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Economic Assessment Through Marginal Abatement Cost Curves Annex D - Construction Waste Report December 2012
Report Prepared by Matthew Fishwick and Anton van Santen
For and on behalf of Environmental Resources Management Approved by: Simon Aumônier ___________ Signed: ________________________________ Position: Partner ________________________ Date: December 2012 ____________________
This report has been prepared by Environmental Resources Management the trading name of Environmental Resources Management Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk.
ENVIRONMENTAL RESOURCES MANAGEMENT DEFRA
D1
This annex report has been prepared by Environmental Resources Management Limited (ERM) as part of Defra’s evidence programme in preparing the Waste Prevention Plan for England. It presents an initial assessment of alternative actions aimed at increasing waste prevention, including re-use and preparation for re-use, of construction wastes in terms of their economic performance. Information is provided on the potential carbon and waste savings, and the associated financial and economic costs (or savings), of the alternative actions considered. This is presented in the form of a marginal abatement cost (MAC) curves. The assessment draws on a wide range of data and assumptions sourced largely from published and on-going WRAP studies, published secondary sources and personal communication with industry experts. Where data has been lacking, best estimates and professional judgement has been used to enable an initial assessment. The results presented are indicative of the relative order magnitude of the potential savings and come with the following caveat:
“The information displayed is an indicative estimate based on a number of assumptions. While the scale of the effect is likely to be reflective of the real world situation, no accuracy should be ascribed to the numbers given. Data provided is the best available at the time of publication and may be superseded by more accurate or representative data in future, should this become available.”
ERM acknowledges the support of WRAP experts and the Defra project steering group under the chairmanship of Professor David Wilson in guiding this work.
ENVIRONMENTAL RESOURCES MANAGEMENT DEFRA
D2
D1 CONSTRUCTION WASTE
This Annex provides details and analysis of actions considered for the prevention and re-use of wastes from construction. The data and information is provided in the following tables and figures: Table 1 – construction action matrix, which maps each method of
implementation (MOI) to technical potential (labelled A to D) and lifecycle stage (1 to 6). This is the key mapping table.
Table 2 – construction action list and descriptions, provides a detailed description of each technical potential (TP) and associated MOIs
Figure 1 – MAC curve for waste: Cost (annualised £/tonne waste saved) plotted against waste tonnage saved by each MOI (negative MAC values represent savings).
Table 3 – MAC curve details for waste, provides the data behind the MAC curve, with MOIs ranked by MAC value
Figure 2–MAC curve for overall carbon savings (CO2e): Cost (annualised £/tonne carbon saved) plotted against overall tonnage carbon saved (negative MAC values represent savings).
Table 4 – MAC curve details of overall carbon, with MOIs ranked by MAC value.
Table 5 – Overall summary of the data and the overall annualised cost (saving) resulting from each action.
Table 6 – Interaction matrix, provides the assumed percentage interaction between the actions and consequent percentage change in waste reduction achieved by each action.
The information in the tables and figures is an indicative estimate based on a number of assumptions. While the scale of the effect is likely to be reflective of the real world situation, no accuracy should be ascribed to the numbers given. Data provided is the best available at the time of publication and may be superseded by more accurate or representative data in future, should this become available.
The Annex concludes with a discussion of the key points arising from the analysis. This indicates that the actions considered in this assessment deliver an annualised resource efficiency and waste saving of 17 million tonnes with a cost saving of £5100 million. This represents some 40% of the annual construction waste arising. 50% of the indicated resource saving is as a result of diverse waste prevention and re-use actions aimed at the construction phase, with action to increase landfill tax, ban the landfilling of soils and the introduction of standards for sustainable construction and design offering the greatest potentials.
Table D1 Constriction Action matrix Life cycle stage A B C D Lean design Design for deconstruction and
refurbishment Waste reduction in construction process Waste reduction in supply chain
1 Design Increase lean practice in construction design through support materials, eg guidance, toolkits, training, achieves 3% material consumption reduction (MOI_A1a). Increase lean design, eg through demonstration projects and dissemination of good practice guidance, achieves 3% material consumption reduction (MOI_A1b). Increase lean design through the safe minimisation of materials, eg through materials testing and good practice guidance, achieves 6% material consumption reduction (MOI_A1c). Reduce soil waste, eg by amending environmental permitting legislation to ban the disposal of soil to landfill, achieves 80% reduction in soil waste (MOI_A1d). Promote lean design, eg through voluntary agreement, achieves 3% reduction in construction waste (MOI_A1f).
Increase design for deconstruction through support materials, eg guidance, toolkits, training, achieves 3.6% material saving in year 10 and 1.3% overall (MOI_B1a). Increase design for deconstruction, eg through demonstration projects, achieves 3.6% material saving in year 10 and 1.3% saving overall (MOI_B1b).
2 Materials manufacture
Reduce waste in the manufacture of construction materials, eg through industrial symbiosis and business clubs, achieves 3% reduction in construction waste (MOI_A2a).
Life cycle stage A B C D Lean design Design for deconstruction and
refurbishment Waste reduction in construction process Waste reduction in supply chain
3 Materials distribution
Reduce supply chain waste by reducing transit damage, eg through good practice guidance, achieves 1% overall reduction (MOI_D3a). Reduce packaging waste in the supply chain through promotion of reusable packaging, achieves 1.7% overall reduction in construction waste (MOI_D3b).
4 Supply chain procurement
Reduce construction waste at build phase, eg through offsite construction and modular buildings, achieves 6% reduction in construction waste (MOI_C4a).
Reduce waste at supply chain interfaces through support materials, eg leaflets, toolkits, training, achieves 0.5% material consumption reduction (MOI_D4a). Increase waste prevention in the supply chain, eg through buying standards, achieves 10% reduction in waste (MOI_D4b). Increase lean practice in the supply chain through support materials, eg toolkits, training, achieves 3% material saving (MOI_D4c).
5 Primary use phase - Construction
Increase refurbishment/repair through financial incentives, eg by removing VAT differential versus new build, achieves 3% material saving (MOI_B5a).
Reduce construction waste at build phase through support materials, eg leaflets/toolkits/ training sessions, achieves 2.5% construction waste reduction (MOI_C5a). Reduce construction waste at build phase, eg through the introduction of a standard for sustainable construction, achieves 10% reduction in construction waste (MOI_C5b). Reduce construction waste at build phase, eg through the introduction of a voluntary agreement, achieves 2.5% reduction in construction waste (MOI_C5c).
6 Secondary use phase – use in buildings / infrastructure
Reduce need for new construction, eg by leasing vacant commercial and industrial buildings (MOI_B6a).
Life cycle stage A B C D Lean design Design for deconstruction and
refurbishment Waste reduction in construction process Waste reduction in supply chain
Reduce construction waste at build phase through increase in the rate of landfill tax for CD&E waste, achieves 60% reduction in waste to landfill (MOI_C5d). Reduce construction waste at build phase, eg through obligation on construction businesses to report waste arisings, achieves 0.5% reduction (MOI_C5e).
Table D2 Construction Action list and descriptions Action Action Name Action Detailed description Waste
Stream 23 TP_A Technical Potential of Lean
Design in reducing waste Technical potential of reducing 60% of construction waste is achieved through lean design to reduce the overall consumption of materials and their associated wastage rates (TP_A).
Total construction and demolition waste in 2010 in England = 47,356,000 tonnes of which some 50% is estimated to arise during construction. Waste reduction at the design stage is estimated to have potential to reduce overall consumption of materials by 60% (WRAP estimate). Examples of actions that will contribute to achieving this potential include campaigns to demonstrate the benefits of lean design, encouraging industrial symbiosis and establishing a voluntary agreement between construction companies.
C&D Construction Manufacture Prevention
1 MOI_A1a Increase lean practice in construction design through support programme
Increase lean practice in construction design through support materials, eg guidance, toolkits, training, achieves 3% material consumption reduction (MOI_A1a).
Increase adoption of lean design principles at the design stage through action with the construction industry to develop a range of support materials (guidance/leaflets/ toolkits/training sessions, etc). The effectiveness of engaging construction industry is 5%. Potential for lean design is 60%, hence overall reduction of 3% in material consumption is achievable. Cost of action is based on a single message integrated national education campaign - £5m over 10 years (shared between public and private sectors).
C&D Construction Manufacture Prevention
2 MOI_A1b Increase lean design through demonstration projects at the design stage
Increase lean design, eg through demonstration projects and dissemination of good practice guidance, achieves 3% material consumption reduction (MOI_A1b).
Increase lean design through action with the construction industry to create demonstration projects, good practice guidance and case studies to demonstrate the benefits of lean design. The effectiveness of engaging construction industry is 5%. Potential for lean design is 60%, hence overall reduction of 3% is achievable. Cost of action is based on undertaking 50 demonstration projects with four public sector-funded FTEs and one private sector FTE required for the entire 10 years of implementation.
C&D Construction Manufacture Prevention
3 MOI_A1c Increase lean design through guidance on safe minimisation of materials
Increase lean design through the safe minimisation of materials, eg through materials testing and good practice guidance, achieves 6% material consumption reduction (MOI_A1c).
Increase lean design through further materials testing and dissemination of revised guidance. The uptake in use of minimised materials/alternatives by construction firms assumed to be 10%. Potential for lean design is 60%, hence overall reduction of 6% is achievable. Cost of action is based on research programme of £500,000 per year for first three years and on-going costs of £100,000 per year after development. Materials testing costs estimated at £200,000 per year for the first three years.
C&D Construction Manufacture Prevention
4 MOI_A1d Amend environmental permitting legislation to ban landfilling soil
Reduce soil waste, eg by amending environmental permitting legislation to ban the disposal of soil to landfill, achieves 80% reduction in soil waste
Reduce soil waste by amending environmental permitting legislation to ban the landfilling of soil and ensure that it is treated as a resource rather than a waste and is only discarded in exceptional situations. It is assumed that 20% of soil will be too contaminated to be used and will be disposed to landfill therefore
C&D Construction Manufacture Prevention
Action Action Name Action Detailed description Waste Stream
(MOI_A1d). only 80% of soil waste will be prevented. No cost is associated with this action.
5 MOI_A1e Introduce standard for sustainable construction to promote lean design
Promote lean design, eg by developing standard for sustainable construction, achieves 15% reduction in construction waste (MOI_A1e).
Promote lean design through action with industry to develop and promote standard for sustainable construction, to include specific lean design actions as mandatory. Action assumed to result in 15% waste reduction. Cost of action is based on one public sector FTE and two private sector FTEs.
C&D Construction Manufacture Prevention
6 MOI_A1f Introduce voluntary agreement to promote lean design
Promote lean design, eg through voluntary agreement, achieves 3% reduction in construction waste (MOI_A1f).
Promote lean design through action with industry to develop and promote voluntary agreement for sustainable construction. A technical potential of lean design in reducing waste is set at 60%, however, a voluntary agreement will only encourage certain realistic lean design actions, resulting in a reduction in waste of 3%. It is assumed 50% of the construction industry will sign up to the voluntary agreement. Cost of action is based on one public sector FTE and two private sector FTEs, required for first three years.
C&D Construction Manufacture Prevention
7 MOI_A2a Reduce construction waste through knowledge sharing
Reduce waste in the manufacture of construction materials, eg through industrial symbiosis and business clubs, achieves 3% reduction in construction waste (MOI_A2a).
Reduce waste in the manufacture of construction materials, through action with industry to promote industrial symbiosis and knowledge sharing through waste minimisation clubs and mentoring networks. NISP estimate the potential for waste prevention from industrial symbiosis is 7m tonnes in England. Cost of action is based on one public sector FTE and one private sector FTE, required for first three years.
C&D Construction Manufacture Prevention
TP_B Technical Potential of Design for Deconstruction in reducing waste
Technical potential of design for deconstruction and refurbishment to reduce demolition waste (TP_B).
Design for deconstruction and refurbishment uses design to enable materials to be more easily recovered and reused from a building at end of life. Potential for waste reduction is 60% (WRAP estimate). Examples of actions that will contribute to achieving this potential include demonstration projects and toolkits to demonstrate the benefits of design for deconstruction.
C&D Construction Manufacture Prevention
8 MOI_B1a Increase design for deconstruction through support programme
Increase design for deconstruction through support materials, eg guidance, toolkits, training, achieves 3.6% material saving in year 10 and 1.3% overall (MOI_B1a).
Increase adoption of design for deconstruction principles at the design stage through action with industry to develop a range of support materials (guidance/leaflets/toolkits/training sessions etc). A technical potential of design for deconstruction in reducing waste is 60%. Cost of action is based on single message integrated national campaign - £5m over 10 years (shared between public and private sectors). The effectiveness in engaging construction industry with action is 5%. Action assumed to impact in Year 5 following decisions in previous years and achieves 3.6% waste saving in year 10 and 1.3% saving overall.
C&D Construction Use phase Re-use
Action Action Name Action Detailed description Waste Stream
9 MOI_B1b Increase design for deconstruction through demonstration programme
Increase design for deconstruction, eg through demonstration projects, achieves 3.6% material saving in year 10 and 1.3% saving overall (MOI_B1b).
Increase design for deconstruction through action with industry to create demonstration projects, good practice guidance and case studies to increase industry uptake of design for deconstruction in building construction. The effectiveness of engaging construction industry is 5%. Action assumed to impact in Year 5 following decisions in previous years. Results in 3.6% material saving in year 10 and 1.3% saving overall. Cost of action is based on 50 demonstration projects with four public sector-funded FTEs and one private sector FTE required for the entire ten years of implementation.
C&D Construction Use phase Re-use
10 MOI_B5a Encourage refurbishment/ repair by reducing VAT rates versus new build
Increase refurbishment/repair through financial incentives, eg by removing VAT differential versus new build, achieves 3% material saving (MOI_B5a).
Increase refurbishment/repair through action by Government to introduce financial incentives to reduce demolition for rebuild with resulting prevention of waste eg by reducing VAT differential. The technical potential of refurbishing properties rather than demolishing and rebuild is set at 60%. Secondary impacts and loss of Treasury income excluded.
C&D Construction Use phase Re-use
11 MOI_B6a Shift towards a service-based economy - leasing rather than ownership
Reduce need for new construction, eg by leasing vacant commercial and industrial buildings (MOI_B6a).
Reduce need for new construction through action by Government to introduce programme to optimise use of existing building stock by requiring vacant buildings to be made available on a 'leasing rather than ownership' arrangement. Action results in 1% of 55,000 vacant commercial and industrial properties in England being made available for use. Cost of action is based on five FTEs to manage process of building stock optimisation.
C&D Construction Use phase Re-use
25 TP_C Technical Potential of waste reduction in construction process
Technical potential of reducing 50% of construction waste created during build phase (TP_C).
Actions that will contribute to achieving technical potential include increasing promotion of offsite construction, landfill tax rates for CD&E waste and development of standards for construction that include reference to waste reduction and encouraging re-use of materials.
C&D Construction Manufacture Prevention
12 MOI_C4a Reduce construction waste through modular building
Reduce construction waste at build phase, eg through offsite construction and modular buildings, achieves 6% reduction in construction waste (MOI_C4a).
Reduce construction waste created onsite and achieve greater material efficiency and re-use potential through off-site construction. Cost of action is based on a three year programme (cost-shared with industry) to develop and disseminate good practice guidance and case study materials to promote shift towards offsite construction and modular building. Technical potential for waste reduction is 60%, however it is assumed that only a 10% shift to modular building is possible given public perception, suitability and availability.
C&D Construction Use phase Prevention
13 MOI_C5a Reduce waste in construction process through support programme.
Reduce construction waste at build phase through support materials, eg leaflets/toolkits/ training sessions, achieves 2.5% construction waste reduction (MOI_C5a).
Reduce construction waste at build phase through action with the construction industry to identify need for and development of further support materials (leaflets/toolkits/training sessions etc) on construction waste reduction. Effectiveness of engaging construction industry supply chain is 5%. Cost of action is based on single message integrated national education campaign - £5m
C&D Construction Use phase Prevention
Action Action Name Action Detailed description Waste Stream
over 10 years (shared between public and private sectors).
14 MOI_C5b Introduce standards for sustainable construction
Reduce construction waste at build phase, eg through the introduction of a standard for sustainable construction, achieves 10% reduction in construction waste (MOI_C5b).
Reduce construction waste at build phase through action with industry to develop and promote standard for waste reduction in construction processes for buildings and infrastructure. Technical potential of waste reduction in the construction process is 50%; however, a standard for sustainable construction will only make specific realistic actions mandatory, resulting in a reduction in waste of 10%. Cost of action is based on one public sector FTE and two private sector FTEs, required for one year.
C&D Construction Use phase Prevention
15 MOI_C5c Introduce voluntary agreement to promote waste reduction in the construction process
Reduce construction waste at build phase, eg through the introduction of a voluntary agreement, achieves 2.5% reduction in construction waste (MOI_C5c).
Reduce construction waste at build phase through action with industry to develop and promote a voluntary agreement for sustainable construction. Action assumed to achieve additional 5% construction waste saving and 50% of the construction industry sign up to a voluntary agreement. Cost of action is based on one public sector FTE and two private sector FTEs, required for one year.
C&D Construction Use phase Prevention
16 MOI_C5d Increase the landfill tax rate for CD&E waste
Reduce construction waste at build phase through increase in the rate of landfill tax for CD&E waste, achieves 60% reduction in waste to landfill (MOI_C5d).
Reduce construction at the build phase through Government action to increase the rate of landfill tax for CD&E waste to double the current (reduced) rate, resulting in a reduction in waste going to landfill by 60% (Institute for Environmental Studies, 2005). This translates to a 10% increase in re-use and waste minimisation. No cost is associated with this action.
C&D Construction Use phase Re-use
17 MOI_C5e Introduce waste reporting obligation on construction businesses
Reduce construction waste at build phase, eg through obligation on construction businesses to report waste arisings, achieves 0.5% reduction (MOI_C5e).
Reduce construction waste at build phase through action to introduce an obligation on construction companies and suppliers to report the quantity of waste produced in annual reports, websites etc. Measure could be included in Environmental Management Standards. Cost of action is based on one public sector FTE. Costs to construction industry and secondary impacts not included.
C&D Construction Use phase Prevention
TP_D Technical Potential waste reduction in supply chain
Technical potential of reducing 10% of supply chain waste through improvements in supply chain interface (TP_D).
Actions that will contribute to achieving technical potential include bespoke shipping sizes to match requirements, damage reduction in transit and awareness campaigns on the benefits of improving supply chain interfaces or through changing to sustainable procurement procedures.
C&D Construction Manufacture Prevention
18 MOI_D3a Reduce supply chain waste through action on distribution damage and losses
Reduce supply chain waste by reducing transit damage, eg through good practice guidance, achieves 1% overall reduction (MOI_D3a).
Reduce supply chain waste through action with supply chain companies into causes of damage and loses during transit / distribution, including packaging specification and design. Technical potential of reduction of waste in distribution is 10% and 10% reduction is assumed through this action. Cost of action is based on research costs of £150,000 per year plus one public sector FTE
C&D Construction Supply chain Prevention
Action Action Name Action Detailed description Waste Stream
for first three years and on-going cost of half FTE.
19 MOI_D3b Increase reusable packaging to reduce packaging waste
Reduce packaging waste in the supply chain through promotion of reusable packaging, achieves 1.7% overall reduction in construction waste (MOI_D3b).
Reduce packaging waste through action with the supply chain to inform the construction industry on the opportunities and benefits of reusable packaging. Technical potential of reusable packaging in reducing packaging waste is assumed to be 50% (ERM estimate). Cost of action is based on single message integrated education campaign (shared between public and private sectors) and assumed to impact 5% of construction industry by year 5 achieving 1.7% overall
C&D Construction Manufacture Prevention
20 MOI_D4a Reduce waste at supply chain interefaces through support programme
Reduce waste at supply chain interfaces through support materials, eg leaflets, toolkits, training, achieves 0.5% material consumption reduction (MOI_D4a).
Reduce waste at supply chain interfaces through action with the construction industry to identify need for and development of further support materials (leaflets/toolkits/training sessions etc) to inform construction supply chain of waste reduction measures (e.g. bespoke shipping sizes that match requirements). Technical potential saving in supply chain is 10% Cost of action is based on single message integrated national education campaign - £5m over 10 years (shared between public and private sectors) - and assumed to impact 5% of construction industry by year 5, achieving 0.5% overall reduction in material consumption.
C&D Construction Supply chain Prevention
21 MOI_D4b Develop buying standards to increase waste prevention in the supply chain
Increase waste prevention in the supply chain, eg through buying standards, achieves 10% reduction in waste (MOI_D4b).
Increase waste prevention in the supply chain through action with the construction industry to develop buying standards. For example, points could be given in tender assessments to manufacturers that can demonstrate they have minimised waste in their processes. It is assumed that green materials reduce waste by 10%. Cost of action is based on two private sector FTEs required to develop and disseminate standards.
C&D Construction Manufacture Prevention
22 MOI_D4c Increase lean practice in supply chains through support programme
Increase lean practice in the supply chain through support materials, eg toolkits, training, achieves 3% material saving (MOI_D4c).
Increase lean practice in the supply chain through action with industry to develop support materials (leaflets/toolkits/training sessions, etc) to increase use of lean practices in materials procurement and reduce over specification. Potential for lean design is 60%. Cost of action is based on single message integrated national education campaign - £5m over 10 years (shared between public and private sectors) and assumed to impact 5% of construction industry by year 5, achieving overall material saving of 3% is achievable.
C&D Construction Supply chain Prevention
Figure D
D1 Construction MAC curve forr waste
Table D3 Construction MAC curve details for waste
Colour on chart
Action name Action type Life cycle stage
Annualised Cost
(£000s)
Waste saving
(tonnes)
MAC (£/tonne)
Line 13. Reduce waste in construction process through support programme. (MOI_C5a)
Prevention Construction -£240,000 610,000 -390
Line 4. Amend environmental permitting legislation to ban landfilling soil (MOI_A1d)
Prevention Construction -£760,000 2,000,000 -380
Line 10. Encourage refurbishment/repair by reducing VAT rates versus new build (MOI_B5a)
Reuse Construction -£320,000 850,000 -380
Line 17. Introduce waste reporting obligation on construction businesses (MOI_C5e)
Prevention Construction -£37,000 100,000 -370
Line 15. Introduce voluntary agreement to promote waste reduction in the construction process (MOI_C5c)
Prevention Construction -£190,000 500,000 -370
Line 8. Increase design for deconstruction through support programme (MOI_B1a)
Reuse Construction -£110,000 300,000 -370
Line 16. Increase the landfill tax rate for CD&E waste (MOI_C5d) Reuse Construction -£740,000 2,000,000 -370
Line 12. Reduce construction waste through modular building (MOI_C4a) Prevention Construction -£280,000 780,000 -360
Line 14. Introduce standards for sustainable construction (MOI_C5b) Prevention Construction -£510,000 1,400,000 -360
Line 9. Increase design for deconstruction through demonstration programme (MOI_B1b)
Reuse Construction -£100,000 300,000 -340
Line 20. Reduce waste at supply chain interfaces through support programme (MOI_D4a)
Prevention Supply chain -£6,400 25,000 -260
Line 21. Develop buying standards to increase waste prevention in the supply chain (MOI_D4b)
Prevention Supply chain -£12,000 48,000 -250
Line 19. Increase reusable packaging to reduce packaging waste (MOI_D3b)
Prevention Supply chain -£86,000 340,000 -250
Line 22. Increase lean practice in supply chains through support programme (MOI_D4c)
Prevention Supply chain -£150,000 600,000 -250
Line 18. Reduce supply chain waste through action on distribution damage and losses (MOI_D3a)
Prevention Supply chain -£12,000 50,000 -240
Colour on chart
Action name Action type Life cycle stage
Annualised Cost
(£000s)
Waste saving
(tonnes)
MAC (£/tonne)
Line 6. Introduce voluntary agreement to promote lean design (MOI_A1f) Prevention Design -£74,000 340,000 -220
Line 7. Reduce construction waste through knowledge sharing (MOI_A2a)
Prevention Design -£160,000 720,000 -220
Line 5. Introduce standard for sustainable construction to promote lean design (MOI_A1e)
Prevention Design -£640,000 3,400,000 -190
Line 3. Increase lean design through guidance on safe minimisation of materials (MOI_A1c)
Prevention Design -£270,000 1,500,000 -190
Line 2. Increase lean design through demonstration projects at the design stage (MOI_A1b)
Prevention Design -£140,000 730,000 -190
Line 1. Increase lean practice in construction design through support programme (MOI_A1a)
Prevention Design -£140,000 730,000 -190
*Costs and waste savings are annualised over 10 years (ie total net present value or tonnage saving over 10 years divided by 10).. Costs are discounted at 3.5% pa (negative costs are savings)
D1.1 DISCUSSION
The waste savings shown in the MAC curve are cumulative and indicate an annualised potential saving as a result of these actions of 18 million tonnes (a number of MOIs are not discernible on the curve due to their relatively low waste saving). This is against an indicated annual construction waste arising of some 48 million tonnes. Interactions between these actions are considered in Table D6.
The calculated MAC values are grouped essentially into three groups. These are differentiated by the life cycle stage at which the actions impact, with actions impacting in construction having the greatest economic performance (most negative MAC value), reflecting the higher value attributed to construction materials at the point of use (£369/t) compared with the value in the supply chain and in design (£ 221/t and £148/t respectively).
Despite these differences the MAC values are all negative (ie actions are all economically advantageous), indicating that the costs incurred in taking action to prevent or re-use waste are relatively small compared with the potential saving in material and disposal costs.
Regulatory and fiscal actions are indicated as having the largest impact in terms of tonnage saving (Action 16: increase landfill tax; Action 4: amend permitting regulations; and Action 5: introduction of mandatory reporting standards). All other actions indicate broadly similar tonnage savings, largely reflecting the assumptions made.
.
Figure D
D2 Construction MAC curve forr overall carbon
Table D4 Construction MAC curve details for overall carbon
Colour on Chart
Action name Action type Life cycle stage Annualised
Cost (£000s)
Carbon saving
(kg CO2-eq)
MAC (£/t CO2-eq)
Line 10. Encourage refurbishment/repair by reducing VAT rates versus new build (MOI_B5a)
Reuse Construction -£320,000 660,000 -490
Line 8. Increase design for deconstruction through support programme (MOI_B1a)
Reuse Construction -£110,000 230,000 -480
Line 16. Increase the landfill tax rate for CD&E waste (MOI_C5d) Reuse Construction -£740,000 1,600,000 -480
Line 13. Reduce waste in construction process through support programme. (MOI_C5a)
Prevention Construction -£240,000 530,000 -460
Line 4. Amend environmental permitting legislation to ban landfilling soil (MOI_A1d)
Prevention Construction -£760,000 1,700,000 -440
Line 9. Increase design for deconstruction through demonstration progamme (MOI_B1b)
Reuse Construction -£100,000 230,000 -440
Line 17. Introduce waste reporting obligation on construction businesses (MOI_C5e)
Prevention Construction -£37,000 86,000 -430
Line 15. Introduce voluntary agreement to promote waste reduction in the construction process (MOI_C5c)
Prevention Construction -£190,000 430,000 -430
Line 12. Reduce construction waste through modular building (MOI_C4a) Prevention Construction -£280,000 670,000 -420
Line 14. Introduce standards for sustainable construction (MOI_C5b) Prevention Construction -£510,000 1,200,000 -420
Line 20. Reduce waste at supply chain interfaces through support programme (MOI_D4a)
Prevention Supply chain -£6,400 21,000 -300
Line 21. Develop buying standards to increase waste prevention in the supply chain (MOI_D4b)
Prevention Supply chain -£12,000 41,000 -300
Line 19. Increase reusable packaging to reduce packaging waste (MOI_D3b) Prevention Supply chain -£86,000 290,000 -290
Line 22. Increase lean practice in supply chains through support programme (MOI_D4c)
Prevention Supply chain -£150,000 520,000 -290
Line 18. Reduce supply chain waste through action on distribution damage and losses (MOI_D3a)
Prevention Supply chain -£12,000 43,000 -280
Colour on Chart
Action name Action type Life cycle stage Annualised
Cost (£000s)
Carbon saving
(kg CO2-eq)
MAC (£/t CO2-eq)
Line 6. Introduce voluntary agreement to promote lean design (MOI_A1f) Prevention Design -£74,000 290,000 -250
Line 7. Reduce construction waste through knowledge sharing (MOI_A2a) Prevention Design -£160,000 620,000 -250
Line 5. Introduce standard for sustainable construction to promote lean design (MOI_A1e)
Prevention Design -£640,000 2,900,000 -220
Line 3. Increase lean design through guidance on safe minimisation of materials (MOI_A1c)
Prevention Design -£270,000 1,300,000 -220
Line 2. Increase lean design through demonstration projects at the design stage (MOI_A1b)
Prevention Design -£140,000 630,000 -220
Line 1. Increase lean practice in construction design through support programme (MOI_A1a)
Prevention Design -£140,000 630,000 -220
*Costs (value) of carbon savings and amount of carbon savings are annualised over 10 years (ie total net present value or tonnage saving over 10 years divided by 10). Costs are discounted at 3.5% pa (negative costs are savings) D1.2 DISCUSSION
For construction waste, the modelling indicates that carbon and cost savings are broadly proportional to the material weight saving by each action. Reductions in carbon savings due to reduced transport requirements resulting from waste prevention actions have not been included in this high level
analysis. Transport generally has a second order impact compared to the savings in embodied carbon through waste prevention and re-use actions.
Table D5 Construction MAC summary table
Principal actor Beneficiary Actor Annualised cost
Annualised waste saving
Carbon saving MACW MACE
Action ref
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Pri
vate
sec
tor
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Hou
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(£m) (kt) (kt CO₂e)
(£/t waste)
(£/t Carbon)
Technical potential of reducing 60% of construction waste is achieved through lean design to reduce the overall consumption of materials and their associated wastage rates (TP_A).
x x x x -2,800 14,000 12,000 -190 -230
1 Develop support programme to increase lean practice at construction design stage, achieves 3% material consumption reduction (MOI_A1a).
x x x x x -140 730 630 -190 -220
2
Increase lean design through demonstration projects and dissemination of good practice guidance to the construction industry, achieves 3% material consumption reduction (MOI_A1b).
x x x x -140 730 630 -190 -220
3
Develop good practice guidance through research and materials testing on the safe minimisation of materials, achieves 6% material consumption reduction (MOI_A1c).
x x x -270 1,500 1,300 -190 -220
4 Amend environmental permitting legislation to ban the landfilling of soil, achieves 80%reduction in soil waste (MOI_A1d).
x x x --760 2,000 1,700 -380 -440
5 Introduce standard for sustainable construction to promote lean design, reduces construction waste by 15% (MOI_A1e).
x x x x -640 3,400 2,900 -190 -220
Principal actor Beneficiary Actor Annualised cost
Annualised waste saving
Carbon saving MACW MACE
Action ref
Action
Pri
vate
sec
tor
SME
Hou
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Hou
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y
Pub
lic s
ecto
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(£m) (kt) (kt CO₂e)
(£/t waste)
(£/t Carbon)
6 Develop voluntary agreement to promote lean design, reduces construction waste by 3% (MOI_A1f). x x x x -74 340 290 -220 -250
7 Reduce construction waste in materials manufacture by 3% through industrial symbiosis or business clubs (MOI_A2a).
x x x x x -160 720 620 -220 -250
Total Actions MOI_A -2200 9400 8000
Technical potential of design for deconstruction and refurbishment to reduce demolition waste (TP_B). x x x x -2,800 14,000 12,000 -190 -230
8 Develop support programme to increase design for deconstruction, achieves 3.6% material saving by year 10 and 1.3% overall (MOI_B1a).
x x x x x -110 300 230 -370 -480
9 Support demonstration projects to increase use of design for deconstruction principles (MOI_B1b). x x x x x -100 300 230 -340 -440
10 Increase refurbishment/repair by removing VAT differential versus new build, achieves 3% material saving (MOI_B5a).
x x x -320 850 660 -380 -490
Principal actor Beneficiary Actor Annualised cost
Annualised waste saving
Carbon saving MACW MACE
Action ref
Action
Pri
vate
sec
tor
SME
Hou
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y
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y
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ecto
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(£m) (kt) (kt CO₂e)
(£/t waste)
(£/t Carbon)
11 Reduce need for new construction by 1% by leasing vacant commercial and industrial buildings rather than ownership (MOI_B6a).
x x x -260 690 530 -380 -490
Total Actions MOI_B -790 1800 1400
Technical potential of reducing 50% of construction waste created during build phase (TP_C). x x x x -2,300 12,000 10,000 -190 -230
12 Reduce construction waste by 60% through modular buildings achieving 6% saving (MOI_C4a). x x x x x -280 780 670 -360 -420
13
Reduce waste in construction process through support programme of leaflets/toolkits/training sessions, achieves 2.5% point material consumption reduction (MOI_C5a).
x x x x x -240 610 530 -390 -460
14 Reduce construction waste by 10% through the introduction of a standard for sustainable construction (MOI_C5b).
x x x x -510 1,400 1,200 -360 -420
15 Reduce construction waste by additional 2.5% points through the introduction of a voluntary agreement on construction waste (MOI_C5c).
x x x x -190 500 430 -370 -430
Principal actor Beneficiary Actor Annualised cost
Annualised waste saving
Carbon saving MACW MACE
Action ref
Action
Pri
vate
sec
tor
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(£m) (kt) (kt CO₂e)
(£/t waste)
(£/t Carbon)
16 Increase landfill tax for CD&E waste resulting in 10% increase in re-use and waste minimisation (MOI_C5d).
x x x -740 2,000 1,600 -370 -480
17 Introduce waste reporting obligation on construction businesses, achieves 0.5% saving (MOI_C5e). x x x -37 100 86 -370 -430
Total Actions MOI_C -2000 5400 4500
Technical potential of reducing 10% of supply chain waste through improvements in supply chain interface (TP_D).
x x x x -94 480 410 -190 -230
18 Develop good practice guidance to reduce transit damage in supply chains, achieves 1% overall saving (MOI_D3a).
x x x x -12 50 43 -240 -280
19 Reduce construction waste by 1.7% through promotion of reusable packaging (MOI_D3b). x x x -86 340 290 -250 -290
20 Develop support programme to reduce waste at supply chain interfaces, achieves 0.5% point material consumption reduction (MOI_D4a).
x x x x x -6 25 21 -260 -300
Principal actor Beneficiary Actor Annualised cost
Annualised waste saving
Carbon saving MACW MACE
Action ref
Action
Pri
vate
sec
tor
SME
Hou
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Pri
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Pub
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(£m) (kt) (kt CO₂e)
(£/t waste)
(£/t Carbon)
21 Develop buying standards to increase procurement of green materials by 10% increases waste prevention in the supply chain (MOI_D4b).
x x x x -12 48 41 -250 -300
Total Actions MOI_D -120 400 400
Total Technical Potentials -8000 40,000 34,000
Total MOIs -5100 17,000 14,000
*Costs (value) and waste and carbon savings are total over 10 years. Costs are discounted at 3.5% pa (negative costs are savings). Annualised cost is the net present value divided by 10. Negative costs are savings. ** Colour coding of the Action number gives qualitative indication of the order of magnitude confidence in the data that underpins the action.
Green: High - Action based on referenced current data with few assumptions Amber: Medium - Action draws on case studies or qualified estimates Red: Low - Action largely based on assumptions and unqualified estimates (order of magnitude estimate only)
Table D6 Interaction matrix (-0.10 indicates a positive interaction of 10% between actions. Values are based on ERM judgement)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Increase lean
practice in
constructio
n de
si gn through
Increase lean
design through
demon
stratio
n projects at the
Increase lean
design through
guidance on safe m
inim
isatio
n of
Amen
d en
vironm
ental permitting
legisla
tion to ban
land
filling soil
Introd
uce standard fo
r sustainable constructio
n to
Introd
uce voluntary agreem
ent to
prom
ote lean
design
Redu
ce con
struction waste
throu gh know
ledge sharing
Increase design for
deconstructio
n throu gh supp
ort
Increase design for
deconstructio
n throu gh
Encourage refurbish
men
t/repair
b y re
ducing
VAT
rates v
ersus n
ew
Shift to
wards a se
rvice‐based
econ
omy ‐ leasin
g rather th
an
Redu
ce con
struction waste
throu gh mod
ular building
Redu
ce waste in con
struction
process throu
gh su
pport
Introd
uce standards for
sustainable constructio
n Introd
uce voluntary agreem
ent to
prom
ote waste re
duction in th
e Increase th
e land
fill tax ra
te fo
r CD
&E waste
Introd
uce waste re
porting
obligation on
con
struction
Redu
ce su
pply chain waste
through actio
n on
distrib
ution
Increase re
usable packaging
to
redu
ce packaging
waste
Redu
ce waste at sup
ply chain
interefaces throu
gh su
pport
Develop bu
ying
standards to
increase waste prevention in th
e
1 MOI_A1a Increase lean practice in construction design through support programme ‐0.10 ‐0.10 ‐0.10 ‐0.10 0.50
2 MOI_A1b Increase lean design through demonstration projects at the design stage ‐0.10 ‐0.10 ‐0.10
3 MOI_A1c Increase lean design through guidance on safe minimisation of materials ‐0.10
4 MOI_A1d Amend environmental permitting legislation to ban landfilling soil
5 MOI_A1e Introduce standard for sustainable construction to promote lean design ‐0.10 ‐0.10 0.80 ‐0.20
6 MOI_A1f Introduce voluntary agreement to promote lean design ‐0.10 ‐0.05
7 MOI_A2a Reduce construction waste through knowledge sharing 0.50
8 MOI_B1a Increase design for deconstruction through support programme ‐0.10
9 MOI_B1b Increase design for deconstruction through demonstration programme ‐0.10 ‐0.10
10 MOI_B5a Encourage refurbishment/repair by reducing VAT rates versus new build ‐0.10
11 MOI_B6a Shift towards a service‐based economy ‐ leasing rather than ownership
12 MOI_C4a Reduce construction waste through modular building
13 MOI_C5a Reduce waste in construction process through support programme.
14 MOI_C5b Introduce standards for sustainable construction ‐0.20 ‐0.10 0.80 ‐0.10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Increase lean
practice in
constructio
n de
si gn through
Increase lean
design through
demon
stratio
n projects at the
Increase lean
design through
guidance on safe m
inim
isatio
n of
Amen
d en
vironm
ental permitting
legisla
tion to ban
land
filling soil
Introd
uce standard fo
r sustainable constructio
n to
Introd
uce voluntary agreem
ent to
prom
ote lean
design
Redu
ce con
struction waste
throu gh know
ledge sharing
Increase design for
deconstructio
n throu gh supp
ort
Increase design for
deconstructio
n throu gh
Encourage refurbish
men
t/repair
b y re
ducing
VAT
rates v
ersus n
ew
Shift to
wards a se
rvice‐based
econ
omy ‐ leasin
g rather th
an
Redu
ce con
struction waste
throu gh mod
ular building
Redu
ce waste in con
struction
process throu
gh su
pport
Introd
uce standards for
sustainable constructio
n Introd
uce voluntary agreem
ent to
prom
ote waste re
duction in th
e Increase th
e land
fill tax ra
te fo
r CD
&E waste
Introd
uce waste re
porting
obligation on
con
struction
Redu
ce su
pply chain waste
through actio
n on
distrib
ution
Increase re
usable packaging
to
redu
ce packaging
waste
Redu
ce waste at sup
ply chain
interefaces throu
gh su
pport
Develop bu
ying
standards to
increase waste prevention in th
e
15 MOI_C5c Introduce voluntary agreement to promote waste reduction in the construction process 0.10 ‐0.10
16 MOI_C5d Increase the landfill tax rate for CD&E waste
17 MOI_C5e Introduce waste reporting obligation on construction businesses ‐0.10 ‐0.10
18 MOI_D3a Reduce supply chain waste through action on distribution damage and losses ‐0.10
19 MOI_D3b Increase reusable packaging to reduce packaging waste ‐0.10
20 MOI_D4a Reduce waste at supply chain interefaces through support programme ‐0.10
21 MOI_D4b Develop buying standards to increase waste prevention in the supply chain ‐0.10
% Increase in waste prevention through interactions 46% 33% 10% 52% ‐78% 10% 21% 10% 31% ‐78% 21% 10% 10% 10% 10%
kt/y additional waste prevention through interactions 340 240 150 1800 ‐270 30 62 85 440 ‐390 21 5 32 2 5
TOTAL kt/y 2,550*
* the net of an increase as a result of positive interactions of 3,200 kt/y and a decrease due to negative interactions of 660 kt/y. See discussion below.
ENVIRONMENTAL RESOURCES MANAGEMENT DEFRA
D24
D1.3 DISCUSSION
The actions considered in this assessment are estimated to deliver an annualised waste and resource saving of 17 million tonnes with a cost saving of £5100 million. 50% of the resource saving is as a result of diverse waste prevention and re-use actions aimed at the construction phase, with action to increase landfill tax (Action 16), ban the landfilling of soils (Action 4) and introduce standards for sustainable construction (Action 14) accounting for 60% of the indicated construction phase saving. The headline waste data are summarised in Table D7 below.
Table D7 Summary of waste savings
Technical potential (kt/y)
Total MOIs (kt/y)
Additional waste saving due to interactions (kt/y)
Total Construction 40,000 17000 2550 MOI_As Lean design 14,000 940 2260 MOI_Bs Design for deconstruction 14,000 1800 180 MOI_Cs Waste in construction process
12,000 5400 70
MOI_Ds Waste reduction in supply chain
480 400 40
Actions to increase lean design in construction (MOI_As) deliver an
annualised saving of 9.4 million tonnes with a cost saving of £2200 million. This represents some 20% of the annual construction waste arising. These actions include cost-shared demonstration programmes with industry, the development and dissemination of good practice guidance and the introduction of standards for sustainable design. These actions would be mutually reinforcing, as indicated in the interaction matrix, Table D6, which indicates a potential additional annual resource efficiency saving of some 2.5 million tonnes. However, introducing a standard for sustainable design (Action 5) would be expected to supersede and largely negate voluntary actions on sustainable design (Action 6); although conversely, the presence of a voluntary agreement might be expected to aid (to some extent at least) the introduction of a standard as a more robust measure. Again, this is indicated in the interaction matrix (factors based on ERM judgement). It is noteworthy that requirements to meet sustainable building design standards for energy efficiency have been in place for some time.
Actions for design for deconstruction and refurbishment (MOI_Bs) deliver an annualised saving of some 1.8 million tonnes with a cost saving of £790 million. These represent some 13% of the technical potential (14 million tonnes) based on WRAP estimates. The largest element here would be through changes to VAT, which currently penalises refurbishment compared with new build through differential taxation. However, the potential impact of support to industry, including through demonstration programmes, is understated here as the benefits of
ENVIRONMENTAL RESOURCES MANAGEMENT DEFRA
D25
improved design are unlikely to be realised until refurbishment is required at some future date.
Actions considered to reduce waste at the construction stage (MOI_Cs)
are indicated to offer a potential saving of 5.4 million tonnes per year, some 45% of the technical potential, with an annual cost saving of some £2000 million. Raising landfill tax for CD&E waste (Action 16) is indicated as having the greatest impact (2 million tonnes per year), with the introduction of standards for sustainable construction indicating a further 1.4 million tonnes per year (Action 14). Introduction of such a standard would be expected to interact with standards on design (Action 5), or be integral to it. Such interaction could deliver a further 440 kt/y resource saving (Table D6).
Actions along the supply chain (MOI_Ds) through reductions in
packaging and supply chain interface losses are estimated to provide a potential saving of some 400 kt/y with an annual saving of some £120 million. Again, such actions would be expected to be mutually reinforcing, and some 10% additional benefit is indicated in Table D6 (based on ERM judgement of interaction factors). However, the greatest indicated impact would be through reducing the over-specification of materials.
The potential carbon savings are roughly proportional to weight savings.
However, there is considerable uncertainty in the underlying factors (ERM estimate based on a basket of construction materials). The analysis would benefit from further work to validate these factors should carbon be considered a significant metric in decision making.
Notwithstanding the uncertain data quality behind individual actions, it
is concluded that all actions considered are economically advantageous (have negative MAC values). However, secondary impacts and distributional effects have not been considered in this high level analysis.
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