2007. Each installation requires a PPC permit issued by the Scottish Environment Protection Agency (SEPA), and these will include conditions requiring, amongst other things, that energy is used efficiently in the industrial process. SEPA, in liaison with other regulators in the UK, has produced guidance to assist industry to respond to the energy efficiency requirements of IPPC. PPC permits also regulate emissions of methane, nitrous oxide, hydrofluorocarbons and perfluorocarbons.

Box 7: Consultation question on IPPC

Transport sector

Figure 6: Transport sector emissions (kt) Box 8: Transport emissions trends

79. In the transport sector, the Scottish Programme stated that the Executive would continue to develop its integrated transport strategy, increase the Public Transport Fund, increase spending on Freight Facilities Grant and introduce a Scottish Travel Awareness Campaign. The Transport White Paper Scotland's Transport Future⁴¹, published in 2004, set out a vision and key objectives for Scottish transport, and explained the range of initiatives and investments which are being undertaken towards those objectives. The key objectives for Scotland's Transport Future are to:

• promote economic growth by building, enhancing, managing and maintaining transport services, infrastructure and networks to maximise their efficiency;
• promote social inclusion by connecting remote and disadvantaged communities and increasing the accessibility of the transport network;
• protect our environment and improve health by building and investing in public transport and other types of efficient and sustainable transport which minimise emissions and consumption of resources and energy;
• improve safety of journeys by reducing accidents and enhancing the personal safety of pedestrians, drivers, passengers and staff;
• improve integration by making journey planning and ticketing easier and working to ensure smooth connection between different forms of transport.

80. As a means of tackling congestion and promoting more sustainable transport, the Executive is committed to spending 70% of the transport budget on public transport over the 10 year period of the transport investment plan. The Freight Facilities Grant budget will rise from 14.6m in 2004/05 to 15.4 million in 2005/06 and the 27 projects that have been awarded grant in Scotland to date will remove over 26 million lorry miles from Scotland's roads each year. In 2005, the Executive will set up a special 13 million fund ⁴² to pay for projects that reduce the impact of transporting timber by road. In addition to bringing economic benefits, the fund will deliver environmental benefits by allowing more timber to be transported by sea and rail and by reducing travelling distances.

81. The Scottish Travel Awareness Campaign Choose Another Way⁴³, which was launched in 2003, encourages modal shift through radio advertisements, posters and a website. In addition, the Executive is fully supportive of the UK Powering Future Vehicles Strategy⁴⁴ which aims to promote the development and uptake of clean, low carbon vehicles and fuels. The Executive actively contributes to the strategy through its representation on the Ministerial Low Carbon Group which oversees the implementation of the strategy. The Executive also supports UK development work on the achievement of carbon savings through biofuels stemming from the UK consultation paper Towards a UK Strategy for biofuels⁴⁵.

82. The Scottish Executive published the Scottish Transport Appraisal Guidance⁴⁶ (STAG) in September 2003 to provide advice to planners and decision-makers on the appraisal of transport projects where the Executive's support or approval is required; one of its key criteria is the impact of the proposed transport interventions on the environment. The Guidance is currently being reviewed to ensure compliance with the provisions of the EU Directive on Strategic Environmental Assessment (SEA)⁴⁷.

83. The Scottish Executive is investing considerable resources in targeted improvements to the trunk road network which it owns. Targeted road improvements reduce congestion and travel time and make vehicle operation more efficient both in terms of fuel economy and reduced emissions. The Scottish Executive aims to maximise the efficiency of the national motorway and trunk road network by undertaking the completion of the central Scotland motorway network, tackling congestion black-spots and improving the efficiency of long distance single carriageway trunk roads together with the expansion of advanced telematics to improve traffic management.

84. By pursuing policies that lock-in the benefits that these efficiencies will bring - for example, encouraging realistic and clean public transport alternatives to commuters accessing our towns and cities - the Executive anticipates that the efficiencies gained from network improvements will complement vehicle technology advances and deliver real reductions in greenhouse gas emissions, while maintaining individual freedom of choice.

85. Road user charging (RUC) is a critical part of road demand management. It acknowledges that road space is a scarce resource, and can be used to address associated impacts, including that of transport emissions. The Transport (Scotland) Act 2001⁴⁸ provides the legislative framework for road user charging schemes in Scotland that can be taken forward by local authorities. It is Executive policy to support charging authorities in bringing forward charging schemes by match-funding their development costs.

86. The Executive participated in a national road pricing feasibility study led by the Department for Transport, but currently has no plans to introduce a national road pricing scheme. However, the feasibility study report will provide a sound basis for Scotland to consider whether national road pricing provides any opportunities to address congestion and traffic growth in a fairer, sustainable way.

87. Most transport emissions count towards the Kyoto Protocol target, including emissions from domestic aviation. Emissions from international aviation and international shipping, however, do not count and there is no agreement on how, or whether, to allocate emissions from these sources to individual countries.

88. Aviation brings significant benefits to Scotland's economy and society, and especially to remote and rural communities, which the Executive strives to balance against its environmental impacts. Given that most aviation policy is reserved, it should be noted that the UK White Paper, The Future of Air Transport⁴⁹, to which the Executive has contributed deals more extensively with aviation issues in Scotland. Further, the Executive fully supports the priority given by the UK Government to incorporating aviation into the EU Emissions Trading Scheme and steps undertaken by the industry and operators towards technological improvements to reduce emissions.

89. The forthcoming National Transport Strategy will bring enhanced focus on the transport key objectives, and therefore will provide the opportunity of linking even more the Executive's environmental aims into the activities of the transport sector in Scotland.

90. Land use planning policy supports the minimisation of transport emissions through Scottish Planning Policy 17 Planning for Transport⁵⁰ and associated best practice and operational guidance documents (expected to be published in February 2005). The location of land for development should aim to reduce the need to travel, and to reduce car dependency, by relating development to existing settlements and to networks for public transport, walking and cycling. Car parking at new developments should be constrained to maximum standards, and developers should demonstrate how the development can maximise public transport, walking and cycling access before addressing car access issues. New developments should have travel plans to encourage user behaviours that will reduce car dependency.

Box 9: Consultation questions on action to reduce GHG emission in the transport sector

Residential sector

Figure 7: Residential sector emissions(Kt) Box 10: Residential emissions trends

91. The Scottish Programme indicated that the Executive had introduced the Warm Deal to tackle fuel poverty in the residential sector. The scheme provides energy-efficiency advice to households on passport benefits (such as Income Support and Jobseekers Allowance) and to pensioners and, in addition to reducing fuel bills, is estimated to have reduced Scottish CO ₂ emissions by almost 30,000 tonnes in 2002/03. Further, the Executive introduced the Central Heating Programme in 2001. It provides free central heating, insulation, energy efficiency advice and a benefits check to all households in the public sector who had no central heating whatsoever, and to all pensioner households in the private sector with no central heating whatsoever. It is estimated to have reduced Scottish CO ₂ emissions by just over 30,000 tonnes in 2002/03. Both schemes are therefore estimated to have contributed savings of around 60,000 tonnes in 2003/04.

92. The Scottish Executive also funds the Energy Saving Trust (EST) in Scotland. As one of the UK's leading organisations addressing the effects of climate change its remit is to achieve the sustainable and efficient use of energy and to cut carbon dioxide emissions. This is done through the promotion of domestic energy efficiency measures, clean transport and renewables. Overall Scottish funding to cover this range of activity in Scotland in 2004/05 is 7.72m.

93. The EST manage a variety of programmes which promote energy efficiency to the domestic sector, local authorities and other social landlords. It also works with suppliers of energy efficiency goods and services. A key Trust programme is a network of eight energy efficiency advice centres serving the public throughout Scotland, 50% of whose clients are fuel poor. In 2003/04, the network of energy efficiency advice centres advised 90,000 clients in Scotland. EST's programmes in Scotland during 2003-4 will produce lifetime savings of 194,000 tonnes of carbon.

94. Scottish Executive policy on planning and housing development is set out in Scottish Planning Policy (SPP) 3. A key aim of the policy is to guide new housing development to appropriate locations. As part of this, planning authorities are expected to draw up long-term sustainable settlement strategies for the location of new housing, taking into account the need for efficient use of land, existing buildings, energy and infrastructure. The policy emphasises the Scottish Executive's commitment to effective integration of land use and transport and states that patterns of development should seek to reduce the demand for travel and reliance on the private car, and help to reduce general energy consumption. Another key aim of the SPP 3 is to achieve quality residential environments, by raising standards of design. The policy stresses that energy efficiency is an important element of this, and states that planning authorities should seek creation of energy efficient forms of new housing development and encourage efficient use of resources in construction.

Box 11: Consultation questions on action to reduce GHG emissions in the residential sector

Agriculture, forestry and land use sector (AFLU)

Figure 8: Agriculture emissions (kt)

Box 12: AFLU emissions trends

Figure 9: Land use change emissions (kt)

95. In the agriculture, forestry and land use sector, the Scottish Programme indicated that the Executive would support the planting of new woodland and consider how guidance on fertiliser and soil management practices might be utilised to reduce greenhouse gas emissions. The Scottish Forestry Strategy⁵¹, also published in 2000, included the long term aspiration that the area of woodland in Scotland be expanded from 17% to 25% of land area by 2050. Scotland already has the most extensive forest cover in the UK and therefore contributed the greatest share of carbon sequestration; both in the total sequestered and in that part allowable for the purposes of meeting the UK Kyoto commitment.

96. An Executive-commissioned research study to review the contribution to climate change of fertiliser use in Scotland was published on 7 January 2005. When we first published this consultation paper on 2 December, we indicated that we would update it to include a summary of the research findings. These are set out in Annex F. Given the report's relevance to our efforts to tackle emissions from this sector - it makes specific recommendations for improved land use practices to reduce nitrous oxide emissions from the Scottish agriculture sector - we would welcome views on how best to implement its recommendations (see question 38 in Box 13).

97. In addition to the above research, the Executive commissioned a three-year research project to develop a model to simulate carbon and nitrogen dynamics in organic soils and help predict the response to land use change and climate change. The findings are expected to be available in early 2007. Mitigation of climate change will continue to be a key part of future programmes of research, and this is reflected in Departmental research strategies.

98. The 2003 Common Agricultural Policy (CAP) reform package will be implemented in Scotland from 1 January 2005 and may, indirectly, contribute to a reduction in emissions. As agricultural support will no longer be linked to livestock numbers, some farmers may take the opportunity to reduce stocking levels without losing subsidy. It must be stressed that the changes to the CAP regime do not have a reduction in livestock numbers as a policy objective but it is widely recognised that this could happen in some areas.

Box 13: Consultation question on action to reduce GHG emissions in the agriculture, forestry and land use sector

Public Sector

Figure 10: Public sector emissions (kt)

Box 14: Public sector emissions trends

99. Efforts to reduce energy use in the Executive estate and other public sector organisations were set out in the Scottish Programme. The Executive's electricity contract means that it is supplied with 100% carbon free energy. The Scottish Court Service, Scottish Environment Protection Agency and a further 32 organisations on the current electricity contract - approximately 770 sites in total - are also being supplied from wholly renewable sources.

100. Our Greening Government policy⁵³ sets out objectives and targets for improving the environmental performance of the Executive's own operations, for example by improving the energy efficiency of our estate and vehicles, reducing the waste we generate and factoring environmental considerations into our procurement of goods and services. We report annually on our progress against these. Of the Executive's larger buildings, 13 - which account for 90% of our environmental impacts and staff - are now covered by environmental management systems. The system for the Scottish Executive offices at Victoria Quay continues to be successfully operated and maintained in accordance with ISO 14001, the relevant internationally recognised standard.

101. We are also working to apply the principles of greening government across the public sector as a whole, including in schools, the NHS, local government, prisons, courts and the police. We are doing this through a range of initiatives aimed at increasing recycling and reducing waste and energy consumption. We will use investment programmes to renovate existing buildings and ensure that sustainability is built into new ones from the outset.

102. Many other agencies and public bodies have their own environmental management policies and systems but some still do not. We are following up and extending the early work done on environmental audit by tourism and culture bodies following the 2004 Spending Review. This will be applied to all the Executive's agencies and sponsored executive public bodies, with the aim that all should have environmental management policies and systems in place to implement them by the end of 2005.

103. Earlier this year the Executive announced the launch of the Public Sector Energy Efficiency Scheme⁵⁴. Under this initiative 20 million in new funding is being provided over the next two years (i.e., 2004/05 and 2005/06) to implement energy efficiency measures which will reduce carbon emissions across the public sector in Scotland. This scheme covers all local authorities, health boards and Scottish Water. This funding will be used to set up revolving funds to be administered at local level. The savings from energy efficiency measures will then be used to invest in further energy efficiency measures and to improve frontline services.

104. Scottish taxpayers have a right to expect that their money is spent both wisely and fairly. It is, therefore, the Scottish Executive's policy that value for money through competition should be at the heart of public procurement. The Executive is also committed to playing a full role in Scotland's sustainable development and has implemented comprehensive environmental policies in support of this goal. The Executive aims to buy goods and services in a way which minimises impact on the environment. The Executive has also published a considerable amount of guidance and information for both public purchasers and suppliers. The guidance, which is available from the Executive's website⁵⁵, requires that purchasers take full account of relevant sustainable development objectives and policies. Within the 2004 Spending Review ⁵⁶, we have continued to target resources on our sustainable development priorities of resource use, energy and travel, with the aim of reducing waste, improving energy efficiency and promoting renewable energy, and encouraging public and other efficient and sustainable forms of transport. Investment programmes are being used to renovate existing buildings and ensure sustainability is built into new ones from the outset.

Box 15: Consultation question on action to reduce public sector GHG emissions

Waste Management

Figure 11: Waste emissions (kt)

Box 16: Waste emissions trends

105. In the Scottish Programme waste issues were dealt with in the business sector chapter. Given that the National Waste Plan also covers the domestic and public sectors, we have decided to present information on waste issues in a separate chapter in this consultation and propose to do the same in the revised Scottish Programme to be published in the first half of 2005.

106.The National Waste Plan⁵⁷ and 11 constituent Area Waste Plans were published in February 2003 and establish the direction of the Scottish Executive's policies for sustainable waste management to 2020. Targets include recycling and composting of 25% municipal waste by 2006, 30% by 2008 and 55% by 2020. Implementation of the plans will lead to a significant reduction in landfill of municipal waste (from around 90% to 30%) and subsequent reduction in methane gas emissions. This is in line with Landfill Directive targets to reduce land-filling of biodegradable municipal waste. Energy savings achieved by recycling materials such as glass and aluminium instead of using virgin materials will also lead to significant reductions in CO ₂ emissions.

107. As well as addressing municipal waste the National Waste Plan encourages waste minimisation in both the business and public sectors. 11.4 million has been allocated to 2008 for business resource efficiency measures. Local authorities are also being encouraged to carry out internal waste audits and develop waste prevention action plans for their own activities.

Box 17: Consultation questions on action to reduce GHG emissions from waste

Scottish building regulations

108. In the Scottish Programme Scottish Building Regulations were dealt with in the domestic sector chapter. Given that the Regulations also cover the business and public sectors, we have decided to present information on the Regulations in a separate chapter in this consultation and propose to do the same in the revised Scottish Programme to be published in the first half of 2005.

109. The building regulations are enforced through the building standards (formerly building control) system. The system is designed to ensure that both domestic and non-domestic new buildings and works achieve the objectives of the Building (Scotland) Act 2003⁵⁸ in terms of health, safety, welfare, convenience and conservation of fuel and power.

110. The review of the building standards system in Scotland, as indicated in the Scottish Programme, is now nearing completion. The primary legislation in the form of the Building (Scotland) Act 2003 is in place and its scope now includes "furthering the achievement of sustainable development".

111. Once the secondary legislation is fully in place, the new system will allow expeditious updating of energy efficiency measures for buildings. The new system will become operational on 1 May 2005. Although a level transposition of technical measures was decided upon at an early stage in the process, to enable industry to adapt to the new system, inherent procedural changes will include energy efficiency improvements. One example is buildings that are currently heated, with poor levels of thermal insulation, and which are to have their use changed will be required to improve levels of fabric insulation.

112. The Building (Scotland) Act 2003 will also assist with the implementation of the EU Energy Performance of Buildings Directive⁵⁹, the objective of which is to promote the improvement of the energy performance of buildings. Several aspects of the Directive are currently met by the Scottish system of building standards but the concept of energy performance certificates for display in large public buildings and upon sale or rental of buildings, along with regular inspections of boiler and air-conditioning systems, are new and present opportunities for improvement in energy efficiency.

113. The current Part J of the Technical Standards introduced in March 2002 require some of the most demanding levels of thermal insulation for building fabric in the UK and these will be maintained (by the level transposition) with the introduction of the new system. At the first amendment of the standards within the new system, the energy requirements will be re-evaluated and changes will take into account any improvements and revisions effected in England and Wales as a result of their current review, and the requirements of the EU Energy Performance of Buildings Directive.

114. We are also considering for the amendment programme the review of other matters related to climate change, such as wind and snow loading on structures, intensity of rainfall and likelihood of flooding. (For more on adaptation measures see paragraphs 123-124.)

Box 18: Consultation questions on action to reduce GHG emissions through Scottish Building Regulations

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