NET ZERO 2030 - Water
NETZERO2030Routemap
ContentsForeword 44.3.5.3 R isks and opportunities 504.3.5.4 Consideration of company characteristics 51Introduction 64.3.6 Removal-led pathway 511.1 P reparing the water sector to operate in a net zero economy 74.3.6.1 Insets 521.2 Why the water sector has developed the routemap 84.3.6.2 Offsets 531.3 How to read the net zero routemap 94.3.6.3 K ey areas of uncertainty 584.3.6.4 Cost of implementing the removal-led pathway 584.3.6.5 Risks and opportunities 60What does the 2030 net zero routemap cover? 102.1 O rganisational boundary 114.3.6.6 Consideration of company characteristics 612.2 S cope of emissions 114.3.7 Pathways comparison 622.3 The role of Scotland, Wales and Northern Ireland 114.3.8 Combined pathway 622.4 O ther emissions — chemicals and capital carbon 114.3.8.1 C ost of implementing the indicative combined pathway 642.5 Synergies with the wider UK system 124.3.8.2 T ailoring the pathways – Differences between water companies 664.3.9 Pathways summary 664.3.10 Low-regret options 70Baseline and business as usual trajectory 133.1 Historic emissions 143.2 Baseline — 2018-19 163.2.1 B usiness-as-usual trajectory to 2030 18Defining the pathways to net zero 20Next steps for the sector 715.1 Water UK and water companies 725.2 Supply chain 725.3 Regulators 724.1 The approach 215.4 Government and other stakeholders 734.2 Decarbonisation interventions 225.5 Opportunities where we can enable carbon reductions in the wider UK system 734.2.1 C osts for key interventions 234.2.2 M arginal abatement costs of carbon for the sector 244.3 Sector pathways 28Conclusions 754.3.1 Definitions 29The water sector post 2030 4.3.2 E lectricity procurement and accounting 307.1 Focus on innovation 794.3.2.1 Green electricity accounting 307.2 Emerging opportunities 804.3.2.2 Green gas accounting 304.3.2.3 G reen electricity considerations 31Appendices 824.3.3 Modelling of renewable electricity 31A. Pathways supporting information 4.3.4 D emand-led pathway 33A.1 Technology-led pathway summary of interventions and carbon reduction impact 834.3.4.1 K ey areas of uncertainty 37A.2 Demand-led pathway summary of options and carbon reduction impact 844.3.4.2 C ost of implementing the demand-led pathway 38A.3 Removal-led pathway summary of options and carbon reduction impact 854.3.4.3 R isks and opportunities 41B. Key definitions 864.3.4.4 C onsideration of company characteristics 41C. Net zero routemap and net zero guidance document 874.3.5 Technology-led pathway 42D. Non-cost criteria for decarbonisation option assessment 874.3.5.1 K ey areas of uncertainty 46E. Water sector interdependencies with wider systems 884.3.5.2 C ost of implementing the technology-led pathway 462Water UK Net Zero 2030 RoutemapWater UK Net Zero 2030 Routemap78833
ForewordWhen it was announced last year that the water industry was embarking on creatinga strategy to achieve net-zero carbon emissions by 2030, I was excited to knowthat Ricardo would be playing a key role. Though this was going to be no smalltask, with the water sector ranking as the fourth most energy intensive industry inthe UK, creating a realistic strategy was going to challenge everyone involved.Net-zero isn’t something that any one water or wastewater company can achievealone. Every single organisation will have to work with its peers, with the whole of itssupply chain, with landowners and with its customers. Government and regulatorshave pivotal roles in setting the policy and legislative frameworks to enable andincentivise the transition. Net-zero by 2030 will be a huge team effort.There is critical relationship between climate changeand water resource management, and whateversector you work in, water will play a significant rolein what you do. It was essential that the sector tookthis proactive step that will have substantial positiveimpacts in helping the UK achieve it’s 2050 target.There will be many challenges butalso opportunities and rewards.The industry is a large energy consumer. An obviousway to cut emissions is to accelerate the switchto renewable energy. Many companies will beable to install solar, wind or hydro power capacityalongside their assets. Wastewater companieswill also be able to produce biomethane andinject it into the gas grid or use it in transport.What has been achieved through the hard work,collaboration and innovative thinking, is anambitious and critical strategy that identifies thepathways for UK water companies to build ontheir good work to date and bring their carbonemissions down to the net-zero target.This is an important report, not just for thewater industry, but for all sectors. The climateemergency that we are experiencing aroundthe world, will not go away without strongleadership, innovative ideas and people who careenough to want to make a genuine difference.The work that has been done in developing thisscientifically robust strategy is an indication to otherorganisations and industries of what is possible.I look forward to seeing the water companiesbecome pioneers through their own net-zerojourney, helping other key industry sectorsto understand what can be achieved.Tackling the climate emergency is notthe responsibility of one or two individualgroups - it requires everyone to worktogether, and this plan is one further step tocreating a healthier world for everyone.I have announced Ricardo’s own ambitions forachieving net-zero ambitions by 2030. It is importantto me that, like the water industry, we set an example,and lead from the front, encouraging others to follow.An increasing amount of our business at Ricardois focussed on addressing the challenges ofclimate change and I am delighted that our teamhas been at the forefront of this vital work withthe water industry. We are proud to have workedalongside fellow consultants Mott MacDonald,pooling our technical knowledge and extensiveexperience to drive this valuable plan.Treatment and conveyance of water and wastewaterrequires attention to cut energy demand, resourceconsumption and construction of new infrastructure.That requires innovation in catchment management,working with farmers to reduce raw watercontamination. It calls for the real time tailoring oftreatment by tracking the weather and discharges.Rigorous attention to asset condition and technologyupgrades are needed. Demand must be reducedby tackling leakage and encouraging customers toconsume less – something the companies are alreadyaddressing. Fossil fuels must be phased out. Advancesin water reuse and resource recovery are required.Work is underway to fill some important gaps inthe industry’s knowledge, particularly regardingthe emissions of methane and nitrous oxide fromwastewater treatment. As research and monitoringproduce new data, companies must share it freely,if the industry as a whole is to take timely action.Dave ShemmansCEO, Ricardo PLCNet-zero recognises that some greenhouse gasemissions are inevitable, and these will haveto be removed through carbon sequestration– principally by planting trees and restoringpeatland. Geography and access to land willmake it easier for some companies to do this:long-term partnerships, new carbon marketsand transparent accounting will be essential.All legs of the net-zero journey will be assisted by data.It is essential that the industry accelerates its embraceof the digital revolution to assist its understandingof carbon hot spots, the effects on emissions ofoperational changes, and potential trade-offs –between water companies, and across infrastructuresystems. Digitalisation will be an enabler of net-zero.4Water UK Net Zero 2030 RoutemapWater UK Net Zero 2030 Routemap5Rapid innovation, upscaling and sharing arerequired. The industry’s supply chain needsto be aligned, supported and rewarded toachieve this – consultants, contractors andmanufacturers are mission-critical partners.With this routemap, Water UK has blazed a trail – we’reproud of our part with Ricardo in developing it. Othersare eager to study it and learn. The next decade willbe an exciting one as the industry pursues the goal. InSeptember Mott MacDonald was externally certifiedcarbon neutral – as part of the industry’s supply chainwe are playing our part. But our biggest contributionwill be in helping our clients – in September we werereaccredited to PAS 2080, the international standardfor managing infrastructure carbon by workingtogether with others. We look forward to assisting theindustry and in celebrating its achievement in 2030.Mike HaighExecutive Chair, Mott MacDonald Group
1.1 Preparing the water sector tooperate in a net zero economyIn 2019, the UK Government and the devolved administrations committed to the net zeronational target as recommended by the Committee on Climate Change (CCC) and hasamended the Climate Change Act such that the UK now has a target to become net zero by2050. This is in response to the 2016 Paris Agreement's long-term temperature goal to keepthe increase in global average temperature to well below 2 C above pre-industrial levels; andto pursue efforts to limit the increase to 1.5 C to avoid the worst effects of climate change.1With the importance of climate change in mindthe water sector are working collaboratively toachieve decarbonisation that will have a lastingimpact on UK emissions and make an importantcontribution to and play its part in the achievementof the UK Government target by 2050. This will alsoassist in protecting the water supply for customersagainst the risks posed by climate change overthe longer term and in managing the risk ofincreased flooding resulting from climate change.IntroductionAs part of their April 2019 Public Interest Commitment(PIC), English water companies made thecommitment to achieve net zero carbon emissionsfor the sector by 2030. The water industry is thefirst sector in the UK to commit to net zero carbonemissions by 2030. The 2030 target will not simplydemonstrate that the water sector is taking its roleseriously. It will also serve to provide leadershipin the delivery of a net zero UK economy.The devolved administrations of Scotland, Walesand Northern Ireland are working to similar longterm targets for emissions reduction. Scottish Waterhas committed to becoming net zero by 2040 foroperational and investment emissions and supportthe 2030 operational emissions goals in the PIC.Northern Ireland Water has the goal to fully exploitinnovative approaches to energy and new technologyto reduce its carbon footprint and ultimately becomecarbon neutral. Welsh Water has not yet declareda net zero commitment but is likely to align to theWelsh Government’s net zero target by 2050.The water sector has been calculating its greenhousegas (GHG) emissions for over a decade and hasachieved significant GHG reductions to date.However, it still accounts for almost a third ofUK industrial and waste process emissions. Itscontribution to the national emissions by 2050 is likelyto increase, given the difficulty of decarbonisingprocess emissions. Therefore, addressing the sector’semissions now can make an important contributionto the national net zero target by 2050, which isnecessary to help stabilise the climate system toless than 1.5 C increase by the end of the century.Moreover, showing leadership by taking action willnot only address the sector’s carbon emissions,but also encourage others to do the same.Net zero by 2030 means that thewater sector will need to: Reduce current operational GHG emissions asmuch as possible through the use of efficiencyinterventions and alternative technologies, Use renewable energy generation andbioresources, exporting energy and fuels suchas biomethane into the wider UK system Remove any residual emissionsthrough contributing to the UK’s naturalsequestration efforts, especially throughinterventions such as peatland andgrassland restoration and tree planting. To achieve net zero, any residual emissions willbe addressed through offsets. The preferredroute will be UK offsets, though global offsetsmay be required. Government policy toencourage the UK offsets market will assist watercompanies in being able to offset in the UK.In addition, the water sector is considering howother sources of emissions that they have a degreeof influence over may be targeted post-2030 andhow to consider other emerging technologiesand more transformational innovations still underdevelopment, such as hydrogen and large scaledigital solutions applied at catchment level to optimisecarbon emissions associated with wastewater,wholesome water energy consumptions anddemand and process emissions1, among others.The water sector has already started workingtowards the UK carbon net zero goal with manyprogrammes and initiatives in place. These include: A large investment in renewable energy generationhas taken place over the last 30 years and hasbeen maximising use of biogas and biomethane. Building on a reduction in leakage of a thirdsince the 1990s, water companies in Englandhave committed to triple the rate of leakagereduction to 2030 as part of the PIC and are1. UK digital twin programme gital-twin-programme)6Water UK Net Zero 2030 RoutemapWater UK Net Zero 2030 Routemap7
delivering plans to reduce by a fifth the averageamount of water used per person by 2050.This will significantly reduce the carbon andenergy used by the sector and households. The water and wastewater industry in Englandagreed the PIC in April 2019, strengthening theirongoing commitment to work in the public interestand place wider good at the heart of everythingthey do. The companies agreed a series of pledgeswhich complement their individual businessplans by showing leadership at a national level. The sector will champion interventions throughwhich water companies can integrate whatit means to operate in the public interestwithin their business purpose, in line with bestpr
commitment to achieve net zero carbon emissions for the sector by 2030. The water industry is the first sector in the UK to commit to net zero carbon emissions by 2030. The 2030 target will not simply demonstrate that the water sector is taking its role seriously. It will also serve to provide leadership in the delivery of a net zero UK economy.
The Net-Zero riteria are part of the STi’s Net-Zero Standard. The Net-Zero Standard, which entails both the Criteria and forthcoming Net-Zero Guidance, will be finalized by November 2021 in advance of the 2021 United Nations Climate Change Conference (COP26). Public consultation of the Net-Zero Guidance is scheduled to begin in July 2021.
List of Figures, Tables and Boxes Figures 2 Figure S1 Overview of the key nuances of net-zero target implementation approaches 5 Figure S2 Ten basic criteria for net-zero target transparency 14 Figure 1 Internet searches for net-zero emissions 15 Figure 2 Map of cities and regions pursuing net-zero emissions 16 Figure 3 Population of cities and regions with net-zero targets, by geographic region
emissions ('net zero emissions') has grown, so has the need for a common understanding on what net zero emissions means and how to achieve net zero goals. Investors are also putting pressure on companies to lay out their plans for reaching net zero emissions and to demonstrate how net zero pathways are integrated into their long-term strategy.4
Net zero by 2050 hinges on an unprecedented clean technology push to 2030 The path to net-zero emissions is narrow: staying on it requires immediate and massive deployment of all available clean and efficient energy technologies. In the net-zero emissions pathway presented in this report, the world economy in 2030 is some 40%
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China net zero and job creation: Potential for the creation of c.40 mn jobs by 2060 33 Laying out the path to a net zero China: A sectoral deep dive 34 China net zero: The role of carbon sequestration 61 China net zero: The potential implications for natural resources demand 64
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