Thank you for giving me the opportunity to discuss the citizen's agenda and the Bali Summit with the Select Committee. I am writing to follow up on a number of issues raised during my evidence session on Wednesday 20 February.

  You asked about the evidence base for the Green Homes Service that will be delivered by the Energy Saving Trust. I enclose further information about the cost effectiveness of EST's programmes, including the Sustainable Energy Network that has been piloted in three regions. This forms the model for the Green Homes Service that will be rolled out nation-wide over the next two years.

  In my supplementary submission to the committee in early February I mentioned that we were currently studying the German programme to retrofit their existing homes. This was raised again by Lynne Jones and I can confirm that this work is underway. I will send you further details as soon as I can.

  As I noted, BERR are leading on the development of a Renewable Energy Strategy RES), which will involve consultation in the summer 2008, before the publication of the strategy in the Spring 2009. This is being led by a central project team in BERR which consists of 10 members, but involves input and cooperation with a variety of colleagues across a range of Government departments. As part of the RES consultation members of this central team, along with input from other areas of BERR and across Government, will be looking afresh at microgeneration and proposals to boost microgeneration, including a feed-in tariff arrangement. As such there is no definitive figure for the number of people working feed in tariffs. I would draw your attention to John Hutton's announcement to Parliament on the RES,[1] and also the RES pages on the BERR website,[2] where more information on the strategy will be published as it becomes available.

  On biomass boilers on the Defra estate, Defra is currently procuring a number of such boiler installations which will have the ability to utilise renewable heat. Our current programme includes Alnwick Offices (woodchip) and Weybridge Stores building (rapeseed oil). The Alnwick offices are due for completion in early summer and those in Weybridge later in the year.

  In addition, the department has undertaken a survey of the estate to identify the capability to introduce biomass boilers to other existing sites. This survey identified a number of sites capable of accommodating renewable boilers. We are now progressing with an installation of a biomass boiler at Merrythought and are examining design and planning implications at a further four sites. A programme of further installations will then be developed. The current anticipated completions date for the Merrythought biomass boiler is around the end of May 2008.

  I ought to offer clarification on an exchange we had about including aviation in the EU Emissions Trading Scheme, which implied that non-EU carriers are not covered. They will be covered, as detailed in the attached annex.

  Finally, I promised Lynne Jones a note on international carbon accounting, which is also included in the annex.

  I offered at the end of my evidence session to meet to the Committee on a less formal basis, and I am happy to reiterate this offer. I am copying this letter to the members of the EFRA Committee.

Hilary Benn

March 2008

  Follow-up to evidence from Rt Hon Hilary Benn MP, Ms Susanna May and Mr Paul Chambers

Q23-24: Energy Saving Trust's Cost-Effectiveness

  Analysis in the Climate Change Programme (Mar 2006) showed that EST activity is very cost effective, with every tonne of carbon saved costing £6 and net benefits generated to the economy of £180. This was the most cost effective Government funded activity in the Climate Change Programme. Since then, EST has improved its cost effectiveness to £4 per tonne of carbon. Government money levers in other investment with a ratio of 30:1. The current scale of activity reaches 1.5 million households annually.

  EST levered in £8m of private sector money in 2006/07 through working in partnership with B&Q, Tesco, Ariel and M&S (with a ratio of private to EST money of 12:1)

  On product policy, EST's Energy Saving Recommended label has been effective in contributing to driving up the energy performance of a range of consumer appliances, particularly in white goods. Sales of A-rated and above cold appliances have risen from 1% of total market in 1996 to around 70% in 2006. In the wet appliances market the increase has been from 1% in 1996 to 86% in 2006. The label is being expand to certify four additional product groups—laptop computers, desktop computers, monitors and imaging equipment.

  As a trusted agent EST is asked for information and content for media articles. Last financial year, this had an editorial value of over £6.5m.

  EST also support local authorities and community groups to deliver cost effective carbon savings in the household sector and supports the delivery of key policy instruments such as EEC (soon to be CERT) and Energy Performance Certificates.

Sustainable Energy Network/Green Homes

  Defra has supported a 3 year trial of a new joined up service called the Sustainable Energy Network (SEN) covering all aspects of individual emissions including energy efficiency, renewables, transport. The service for consumers will hand-hold them from the start of a journey to reduce their carbon issues to the end (through the provision of tailored advice, support, working with local supply chains, and facilitating access to grants and subsidies). The pilot has found:

—  It is a very cost effective way of reducing carbon emissions;

—  Lifetime impact of the pilot is more than 360,000 tonnes of carbon, equating to some 1.91 tonnes of carbon per advised customer and a cost effectiveness of £8.4 per tonne of lifetime carbon, which reflects the tailored approach to consumers;

—  Of the 2.6m people in the coverage area, 836,000 were reached, with some 90,000 receiving director tailored advice.

  A major part of the Energy Saving Trust's plan for the CSR period will be to roll out the Sustainable Energy Network (SEN) across the UK. The Prime Minister recently announcement that the Government would provide over £100 million in the next three years to the Energy Saving Trust to develop a Green Homes Service, based on a regional network of one stop shops. The Green Homes Service will build on the EST's Sustainable Energy Network and provide advice not only on energy efficiency but also on microgeneration, water efficiency, recycling and greener travel, and provide easy access to an energy audit and the full range of discounted and free offers available.

Q102: EU Emissions Trading Scheme and Aviation

  The 2006 proposal by the European Commission to include aviation in the EU Emissions Trading Scheme (EU ETS) stated the intention to include all flights between EU airports from 2011. The scope would then be extended from 2012 to include all flights arriving at and departing from EU airport. The recent December 2007 Environment Council agreement amongst the 27 Member States of the EU proposes that all flights arriving at and departing from the EU will be included from 2012. The agreement demonstrates Europe's leadership on tackling the climate change impacts of the aviation industry and marks significant progress towards the implementation of the scheme. This proposal now moves to the European Parliament for its second reading.

  Irrespective of the final agreed start date and geographic scope, the EU ETS will apply to all airlines, including those from non-EU countries. These airlines will be allocated to EU Member States based on the location of their greatest estimated emissions for the purpose of fulfilling the monitoring, reporting and verification requirements of the scheme. We believe that there would only be pronounced competitive distortions if a decision was made to exclude non-EU carriers from the ETS.

GHG EMISSIONS INVENTORY

Q110-111: A note on what is being done to agree an international system of carbon counting

1.   Emissions inventory: Current requirements and methodologies

  The 1992 United National Framework Convention of Climate Change (UNFCCC) provides the overarching structure for intergovernmental efforts to tackle the challenges posed by climate change and has been ratified by 189 countries. The 1997 Kyoto Protocol to the UNFCCC builds on that treaty by setting legally binding targets and timetables for cutting the greenhouse-gas emissions of industrialized countries.

  Under the UNFCCC, emissions of greenhouse gases (GHGs) have been allocated as the responsibility of individual states broadly on the basis of the territory in which the emissions took place. Emissions for which a state is responsible form part of its national "inventory", and it must report these annually to the UNFCCC.

  All countries Greenhouse Gas Inventories must be compiled using the same rules and methods, and the UK's national greenhouse gas emissions inventory is no different. It is compiled in line with international guidance set out by the Intergovernmental Panel on Climate Change (IPCC 1996 GHG Inventory Guidelines[3]) within the framework of the UK's National Inventory System and is submitted to the UNFCCC each year. All inventories are subject to annual scrutiny by the UNFCCC. Each year inventories should be updated to include the latest data available. Improvements to the methodology are backdated as necessary to ensure a consistent time series of emission estimates.

  Full reporting guidelines for National Greenhouse Gas inventories can be found on the UNFCCC website.[4] The guidelines were agreed under UNFCCC Decision FCCC/SBSTA/2006/9.[5]

The UK Inventory

  Emissions are nearly all estimated for the inventory via a mixture of top-down and bottom-up process using data on activities and approximate emission factors. The general methodology for calculating emissions is to take activity date (eg fuel consumption, number of cattle, area of land) and multiplying it by an appropriate emissions factor. Estimates of emissions from some sectors are generated from more complex tools or models (for example aviation, transport and sectors releasing F-gases).

  The UK greenhouse gas inventory requires collection of data from a wide variety of sources, including BERR's Digest of UK Energy Statistics, which is published annually seven months after the end of the reporting year in question (ie end of July). The inventory requires the conversion of raw fuel use data into emissions statistics, and the collection of data from other sources (including industrial installations, the Department for Transport, trade bodies, the Institute of Grassland and Environmental Research, the Centre for Ecology and Hydrology and the Environment Agency). Each step in this calculation process requires stringent quality control and assurance processes to ensure accurate reporting. This process takes several months to complete and results in many thousands of pieces of data being produced. These data are fully described in the UK Greenhouse Gas Inventory available in the Parliamentary Libraries.

  The raw data for the UK's emissions inventory goes through rigorous cross-checking and quality assurance / quality control procedures, including verification and external peer review, before being finalised. The UK's emissions inventory meets the relevant British Standard (ISO 9001:2000), and is audited by Lloyds and by the internal auditors of the external consultancy company which compiles the inventory on the Government's behalf.

  The final UK emissions inventory is then submitted to the UNFCCC, where there are strict monitoring procedures which require an independent technical review of each country's annual data every year. The most recent UNFCCC expert review of the UK's inventory accepted all UK emissions and removals data without any adjustment.

  This process is illustrated below:

The level of emissions generating activity is taken from National Statistics and is subject to revision For carbon dioxide this is usually calculated from the carbon contents of fuels (this information is provided by coal, oil and gas industries. For other gases emissions depend on technologies used. This is subject to revision as more data and better science become available GWP figures are agreed internationally at the IPCC. Due to scientific uncertainty these figures are subject to review. The values listed here are those internationally agreed for reporting under the Kyoto Protocol. These will not change in the 1st Kyoto compliance period. The science section of this presentation showed the most recent IPCC GWP figures (IPCC III).

  Source: OCC—

  http://www.occ.gov.uk/activities/analytical—audit/MEASUREMENT—ANNEX.pdf

  It is worth noting that during the negotiation of the Kyoto Protocol, emissions from international aviation and marine transport were not included in national totals—and do not therefore contribute towards Kyoto targets—because, despite early discussions on several allocation options, agreement on a methodology for allocating emissions to national inventories was not reached.

  Acknowledging this lack of agreement, the Kyoto Protocol requires Annex 1 (developed country) parties to pursue policies and measures to limit or reduce emissions from these sectors, working through the International Civil Aviation Organisation (ICAO) and the International Maritime Organisation (IMO).

2.   Emissions inventory: Future commitment period

  Discussions at Bali on the issue of reporting and accounting of emissions focused mainly on training for experts to review National Inventories. It was agreed that parties should commit to ensure sufficient experts were made available to review GHG inventories. Discussion on the inclusion of emissions from aviation and shipping in international reporting continued but at this time it has been impossible to reach agreement.

  Over the next two years we expect significant developments in the field of reporting and accounting of emissions. The UNFCCC ad-hoc working group, Article 9 of the Convention and EU ETS Directive review mention that discussions on future commitments will include `other sectors and gases'. The UK's view is that expanding the coverage of the EU ETS by inclusion of new sectors and gases would enhance the environmental effectiveness of the system and would introduce new and additional abatement opportunities to the system—offering a higher abatement potential and potentially lower abatement costs. The inclusion of international bunker fuels and the new opportunities offered by Carbon Capture and Storage are currently under discussion.

  While the 1996 Guidelines will continue to be used at least until the end of the Kyoto Protocol First Commitment Period (2008-2012), updated Guidelines are available from the IPCC (2006). UK experts were involved in the preparation of these guidelines and the UK, through the EU, is working to ensure these guidelines are adopted for the purposes of international reporting as soon as possible.

  Current inventories are compiled on the basis of GWPs (Global Warming Potentials) reported in IPCC Second Assessment report in 1995. These have been updated in subsequent reports and one key aim is to ensure that up-todate GWP values are used in any commitments that commence after 2012. Meanwhile additional GHG have been identified and new GWPs determined for these gases. Coverage of 2006 IPCC Guidelines includes many new greenhouse gases not covered by the Montreal Protocol. We will seek to ensure a wide coverage of gases, to ensure any future commitments maximise environmental effectiveness.

  A number of changes in values used in calculation of national emissions inventories are already implicit when the 2006 IPCC Good Practice Guidelines for calculation of emissions inventories will be adopted by the Convention. The Global Warming Potential (GWP) values used for major GHGs will change with substantial implications including recalculation of the entire time series with additional consequences for the emissions in the base year 1990. The IPCC 4th Assessment report AR4 also indicated GWP values for short lifetime GHGs and species typically addressed under actions to address air pollution but also indicates that the "GWP metric is problematic for short-lived gases or aerosols".

  The first decision that we have to take for the post-2012 period, is which of these additional gases we want to include in the national GHG inventories and in future reduction commitments for Annex 1 Parties.

Department for Environment, Food and Rural Affairs

March 2008

2   www.berr.gov.uk/energy/sources/renewables/strategy/page43356.html Back

3   www.ipcc-nggip.iges.or.jp/ Back

4   Unfccc.int/national-reports/annex-i-ghg-inventories/reporting-requirements/items/2759.php Back

5   Unfccc.int/resource/docs/2006/sbsta/eng/09.pdf Back