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MPAJ Carbon Management Plan

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Version: DRAFT

Owner: MPAJ

Approval Route: Board

Date: March 2017

Majlis Perbandaran Ampang Jaya

Carbon Management Plan

2017 - 2022


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We are pleased to introduce this Carbon Management Plan which sets out how Majlis Perbandaran Ampang Jaya (MPAJ) will reduce its carbon emissions and energy costs, make carbon management integral to every aspect of the work we do and help the council to develop its services more sustainably. We believe the Council should lead by example in many ways, including protecting the environment and taking responsibility for the impact we have on it. We acknowledge the responsibility we have to help Malaysia achieve its commitment to reducing climate changing carbon emissions from our everyday activities while ensuring that our residents have a sound basis for a sustainable quality of life, now and for future generations. We are therefore committed to developing opportunities that will reduce our carbon emissions for the benefit of the Council, the local economy and communities of Ampang Jaya. Our mission is to always ensure that the residents of Ampang Jaya will receive the best municipal services through an effective implementation system. By reducing our emissions and energy related costs we will be reducing our vulnerability to the risk of volatile energy prices, enabling us to continue to provide the high quality services our residents expect without increasing costs. We hope that our leadership in this area will set an example in the community and inspire others to take similar action thereby leading to greater reductions in emissions from Ampang Jaya as a whole and an improvement in the quality of life for residents. Abdul Hamid Bin Hussain President, Ampang Jaya Municipal Council

Foreword from the President


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Foreword from the Carbon Trust

Cutting carbon emissions as part of the fight against

climate change should be a key priority for local and

city governments around the world. The need to bring down carbon

emissions to prevent global temperature increasing by more than two

degrees over pre-industrial averages is now urgent. Local government

action is a key enabler of this, as municipalities hold many planning,

housing, community engagement, and taxation and transport powers

necessary to bring about a successful and prosperous low carbon

transition. A clear mitigation strategy for the municipal estate and

operations is a vital first step - it helps to save money on energy, whilst

also allowing local governments to lead by example in reducing the risk

of dangerous climate change.

Majlis Perbandaran Ampang Jaya (MPAJ) worked with the Carbon Trust in

2017 in order to develop a carbon plan through to 2022. This Carbon

Management Plan commits MPAJ to a target of reducing CO2e by

30% between 2016 and 2022, and underpins potential financial

savings to the organisation of around RM2.2m per year by that

date.

There are those that can and those that do. Public bodies can contribute

significantly to reducing CO2e emissions. The Carbon Trust is very proud

to support MPAJ in their on-going implementation of carbon management

and city climate planning.

Tim Pryce

Head of Public Sector, Carbon Trust


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Contents

FOREWORD FROM THE PRESIDENT ................................................ 2

FOREWORD FROM THE CARBON TRUST .......................................... 3

1. EXECUTIVE SUMMARY ............................................................. 5

1. INTRODUCTION ....................................................................... 8

2. BASELINE AND TARGETS ........................................................12

3. PROJECT IDENTIFICATION .....................................................16

4. PLAN FINANCING ...................................................................18

5. ONGOING PROGRAMME MANAGEMENT FOR CARBON

REDUCTION ...................................................................................20

6. MONITORING AND REPORTING ..............................................22

APPENDIX 1 – PROJECT LIST .........................................................24

APPENDIX 2 – ASSUMPTIONS .......................................................25

APPENDIX 3 - EMBEDDING CARBON MANAGEMENT .......................26

ACKNOWLEDGEMENTS ...................................................................27


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1. Executive Summary

This Carbon Management Plan sets out our strategy and action plan for reducing carbon

emissions over the next 5 years. It identifies the tangible and intangible benefits of Carbon

Management and describes the governance arrangements to keep the programme on track.

We have already implemented many successful environmental initiatives in the past and we

will continue to build on this success.

There is a range of reasons for MPAJ to take action on carbon. These include:

Reducing our energy consumption not only reduces harmful greenhouse gas emissions, but

also delivers tangible cost savings. Therefore, this Programme contributes directly to our

goals of using our resources efficiently and reducing our operating costs.

In 2015, MPAJ spent

RM6.6m on energy and

emitted 9,421 tonnes of

CO2e. These emissions

are generated when we

use electricity for

cooling and lighting

(inc. street lighting) and

to power equipment and

services necessary to

our operations. This

baseline figure also

includes the costs of

fuel for running our

transport fleet and our

water consumption.

We have also set an ambitious carbon reduction target, supported by concrete technical

projects and embedding actions set out in this Plan.

61%

31%

1%

3% 4% >1% >1% >1% >1%

Breakdown of Building Energy Emissions by Site

Streetlighting

MPAJ Tower

Workshop

Food Court

Public buildings/Halls

Market

Unknown

Nursery

Shops

Energy Costs

Legislation and Regulation

Leadership role of the council


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MPAJ will reduce the carbon emissions from our activities by 30%, from a

2015 baseline of 9,421 tonnes CO2e by

2022

We have identified carbon reduction projects and activities in the following areas:

Upgrading all of the street lights in Ampang Jaya to LED

Implementing a comprehensive energy management system at our Menara

Upgrading our cooling systems

Installing LEDs across our estate

Installing better metering, monitoring and targeting systems

Conducting staff awareness / resource reduction campaigns

The projects identified in this plan have the potential to reduce our emissions by 3,142

tonnes CO2e annually and achieve 30% of our targeted reduction measured against our

2015 baseline.

The cost of implementing the projects in this plan has been estimated at RM15.4m, with

anticipated financial savings of RM2.2m per annum by 2022. If all the projects in this plan

are implemented, the overall payback period on the capital investment would be 7 years.

Due to the long duration of the projects to be implemented, these projects will yield savings

well beyond the lifetime of this plan.

We will embed carbon management into our organisational structures and processes by

setting up a Task Force who will oversee the management and progress of our Carbon

Management Plan. We will undertake a review of our policies to understand how carbon

management can be further integrated into our organisational strategy.

The progress of the Carbon Management Plan will be discussed and reviewed by the Task

Force and project team. Progress will be monitored against the targets set within this plan

and established KPIs at defined intervals.

Energy management

Green buildings

Staff awareness

LEDs

Solar PV

Target: 30% (3,142 tCO2e)

Existing Projects: 6% (149 tCO2e)

Identified Projects: 108% (2993 tCO2e)

30%


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Tackling carbon emissions within our own estate is the first step in understanding and

identifying the emissions released by the municipality as a whole. This plan provides a

platform from which we can extend our focus and catalyse action on carbon management

across the city.

Summary of key goals:

30% carbon reduction

from a 2015 baseline by 2022 across the municipal estate

Become a carbon management leader in

Malaysia

Motivate and inspire staff to reduce carbon

emissions to tackle climate change

Deliver long term financial savings – RM 2.2m per annum by

2022


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1 Mobilisation

2 Baseline

3 Projects

4 Strategy

5 Implement

1. Introduction

1.1 Carbon management

This Carbon Management Plan (CMP) summarises the results of the work undertaken in

partnership with the Carbon Trust during 2016/17 and sets out the actions we need to take,

over the next five years, to reduce our carbon emissions and costs.

The document highlights the sources of our manageable carbon emissions, sets out our

baseline figures for 2015, establishes a target to reduce emissions from this baseline and

provides a timetable of actions to achieve the desired reductions over a five year period. It

also details the key internal management arrangements and reporting mechanisms that will

be used to maintain the programme’s presence and influence within our corporate structure.

The benefits of a Carbon Management Plan are:

Reduce costs of energy, water and fuel use

Demonstrate leadership to our partners and local community

Protect the environment and limit our impact on climate change

Align with the Malaysian national carbon reduction targets

The programme follows a five step process as outlined below:


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1.2 Climate change legislation in Malaysia

Malaysia has specific domestic and international commitments to reducing emissions of

greenhouse gases and improving the deployment rates of low carbon technology.

Additionally, a number of Government Departments and Government funded bodies now

exist with a remit to facilitate reductions and increase deployment rates. Some of the

national policies in place include:

1.3 Our Drivers for Action

As a local authority in Greater Kuala Lumpur, it is imperative we form part of the solution

in driving lasting carbon reductions. Below we set out, in priority order, the main drivers for

taking action to reduce our carbon emissions and energy consumption.

National 40% reduction target

• In 2013 the government of Malaysia announced its commitment to reduce the country's carbon emissions per unit GDP by 40% by 2020, compared to 2005 levels.

Intended Determined Contribution

• Malysia intends to reduce its GHG intensity by 45% by 2030 relative to GDP. This consists of 35% on an unconditional basis and a further 10% condition upon receipt of climte finance, technology transfer and capacity building from developed countries.

National Green Technology

Policy

• The policy aims to be the key driver in accelerating the national economy and promoting sustainable development in Malaysia by providing green training and education and a conducive environment for Green Technology development, using a variety of finanical mechanisms.

National Energy Efficiency Plan

• The Plan presents a strategy for the well coordinated and cost-effective implementation of energy efficiency measures in the industrial, commercial and residential sectors, which will lead to reduced energy consumption and economic savings.


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1. 4 Aims of this plan

Climate change is likely to be one of the defining challenges of the 21st century and MPAJ is

committed to maintaining a leading role in local efforts to tackle this problem. This plan sets

out a target of reducing carbon emissions from our activities by 30% by 2022 compared to

2015 levels. This amounts to a decrease in cumulative emissions of 14,668 tCO2e and a

financial saving in energy costs of more than RM13.5m over this time period compared to

business as usual.

Savings will be achieved through a variety of different projects, including upgrading building

lighting, upgrading street lighting to LEDs, upgrading building cooling systems and building

fabric and installing solar panels on a number of buildings in MPAJ’s portfolio. The cost of

1) Financial savings

The costs of fossil fuels are volatile and projected to rise. The nature of our wide ranging activities means we are an intensive user of energy and transport fuels. It is important that we minimise financial liabilities associated with energy and transport costs. Up until recently, electricity and fuel prices have been kept artificially low due to fuel subsidies, and

unit costs have not reflected the real cost of the production and supply of energy. The situation is now rapidly changing with the removal of the subsidies. To ensure that maximum budget is available to focus on delivering core services, we must act now to significantly reduce our carbon and energy cost footprint.

Over the last 5 to 10 years a number of Government initiatives and policies have been introduced to tackle rising greenhouse

gas emissions. By using the legislation and its mechanisms as an enabler, we hope to lead the way in driving towards a low carbon economy in Malaysia.

Towns and cities have a huge impact on carbon emissions, because of the growing number of people who live and work in them. As a trusted leader and major employer, we are well placed to take the first steps to mitigating our emissions by

achieving reductions in our own buildings, street lighting and transport and by raising awareness of the potential to reduce emissions in our communities. This will provide a platform from which we can extend our focus and catalyse action on carbon management in the wider community.

2) Government

initiatives

3) Our reputation


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implementing the projects in this plan has been estimated at RM15.4m, with anticipated

financial savings of RM2.2m per annum by 2022. Much of this cost would be sourced from

operational and maintenance budgets required for the upkeep of our city services. Due to

the long duration of the projects to be implemented, these projects will also yield savings

well beyond the lifetime of this plan (post 2022).

Tackling carbon emissions within our own estate is the first step in understanding and

identifying the emissions realised by the municipality as a whole. This plan provides a

platform from which we can extend our focus and catalyse action on carbon management

across Ampang Jaya.


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2. Baseline and Targets

In order to design an effective carbon reduction plan, it is critical that we

understand our current emissions: how much they are, where they come from and

who is responsible for them. This section provides an inventory of our greenhouse

gas emissions in 2015. This will be used to monitor and measure changes in

emissions resulting from the carbon-saving initiatives identified in this plan.

2.1 Scope

The globally accepted carbon accounting standard known as the GHG Protocol defines

direct and indirect emissions as follows:

Direct GHG emissions are emissions from sources that are owned or controlled by

the reporting entity.

Indirect GHG emissions are emissions that are a consequence of the activities of

the reporting entity, but occur at sources owned or controlled by another entity.

The GHG Protocol further categorises these direct and indirect emissions into three broad

scopes:

Scope 1: All direct GHG emissions.

Scope 2: Indirect GHG emissions from consumption of purchased electricity, heat or

steam.

Scope 3: Other indirect emissions, such as the extraction and production of

purchased materials and fuels, transport-related activities in vehicles not owned or

controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not

covered in Scope 2, outsourced activities, waste disposal, etc.

The emissions sources we have included in our baseline are listed below, divided into scopes

1, 2 and 3, in accordance with the World Resources Institute (WRI) standards, to enable

comparison with other organisations. The emissions volumes identified are approximate,

and limited by the accuracy and completeness of available data.

Figure 1 Source: Bahtia and Ranganathan, 2004


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Emissions sources included in

baseline scope

Data sources and quality

Scope 1 - includes all direct emissions from sources directly controlled by MPAJ fuels

consumed on site and from owned vehicles

Fleet transport emissions

(e.g. petrol and diesel) Primary data provided - Litres

Scope 2 – emissions from purchased energy produced off site

Electricity consumption in

buildings and estates Primary data provided - kWh

Electricity consumption of

street lighting Primary data provided - kWh

Scope 3 - all other emissions

Water consumption

Waste disposal

Primary data provided - m3

Primary data provided - kg

In this plan, we are primarily focussing on utility consumption associated with our own

estate and street lighting (i.e. those that we have most management control and influence

over) but we recognise that there are other carbon sources associated with our operations

including:

Procurement & supply chain

Refrigerant gas fugitive emissions from air-conditioning systems

LPG used for catering

Staff commuting and business travel

However, data quality for the above emissions sources is not of sufficient quality to

accurately establish a suitable baseline and carbon footprint at this juncture. Therefore,

whilst we recognise that the above emissions sources can be significant, these are currently

outside of the scope of this plan. Instead, we have focussed primarily on the scope 1 and 2

emissions, which we have a greater amount of control over and will likely have greater

potential for carbon and cost reduction. It is the hope that in future versions of our carbon

management plans we include an increasing number of the above excluded emission

sources.

2.2 Greenhouse gas inventory for 2015

The carbon inventory is a record of our approximate greenhouse gas emissions in the

calendar year 2015. Data quality for this year is considered to be of a reasonable standard

and undertakings and operations at the council in this year are considered comparable to

current activities. It is recognised that the national 40% reduction target uses 2005 as its

baseline year but due to operational changes and a significant electricity cost increase, due

to removal of national subsidies, it is believed that using a 2005 baseline would not be

appropriate or reflective of current operations.

Greenhouse gas emissions are reported in units of carbon dioxide equivalents. This allows

the impact of each different greenhouse gas to be expressed in terms of the amount

of CO2 that would create the same amount of warming, allowing easy comparison of the

impact of different emission types. Throughout this report all greenhouse gas emissions are

given in terms of carbon dioxide equivalent.


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WHERE OUR EMISSIONS COME FROM

The cost of providing cooling, electricity, lighting, waste and water management and transport fuel

to our estate is high. In 2015 we spent RM6.6m on these activities and emitted 9,421 tonnes of

CO2e. 87% of these emissions arise from building energy use and street lighting, with transport and

waste (inc. water) making up the remainder.

87%

3%

6%

4%

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Energy

Waste

Transport

Water

Carbon emissions (tCO2e)

Annual Carbon Emissions (tCO2e)

87%

6%

7%

Breakdown of Carbon Emissions by Scope

Scope 2

Scope 1

Scope 361%

31%

1%

3%4% >1% >1% >1% >1%

Breakdown of Building Energy Emissions by Site

Streetlighting

MPAJ Tower

Workshop

Food Court

Publicbuildings/Halls

Market


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2.3 Targets for 2022

Our vision is to maintain a leading role in local efforts to

reduce the impacts of climate change by minimising our

impact on the environment in our activities. To achieve this

aim the Council has set targets that are challenging, yet

realistic.

The Value at Stake

The Value at Stake (VAS) shows the cumulative potential savings, or

avoidable costs/carbon emissions, associated with implementing our

Carbon Management Plan and achieving our target against the alternative

of doing nothing, i.e. Business as Usual (BAU) costs. The VAS is a useful

high level analysis that has been used early in the development process

of producing our Carbon Management Plan to help support the case for

action. It should be noted that project specific details about savings and

costs should be read alongside this analysis. The capital costs of projects

are not included in this analsyis (see section 4) and all assumptions are

listed in Appendix 2.

Achieving a 30% reduction in carbon emissions from our baseline over this

period will result in final year emissions savings of 3,533tCO2e and

cumulative savings of 14,668tCO2e by 2022.

With no action on carbon, annual utility costs for MPAJ could increase from

RM6.6m to RM10.5m by 2022 – an increase of approx. RM3.9m. Achieving

a 30% reduction in carbon emissions over the whole five years could result

in cumulative savings of RM13.5m.

0

2,000

4,000

6,000

8,000

10,000

12,000

2015 2016 2017 2018 2019 2020 2021 2022

CO

2e

Em

issi

on

s (t

on

ne

s)

Comparison of Carbon Emissions - Business as Usual & Carbon Reduction

Scenarios

BAU Target Reduction 1

RM0

RM2,000,000

RM4,000,000

RM6,000,000

RM8,000,000

RM10,000,000

RM12,000,000

2015 2016 2017 2018 2019 2020 2021 2022

Comparision of Carbon Related Costs - Business as Usual & Carbon

Reduction Scenarios

BAU Target Reduction 1

We will reduce the carbon

emissions from our activities by 30% by

2022, from a

2015 baseline of 9,421

tonnes CO2e.

TARGET FOR

2022

Cost savings

Compliance with legislation

Raised awareness of climate change amongst staff, stakeholders

and the public

Positive

community leadership

Contribute

towards Government targets

BENEFITS OF ACHIEVING

THE TARGET


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3. Project Identification

This section of the plan lists and prioritises the opportunities identified for carbon

emissions savings and the sustainable practices that are critical to ensuring MPAJ

achieves the five-year reduction target.

To meet the 2022 target, an average

of 2,934 tCO2e will need to be saved

each year. The projects to achieve

this reduction have been identified

through a variety of means including

energy surveys of our sites,

opportunities workshops with staff

representing different departments

and tools provided by the Carbon

Trust as part of the programme. A

Carbon Management Projects

Register will be maintained by Project

Lead (more information on the role of the Project Lead is provided in the Programme Management Section of this report) to record, quantify and

evaluate projects on an ongoing

basis.

The following table summarises the

key costs and savings associated with

the projects in the project list. More

detailed project information can be

found in Appendix 1.

Project

Category

Cost (RM) Annual Savings

(yr. 1) Average

Payback

(yrs)

% of

Target* Capital

Operating

costs

Energy

Cost

Saving

tCO2e

Buildings RM1.3m - RM0.8m 1,152 1.7 41%

Street lighting RM14.1m - RM1.4m 1,990 15.1 72%

Transport TBC TBC TBC TBC TBC TBC

Totals RM15.4m - RM2.2m 3,142 7.0 113%

*this refers to % of absolute target and does not account for the impact of BAU growth. If the impact of BAU is accounted for, implementing the projects is expected to contribute 89% in total towards meeting the target.

Street lighting LED

upgrades

Metering monitoring

and targeting

Focus Areas

Cooling system

upgrades

Solar PV Behaviour

change

Building fabric

upgrades

Energy management,

measures


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3.1 Projected Achievement towards Target

The figure below shows predicted business-as-usual (BAU) emissions and the target

emissions. The ‘actual emissions’ plot shows the emissions reductions from implementing

all the projects identified in this plan by 2022. This plot takes into account the following

factors:

The effect of BAU forces: so for example, if in year three no additional projects

were implemented, the emissions would then trend back towards the BAU line.

The impact of project life: The nature of the project determines how long its impact

may be felt. If a short life project is finished (e.g. awareness raising) before the end

of the programme (and not maintained or repeated) a stepwise increase in emissions

would be seen.

Assumptions can be found in Appendix 2.

By including these effects we are trying to model some of the real life factors that may

impact on our ability to meet our target. Because of these additional factors the plot does

not directly agree with a simple summed list of the carbon saving impact of the projects.

-

2,000

4,000

6,000

8,000

10,000

12,000

2015 2016 2017 2018 2019 2020 2021 2022

CO

2e

Emis

sio

ns

(to

nn

es)

Year

Carbon Reduction Progress against Target

BAU Trajectory based on identified projects Target Reduction


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4. Plan financing

The value at stake shows that over RM13.5m could be saved by 2022 by

implementing the plan. However, to achieve these savings, significant capital

investment will be needed. The project register tool that accompanies this plan

contains the calculations to assist with the selection of carbon reduction projects.

4.1 Capital costs

The table below summarises the total capital costs for our carbon management plan by

year. These figures include only the upfront cost of the project and do not take any operation

or maintenance costs into account.

The cost of implementing the projects in this plan has been estimated at RM15.4m over the

next five years, of which RM14m has already been allocated from revenue budgets for street

lighting upgrades. The remaining funds have yet to be confirmed.

We believe that our Carbon Management Plan offers a compelling and robust business case

for implementation, taking into account direct cost savings to MPAJ, enhanced staff comfort,

improved visitor experience, benefits to MPAJ’s corporate reputation, and the vital

leadership role of local government in tackling climate change.

Project

Year

2016 2017 2018 2019 2020 2021

Total

Costs

RM2.24m

RM12.16m

RM425k - RM570k -

Key Points

To implement the projects defined in this plan it will cost RM15.4m over the

next five years

RM14m of funding has already been allocated through revenue budgets for

street lighting with RM1.4m still to be allocated.

When all these projects are implemented, it will result in an estimated annual

financial savings of RM2.2m

The overall payback period of projects in this plan is therefore approximately 7 years


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4.2 Plan costs and savings

If all the projects are implemented as planned it would result in estimated financial savings

/ cost avoidance of RM2.2m per annum by 2022. These savings will come from lower energy

bills as well as reduced maintenance and replacement cost. The overall payback period of

the projects in this plan is approx. 7 years. Whilst this payback time is slightly longer than

the lifetime of the plan, it reflects the long duration of a substantial number of projects

outlined in the plan. These projects will provide cost and carbon savings well beyond 2022

and will payback their capital investment over this longer time period.

It should be noted that the analysis in the tables included in this section do not account for

inflation and all figures are shown at today’s prices. If inflation was included, we would

expect energy cost savings to be higher (as energy prices are increasing at a rate well above

RPI, partly due to the withdrawal of energy subsidies in Malaysia). It should also be noted

that costs for certain projects scheduled for later years may also be higher for the same

reason but this will not be the case for all projects – certain technologies such as LED lighting

are reducing in cost all the time.

RM-14,000,000

RM-12,000,000

RM-10,000,000

RM-8,000,000

RM-6,000,000

RM-4,000,000

RM-2,000,000

RM-

RM2,000,000

RM4,000,000

2015 2016 2017 2018 2019 2020 2021 2022

Net

Co

st (

£)

Year

Project Cost and Savings

Total Capex for year Energy cost savings for year Total Cash flow for year


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5. Ongoing programme management for carbon reduction

Beyond the set of initiatives identified above, it is important that organisational

changes are put in place to maintain a focus on carbon management over time.

The Carbon Management Maturity Matrix in Appendix 3 shows the different areas

of embedding, our current level and what we plan to achieve during the next 5

years. This section describes the main activities and changes that will help us

achieve this.

5.1 Corporate Strategy & Policy Alignment

To ensure that carbon management is established and maintained as an organisational priority,

it should be considered as part of all decision making processes. We recognise that in order to

achieve our carbon reduction target, we need to change a number of current practices /

procedures and embed a philosophy of considering carbon emissions in business as usual

activities. This includes:

Change Action Lead Completion

Date

Endorsement / sign off of this plan and the

associated 30% reduction target by the Mayor &

Councillors

Project Sponsor April 2017

Publication of this CMP on the Council intranet

and internet

Communications By end 2017

Communication & engagement on the carbon

management programme to Council stakeholders

Project Lead /

Communications

June 2017

All business cases submitted to financial

management to be appraised for carbon

reduction as well as costs & payback

Project Lead /

Project Sponsor /

Finance

Ongoing

Inclusion of the risks arising from not meeting

our carbon reduction target included in the

Corporate risk register

Project Sponsor June 2017

Inclusion of our Carbon reduction targets in

Business Plan and Annual Report

Project Sponsor Ongoing

Review and re-alignment of all Council

Environmental Statements to take account of the

Carbon Management Plan

Project Lead /

Project Sponsor

July 2017

Development of a sustainable procurement policy

to take account of low carbon procurement

Procurement September

2017

Review of existing policies to decide where

alignment with the Carbon Management Plan is

relevant

Project Sponsor September

2017


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5.2 Programme governance and carbon management team

The Carbon Management Programme will be managed by the Carbon Management Team.

The scope of this team is to oversee the implementation of the Carbon Management Plan so

that the Council’s objectives to meet the carbon reduction target are met by the agreed

timescale.

This group has a number of key functions specifically related to carbon management;

1. to provide regular, strategic oversight and monitoring of progress towards our target

2. to raise ‘blockages’ to a level where they can be removed e.g. resource issues

3. to ensure that carbon management stays on the high level agenda at MPAJ

4. to manage the expectations of key stakeholders and recognise achievements on

carbon reduction

Overall organisation of the programme will fall to the Project Lead and Project Sponsor who

will report project highlights, risks and issues to the Carbon Management Team. The Project

Sponsor will have overall responsibility to make sure the progress of the Plan is reported to

senior stakeholders and that the projects within the Plan are delivered .The Project Lead,

will have responsibility for the day to day delivery of the programme projects.

The Carbon Management Team will meet on a quarterly basis and include representatives

from the following departments:

Health, the Environment and Hawkers

Treasury

Youth & Community

Corporate Planning

Office Management

Enforcement

Engineering

Property Management and Evaluation

Urban Planning

Licensing

Office Buildings and Architecture

Waste

The team is also responsible for implementing the projects contained within this Plan. The

team will oversee the activity within the programme which will be led by the Project Lead.


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6. Monitoring and Reporting This section describes actions we will take to improve the quality of carbon

emissions data, and how will we report on our progress. Robust data will provide

us with the basis to monitor and report on the results of our actions – enabling us

to realise reputational benefits and to lead by example.

6.1 Progress Reporting

The progress of the Carbon Management Plan will be discussed

and reviewed by the Carbon Management Team and project

team. Progress will be monitored against the targets set within

this plan and the KPIs set out below.

Fuel, electrical and water consumption per month

Carbon emissions by year

% increase/decrease carbon emissions by year

Achievement against projected carbon savings

Number of projects completed

Number of projects submitted for approval and

progressing towards completion.

For each meeting of the Carbon Management Team, the progress of the Carbon Management

Plan as a whole, as well as individual projects, will be discussed against these KPIs. It is

important that we adopt a way of flagging the projects that are perhaps stalling or not

progressing as expected. We will do this by using the Red, Amber & Green (RAG) risk

register.

An annual report of progress towards our carbon management target will be

produced and presented to the Carbon Management Team. This report will provide an

update on progress against the KPIs above and embedding actions included in this plan.

The report will be prepared by the Project Lead and signed off by the Project Sponsor. This

report will also be circulated to the wider organisation and uploaded on the MPAJ intranet.

6.2 Data Management

Effective data management has been a critical element of developing this plan. It underpins

our strategy and target and it will continue to be a critical element as we monitor

implementation progress. Having confidence in our figures, assumptions and data sources

helps ensure that:

High priority areas are targeted: a good understanding of where our emissions

are coming from will allow us to identify high emitters and prioritise projects that

tackle these.

Suitable carbon reduction targets are set: targets should be challenging but

achievable to ensure maximum impact.

Carbon reduction projects are accurately quantified: this will allow us to predict

the impact a project will have on carbon emissions and how effective our portfolio of

projects will be at achieving our target.

Business / investment cases are credible and accurate: accurate estimations

of costs and savings ensures that funds are used in the most cost-effective way.

The effectiveness of carbon reduction projects can be measured and

demonstrated: this allows progress against target to be tracked and strengthens

the business case for future investment.


Page | 23

Continuity and succession planning is not problematic (data sources /

referencing): all activities should be well documented and referenced to ensure a

smooth hand over of responsibility.

6.3 Stakeholder Engagement & Communication

To keep carbon management a priority in people’s minds and behaviours, we need to

regularly communicate with stakeholders at various levels. Effective and timely

communications with our staff is an important aspect to delivering our target. We will do

this by rolling out the following change actions.

6.4 Control of Risks and Issues

Any member of the Project Board or Project Team may raise an

Issue or Risk with the Project Manager. They should be

communicated verbally and confirmed in writing within 24hrs. The

Project Manager will then record the Issue/Risk on the appropriate

log and allocate a reference number. The Logs will be maintained

with each Issue or Risk being allocated a status of either

“Acknowledged”, “In Progress” or “Resolved”. All risks are

monitored and updated in a detailed Risk Register maintained by

the Project Manager.

Some of the key risks associated with the plan are set out below:

Resources unavailable to achieve actions identified

Reputational risk to authority for not pursuing or meeting carbon reduction targets

Carbon management not seen as a strategic priority at MPAJ

Lack of buy-in by staff reduces participation in relevant carbon reduction projects

Potential for a higher than predicted increase in energy demand threatening the

ability to meet the carbon reduction target

Change Action Completion Date

Develop a communications plan July 2017

Publication of the Carbon Management Plan on the Council

intranet and internet

June 2017

Communication & engagement on the carbon management plan

to Council stakeholders

March 2017

Produce a Progress Report on an annual basis for the Project

Board / wider organisation.

Annual

Use social media to increase awareness on environmental projects

& benefits with internal & external stakeholders

Ongoing

Regular column in internal newsletter Ongoing


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Appendix 1 – Project List

ID Project Lead

Cost Annual Savings (yr

1) Pay

back (yrs)

% of Target

Start Year Capital Operational

Financial (Gross) tCO

2e

1 Street Lighting LED

TBC RM2,241,137 - RM103,238 149

21.7 5.4%

2016

2 Street

Lighting LED TBC RM11,846,486 - RM1,276,774

1841 9.3

66.6% 2017

3 Menara Solar PV

TBC RM140,000 - RM219,189 316

0.6 11.4%

2017

4 Staff Awareness - Menara

TBC RM50,000 - RM17,516 25

2.9 0.9%

2017

5 Energy management and aMM&T

- Menara

TBC RM125,000 - RM70,064

101

1.8

3.7%

2017

6 LED Lighting

– Menara TBC RM425,000 - RM205,039

296 2.1

10.7% 2018

7 Supply Fan replacement

- Menara

TBC RM150,000 - RM66,503 96

2.3 3.5%

2020

8 Chilled water pump

replacement - Menara

TBC RM120,000 - RM30,022

43

4.0

1.6%

2020

9 Upgrade DX

cooling systems – Menara

TBC RM300,000 - RM190,238

274

1.6

9.9%

2020

Totals RM15,397,856 - RM2,178,583 3142 7.0 113.6%


Page | 25

Appendix 2 – Assumptions Key assumptions underlying our financial projections are:

Electricity cost of 0.5004sn in the baseline year and an annual energy increase of 6%

in the following years (source Gas Malaysia)

Diesel and Petrol cost of RM1.6/l and RM1.75/l respectively in the baseline year and

an annual increase of 5% in the following years

BAU consumption annual increase of 1% and a RPI inflation of 2.1%

We are aware that energy prices are likely to increase in the future as government subsidies

are removed. However, at this point in time, it is difficult to obtain accurate figures to model

the effects. We have therefore chosen to model the effects of rising energy prices as a high

level annual increase as per the figures above even though we are aware that price increases

will change in an uneven/non-gradual manner.


Page | 26

Appendix 3 - Embedding Carbon Management


Page | 27

Acknowledgements

Thank you to the British Foreign and Commonwealth Office for

supporting this study.

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