Decarbonising Our Infrastructure 2021

Decarbonising Our Infrastructure

Foreword

As we move into a brave new world which is dominated by concerns over climate change and the need to adapt our lifestyles to cope with this, the role, and carbon impact, of our infrastructure becomes evermore critical.

Not just what we build but how we build it, how we justify what we build and the “value” of what we build. The performance of our existing assets is, arguably, even more critical. But, the models that we’ve traditionally followed are becoming less and less applicable to delivering a sustainable and low carbon future. The same could be said about our businesses!

Our conference provided an opportunity for both public and private sectors to come together to consider what steps we can take, however small, to decarbonise our infrastructure. And

let’s be clear about this, we need to do this together, we need to do this collaboratively and we need to remove the barriers which prevent us addressing this huge challenge together. As the well worn Welsh footballing slogan goes, “Together, Stronger”. And our two keynote speakers, Sophie Howe, Future Generations Commissioner, and Andy Fellayn, Welsh Government Deputy Director for Infrastructure, both set the scene perfectly for us.

We know that the infrastructure sector is a major generator of carbon emissions but, for this very reason, it has the

potential to be one of the great success stories in reducing global impacts on climate change. Yes, there are challenges but it can be done, as you will read in this document. The time to make positive changes is long overdue and we all need to step up to the plate, together as public and private sector providers of infrastructure, and change the way we do business. The political will for change is there but we need leadership across Wales’ public and private sectors, both locally and nationally, to fundamentally rethink the way we promote, fund and deliver our infrastructure priorities.

Now that the dust has settled after the conference we’ve captured the thoughts, views, concerns and observations of speakers and delegates in this “post-Conference” report. Our Action Plan outlines how we can, practically, decarbonise our industry. We’ll be using this report to effect change across our sector. I hope you’ll join us and play your part on this journey.

Ed Evans Director, Civil Engineering Contractors Association (CECA) Wales

Decarbonising Our Infrastructure

“We all need to be open to change and to adopt new materials and techniques if we are to meet the challenges of decarbonisation. We need to innovate together and we need to jointly share the associated risks”

Mike McAndrew, Chair CECA

Wales

“We and infrastructure. Forum direction Marcus

“We need to move forward together, boldly and quickly, if we are to decarbonise our infrastructure. The Welsh Construction Forum would provide the leadership and direction that we need”

Marcus Lloyd, Chair CSS

“We need to see the adoption of value based procurement models if we are to see decarbonisation valued in procurement decisions”

Piers Burroughs, Chair ACE

Introduction

Each year CECA Wales, representing Wales’s civil engineering contractors, and ACE for consulting engineers, meet at a joint conference with the County Surveyors Society (CSS) Cymru, who comprise senior local authority highways and environment managers.

We share experiences, pool knowledge and develop solutions across public and private sectors for current key issues facing the infrastructure sector in Wales. Despite having experienced the ravages of the Covid19 pandemic the most significant challenge facing us all across the globe is the impact of climate change and “Decarbonising Our Infrastructure” was undoubtedly the only suitable theme for our 2021 conference.

As with our previous conferences, we drew out the thoughts, observations and concerns of our delegates in our breakout sessions, the chat function and the discussions with each of our speakers. We considered the legislative, policy and moral drivers to decarbonise and some examples of the mitigation and adaptation measures

that we need to meet the challenges of climate change. We shared some of the technical innovations and practices that are available to reduce carbon and some of the skills that are needed to deliver low carbon infrastructure. We also looked at how we measure the carbon impacts of our infrastructure – and compare it against costs and how we should justify investment in and funding of infrastructure projects in the future to deliver clean and inclusive growth. Finally, we discussed how the public and private sectors can work better, together to drive greater decarbonisation and we questioned whether our procurement process and business models are “fit for purpose”.

This post-Conference” report captures all of this and presents our Action Plan outlining how we can all take practical steps to decarbonise our industry.

“17% of global carbon emissions from our infrastructure… we build, not just better, but different”

emissions come we need to different”

Climate Change and the of decarbonising infrastructure

Our keynote speakers, Sophie, Andy and Ben, helped to set the

The Future Generations Commissioner, set out the challenges in her delegates:

“17% of global emissions come infrastructure… to build, not just but different”

“And we have a great platform differently and better. But as to do it together.”

challenges infrastructure

scene for this 2-day conference.

Commissioner, Sophie Howe, her keynote speech to

carbon come from our infrastructure… we need just better,

platform in Wales to do things as a small country we need

Manifesto for the Future

“The pandemic has given us an opportunity and an impetus to invest in skills, green jobs, sustainable approaches to infrastructure and support for Welsh businesses to innovate and deliver for a zero carbon world. The Office of Future Generations “Manifesto for the Future” calls for action in many of these areas.”

Climate

Change and the challenges of decarbonising infrastructure

The scale of the challenge infrastructure is clear. such as Llwybr Newydd new National Transport to emerge.

Andy Falleyn, Deputy Delivery Division, Welsh second keynote speaker, Government’s vision a sustainable transport commitment to reducing

challenge in decarbonising our clear. Strategies to tackle this, Newydd, the Welsh Government’s Transport Strategy, are beginning Deputy Director Infrastructure Welsh Government, and our speaker, set out the Welsh vision for the future based around transport hierarchy and a clear reducing carbon.

Whilst this leadership is welcome, significant barriers remain to be overcome, particularly “at the coalface”, if we are to move forward.

Climate Change and the challenges of decarbonising infrastructure

But Ben Sears, Sustainability, Environmental, and Transport Policy Support Officer at the Welsh Local Government Association (WLGA), reminded us that many of these challenges fall on the shoulders of a public sector which is still struggling with the fallout of long term “austerity” measures and the impacts of the pandemic. And all this set against a backdrop of increasingly high political and public expectations.

You can hear more from Sophie, Andy, Ben and all the other conference speakers by following this link.

•

decarbonising our infrastructure

What was clear, from that the challenges infrastructure are not authorities alone and need a truly collaborative public, private and

from all speakers, was challenges of decarbonising our not a matter for public and the solutions will collaborative approach from third sectors.

So, what’s stopping us making

Collaboration not confrontation

When it comes to doing things together we have a public procurement system which should be an enabler of better collaboration but which is often the biggest barrier to this happening.

“Traditional, transactional and bureaucratic”

The Office of Future Generations has recognised this in its report into public procurement which highlights so many of the “old chestnuts” that continue to hamper progress towards better outcomes in Wales:

“political commitment without a clear procurement focus on short term than long term outcomes”

“limited sharing

making the change?

commitment is there but procurement strategy”

term costs rather outcomes” of data and learning”

“ still too much focus on process not outcomes”

“continued focus on transaction at expense of collaboration and transformation”

Views from the coalface

Against this backdrop of limitations in our public procurement processes, this is where we invited delegates, senior practitioners from both public and private sectors, to share their concerns and observations on the things that are holding us back. And this is what they told us.

Short term funding

The short term nature of public funding doesn’t support:

• the aspirations of the Wellbeing of Future Generations Act for long term decision making

• longer term collaboration between public and private sectors

• the widespread application of whole life costing methodologies and carbon management

Perceived decline in public services

The perceived “inevitability” investment in public services:

• creates an acceptance of “managed uninspiring future

• generates reduced “ambition” sector

• stifles enthusiasm in influencing “thinking”

practitioners and

Lowest price procurement

“inevitability” of reduced services:

“managed decline” and an “ambition” across the public influencing government

CO 2

A deeply embedded culture of “lowest price” procurement across the public sector is inhibiting:

• industry progress towards low/zero carbon infrastructure

• a more innovative outlook from construction clients and suppliers

• collaboration across the public and private sectors

• the acceptance of other “non-price” criteria in the development of infrastructure projects eg wellbeing

CO 2

“Procurement on lowest price alone needs to end”

Views from the coalface

Limited innovation

A lack of desire and/or incentives to accept and embrace innovation and new technologies and materials with:

• non-standard specifications not always understood or accepted by long standing practitioners

2

• products not always designed with a circular economy in mind

• limited acceptance of the need to be more open to the use of new materials and trials

• a reluctance to consider alternative performance levels alongside carbon reduction opportunities

Low knowledge base

• limited acceptance of opportunities for public/private collaboration on low carbon technology across the sector

Limited knowledge, awareness, and ambition when justifying infrastructure with:

• poor understanding of low within the construction sector

• carbon, and other factors such considered in the justification

• poorly informed decision makers understanding of wider “non-economic”

• poor communication with stakeholders impacts of infrastructure investment

Transaction not collaboration

awareness, understanding justifying investment in carbon opportunities sector such as wellbeing, rarely justification process makers with limited “non-economic” benefits stakeholders of the carbon investment

Lack of collaboration and poor procurement practices are restricting innovation with:

• supplier engagement often too late in the process to add value/reduce carbon

• a reluctance to challenge the “normal/traditional” approach to procurement

• limited/no forward planning to exploit the full benefits of infrastructure investment

Views from the coalface

Restrictive procurement practices

Carbon reduction is rarely reflected in procurement practices with:

• limited research findings on “carbon and cost” (See case study 4)

• a lack of an universally accepted standard/ methodology for carbon measurement

• carbon reduction measures rarely “contractual” as opposed to price and social value

• limited/no opportunities for collaborative procurement approaches to negotiate carbon out/down

• limited/no rewards for better performing suppliers (and clients)

Negative culture towards carbon impacts

Reluctance/refusal of infrastructure clients and designers to accept alternative performance specifications alongside increased carbon reduction:

• Low understanding and appreciation of new technologies and material specifications

• Limited/no incentives for infrastructure clients to pursue greater innovation to reduce carbon

• Perception of increased risks and long term liabilities from using “non-standard” materials

• Potential increased initial cost materials

• Perceived disinterest from performance of suppliers

• Reluctance to accept alternative suppliers

cost of “low carbon”

public sector in carbon

alternative proposals from

“Funding sources need longevity –annual settlements will no longer do”

Views from the coalface

Most of the barriers and constraints highlighted in this report are not new. Many have appeared in previous reports.

Some of the barriers relate to how the public sector funds and procures infrastructure works and services. These are long standing challenges and will need significant political will to address.

“Funding sources need longevity –annual settlements will no longer do”

Some of the barriers, however, relate to culture and behaviours across both public and private sectors particularly with respect to how we deal with risks and liabilities. The tendency towards traditional, “tried and tested” approaches to infrastructure delivery and the reluctance to change runs counter to the change that we need to see if we are to overcome the challenges of climate change and reduce the carbon impacts of infrastructure.

“Carbon reduction to be embedded measured throughout project – from

The following case studies, based given at the conference, show effect positive changes. These sector but, in reality, the solutions highlighted in this report sit private sectors - we just need working together to open the share the risks and benefits positive legacy for future generations.

“Procurement lowest price needs to

reduction needs embedded in and throughout each the outset”

Case Studies

based on presentations show what can be done to These are from the private solutions to the challenges with both public and need to find better ways of the doors to innovation, to and, above all, to leave a generations.

“Procurement on price alone end”

“Carbon

“Carbon reduction needs to be embedded in and measured throughout each project – from the outset”

An action plan for the future

We have distilled the views and observations of our delegates, from both public and private sectors, and considered these alongside the challenges, the case studies and potential solutions to decarbonise our infrastructure to develop an Action Plan for the future based around 4 key themes:

Justification

justifying investment in zero carbon infrastructure

Ensure carbon performance is embedded in investment justification models

See case studies &

A B C D E

Apply Whole Life Costing (WLC) principles to project appraisal/justification methodology to reflect carbon performance alongside construction cost and economic and social value;

Incentivise construction clients via grant conditions to reduce carbon emissions via their projects;

Introduce value based procurement models ensuring that decarbonisation planning is valued in procurement decisions as a key “value” criteria.

Develop and approve a “carbon calculator” to consistently measure performance across projects and suppliers;

Introduce multi-year funding envelopes, potentially including a base budget with indicative “top ups”, to support long term carbon reduction.

Procurement

procuring for a zero carbon future

Ensure that procurement processes reflect carbon performance

See case studies &

A B

C D E F

Increase visibility and certainty of workflow to encourage supplier investment in carbon reduction and link to multi-year funding profiles;

Introduce greater collaboration, potentially through early contractor/supplier involvement, to address carbon and cost reduction opportunities early in project and programme lifecycles;

Introduce value based procurement models ensuring that decarbonisation planning is valued in procurement decisions as a key “value” criteria.

Undertake further research on “carbon and cost” (See case study 2) and pursue an industry standard/acceptable carbon measurement methodology at procurement stages;

Consider carbon “Bills of Quantities” alongside cost parameters and carbon reduction plans and make carbon reduction contractual alongside price and social value;

Reward/incentivise innovators/better performers to reduce carbon impacts of projects at all stages potentially through the use of grant conditions on government funded projects.

Materials and technology

using materials and technology for a zero carbon world

Ensure that the choice of materials and technologies reflects carbon performance

See case studies &

A B

C D E

Facilitate trials of materials, new technologies and new specifications;

Encourage and reward alternative private sector proposals to reduce carbon impacts;

Enable development of a construction circular economy by incentivising use of recycled/reusable materials and low carbon specifications through grant conditions and procurement criteria;

Explore greater use of Offsite Manufacturing (OSM) and Modern Methods of Construction (MMC) in the infrastructure sector;

Develop and promote industry-wide training and awareness programmes for lower carbon construction technologies and material specifications (see “business development” actions).

Business Development

supporting our businesses towards a zero carbon future

Ensure that carbon performance is reflected in business development measures

See case study

A B

Establish a centre of excellence for developing greater competence and capacity in low carbon infrastructure, potentially linked to improved project delivery and procurement;

Develop an industry led and government supported training programme, potentially linked to the centre of excellence, to develop awareness and competence across the sector;

C

D

Provide government and industry support to SMEs to develop and implement carbon reduction plans for their businesses;

Incentivise and reward high performing businesses both through grant conditions and the procurement process.

Moving forward

If we are to take this action plan forward we will need to see far greater collaboration across public and private sectors.

All have a part to play in progressing these actions and leadership will be needed across all organisations.

The Welsh Construction Forum, established in 2019 to respond to the Covid19 pandemic and increase public and private sector collaboration across the construction sector, offers a platform to take these actions forward.

Case Studies

1

Rethinking the case for decarbonising infrastructure

Why do we need a rethink?

In order to systemically decarbonise our infrastructure we must shift the focus of justifying investment from purely economic to a more holistic view of the benefits of decarbonisation. By considering the wider social, environmental and cultural co-benefits of lowcarbon infrastructure we can build a stronger case for decarbonisation. This is where WELLIE comes in.

What’s WELLIE?

Alexandra Egge of Mott MacDonald shared her WELLIE (Wellbeing Impact Evaluation) toolkit which is based on a live workbook to guide thinking on the wider benefits of investment throughout the development of infrastructure projects. This tool gets project teams and infrastructure clients thinking about the social, environmental and cultural impacts of projects right from the start and provides a rigorous and auditable record of the integration of the Wellbeing of Future Generations Act into infrastructure projects.

And the wider benefits

As well as justifying investments sense the toolkit also provides engaging better with people win over “hearts and minds” process – which is essential to see future infrastructure

“Leveraging the co-benefits of low-carbon development builds a stronger case for investment and creates more resilient outcomes for communities”

benefits of WELLIE?

investments in a more holistic provides a framework for people and communities to during the development unless we are to continue projects stalling and failing

Alexandra Egge Senior Town Planner at Mott MacDonald Ltd

Case Studies

2 Carbon Cost Management and the “Carbon / Cost Tipping Point”

Carbon and Cost

The relationship between carbon and cost is a strong one but the potential for carbon reduction reduces as a project timeline develops. This means that the “big wins” in terms of carbon reduction come in the early stage of a project so the earlier the whole project team can assemble, including suppliers, the better will be the likely outcomes. This has obvious implications for procurement processes with collaboration based on early engagement favoured..

The ”Tipping Point”

Coupled with this is the concept of a Carbon/Cost “tipping point”, i.e. the point at which it starts to cost more to reduce carbon further. Early interventions can reduce both cost and carbon but if net zero carbon is to be truly realised an increase in cost, particularly at the construction stage of a project, is inevitable.

“We will not reach zero without proceeding beyond the carbon tipping point”

Lewis Barlow is Technical (Carbon and Sustainability)

Sweco UK Ltd and is with the Scottish Government manage the carbon emissions of its £5 billion City Region Growth Deals programme.

reach net proceeding carbon cost

Technical Director Sustainability) with currently working Government to emissions impact Region & Regional programme.

Case Studies

3 A designer and contractor’s journey towards zero carbon

Starting the journey What will zero carbon

Lara Young of Costain explained the importance of “bringing to life” the concept of carbon to all and the need to understand an organisation’s whole life cycle footprint, including embodied emissions, to effectively measure, pinpoint hotspots and reduce an organisations emission.

Getting the business to zero carbon

Climate change action planning is essential to any business if it is serious about reducing its impact – but these need to be relevant to the companies’ greatest hotspots even if they don’t fall within their direct footprint but within that of their Client’s or Supply Chain Partners. As one of the UK’s larger civil engineering organisations Lara explained how Costain are using data to inform their plans and targets. Addressing their whole life cycle footprint has resulted in Costain establishing the majority of the Groups targets that will support their clients and suppliers, many of them SMEs, to jointly deliver on these objectives.

Their aim is for all of their operations net zero by 2035 at the very their construction clients low their infrastructure solutions steps forward their fleet emissions by 2030 and through their Resource have already eliminated over and operation emissions and operation and capital costs

Lara Young is Group Director at Costain Ltd working on bringing their Change Action Plan to

look like?

operations to be whole life very latest and to be offering low carbon options for all of solutions by 2023. As part of these emissions will be zero carbon Resource Efficiency Matrix over 1.9MtCO2 in embodied and saved over £51M in across the value chain Climate Change Ltd and is currently their Climate to life.

Case Studies

4 The PowerPort – Designed in Wales, manufactured in Wales, for the future

What is the PowerPort?

The Power Port is an electric vehicle (EV) charging facility based on a modular, low maintenance and flexible design with an ultra-low footprint and connectivity to smart, integrated and renewable energy sources. It offers a total charging solution to suit the needs of motorists with a positive rate of return for organisations and is the result of a collaboration between manufacturers, academia and government.

What’s the business case?

Light Commercial Vehicles (LCVs) in the UK travel

an average of 12,811 miles per annum and emit c. 6.6 tonnes of carbon dioxide into the environment. With over four million LCVs on UK roads, more than 26.4m tonnes of Co2 could be prevented from entering the atmosphere, with the introduction of electric vehicles (Source DoT) using renewables. This average annual mileage equates to a diesel bill of £3,700 per vehicle. An equivalent electric vehicle’s annual electricity bill is c.£650, which demonstrates the level of savings possible. Add to this free green solar power, the annual fuel bill reduces still further, with the opportunity to sell un-used energy back to the grid and/or provide

supplementary electricity for Port represents a major step-change organisations much closer to

And the outcomes?

A made in Wales solution, supporting vehicles, reducing carbon emissions wellbeing and the environment, within Wales, supporting local and offering a much needed and the broader community financing solutions.

Wales, future

for the asset owner. Power step-change opportunity to take to net zero, much faster.

supporting a transition to electric emissions to improve health and environment, utilising skills and expertise local employment and businesses needed solution to public authorities across Wales with tailored

Shaun Thompson is Business Development Director, at Centregreat Ltd with accountability for the company’s sustainability plan. Andrew Lynch is Project Development Manager and has led the technical development of Power Port.

Case Studies

5 Commercialising the circular economy

What is the circular economy?

The concept of circular economies has been with us for quite a while and the infrastructure sector lends itself well to the drive to reuse and recycle valuable primary resources particularly in terms of aggregates.

Alun Griffiths (Contractors) Ltd, based in Abergavenny, has, like many contractors, been reusing and recycling materials locally to minimise cost and, as a by-product, carbon impacts. However, the potential to expand these services and commercialising them is increasing.

What are the barriers?

One of the most challenging universal adoption of recycled reluctance by construction clients to accept “alternative” materials This stifles innovation across opportunities for carbon reduction volume of useable materials

What is the way forward?

To embed the circular economy in our delivery of infrastructure we need:

• Opportunities to trial “alternative” materials to test operational and carbon performance

• Improved understanding of the options for low carbon materials

• Greater awareness by designers and specifiers of the carbon benefits of “alternative” materials

• Greater awareness amongst sites of how to handle materials for reuse, such as minimising movement, correct storage, excavation during correct conditions

• Appropriate testing strategies for use

challenging barriers to a more recycled aggregates is a clients and designers materials and specifications.

across supply chains, reduces reduction and increases the materials in landfills.

Emma Thomas is Future Generations Manager at Alun Griffiths (Contractors) Ltd and Daniel Kinch is Recycling Manager

“We will not reach net zero without proceeding beyond the carbon cost tipping point”

busnesau mwyaf a lleiaf contractwyr peirianneg ni sy’n adeiladu’r angen ar ein cenedl

“Representing Wales’ largest and smallest civil engineering contractor businesses. Our members build the infrastructure that our nation needs to prosper.”

Ed.Evans@cecawales.co.uk

687088

029 2081 1116

@ceca_wales

“Representing professional consultancies and engineering companies, large and small, operating within the built and natural environment.”

“Cynrychioli ymgyngoriaethau proffesiynol a chwmnïau peirianyddol, bach a mawr, sy’n gweithio mewn amgylcheddau adeiledig a naturiol.”

“Improving key strategic infrastructure whilst promoting a safe, enhanced and sustainable environment for Wales”

“Gwella’r seilwaith strategol allweddol a hybu amgylchedd sy’n ddiogel, yn well ac yn gynaliadwy yng Nghymru”