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A presentation was delivered by Simon Davison, Sustainability & Climate Change Manager, giving a summary of the background to the work on responding to the declared climate emergency, the Council’s achievements, interventions, costs incurred, barriers to change and feasibility of potential future actions. The policy background of the Paris Agreement was laid out, enacted in UK law with a commitment to act to reduce climate change. This led to effects on local authorities, including in planning, Local Plans, waste strategies and estate strategies.
The Climate Action Plan was live and refreshed, reflecting the Council’s Strategic Plan, and feeding into key strategies. All Council decisions now had to consider sustainability implications.
The heat network at the Northern Gateway site was described, with a second possible network under exploration with the University of Essex. There was a range of measures to reduce greenhouse gas emissions, including an increase in electric power usage, and more sustainable use of power across the Council’s estate. The Council had however only achieved a 13.8% reduction in Carbon Dioxide [CO2] since December 2019, and was not on course to meet its target.
The cost of possible decarbonisation plans for the Castle, Town Hall and museum properties was covered. A £15m retrofit of these buildings would reduce emissions, but was projected to incur a £400k revenue cost per year, if carried out. Air source heat pumps were not recommended for historic buildings.
Fleet strategy options would lead to 90% of the reduction in emissions that was necessary for the Council’s target to be met.
Barriers to progress had included the Covid pandemic, the financial environment in the UK and the state of local government finance. Feasibility projections were informed by a good understanding of the source of emissions. 48% came from use of gas, 25% from the Council’s fleet, and 18% from electricity usage. There were decarbonisation opportunities from heat pump use, but this depended on each building, with some which may better suit alternative options that would be more efficient. There was a new revised Government target for net zero by 2030. Options for local electricity generation were being examined. Value for money and the best outcomes were being sought. Offsetting was to be considered, once emission reduction measures had all been considered.
Much had been achieved via the Action Plan, even in the face of challenges that had arisen since the declaration of a Climate Emergency. The Council faced significant budgetary challenges. GB Energy might provide extra funding to decarbonise, encourage local electricity generation and develop community-based energy assets.
The Council was conducting an assessment of its estate and needs, which was in the planning phase. Care would be taken to adopt the most practical and affordable options. The Council would then be in a better place to set out an emission reduction strategy, to transit towards a future low-carbon economy.
The Chairman noted the large amount of work that had gone into the activities described. A Panel member asked for more details about the opportunities, benefits, new jobs and apprenticeships that might come from heat networks. The Sustainability & Climate Change Manager explained that consultation on heat network zoning had been carried out following the Energy Act 2023. Secondary legislation was expected by the end of 2025. This would provide opportunities for local authorities to develop heat networks, potentially in partnership with other organisations. In Colchester, development of the Northern Gateway heat network would involve a procurement process, seeking to lead to the network being able to supply residents and commercial premises on that site.
Work was about to commence with Essex County Council and the University of Essex to produce a feasibility study on a second heat network. This would start in the following week, and was expected to report in April 2025. Heat network mapping included the City centre and could potentially provide low-carbon energy to the centre and surrounding area. The Portfolio Holder added that the Government was looking to zone and roll out heat networks nationally. There was some resistance, mainly from developers, as this involved new technology and large capital investment. There would be jobs in supplying infrastructure, mainly in the private sector. The Council would likely be part of any zoning body. The Portfolio Holder expressed admiration for the plans, but cautioned that, were they to depend on private investment, this might not materialise if private enterprises did not think it was worth it. The Panel was informed that, were heat networks to be introduced, all in the area would be forced to buy their energy from that provider. The Council could potentially use energy generated from a University heat network, and supply it to Greenstead. The Council did not have the necessary capital, and therefore would need private capital.
A Panel member queried the situation, including the situation regarding Colchester Amphora Energy Ltd, and asked for details as to how heat networks would work in the UK, where geothermal sources were not so accessible as in places such as Iceland. The Portfolio Holder explained that heat networks could be powered from a range of sources. Fossil fuel could be initially used for some, but could be replaced by renewables in time. Amphora Energy had been put into dormancy, with some cost involved. The scale of this cost was not yet known. The Sustainability & Climate Change Manager underlined that the heat network at Northern Gateway had never been operational, with the commercial basis not fully realised, but the situation had moved on. The original plan was for a water-source heat pump, from the chalk aquifer, but technology had advanced, and the Council was now looking at a fifth generation heat network, designed to be low carbon technology. Assurance was given that heat networks would work well.
The Sustainability & Climate Change Manager was asked whether greater reductions in CO2 were now expected, or if the Council had been too ambitious as to what it could do, especially given the number of old buildings in the estate. Questions were asked as to the Council’s use of the Town Hall, and the Council’s prioritising of energy reduction over other matters. The Sustainability & Climate Change Manager stated that the target set was not necessarily hard to meet, but the problem was that investment was needed. Without external funding, the Council would struggle to meet its target. There was a misconception that that adoption of measures would lead to a net cost, whereas cost neutrality or savings could be achieved. It would, however, be hard to achieve that before 2030. Any heat network for the City centre, covering the Town Hall and Castle, would take at least eight years to bring to fruition.
The Panel asked if a drop in emissions was expected from Rowan House and Leisure World. The Sustainability & Climate Change Manager noted that limited interventions had been carried out, as the sites were currently within an options appraisal. Time was needed to evaluate how to achieve maximum value for money and returns on investment. Negligible impacts had been caused thus far. The Portfolio Holder added that interventions at Leisure World involved external grant funding. This included looking at the use of smart meters. This would be impacted by political decisions, outside this policy area. That included questions as to whether sites are sold, or provision of services (such as leisure options) changes.
The Sustainability & Climate Change Manager cautioned that an ‘open chequebook’ approach could lead to bad decisions being made. Leisure World was complex, with a combined heat and power system, using gas to produce electricity. The price of this was 7.5p per kWh. If electricity were to be imported for use, this would cost 28p per kWh. This needed consideration when the Council appraised how to proceed. The Council had instead focussed on actions which would involve a swift recouping of costs incurred.
A Panel member underlined the decision at Full Council to declare a Climate Emergency, and a target of carbon neutrality by 2030. Concern was voiced that the report on this showed that meeting the target would not be possible, and an accusation made that the Climate Emergency resolution was being ignored, as it was not being supported in current budgets and projects. The Panel member raised concern that what was being discussed did not seem to be considered as an emergency, and queried whether Council should reconsider whether it considered the situation to be an emergency, or instead a case of sensible moves and ways being engaged to deal with the problem. The Panel member laid out the three strategies that he saw possible. The first was ‘business as usual’, reducing CO2 output as and when it was possible to do so in line with budgets. The second was to accelerate progress, acting swiftly on sites like Leisure World, and in fleet transition, requiring much thought of technological options. The final option was to do nothing in the short term. The Panel member argued that the Council had adopted the first strategy, and argued that it was wrong to have a ‘Climate Emergency’ declared, and the Full Council should reconsider whether a 2030 target for carbon neutrality was appropriate.
The Sustainability & Climate Change Manager pointed out that the Council could still consider there to be a climate emergency but realign target dates to better match new national targets. Panel comments urged the importance of ensuring that Council assets were fit for the modern age, whilst being affordable. A Panel member noted the time lost to Covid, and argued that the Council shouldn’t aim for a target that would bankrupt it.
Councillor McCarthy explained that, as Chair of the Environment and Sustainability Panel, he had wished to get an understanding of Scrutiny Panel’s thinking. His Panel had moved from six meetings per year, down to just three. A Panel member suggested that the Council could raise tax in order to pay for any work to mitigate a perceived emergency, suggesting that residents be asked to provide more money, and that this should be done before seeking external funds from other sources. The Portfolio Holder pointed out that such an action would require a local referendum which would, itself, cost money.
The Chairman then directed that a statement submitted by Councillor Dundas be read out, explaining that he had held this back so that it did not influence the Panel’s discussions. Councillor Dundas’ statement argued that it was important that the Council did what it could to minimise its pollution and emissions, but that the Council should not put itself into financial difficulty to pursue costly measures that were not likely to significantly lower emissions. Changes in technology, and other factors, meant that the Council should lead to regular reconsiderations and the avoidance of rigid views. Doubt was expressed as to how the Council would decarbonise by 2030. Doubt was also expressed as to the Government’s intention to encourage local authority involvement in local energy generation, citing past failures in such projects. Councillor Dundas suggested that any Panel recommendation should include considerations of practicality regarding any emission reduction options, an insistence on adapting to new technologies, an acceptance that progress much depends on factors outside of Council control, and that the Council should be cautious about any involvement in energy generation schemes.
Councillor King, Leader of the Council, summarised that the report captured a sense of what the Council could and couldn’t do. It was recognised that the Council played a small part in reducing emissions, but that this was still important. Important factors included future asset works, and that more guidance from Government was expected in the coming 12 months.
SCRUTINY PANEL notes that the definition of the word ‘emergency’ dictates that the Council faces missing its own self-imposed objective unless significant capital budgets are identified to assist with carbon reduction schemes.
RECOMMENDED to CABINET that, should Cabinet be unable to achieve the Council’s Climate Emergency objective, it should consider reconsulting with Full Council to ascertain if the will of Council is to consider this an ‘emergency’, as opposed to managing opportunities to reduce carbon and improve our environment and public realm within existing budgetary framework and business plans.