How to implement Kyoto protocol goals with efficient financing' Roundtable, Ljubljana, Slovenia The

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How to implement Kyoto protocol goals with
efficient financing.Roundtable, Ljubljana,
SloveniaThe Carbon Trusts operations

• Dr David Vincent
• Director, Policy
• Carbon Trust
• 15 November 2007

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Overview

• The Carbon Trust
• a unique delivery model
• Five complementary business areas
• Insights informing policy and market
  development
• Solutions helping to reduce emissions now
• Innovations support for new and emerging
  technologies and start up companies
• Enterprises exploiting new low carbon business
  opportunities
• Investments financing low-carbon technology
  businesses with commercial promise.

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The Carbon Trust

• An independent, business-led, UK Government
  backed company set up in 2001. Our mission is
  toaccelerate the move to a low carbon economy
  by developing commercial low carbon technologies
  and helping organisations reduce their carbon
  emissions
• 2007/8 110m budget 150 staff
• 5Mt CO2 pa savings identified - 1.5MtCO2 saved.

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The Carbon Trust five complementary business
areas

• Insights informing policy and market
  development
• Solutions helping to reduce emissions now
• Innovations support for new and emerging
  technologies and start up companies
• Enterprises exploiting new low carbon business
  opportunities
• Investments financing low-carbon technology
  businesses with commercial promise.

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Overview

• The Carbon Trust
• a unique delivery model
• Five complementary business areas
• Insights informing policy and market
  development
• Solutions helping to reduce emissions now
• Innovations support for new and emerging
  technologies and start up companies
• Enterprises exploiting new low carbon business
  opportunities
• Investments financing low-carbon technology
  businesses with commercial promise.

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Insights and strategic activities

• Developing new Carbon Trust services eg, carbon
  management carbon labelling of products
• Developing our understanding of how policy
  interventions impact on markets eg renewables
  support options EU Emissions Trading Scheme
• Working to inform Government about policy
  options, effectiveness and impacts eg our low
  carbon buildings strategy
• Working with leading companies (eg, Boots,
  Pepsi-Co, etc) to share insights on the pathways
  to a low carbon economy.

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Overview

• The Carbon Trust
• a unique delivery model
• Five complementary business areas
• Insights informing policy and market
  development
• Solutions helping to reduce emissions now
• Innovations support for new and emerging
  technologies and start up companies
• Enterprises exploiting new low carbon business
  opportunities
• Investments financing low-carbon technology
  businesses with commercial promise.

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Solutions deliver CO2 and cost savings
Large
Medium
Small
Users

• Deep relationship with flexible service offering
• 50/50 funding

• Direct on-site interventions using standard
  products

• Remote provision of lower cost services to mass
  market

Engagement
Customer energy bill

• gt 3m

• 50k 3m

• lt 50k

• Carbon Management
• Detailed Surveys
• Technical Feasibility Studies
• Strategy Policy Development
• Monitoring Targeting
• Awareness and Training
• Innovative pilots

• Site Surveys
• Technical Advice
• Helpline
• Website

• Helpline
• Website
• Publications
• Loans

Products Offered
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Carbon Management

• The Boots Group is the UKs leading high street
  chemist. Energy bill 30M pa
• Carbon management helped Boots align carbon and
  energy management with corporate objectives
• Site surveys underpinned a 10 year carbon
  management strategy which
  is now being implemented
• Cost saving opportunities worth
  1 - 2M and CO2 reduction of
• over 10,000 tonnes.

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Interest free loans for energy
efficiency projects

• For business
• over 1350 organisations have received
  interest-free loan offers so far worth 44M
  towards a total of 74m in energy-saving
  projects
• 135ktonnes pa CO2 emissions abated 18m pa saved
  in fuel costs so far.
• For the public sector
• a separate interest free loan scheme exists,
  operated by Salix (an arms length company set up
  by Carbon Trust).

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Energy efficiency loan case study

• Glass manufacturer Aaronson Noon, employing only
  9 staff had an annual energy bill of approx 49K
• A 15K loan helped  Aaronson Noon purchase a new
  furnaces CO2 savings 100 tonnes pa energy
  savings 11K pa
• Adam Aaronson said, The Carbon Trust made it
  very straightforward for us to re-engineer one of
  our key business processes. The loan
  has made a dramatic impact on our
  energy costs and also improved our
  production economics. 

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Enhanced Capital Allowances Scheme

• Government scheme promoted by Carbon Trust to
  encourage energy saving investments in business
• Provides 100 capital allowances against taxable
  income (instead of a 25 write down over 4
  years)
• Carbon Trust manages the Energy Technology List
  of eligible energy efficient products eg
  boilers, co-generation, pipework insulation
  solar thermal panels, controls, etc - gt10,000
  products
• Product testing undertaken annually to maintain
  scheme integrity
• Details at www.eca.gov.uk

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Overview

• The Carbon Trust
• a unique delivery model
• Five complementary business areas
• Insights informing policy and market
  development
• Solutions helping to reduce emissions now
• Innovations support for new and emerging
  technologies and start up companies
• Enterprises exploiting new low carbon business
  opportunities
• Investments financing low-carbon technology
  businesses with commercial promise.

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Innovations

• Addresses
• Technological risk via RD support and research
  accelerators
• Market, regulatory and unfamiliarity risk via
  technology accelerators
• Commercial and business risk via incubators.

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RD support

• Open call to invite proposals for consideration
• 40-60 support for approved projects
• projects must have potential for commercial
  application
• current portfolio of about 140 live projects
• Research accelerators
• pro-active approach which targets emerging
  technologies where Carbon Trust can be effective
• catalyses formation of business and research
  consortia to commercialise RD
• focuses significant public-private resource at
  early stage RD ie 5-10M over 3-5 years

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Technology Accelerators address key market
barriers

• Taking a strategic, directed approach to
  encourage
• development of new low carbon technologies
• adoption of existing low carbon technologies.
• Common barriers addressed include
• economic (e.g. uncertainty over future costs)
• technical (e.g. unproven performance)
• regulatory (e.g. insufficient incentives)
• information (e.g. lack of end user awareness)

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The Technology Accelerator portfolio
Marine Energy Challenge (2004-05)
Micro-CHP (2004-08)
Biomass Heat (2006-10)
Small-scale Wind
Marine Energy Accelerator 2007-
Investment Case
Project Delivery
Maximise Impact
Scoping Study
CURRENT PORTFOLIO
Offshore Wind
Industrial Energy Efficiency
Advanced Metering (2004-07)
Low-carbonBuildings (2004-09)
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Our incubators help emerging low carbon companies
become commercial

• 46 companies supported of which 12 have
  incubated
• 20 have raised private investment
• Carbon Trust has invested in 4
• 3 have listed on the Alternative Investment
  Market in London (AIM)
• Over 24m private funding raised (excluding AIM
  listings)
• 3 licence agreements put in place
• 18 of those incubated have also received Carbon
  Trust RD funding
• 2 have taken part in our Technology Accelerators.

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Overview

• The Carbon Trust
• a unique delivery model
• Five complementary business areas
• Insights informing policy and market
  development
• Solutions helping to reduce emissions now
• Innovations support for new and emerging
  technologies and start up companies
• Enterprises exploiting new low carbon business
  opportunities
• Investments financing low-carbon technology
  businesses with commercial promise.

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Enterprises creating new low carbon ventures

• Connective Energy
• Joint venture with Doosan Babcock Energy Ltd and
  Triodos Bank
• Waste heat business1bn a year UK market 2MtC
  savings potential

• Insource Energy Ltd
• Joint venture with Scottish Southern Energy
  plc
• Enables businesses to outsource waste to energy
  processes and win financial and carbon savings.

• Partnerships for Renewables under development
• 10m seed funding from UK Govt to develop and
  manage on-site renewable energy projects for
  public sector bodies
• 3 GW market potential 0.2MtC pa savings.

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Overview

• The Carbon Trust
• a unique delivery model
• Five complementary business areas
• Insights informing policy and market
  development
• Solutions helping to reduce emissions now
• Innovations support for new and emerging
  technologies and start up companies
• Enterprises exploiting new low carbon business
  opportunities
• Investments financing low-carbon technology
  businesses with commercial promise.

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Carbon Trust Investments

• finances low carbon enterprises with commercial
  potential
• delivers commercial returns encouraging others
  to invest.

• Portfolio currently comprises nine investments
  totalling 76M of which Carbon Trust stake is
  gt7M two companies are now listed on the
  Alternative Investment Market
• In 2006/07, Carbon Trust set up
• 2m Low Carbon Seed Fund in partnership with
  Imperial Innovations Limited and co-funded by the
  Shell Foundation, providing up to 250,000
  investments in individual low carbon businesses
• CT Investment Partners LLP as a separate
  Financial Services Authority regulated business.

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Carbon Trust Investment Portfolio

Innovative Building Materials Co-lead
Investor
SOFC Fuel Cell Co-lead Investor
Biomass CHP Lead Investor
Heliswirl
Biomimetic Fluid Flow Lead Investor


Fuel cell component Lead Investor
Concentrated PV Solar Lead Investor
Marine Energy Convertor Co-Investor
Mixed Reactant Fuel Cell Co-lead Investor
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Closing remarks

• Our programmes and initiatives, and those of
  other countries, are a small start down a long
  and uncertain road to a low carbon economy
• The scale of the climate change challenge
  (mitigation and adaptation) is unprecedented in
  human existence
• We have a long way to go to achieve a scale of
  global response which is commensurate with the
  scale of the challenge
• Time, according to the international scientific
  consensus, is running out.

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For further details of the Carbon Trust and our
work you are invited to look at our website
www.carbontrust.co.uk