Decision details

Proposed decision

Adopt the Energy Efficiency Plan for KCC’s estate and operations to support our environmental goals (and replace the existing Net Zero 2030 Plan).

Reason for the decision

-      KCC’s Net Zero 2030 target is unattainable and is not deemed to represent best value for money for Kent residents.

Background – Provide brief additional context

-      Efforts to reduce KCC’s emissions have afforded the Council numerous financial benefits over the last five years, including:

o    Generated close to £9million in savings from fuel and utility bills.

o    Attracted more than £24million of external funding to improve the efficiency of our estate.

o    Generated more than £2million revenue from our two solar farms.

-      Projects are becoming incrementally more challenging to deliver, especially in the context of reductions in government funding support.

-      Subsequently, KCC’s Net Zero 2030 Plan and target is unattainable and presents the Council with financial and operational risks.

-      A new plan and approach are required that enables a flexible, pragmatic and value for money approach to be taken to energy efficiency measures across the estate and operations.

Options Considered

Option 1 - Retain KCC’s Existing Net Zero 2030 Plan and target. The 2030 target for KCC’s estate and operations is unattainable and presents the Council with financial and operational risk. Meeting the 2030 target would require considerable investment over the next five years that is not fully supported by return on investment or best value for money requirements and additionally would commit the Council to paying for ‘carbon offsetting’ on an indefinite basis. 

Option 2 - Rescind KCC’s 2030 Net Zero Plan and target. Rescinding the organisational Net Zero Plan would mean forfeiting a wide range of financial, health, and environmental benefits for both the Council and the people of Kent. It also introduces risk by limiting opportunities to explore efficiencies, reduce costs, apply for funding, and improve resilience across KCC’s estate and operations.

Option 3 - proposal - Replace KCC’s Net Zero 2030 Plan and targets by adopting the proposed Energy Efficiency Plan. In addition to the above (Option 2), the proposed energy efficiency plan offers a balanced approach allowing KCC to continue to modernise assets, explore financial opportunities and efficiencies alongside reducing its emissions and providing additional health and environmental benefits to the people of Kent.

How the proposed decision supports the KCC Strategic Statement

This proposal is aligned with the direction of the emerging 'Reforming Kent' agenda

-      to develop an energy efficiency plan which focuses on financial returns and investigates opportunities to create additional revenue streams alongside supporting wider environmental benefits.

-      Creating meaningful value for the Council and Kent residents by using time, money and resources wisely

-      Delivering savings through ‘Best Value’ opportunities

Financial Implications

Any requests for funding to deliver actions in the energy efficiency plan will be considered alongside robust business cases.

The proposed approach organises projects into different phases to enable ‘project by project’ development and decision. This approach will allow more accurate ‘project by project’ costs to be developed and deployed at the right time and provide flexibility in delivery.

Calculating overall cost at the outset is complicated due to changes in market conditions, what new technology may be needed and its availability and affordability and whether projects can be part funded through government grants.

Currently there are no financial penalties or levies for non-compliance with Net Zero 2030 and 2050 targets but that could change in the future.

Individual decisions arising from the plan will be subject to their own governance processes and future Key Decisions

As Cabinet Member for (the Kent) Environment, I agree to:  

(i)       ADOPT the Energy Efficiency Plan for KCC’s estate and operations to support our environmental goals (and replace the existing Net Zero 2030 Plan)

(ii)       DELEGATE authority to the Corporate Director of Growth, Environment and Transport in consultation with the Cabinet Member for (the Kent) Environment to refresh and/or make revisions to the Plan as appropriate during the lifetime of the plan