Net zero risk register

Risk Title and Description

Challenges to reduce City Council Scope 1 direct emissions from owned sources (fuel consumption and company vehicles).

Service: Net Zero & Business

Date identified: 15 June 2022

Owner: Net Zero Project Manager

Target implementation date: 2030

Potential Causes:

• Inability to plan for net zero due to uncertainty of assets disposal
• Lack of financial resources to make changes within each service area
• Lack of full funding and/or match funding where business case is not viable
• Lack of asset condition data and investment audits and associated funding
• Funding packages do not fit with City Council's Strategic Priorities or eligibility match
• Lack of capacity in managing external funding bids and delivery of multiple projects
• Increasing temperatures result in reduced heating and therefore show decline in emissions but mask lack of efficiency
• Lack of investment and maintenance of corporate estate drives up costs of decarbonisation projects
• Lack of specialist vehicle availability for electrification of fleet
• Local Distribution Network Operator (National Grid) grid constraints restrict ability to support supply needed to facilitate decarbonisation

Potential Impacts:

• Backlog of project and capacity (financial and skills) to deliver decarbonisation measures
• Innovative projects not able to progress with low feasibility or asset uncertainty
• Net Zero measures rely on external / internal funding
• City Council unable to achieve net zero by 2030 due to cost and capacity

Existing Mitigations & Control

What has been done to control the risk?

• Potential sources of funding from sources such as MHCLG (PSDS), Sport England, Museum Estate And Development Fund (MEND) and internal invest to save opportunity is routinely investigated and prepared for
• Investment grade decarbonisation audits carried out on a priority basis, to establish measures needed and cost, to target available grants
• Regular discussions with other local public organisations to evaluate joint funding bids
• Development of a comprehensive business case when viable
• Engagement with Procurement to better plan for project delivery
• BMS in place to provide better data monitoring and controls
• A wide range of housing measures to reduce emissions from domestic housing stock is supported by better data and a range of effective measures around energy efficiency and fabric first approach to enable grant security
• Water Lane Solar Farm battery storage in place, directly connected to EV charging infrastructure to support full electrification of fleet where viable
• Electric Refuse Collection Vehicles, vans and pool cars in operation
• City Heat Network in development with potential to connect some ECC buildings
• Evaluation of alternative fuel for fleet vehicles as potential interim fuel option due to lack of specialist vehicles and high EV leasing costs

Further Mitigations & Controls to be put into place

• Continue to monitor and seek funding opportunities and establish business case for viable projects
• Regular discussions with Devon County Council and others to secure funding for Exeter region
• Continue to seek grants to fund decarbonisation measures needed to tackle high consumption buildings
• Greater asset management capacity to deliver energy efficiency to be sought
• Continue to investigate leasing options and availability of alternative fuels and viable Electric Vehicle solutions, to decarbonise fleet and equipment across all services

Notes

Funding required is limited by scope of grants, and current financial instability including cost of borrowing and Electric Vehicle leasing cost.

Risk scores

Risk scores explained.