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Low Carbon Scotland: Meeting our Emissions Reduction Targets 2013-2027 - The Draft Second Report on Proposals and Policies


6. Business, Inudstry and the Public Sector

6.1.1 This chapter addresses emissions from business, industry and the public sector. This sector is sometimes referred to as the 'non-domestic' sector. It focuses on emissions from buildings and some industrial processes. Emissions from transport, waste, etc. are dealt with in other relevant chapters in this report.

6.2 Our ambitions for business, industry and the public sector

  • Our Energy Efficiency Action Plan,[123] has aScotland wide target to reduce energy consumption by at least 12%.This establishes a minimum level of ambition for all sectors, including the public sector.
  • By 2027, we will have witnessed a complete transformation in the way Scottish public bodies work and in how their estates are managed: achieved through implementing and going beyond existing carbon management plans, sustainable procurement processes and supporting governance arrangements.
  • By 2027, we will have made significant progress in transforming energy use in industry and business - transforming the way energy and resources are used, through energy and resource efficiency measures and low carbon technologies such as CCS and fuel switching.
  • By 2050, direct emissions from the sector will be almost zero through reducing the sector's demand for energy, the use of low carbon electricity sources; and deploying low carbon sources of heating and cooling.

6.3 Where we are now

6.3.1 The 'public sector' includes the Scottish Government and its executive agencies (such as Transport Scotland and Scottish Enterprise), 32 local authorities, and bodies such as the National Health Service trusts. There is a list of bodies subject to the Public Bodies Duties[124] in the Climate Change (Scotland) Act 2009.

6.3.2 Scotland has nearly 310,000 private sector enterprises extending from construction and manufacturing companies to service providers and retail organisations.[125] 2,230 large enterprises account for two-thirds of turnover while SMEs account for 99.3% of enterprises and 53.6% of employment. Industry in Scotland is varied and complex, covering very different modes of production, material demands, ownership and end products.

6.3.3 In 2010, greenhouse gas emissions from business and industrial processes were 7.9MtCO2e, which was 14% of the Scottish total. This includes some emissions that are covered by the EU ETS. Emissions from the public sector were 0.9 MtCO2e, equating to 2% of the total[126].

6.4 Decarbonisation policies

6.4.1 A number of policies are already contributing to the decarbonisation of this sector. Some stem from the EU, some are UK Government policies and others have been developed by the Scottish Government. Together, they incentivise energy efficiency through financing and or regulation, improve the quality of information to energy consumers, and support the decarbonisation of heat sources.

6.4.2 The EU Emissions Trading System (ETS)[127] is implemented at the Member State level, using a cap and trade mechanism to put a price on carbon to promote reductions of greenhouse gas emissions in a cost effective or economically efficient manner. The scheme is focussed on large, energy intensive installations as well as European aviation operators from 1 January 2013. Industry participants include cement and glass manufacturing as well as some distilleries. Most operators receive a set number of free EU Allowances (EUA), with each EUA covering one tonne of CO2, and must trade or buy at auction any additional EUAs they require. As there is a set number of total EUAs within the market the overall environmental targets are maintained. The allocation of free allowances will be phased-out over time and more auctioning is being introduced.

6.4.3 The current EUA price is lower than expected, due mostly to the recession, and this has resulted in a smaller incentive to reduce emissions. As mentioned elsewhere in this document, Scottish Government officials are working closely with the UK Government to engage with the European Commission on potential structural reforms that could create a more effective EUA price.

6.4.4 At this point in time it is unclear how the ETS will develop after the current phase III ends in 2020. For the purposes of this report we are therefore not applying emissions savings generated by the carbon price mechanism of the ETS beyond 2020 but only emission reductions from the complementary policies detailed in this section.

Energy Efficiency Policies

EU Energy Efficiency Directive[128]

In 2012, the European Union passed a new Directive on Energy Efficiency on efficiency targets, efficiency in energy use (public bodies, obligation schemes, audits, billing), efficiency in energy supply (heating and cooling, transformation, transmission and distribution) and energy services. This Directive is due to be implemented by June 2014 and is expected to contribute approximately 17% to the energy efficiency target set for 2020 against a business as usual baseline.

A key article (Article 5) requires central government to renovate 3% of its own estate each year to lead by example and to encourage the rest of the public sector to do the same. The rate of building renovation needs to be increased as existing building stock represents the biggest potential sector for energy savings. Buildings are crucial to achieving energy efficiency and greenhouse gas emissions targets.

The Scottish Government aims to work closely with UK counterparts to ensure that the Directive is effectively implemented to the required timescales.

6.4.5 The Carbon Reduction Commitment (CRC) Energy Efficiency Scheme[129] is a UK wide policy designed to incentivise investment in energy efficiency. In Scotland, there are 133 full participants in the scheme, which together emitted around 4.5 MtCO2e in 2010-11.

6.4.6 The Scheme requires large non-energy intensive organisations to measure and report their carbon dioxide emissions and purchase allowances issued by the UK Administrator[130] for each tonne of carbon dioxide they emit. The Scheme targets the emissions of large businesses and public sector bodies that are not covered by the EU Emissions Trading System or Climate Change Agreements. Following consultation during 2012 the Government published a number of simplifications to the scheme which will reduce the burden on participants. The scheme will be reviewed again by the UK and Scottish Governments in 2016.

The Climate Change Levy[131] is a UK Government tax on the use of electricity, gas and solid fuels in the non-domestic sector. Revenue raised through the levy is recycled back to organisations through a reduction in employers' national insurance contributions and support for energy efficiency and low carbon technologies. All non-domestic (public and private) organisations pay this in full unless they have entered into a Climate Change Agreement or have a renewable energy supply.

The voluntary UK Climate Change Agreements[132] enable eligible energy intensive businesses to receive up to 65% discounts (increasing to 90% for electricity use from April 2013) from the Climate Change Levy in return for meeting energy efficiency or carbon saving targets. Around 450 facilities in Scotland have Climate Change Agreements.

6.4.7 Access to funding is a critical aspect of achieving energy efficiency. The Non-Domestic Green Deal[133] is a GB wide policy. From early 2013 non-domestic property owners and occupiers will be able to apply for energy efficiency measures funded through private finance with costs recouped from charges on energy bills. The amount of finance will be based around a 'golden rule' whereby the repayments on the meter will be equal to or less than the savings identified during the assessment. On that basis, the total amount available will vary from building to building and measure to measure. When properties are bought and sold or rented, the charge for finance will be transferred to the new bill payer. Current estimates are that Green Deal investment could amount to £14 billion across UK over the next decade, and Scotland is well placed to secure a proportionate share of this investment.

6.4.8 To support Green Deal implementation, we have developed a Green Deal assessor qualification in Scotland in conjunction with Asset Skills Scotland - the employer-led skills body for facilities management, housing and property - and the Scottish Qualifications Authority (SQA), the national accreditation and awarding body. £1 million has been allocated by UK DECC for the training of up to 1,000 Green Deal assessors. We are also working with Skills Development Scotland, the national skills body supporting the people and businesses of Scotland, to assess demand and determine what follow-up action we should take.

Energy Efficiency Small Business Loans Scheme: Kinloch Anderson

Kinloch Anderson, an Edinburgh highland kilt manufacturer, was referred to its local Energy Saving Scotland advice centre (ESSac) through the company's business manager at Scottish Enterprise. An energy consultant visited the company's premises to outline ways in which the firm could improve its energy efficiency and how a loan could assist.

Consequently, the company installed a new steam press and ironing system. The ironing press is in constant use. Kinloch Anderson's Chief Executive, Nick Bannerman, said: "In terms of energy costs the move is saving us around £3,500 per annum. It has also increased our operating efficiency by allowing us to get more work done in a shorter space of time. The small business loans scheme has really been of great benefit to us."

6.4.9 A £1.5million training fund for installers across the UK who wish to operate under the Green Deal is also available and we are working with Construction Skills - the sector skills council for the construction industry - to ensure that Scottish installers are offered a share of this.

National Health Service Scotland CEEF Projects

NHS Greater Glasgow and Clyde is investing £200,000 to replace an inefficient refrigeration plant at Glasgow Royal Infirmary with the latest high efficiency plant. This resulted in a payback period of three years and an annual saving of £72,000 and 0.39ktCO2e.

NHS Fife spent £11,000 to improve the management of its heating and air conditioning plant at the Queen Margaret Hospital. This resulted in annual savings of £23,000, a payback period of 6 months and a reduction of 0.177ktCO2e per year.

6.4.10 The UKhas set up the world's first investment bank solely dedicated to greening the economy, the Green Investment Bank (GIB).[134] Large scale non domestic energy efficiency projects will form one of the three initial priorities for the bank. Further information on the GIB can be found in the funding and financing section.

6.4.11 Other sources of finance include the Central Energy Efficiency Fund and the Energy Saving Small Business Loan Scheme detailed in the funding and financing section earlier in this document.

6.4.12 The policies above largely relate to the use of existing buildings. However, we also need to take action with new buildings. Most recently, new-build energy standards for non-domestic buildings were applied in 2010 as a Scottish policy. Non-domestic buildings built to these standards have emissions 30% lower than those built to 2007 standards. In practice this means that there is; less air-infiltration, improved fabric insulation (with less thermal-bridging), better heating and lighting controls, heating and cooling systems of greater efficiency and for some buildings, limited use of low carbon technologies (such as micro-generation) to reach the emissions reduction standard.

Decarbonising heat policies

6.4.13 The Renewable Heat Incentive (RHI), introduced in 2011, is a UK policy to encourage public sector bodies, businesses and communities to reduce emissions by using heat from renewable sources such as wood fuel or heat pumps. Under RHI, up-front costs for the installation of renewable heat generation are met by installation owners with the incentive scheme guaranteeing them a reasonable return on investment. Phase 1 focuses on the industrial and commercial sectors.

6.4.14 We recognise that Government has a role in supporting the construction of combined heat and power plants (CHP) and heat networks. We have made a number of clear policy statements including through our 2020 Routemap for Renewable Energy in Scotland. We have introduced a range of funding support for heat networks, including the district heating loan scheme (see below) and the Renewable Energy Investment Fund and we also continue to make the case to the UK Government that the RHI should include an uplift for district heating .

6.4.15 We are working with our Expert Commission on District Heating[135] and providing support through the district heating loan scheme[136] to overcome the barriers and challenges facing developers. The scheme is open to local authorities, registered social landlords, SMEs and energy service companies. We have allocated £5 million over the current spending review period.

6.4.16 As noted in the previous Homes and Communities chapter, heat mapping[137] is critical to heat decarbonisation in this sector too, and we are rolling it out to all local authorities in Scotland.

6.4.17 As the majority of industrial emissions arise from generating heat from fossil fuels for manufacturing processes, changing to lower carbon fuels such as sustainable biomass and biogas represent one of the most important means for transformation.

6.4.18 The type of fuel switching will differ between sectors.[138] For lower temperature processes, for example those involved in the food and drink industry, a range of options may be available. These include using biomass boilers to generate steam or 'process integration' for exploiting heat already used in higher temperature processes. Higher temperature processes often present a greater challenge and may need innovative solutions such as sustainable biomass to replace coke, or a shift towards the electrification of processes. Fuel switching will develop gradually, depending on the needs of each sub sector of industry in Scotland, and in particular, the temperature of the heat required.

6.4.19 For some industrial processes, greenhouse gas emissions are an intrinsic part of the chemistry and can only be mitigated through innovative options such as carbon capture and storage. In the longer term, the deployment of sustainable biomass and further carbon, capture and storage should be able to address remaining combustion and the carbon dioxide component of process emissions.

6.4.20 Process emissions will also need to be tackled. Fluorinated gases (F-gases) are part of Scottish Government Climate Change Targets. In 2010, the latest year for which Scottish figures are available, F-gases made up 2.3% (c1.3MtCO2e) of total Scottish greenhouse gas emissions. This has increased from0.33% in the 1995 base year, primarily due to the take up of Hydrofluorocarbons to replace phased-out Ozone-Depleting Substances. F-gases also make up 2.4% of UK greenhouse gas emissions (including international aviation and shipping).

6.4.21 EU Regulations put in place offences and penalties covering infringements in relation to leakages; leakage checking/leak detection systems; placing on the market prohibitions; and qualifications for personnel working on equipment. Sectors affected by these regulations are stationary refrigeration, air-conditioning and heat pumps; stationary fire protection; and high voltage switchgear in electrical transmission networks. The Regulations also provided enforcement powers for the Scottish Environment Protection Agency (SEPA). The EU Regulations were implemented in the UK by the Fluorinated Greenhouse Gases Regulations 2009.

6.4.22 We have been working with SEPA and the UK Government to develop a regulatory framework for F-Gases in Scotland and have recently finished a comprehensive review of industry to provide a framework for this regulation. There is now a legislative proposal from the Commission for a revised F-gas Regulation and the Scottish Government has worked with the UK Government to offer comments on the way forward. The UK Government plans to hold a stakeholder meeting in early 2013 and the Scottish Government will attend in support.

Smart Meters and products policies

6.4.23 Understanding an organisation's energy use is critical to reducing it. The UK policy of introducing smart electricity and gas meters will provide organisations with more accurate information supporting efficient use of energy, and cost savings. Smart meters will be rolled out to potentially, over 200,000 non-domestic small users in Scotland by 2019.

6.4.24 An important way of reducing the energy we use is through the design of more energy efficient products. EU Products policy is addressed through the Eco-design Framework Directive which allows minimum environmental performance standards for products to be set across the EU. The standards are set through regulation or voluntary agreements. The regulations aim to improve the environmental performance of products by reducing the impact of a product's life-cycle on the environment.

6.4.25 One of the effects of this kind of regulation is to reduce the electricity consumption of many products. This also tends to reduce the amount of heat emitted from these products because much of the electricity that inefficient products consume is wasted through heat production. As lighting and appliances become more energy efficient, heating and cooling systems compensate for this reduction in heat. The effect in terms of emissions accounting is to very slightly increase emissions from heat but to reduce emissions from electricity generation by a greater amount. The heat element of these emissions is shown directly in the breakdown of emissions abatement provided in this report; the savings from reduced electricity consumption are incorporated into the modelling used to estimate emissions from the traded sector.

6.4.26 Likewise, the Energy Labelling Framework Directive[139] sets energy labelling requirements for products across the EU. It requires that a standard label showing energy efficiency, and other sustainability aspects, such as water consumption, is displayed on products where they are sold. The UK Government leads on compliance with both Directives.

BT's Energy Saving Campaign

BT ran a staff engagement pilot in its London headquarters of c.3,000 employees to reduce energy use by 10%. BT engaged staff by: recruiting energy champions from across all levels of the business to raise awareness of the campaign to reduce energy waste by reporting faults, conducting energy audits and encouraging networking to share ideas; and Identifying areas of the business where significant savings could be made. Importantly it engaged with staff members who had the influence to implement changes within these areas.

In the three months of the pilot, energy consumption was reduced by 17%, equating to cost savings of around £200,000. BT has now rolled out the initiative to 25 of its other buildings, four of which are in Scotland. This has led to annual savings of over £800,000 for the company. As one manager put it:

"It's our corporate social responsibility; companies should be leading by example. People can be involved by just being energy efficient. In that sense, everyone can be an energy champion".

6.5 Decarbonisation proposals

The following Scottish proposals are being developed or are under consideration by Scottish Ministers.

6.5.1 Non-domestic buildings new-build energy standards 2014 - Scottish Proposal. Our review of standards in response to the Sullivan Report considered the potential to cut new-build non-domestic building emissions by up to 75% compared to 2007 standards. We have now reached the consultation stage. The supporting costing research (as recommended by Sullivan) indicates that costs of a 75% improvement will take a considerable period of time to payback through energy bills. We are consulting on a proposed 60% improvement that will often payback within the projected lifespan of the buildings.

6.5.2 The proposals for a 60% reduction in emissions involves moving to an aggregate emissions based approach. This means that whilst not all buildings will deliver the same level of reduction, the overall reduction in emissions will be 60%. In practice there will generally be; less air-infiltration, improved fabric insulation (unless this causes overheating issues), better heating and lighting controls, heating and cooling systems of greater efficiency and for some building types, greater use of low carbon technologies (such as micro-generation) to reach the emissions reduction standard.

6.5.3 Non-domestic buildings: assessment of energy performance and emissions regulations. Buildings account for over 40% of greenhouse gas emissions in the UK. However, as less than 1% of the existing stock is replaced by new buildings each year, regulations are to be introduced under Section 63 of the Climate Change (Scotland) Act for the assessment of the energy performance and emissions of existing non-domestic buildings and for owners to improve the energy performance of their buildings and to reduce emissions.

6.5.4 We are currently developing these regulations and the owners (and occupiers) of large buildings will be given the option of either physically improving their buildings, or measuring and reporting the operational energy use on a year on year basis. The response to our 2011 consultation[140] is available on our website.

6.5.5 Initially, the policy would be implemented broadly in line with the consultation, covering buildings over 1000 square metres. The policy would be reviewed within 10 years and the scope could be widened by possibly requiring the building improvements be carried out, without recourse to operational ratings. Alternatively, they could go further by including all buildings over 250 square metres and increasing the assessment frequency. However, no investigation into the practicalities of widening the scope of the policy has been developed at this stage.

6.5.6 We propose to ramp up emission reductions in the public sector. We know, through research undertaken on our behalf by the Carbon Trust[141], that public bodies in Scotland could do more to reduce emissions from their own estates. Initially this would involve accelerating implementation of actions identified in existing Carbon Management Plans, and later move to more ambitious activity.

6.5.7 The Carbon Trust research was designed to identify what additional abatement in the public sector might be feasibly delivered between now and 2027-30. The report shows that with an accelerated programme of implementation there is the potential to reduce emissions across the public sector by 291ktCO2e by 2020. The report identified that over 30% of this abatement would be delivered by measures already identified, and it is estimated that there is additional potential to reduce emissions by 285ktCO2e by 2027.

6.5.8 These are non-traded building emissions and are significantly greater than current activity in public bodies' Carbon Management Plans (CMPs). Achieving the full abatement potential will require a significant uplift of activity in the existing carbon management plans across the entire public sector. Actions are likely to involve behavioural change at organisational and individual levels, making our estate more energy efficient and the use of renewable energy sources.

6.5.9 To develop this proposal into a clear plan of action we will consider, review and conclude the following by October 2013:

  • Our governance and leadership arrangements;
  • Whether to set a target or set of targets for Scottish public bodies linked to mandatory reporting of emissions in the context of the Public Bodies Duty set out in the Climate Change (Scotland) Act;
  • What more might be done through our procurement activities;
  • Funding and financing options, working with the Scottish Futures Trust; and
  • The skills and expertise within our public bodies for both accelerating emission reductions and carbon accounting.

The National Library of Scotland

The National Library of Scotland (NLS) has implemented a Carbon Management Plan which has reduced emissions and produced significant savings in running costs. The plan comprised 15 individual projects covering a range of actions from investment in building services equipment, to awareness raising and changes to operating procedures. carbon management at the NLS has reduced carbon emissions by 0.62KtCO2e and saved £75,000 on energy bills per year.

Decarbonising heat proposal

6.5.10 While we are taking forward significant activity on decarbonising heat in Scotland, we recognise the need for a more strategic approach for significant decarbonisation of heat by 2030. Our recent Renewables Routemap update signalled our intention to develop a comprehensive heat vision for Scotland, including a heat hierarchy of demand to encourage best practice in urban and rural areas, together with a Heat Generation Policy Statement to consider scenarios for supply.

The renewable heat target

Our 11% renewable heat target as it is currently defined requires approximately 6,400GWh of energy to be sourced from renewables by 2020. Assuming conservatively that this could be achieved by displacing gas, the target could reduce emissions in Scotland by over 1MtCO2e in 2020.

6.5.11 Our ambition for heat is that by 2050, Scotland will have a largely decarbonised heat sector with significant progress by 2030. For 2027, this means total estimated abatement of 3MtCO2e from the domestic and non-domestic sectors. However, it is based on the fundamental first principles of:

  • keeping demand to a minimum; and
  • recovering as much waste heat as practically possible, at least cost to consumers.

6.5.12 Our heat vision outline[142] brings together policy and a renewed focus to heat, both low carbon and renewable, stretching across all sectors - domestic, non-domestic, industrial and commercial - to put us on course to fully realise the potential for decarbonising heat in Scotland. The heat vision looks at heat in the wider context of available energy resources, setting out our statutory and regulatory responsibilities; highlighting policy drivers; and providing clarity on our position of overarching principles for future heat deployment.

6.5.13 In considering the impacts on both supply and demand we have developed a draft heat hierarchy and deployment options matrix on which we will be seeking comments. The hierarchy considers heat in high and low building density contexts across domestic, industrial and the commercial/public sector. It includes reference to energy efficiency, district heating with different energy sources, electricity and individual solutions including micro-generation.

6.5.14 We are taking a pragmatic approach to the development options matrix. For example, we expect that out to 2020 dense urban areas will be more suited to district heating, with the initial infrastructure likely to be non-renewable in areas on the gas grid. However, the ultimate aim is to encourage the most low carbon solution for all buildings in the area. In the long term, we would expect a shift to renewables and a significant reduction in heat demand in buildings through implementation of energy efficiency measures to achieve this. District heating will still be relevant for many rural areas, even those classed as 'very remote'.

6.5.15 The Heat Generation Policy Statement will look in more detail at possible generation scenarios, including their impact on the renewable heat target and associated greenhouse gas emissions. When published later in 2013, this document and our Electricity Generation Policy Statement, will provide a comprehensive energy policy view and, along with our developed Heat Vision, set out the framework for the transition to decarbonising heat in Scotland.

6.6 Supporting and enabling measures

6.6.1 Clear accessible information is critical for organisations wanting to improve their energy efficiency and reduce waste. We are integrating our non-domestic energy and material resource efficiency services and expect our new Resource Efficient Scotland[143] advice and support programme to be operational from April 2013. It will provide valuable support to businesses, third sector and public sector organisations to reduce overheads through improved energy, material resource and water efficiency, and reducing waste.

6.6.2 The Resource Efficient Scotland programme will integrate current services delivered through the Carbon Trust, the Energy Saving Trust and Zero Waste Scotland into one simple service. The programme will help cut carbon across public and private sector organisations. This holistic approach to low carbon transition aims to help more organisations to reduce their emissions, save money and increase their competitiveness. The programme will have three components:

  • A Scotland-wide Integrated Business and Public Sector Advice and Support core service. It will deliver technical advice and support to all business and public sector organisations on waste material resource use, energy and water efficiency. It will focus on the implementation of resource efficiency measures, including advice around finance;
  • a suite of tailored sector-focused activities for business and the public sector. Effort in the first instance may include construction, food and drink, hospitality, public sector, textiles, chemicals and manufacturing. More sectors will be included as the programme evolves; and
  • an Integrated Business and Public Sector Intelligence strand will support the whole programme through continual development and improvement processes.

6.6.3 As noted previously in (paragraph 5.5.2), Energy Performance Certificates (EPCs) are an important source of information. They provide existing and prospective building owners with energy efficiency information and allow comparisons to be made. They are also accompanied with advice on ways in which efficiency could be improved in a cost-effective manner.

6.7 Costs and benefits

6.7.1 While these policies, supporting measures, and proposals will drive emission reductions they will also bring a range of other benefits. A recent UK study estimated that around 2.3% of GDP could be saved from straightforward resource efficiency measures by using raw materials more efficiently and generating less waste. In 2010, that would have meant £2.9billion savings to the Scottish economy - over half of the savings can be made within businesses (£1.5billion) raising profitability directly.

6.7.2 Taking up remaining opportunities for energy, material and process efficiency will reduce manufacturing costs and boost the competitiveness of industry in Scotland. Low carbon manufacturing, using inputs such as sustainable biomass and future supplies of decarbonised electricity may increasingly be demanded by both UK and export markets.

6.7.3 Moving to low carbon technologies in other sectors of the economy will also create new markets for the goods, such as niche low carbon vehicles, produced in Scotland. We also depend on industry to manufacture some components in Scotland - products which need to become ever more energy efficient and low carbon over the coming decades.

6.7.4 The proposals and policies described will require investment from the public sector, business and other sources. Annex A and the technical annex published with this RPP2 provide further information about these costs.

Highlights of progress to date

Project Description Amount invested by SG (£m) Estimated savings
(£m) KtCO2e
Carbon Trust advice and support programme Between 2007-08 and 2011-12, The Carbon Trust has provided energy efficiency and low carbon advice and support to larger businesses and public sector. 23 920 <10,212
Central Energy Efficiency Fund Launched in 2004, the ring-fenced fund has supported over 95 projects in Scotland's NHS with emissions reductions of around 167KtCO2e and revenue savings of over £5.3 million. Scottish Water reported lifetime savings of over 770ktCO2e and of over £90million. 20* 95.3 940
Salix Finance loans fund Salix manages a £5 million revolving loans fund to support low carbon investment projects in the further and higher education sectors and in the emergency services. 5 42 231
Energy Saving Trust advice and support service On our behalf EST provides energy efficiency advice and support to SMEs. 3 29.5 143
Green Investment Package We have committed £10.3million between 2012-13 and 2013-14 to enhance public sector loans funds and energy efficiency projects. 10.3 - 20.6**
Small Business Loans Scheme Hosted by EST on our behalf, loans of £1,000 - £100,000 are available to SMEs to install renewable energy technologies or measures that reduce energy consumption. 11.1 16.2 52
Scottish Government Estate - Energy Performance Improvement Projects Investment into energy efficiency and improvements across the Scottish Government Estate. 1 1.7 0.88**

* Money invested prior to 2007/08

** Estimated cumulative annual savings over period 2012-2014

6.8 Business, Industry and the Public Sector abatement summary

Business, Industry & Public Sector Earliest
start date
Annual Abatement (KtCO2e) 2020 Annual Abatement (KtCO2e) 2027
Smart Metering 2013 53 46
CRC Energy Efficiency Scheme 2010 130 154
Buildings Energy Standards (2010) - New Build Properties 2010 57 101
Green Deal & Supporting Policy 2013 92 24
EU Products Policy -11 -8
Renewable Heat Incentive
(Non Domestic)
2011 896 914
Buildings Energy Standards (2013) - New Build Properties 2014 25 60
Assessment of Energy Performance and Emissions Regulations
(Non Domestic Buildings)
2013 42 142
Public Sector 2013 239 285
Low Carbon Heat
(Non Domestic)
2013 101 1,334