Navigating to net zero - Aotearoa's water sector low-carbon journey by Water_New_Zealand

Navigating to net zero Aotearoa’s water sector low-carbon journey

Acknowledgements This document has been produced by the Climate Special Interest Group of Water New Zealand, chaired by Jon Reed. This guide has been developed by the following passionate individuals who have contributed their time to author this guideline; Nick Dempsey of Mott MacDonald, Jon Reed of Beca, Chris Thurston of Watercare, Catherine Taiapa of Armatec, Geoff Bennett of Carbon EMS, Rita Whitfield of Stantec, Fraser Clark of Wellington Water and Lesley Smith of Water New Zealand. The guidelines have been informed by a number of workshops with the wider water sector. Thank you to all who have contributed your knowledge and time to helping the water sector commence its journey towards net zero emissions.

Copyright © Water New Zealand Reproduction, adaptation or issuing of this publication for educational or other non-commercial purposes is authorised without prior permission of the Water New Zealand. Reproduction, adaptation or issuing of this publication for resale or other commercial purposes is prohibited without the prior permission of Water New Zealand. Disclaimer: While the Climate Change Special Interest Group of Water New Zealand has prepared these Guidelines in good faith, exercising all due care and diligence, neither Water New Zealand or individual members of the Climate Change Special Interest Group, or their employers, give any representation or warranty, expressed or implied, as to the relevance, completeness or fitness of this document in respect of any particular user’s circumstances. All users of these Guidelines should satisfy themselves concerning its application to their situation and, where necessary, seek expert advice.

Foreword He waka eke noa – We are all in this together We hear this expression often. But it’s particularly relevant when it comes to the biggest issue of our generation – climate change. We know this is a journey that we’re all on together. Climate change will affect all of us – and the many species who cohabit the planet with us, in profound and lasting ways. It is incumbent on all of us to take what steps we can to mitigate our personal and organisation’s greenhouse gas impacts. Navigating to net zero: Aotearoa’s water sector low-carbon journey is a practical, relevant resource that all of us can use wherever we, or our organisations are, on our journey to a net-zero future. You may be at the first stage of your journey – assessing and understanding where your emissions are coming from, or you may already have a well-developed emissions inventory and want to use this guide to help point you in the direction of alternative solutions. Wherever you are at in your journey there is always more that we can, and must do if we are to avert the most catastrophic impacts of climate change. We recognise that different organisations will develop your own pathway depending on your starting point and individual challenges. We’re seeing practical solutions to reduce our carbon emission in many parts of the country – vermicomposting wastewater sludges, prioritising “green” stormwater infrastructure, and capturing the residual energy in our water supply and wastewater networks through hydro-turbines and biogas. The opportunities are enormous. The albatross in this document reminds us that to realise these opportunities we need to lift our view to take a wider look at the way we work. It is not sufficient to consider infrastructure only solutions, we need to be working collaboratively to share knowledge with other water professionals our communities and mana whenua. This is a practical, comprehensive guide to help you in your journey to net zero, that we hope will be used to springboard collective action by the water sector. I would like to congratulate Water New Zealand’s Climate Change special interest group for the effort and commitment to this important project. Climate Change is the biggest global issue facing us and we all need to be paddling in the same direction to reach a net zero future.

Gillian Blythe Chief Executive, Water New Zealand

Navigating to Net Zero: Aotearoa’s Water Sector Low-Carbon Journey

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contents

Acknowledgements

Foreword – Gillian Blythe

Our purpose

Where we have come from

First steps in the journey

3.1 Distinguishing between operational and capital greenhouse gas emissions

3.2 Quantification of operational emissions

3.2.1 Developing an operational emissions inventory

3.2.2 Accounting approaches for operational emissions

3.2.3 Setting an operational emissions boundary

3.2.4 Sources of emissions

3.2.5 Biogenic emissions

3.3 Developing an operational emissions forecast

3.4 Developing a capital emissions baseline

3.5 Setting carbon reduction targets

Motivating action

4.1 Business maturity

4.2 Partnerships

The journey ahead

5.1 Creating organisational commitment

5.1.1 Integrating climate change into business-as-usual practice

5.2 Human resources

5.3 Planning for emissions reductions

5.4 Operational emissions reduction initiatives

5.4.1 Wastewater treatment and networks

5.4.2 Water treatment and networks

5.4.3 Stormwater treatment and networks

5.4.4 Onsite wastewater treatment

5.5 Capital carbon emissions reduction initiatives

5.6 Offsetting and removal of residual emissions

5.7 Review

5.8 External influences on the journey

5.8.1 The need to decouple emissions from population growth

5.8.2 Increased energy requirements

5.8.3 The difficulty in measuring and monitoring emissions from wastewater treatment

5.8.4 Finding the balance between adaption and mitigation

Where to from here?

Appendix I: Typical greenhouse gas data sources tracked and reported on

Appendix II: Analysis techniques for matching energy use changes to drivers

Navigating to Net Zero: Aotearoa’s Water Sector Low-Carbon Journey

Our purpose The purpose of this document is to help guide water service providers on the journey to a low-carbon future by outlining steps to mitigate carbon emissions from their operations and capital works programmes. This is just one of many ways the water sector will contribute to the achievement of a thriving, climate-resilient, and low emissions Aotearoa where our children thrive. The water industry sustains life, and provides essential water, wastewater, and stormwater services. Aligning with the principle of Kaitiakitanga, it protects and enhances the mauri of the environment and our communities. The journey in this document is focused on carbon mitigation: reducing emissions to help minimise the extent of climate change. The water sector has a much wider journey to travel to address the many interrelationships between water and climate change, particularly in relation to risk and adaptation. It is beyond the scope of this document to address these. We also acknowledge that the journey outlined in this document rests heavily on western science and thinking. There is much we must learn from Mātauranga Māori, and a long way to go to locate ourselves within a whakapapa systems practice that facilitates learning from our past and developing an intergenerational view of our future. The Climate Commission’s vision is “a thriving, climate-resilient, and low emissions Aotearoa”. Our shared vision for this low-carbon journey is that “we will act now, lead and learn together for a net zero carbon future for a thriving NZ water industry”. For this vision to be realised, the water industry needs to establish principles and a framework for collaboration. This document provides the basis for this work. This is a journey in its infancy, and we have much to learn. Arrival at our destination will not be achieved overnight. The journey outlined here suggests overall direction, and a starting point with information at each main stage. It describes what needs to be done, provides case studies of good practices, points to supporting resources, and outlines where there are gaps in understanding. It is intended to act as a living document that will be built on and developed

“We will act now, lead and learn together for a net zero carbon future for a thriving NZ water industry.”

over time as our understanding grows.

Navigating to net zero principles This journey has been developed in accordance with the following principles: • Mitigation actions need to be locally appropriate for New Zealand. There is, however, a wealth of international experience. We will build on international knowledge to tailor solutions that are locally appropriate for our own communities.

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• Different organisations have different priorities and drivers. The journey needs to remain adaptable to different situations, while providing principles and a framework to help achieve a level of standardisation across the industry to harness our collective wisdom. • Mitigation pathways should consider all forms of carbon emissions in water sector activities, including capital carbon, whole-of-life, and supply chain impacts. A clear understanding of relative carbon impacts in sector operations is needed to target mitigation activities to the areas that will have the most impact. • To work in a way that upholds our Tiriti o Waitangi partnership responsibilities by including engagement with, and understanding of, the perspectives of mana whenua, and to integrate perspectives and pathways from Te Ao Māori. • Climate mitigation activities should be prioritised using the emissions management hierarchy of avoidance, followed by minimisation and reduction, with offsetting used as a last resort. • The journey outlined in this document should be freely available and understandable to all.

Our carbon future will take the form of a journey, with many choices to make along the way.

How this document might be used Organisations might use this document in different ways. For some, it might provide the basis of a plan to start working towards net zero. For others, it might provide a sounding board against which to test existing plans or strategies. It is not intended as a fixed approach, as we recognise that different organisations will develop their own pathways depending on their starting point and individual challenges. Our carbon future will take the form of a journey, with many choices to make along the way. Therefore, this document has been structured in the form of a journey. We start by looking back at where we have come from; followed in section 3 by considering the first steps in the journey – where we are now. Section 4 of this report considers how we might move forward by focusing on motivating action, which is followed in section 5 by consideration of the journey ahead. This is the central part of the document and brings together the different elements of work that are required to build a plan to reduce carbon emissions. Lastly, we consider in section 6 how the journey may develop in the future, with specific reference to being guided and informed by Mātauranga Māori, and how the principles of Kaitiakitanga can inform stewardship to help the New Zealand water industry achieve these goals. The water industry is uniquely placed to take a joined-up approach across its land holdings, technologies, approach to intergenerational planning, and its services role to reduce carbon emissions for the benefit of the whole of Aotearoa. This document is intended to help the water industry achieve these goals.

Navigating to Net Zero: Aotearoa’s Water Sector Low-Carbon Journey

Where we come from Aotearoa New Zealand is an island nation located within Te Moana Nui A Kiwa – the Pacific Ocean. Acknowledging and reflecting on the geographic landscapes and societal milestones that have occurred throughout our country’s past provides us with insights that can inform our future direction. Mātauranga Māori Māori, the original inhabitants of Aotearoa, have over 1,000 years of knowledge of this land through living in close association with the environment. This knowledge can help inform our future, from the sustainable stewardship of resources to the development of knowledge frameworks, such as kaitiakitanga.

Treaty of Waitangi obligations The relationship between the British Crown and original Māori leadership and society, enshrined in Te Tiriti o Waitangi, leaves many questions about rights and interests in water unresolved. Water is universally acknowledged as a taonga, however the application of tino rangatiratanga, customary title, and individual ownership renders it a contentious issue. The current water allocation scheme, established under the Resource Management Act 1991, operates on a first come, first served basis, which does little to address iwi rights and interests, or establish a framework for the efficient use of water. The interlinkages between carbon and energy mean a carbon efficient water system will require us to confront these outstanding issues.

Economic links to the water cycle New Zealand is blessed with a water-rich environment, which has allowed our population to grow, and our economy to develop despite the absence of an efficient management regime. Our country’s economic powerhouses – our cities, tourism, and primary production – depend on water. Their development has led to the felling of forests, draining of wetlands, and construction of impervious surfaces. This has had dramatic impacts on the water cycle and carbon carrying capability of our landscapes.

Water efficiency Cheap and plentiful water supplies have led to higher water use than in other parts of the world, both in terms of water end use efficiency and network water losses. This presents us with both challenges and opportunities for emissions reduction, as water embodies carbon in many forms.

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Embodied carbon within water infrastructure One way in which our water embodies carbon is in the development of infrastructure used in its treatment and conveyance. International learnings are offering us the opportunity to fast-track an understanding of where this carbon is concentrated.

Renewable energy supplies Water’s abundance has also provided opportunities for development of renewable energy sources. The development of hydro and geo-thermal schemes means Aotearoa’s electricity network has amongst the highest proportion of renewables in the world. This impacts the emissions profile of the water sector. While many of our international counterparts can make significant emissions reductions by de-carbonising the electricity sector, fugitive emissions and embodied carbon account for a relatively higher proportion of our emissions.

Many players in water management Over time, management of our water supply schemes has evolved. In the first instance, Māori engineering of pā infrastructure applied specific tikanga to uphold the mauri of their water networks in managing water within settlements. Similar tikanga and logic were used to maintain the integrity of their mahinga kai, wild food sources. Following the arrival of Europeans, water was sourced using wells, springs, streams, and rainfall to meet water needs. Around the middle of the 19th century, drinking water, wastewater, and stormwater drainage schemes started to be constructed. Today, water networks are predominantly maintained by 64 territorial councils, two council-controlled organisations, and over twelve regional councils. We have as many ways of managing our water networks as we have entities tasked with managing them. This necessitates development of knowledge sharing and collaborative processes if we are to activate our collective knowledge and enhance customer and community participation to reduce carbon and better value and manage our water.

Evolution of knowledge systems The development of urban networks has been informed by western engineering and science disciplines, an iterative knowledge base which gradually develops based on previous practices. Within these practices an over-reliance on financial metrics where externalities are not valued has meant carbon implications have not always been well accounted for. The radical shifts required to mitigate against the most catastrophic impacts of climate change will require us to take a wider view, one in which we re-imagine new practices, re-enliven traditional practices of mana whenua, and transform our current practices to safeguard our future.

Navigating to Net Zero: Aotearoa’s Water Sector Low-Carbon Journey

3.1

First steps in the journey Distinguishing between operational and capital greenhouse gas emissions The greenhouse gases The delivery of water services can result in the generation of many of the greenhouse gases, or ‘carbon’ emissions. In this document, we will be referring to the most common of these:

CO2 Carbon Dioxide

CH4 Methane

N2O Nitrous Oxide

The first step in managing your greenhouse gas emissions (often commonly referred to as “carbon emissions”, and referred to simply as “emissions” from here on) is to understand what is causing them. For water utilities, emissions will typically fall into two broad categories: operational emissions associated with the day-to-day delivery of water services, and capital emissions, associated with construction of capital works projects. The nature of these two categories of emissions is quite different, and it is common to measure and manage them in different ways: • Operational emissions typically have a strong relationship to the demand for the services, i.e. they will increase as the volume of water being managed increases. Looking back at historical

The first step in managing your greenhouse gas emissions is to understand what is causing them.

performance provides an appropriate basis to look forward to improvement opportunities. We do this by establishing an operational emissions inventory. • Capital emissions are highly dependent on the nature and quantity of the capital works programme. The emissions associated with building a reservoir are quite different from those associated with laying a pipe. For capital emissions, it is best to look forward to the planned programme, and to understand the emissions associated with the different activities within it and the opportunities to reduce them. We do this by establishing a capital emissions baseline.

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The approaches to understanding these two emissions categories are described in separate sections below. We then look at how we can use the collective information to set emissions reduction targets. For other companies within the sector, especially those that do not have a significant capital works programme, only the operational emissions are likely to be significant. However, service providers and suppliers that support capital projects can all play an important role in reducing these emissions. It can be useful for them to understand the emissions sources and consider their role in reducing them.

3.2

Quantification of operational emissions

3.2.1

Developing an operational emissions inventory Developing an emissions inventory will enable you to quantify the sources of your operational emissions, so you can target areas with the biggest impact.

Measuring reporting and offsetting greenhouse gas emissions, Ministry for the Environment (MfE) This guidance and an interactive workbook help New Zealand organisations measure and report their greenhouse gas emissions is available from: https://environment.govt.nz/ guides/measuring-reporting-and-offsetting-greenhouse-gas-emissions/ Organisations may not always have all the internal skills or resources to complete an emissions inventory without help, but there are several supporting tools and services available. A large, well-resourced organisation may wish to develop an inventory from scratch, utilising raw data sets and emissions factors, that integrate with corporate data and reporting systems. Alternatively, you may choose to enlist the help of a specialist consultancy and/or work with pre-existing templates.

Quick Guide: Emissions Measurement and Management, Sustainable Business Council This guide provides information about companies in New Zealand and overseas that can help with measuring emissions, setting targets, and reporting on performance: https://www. sbc.org.nz/resources/guides/quick-guide-emissions-measurement-and-management

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Accounting approaches for operational emissions

3.2.2

Emissions measurement has evolved over time and is now governed by a series of standards and best practice protocols that can be readily applied to the water sector.

The two most common standards for Greenhouse Gas Reporting are: 1. The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (The GHG Protocol). The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (The GHG Protocol). It is available here: https://ghgprotocol.org/ 2. ISO 14064-1:2018 Greenhouse gases – Part 1. The GHG Protocol is a standard developed jointly by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). It is available at https://www.ghgprotocol.org/standards/ corporate-standard

1. ISO 14064-1:2018 applies six categories instead of the three scopes, but the only substantive difference is that the ISO standard splits Scope 3 into four categories. See Table 1 of the MfE guidelines for a description of the differences.

Each of these documents provides further guidance on scope and boundary setting for an organisation, and should be used when establishing carbon measurement as well as during verification. Under the GHG Protocol, greenhouse gas emissions reporting is considered in three separate ‘scopes’1, described below and presented as Figure 1: • Scope 1: direct emissions from activities that the organisation owns and controls, such as burning fuel in vehicles, or the emissions from wastewater processing. • Scope 2: indirect emissions where the source of emissions is somewhere else, but the activity is controlled by the organisation. This is most commonly purchased electricity.

Figure 1: Greenhouse gas emissions scope

• Scope 3: indirect emissions where the activity is not directly controlled by the organisation, such as flights or waste in landfill.

CO2

CH4

N4O

HFCs

PFCs

SF6

NF3

Scope 1

Scope 2

DIRECT

INDIRECT

Scope 3

INDIRECT

purchased goods and services transportation and distribution purchased electricity, steam, heating and cooling for own use

capital goods

leased assets

business travel

transportation and distribution waste generated in operations

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franchises

processing of solid products

employee commuting

fuel and energy related activities

investments

company facilities

company vehicles

leased assets use of sold products

end-of-life treatment of sold products

3.2.3

Setting an operational emissions boundary The first decision when developing an emissions inventory is to determine the organisational boundary you will apply the measurement of greenhouse gas emissions to. This will typically align with organisational structure and the area over which there is control over emissions. Guidance for determining where to apply the boundary is included in the GHG Protocol and the Ministry for Environment guidelines (referred to in Section 2.2.2). The emissions scopes are important when both considering a boundary for carbon reduction measurement and setting a reduction target. The full range of emission sources for water, wastewater, and stormwater service providers, classified by scope, are shown in Table 1. Councils operating water networks often have geographic jurisdiction that encompasses un-networked supplies using a private water supply, and onsite wastewater systems such as septic tanks. Private wastewater schemes can be a large source of methane emissions, however an emissions inventory would generally only address systems under direct organisational control, for example a council-operated septic tank at a holiday park. Gathering sufficient background data to fully quantify all emissions can be time consuming. One approach is to initially consider Scope 1 and Scope 2 operational emissions, then gradually extend your inventory to cover Scope 3 emissions as resources permit. There does reach a point at which the emissions and emissions reduction potential are so low that they do not warrant the effort of collecting the data. The GHG Protocol and Ministry for Environment guidelines provide advice on what level of emissions can reasonably be excluded.

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3.2.4

Sources of emissions Identifying the source and quantum of emissions enables an organisation to identify its major carbon contributors, and the biggest opportunities for emissions reduction. Sources of emissions throughout the water services cycle are listed in Table 1.

Table 1: Sources of emissions within the water industry excluded.

This table is designed with a water utility in mind. If the organisation is supporting a utility through services or construction, the Scopes may apply to activities in a different way.

Water abstraction

Water treatment

Water distribution

Wastewater collection

Wastewater treatment

Wastewater discharge

Stormwater collection

Corporate office

Capital works

Emissions factors and tools*

Vehicle use

MfE

CO2, CH4 and N2O from onsite stationary fossil fuel use

MfE

CH4 and N2O from sewers

Yet to be developed

CH4 and N2O from wastewater treatment

WNZ

Biosolids stockpiled or reused on land owned by authoriy

WNZ

Electricity use

MfE

Ancillary goods and services

MfE / Moata or supplier

Use of chemicals

MfE / Moata or supplier

Construction materials used

MfE / Moata or supplier

CO2 , CH4 and N2O emissions from sludge treatment or disposal to landfill offsite

MfE

N2O emissions from discharge in receiving waters

WNZ

Waste to landfill

MfE

Refrigerants

MfE

Air travel

MfE

Taxi / claimed milage

MfE

Biogenic emissions

Non-biogenic emissions Assessing the quantum of emissions from each source requires the application of activity data (i.e. data on how much of each source was used) in combination with the relevant emissions factors (i.e. the emissions generated from each unit of the emissions source). Sources of emissions factors for each of the emissions areas in Table 1 are shown in Table 2.

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Table 2: Tools for assisting with emissions reductions

Ministry for Environment (MfE) Measuring Emissions Guidelines: https://environment.govt.nz/guides/ measuring-reporting-and-offsettinggreenhouse-gas-emissions/

Organisations wishing to voluntarily monitor and report greenhouse gas (GHG) emissions on an organisational basis for their New Zealand operations can use these GHG emission factors for a range of common emission sources. Emissions factors can be accessed via quick or detailed guides, flat files, or an interactive workbook.

Water New Zealand (WNZ), Standardised greenhouse gas emission determinations for the New Zealand wastewater sector

Documents a standardised approach for determining wastewater treatment process, discharge, and sludge emissions. This is an Aotearoa-specific reference document built on emissions factors published by the International Panel on Climate Change.

Moata Carbon Portal

The Moata Carbon Portal is a paid subscription service that allows embodied carbon accounting, and planning of project delivery. It utilises data libraries with information on the embodied carbon of over 33,000 components. Some suppliers may also be able to provide their own emissions factors.

Two examples of the relative contribution of these sources to an operational emissions inventory

Figure 2: Watercare overview of operational emissions 2019/20 – scope 1, 2, and 3

are provided below. An example of operational emissions sources for the overall operation of water and wastewater networks is provided in Figure 2.

Effluent discharge to water and land Transmission and distribution loss natural gas and electricity Maintenance contractor fuel use

Waste generation and transport to land fill Fuel use in corporate vehicles

Fugitive emissions from network

Waikato Contract Services

1% Overflows from network 1% Biogas combustion 1% Onsite fuel use

Scope 1 Scope 2 Scope 3

4% 4%

36%

Electricity use

4% Operational emissions

6% 6%

Biosolids in land rehabilitation

8% Wastewater treatment

15% Lime use (Water and WWT)

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Figure 3: 2019 Scope 1, 2, and 3 Greenhouse gas emissions from Project Pure

Another, more focussed example is the Scope 1, 2, and 3 emissions for Project Pure, Wānaka’s Wastewater Treatment Plant. These are illustrated in Figure 3.

1% Soda ash production 1% Polymer production

2%Operator commute

Scope 1 Scope 2

Methane emissions released at WWTP

Scope 3

Transport of biosolids to landfill and disposal in landfill

31%

44%

Nitrous oxide emissions from SBRs

Greenhouse gas emissions

Transport of grit/ screenings to landfill and disposal in landfill

% Transmission and distribution losses (electricity)

3.2.5

4% 7% Plant electricity

4% Discharge nitrous oxide emissions

Biogenic emissions Operational emissions in the water sector arise from both biogenic (produced or brought about by living organisms, or “naturally occurring”) and non-biogenic sources (“man-made” sources such as from fossil fuel combustion). As New Zealand’s emissions targets differ between these emissions sources, it may be useful to classify your emissions based on this distinction. The classification of the different sources between these two emission types has been colour coded in Table 1. Biogenic methane (CH4) is generated through the conversion of organic matter by the process of methanogenesis. This process can occur in the solids removed from the water supply during water treatment, and from the organic matter found in wastewater and removed in its treatment process. Biogenic nitrous oxide (N2O) occurs as the product of denitrification and/or nitrification of the nitrogen compounds found in wastewater by microorganisms, including as part of the treatment process itself.

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The major sources of biogenic methane and nitrous oxide in the wastewater network are illustrated in Figure 4. These emissions can be calculated using standard factors or measured directly using monitoring equipment. To date, cost has been a major barrier for direct monitoring; however, while these guidelines were being prepared, investigations and/or trials of emissions monitoring where Figure 4: Sources of biogenic emissions from wastewater treatment

underway at Watercare, Hamilton City Council, Nelson City Council, and Christchurch City Council. The standard methods for determining wastewater emissions are available in the Water New Zealand guidance document referred to in the text box below. Effluent disposal

N2O emission

Discharge to rivers, ocean

CH4 emission

Discharge to reservoir, lake, estuary Discharge to reservoir, lake, estuary

Sewerage Wastewater treatment

Discharge to land, including irrigation

Sludge treatment

Sludge

Composted

Vermicomposted

Anaerobic digestion

Incinerated

No treatment

Stockpiling

Applied to land

Landfilled

Biogenic carbon dioxide (CO2) is released from the degradation of biomass in wastewater (i.e. faeces, paper, food waste, fats, oils, and greases). This does not, however, contribute to the carbon footprint, as the majority is not considered to be of fossil carbon origin. This assumption may be reviewed as research in this area develops.

Water New Zealand Carbon Accounting Guidelines for Wastewater Treatment: CH4 and N2O This document provides guidelines for accounting for CH4 and N2O emissions from domestic wastewater treatment, discharge, and sludge processing in New Zealand. Emissions from septic tanks are also covered. The guidelines provide standardised approaches and principles, guidance on the scope and boundaries to be considered for activities in the wastewater industry, and more detailed guidance on greenhouse gas accounting for wastewater treatment processes used widely in New Zealand. The guidelines can be accessed from https://www.waternz.org.nz/Resources/knowledgebase-landing

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Biogenic greenhouse gas contributions from the water and stormwater network are relatively minor. Methane is released from the breakdown of water treatment plant sludge in either landfill, composting facilities, or wastewater treatment plants. Methane and nitrous oxide emissions can be generated from any build-up of organic contaminants at the discharge of stormwater network elements, such as wetlands and swales, and as fugitive emissions from organic matter in stormwater networks more generally.

3.3

Developing an operational emissions forecast Different organisations will develop their own pathways depending on their starting point and individual challenges. Council planning processes include the development of a Long-Term Plan (LTP), which is updated every three years. The LTP is essentially the council’s investment plan for at least the next ten-year period. As part of developing the LTP, each council also prepares its Infrastructure Strategy that looks forward at investment needs over at least the next 30 years, and reviews its Asset Management Plan (AMP). The AMP identifies and budgets for levels of service, growth, risk, maintenance, renewal, and development works and strategies. Taken together, the 30-year view established in the Strategy and AMP provides a council with a forecast of its operational requirements out to 2050. The emissions from most operational sources are proportionate to the demand for the services. For example, population growth increases the demand for water and wastewater services, and therefore the demand for electricity and chemicals, along with the production of by-products such as sludge. Converting the emissions from the inventory into an emissions intensity (i.e. emissions per cubic metre of water supplied, etc.) and multiplying this by the future demand (as determined for the AMP) enables operational emissions to be forecast into the future.

Example of forecasting future emissions using the operational emissions inventory: Methane emissions from wastewater sludge disposal to landfill in 2020: 1,200 t-CO2-e Population served by wastewater treatment plant in 2020: 50,000 Emissions intensity = 1200/50,000 = 0.022 t-CO2-e per person Population forecast to be served by wastewater treatment plant in 2050: 60,000 Forecast emissions for sludge disposal in 2050* = 0.022 x 60,000 = 1,320 t-CO2-e *Assuming no changes to WWTP or landfill operation, and that sludge volumes are directly proportionale to population (i.e. sludge kg per person per day).

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It may be that the LTP and AMP have identified expected changes to levels of service, or significant investment, that fundamentally change the existing relationship between emissions and service demand, and this should be considered when developing the forecast. Examples might include: • Increasing investment in reducing network leakage or customer demand, thereby reducing the amount of water required per person for the serviced population and, as a result, the demand for electricity and chemicals. • Investing to reduce the amount of wastewater sludge being disposed to landfill, thereby reducing the amount of methane production. 2. Noting also that the emissions per unit of grid-supplied electricity are also expected to reduce over time as the proportion of renewable generation increases.

• Investing in renewable generation at site (i.e. solar panels, mini-hydro, biogas, etc.), thereby reducing the demand for grid-supplied electricity.2 As our understanding of emissions sources improves, it may also be possible to determine other drivers influencing emissions. For example, the energy use and associated emissions of pump stations may be correlated with pump age or service history. Analysis of the relationship between drivers and emissions can be established by using a series of different types of analysis, outlined in Appendix II. The analyses presented in the Appendix have been developed for energy use, which has an obvious corollary for greenhouse gasses. Many of the drivers of direct emissions from wastewater treatment processes are an area of emerging science. For example, it is not yet clear what the relationship is between wastewater treatment nitrogen removal and nitrous oxide emissions. Over time, more mature greenhouse gas estimates should aspire to develop emissions forecasts using these principals across all known drivers.

3.4

Developing a capital emissions baseline Capital carbon emissions are those generated from the creation of infrastructure, including the emissions from the extraction of materials, creation of components, transport to site, and construction. These emissions are highly dependent on the nature and extent of the capital works programme that is being undertaken, and the design, materials and construction techniques used to achieve the desired customer outcomes. As a result, the common approach is to baseline the emissions that can be expected if the capital programme follows a traditional, “business as usual” approach. This baseline then provides the reference point for considering the emission reduction opportunities from adopting alternative, low-carbon approaches.

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Developing the baseline is one element of the overall approach to managing the whole-of-life emissions from infrastructure. This involves thinking about emissions all the way through the process from developing strategy, project brief to operation, and at end of life. An overall approach for whole-of-life emissions is set out in PAS 2080:2016, the Publicly Accessible Standard for Carbon Management in Infrastructure.

PAS 2080:2016 Carbon Management in Infrastructure: This Publicly Accessible Standard (PAS) specifies the requirements for the management of whole-of-life carbon in infrastructure, including both new assets and renewals. The standard is available for purchase from Standards institutes, but the UK’s Green Construction Board has published a free guidance document on how to apply the Standard that provides useful, practical direction: http://greenbuildingencyclopaedia.uk/wp-content/ uploads/2016/05/Guidance-Document-for-PAS2080_vFinal.pdf

Establishing the baseline typically involves a mixture of “top-down” and “bottom up” approaches: • The top-down approach involves applying sector or industry average data to similar projects or programmes of work. • The bottom-up approach involves a more detailed assessment of the expected emissions from a particular project, having considered the design and proposed construction method. An example of a top-down approach might be to apply an estimate of the emissions per kilometre of pipe laid (assuming a common construction method), while the bottom-up approach might be based on the application of known emissions factors to a detailed project design (i.e. emissions per tonne of concrete multiplied by tonnes of concrete required, etc.). In either case, calculating the baseline will require access to information on relevant emission factors. There is not currently a set of standard capital carbon emission factors like those the MfE has published for operational emissions. Options for developing the baseline include the use of a dedicated tool, such as the Moata portal referred to in Table 2, or through a dedicated calculation using data available to the utility from suppliers, consultants, or other sources. Regardless of the approach taken, it is important to apply it consistently so that performance against the baseline can be accurately assessed in the future. Information developed for AMPs, Infrastructure Strategies and LTPs can be used to establish the baseline. This would typically involve assessing emissions for planned investments over a known timeframe (i.e. 3 years, 10 years, etc.) This will necessarily involve making some assumptions where a planned investment is not well defined (for example, where detailed design is yet to commence). Carefully defining these assumptions will enable the baseline to be refined as the capital programme is developed over time.

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3.5

Setting carbon reduction targets The targets specified by the Zero Carbon Act (ZCA) provide a minimum biogenic and non-biogenic emission reduction target for New Zealand. The Act sets out the following domestic greenhouse gas emissions reduction target for New Zealand: • Reduce net emissions of all greenhouse gases (except biogenic methane) to zero by 2050. • Reduce gross biogenic methane emissions: – by 10% by January 1, 2030 (in comparison with 2017 emission levels). – to 24-47% by January 1, 2050 (in comparison with 2017 emission levels). These are national targets rather than specific obligations for individual organisations or industries. However, it signals the direction of travel that the water industry must be aware of and respond to. As a sector heavily exposed to the impact of climate change, it is likely organisations tasked with water service delivery will elect to develop more ambitious targets. For example, Christchurch City Council has set a target of net zero emissions by 2045. The United Kingdom water industry has set a target to become net zero by 2030. It is likely that a water utility will establish separate reduction targets for its operational and capital emissions. This reflects that an operational reduction target will be demand dependent, while the capital reduction target will be dependent on the nature of the capital programme. The opportunities to reduce emissions (see section 5) are also likely to be quite different. An operational emissions reduction target can also be set in the context of the national target, as they apply a common accounting approach. For long-term targets, it is also helpful to have steps you are aiming for along the way. To keep the New Zealand government on track to meeting long-term goals, the Climate Commission will be setting 4 to 5-year national emissions budgets. In advance of these budgets being set, Watercare, which shares the goal of achieving net zero emissions by 2050, has set intermediate goals to; • reduce operational emissions by 45% by the year 2030, and • reduce capital infrastructure emissions by 40% by the year 2025. Targets will evolve with the sophistication of the climate change programme. Once the programme is in place, better quality information to use in setting targets will become available. When setting targets, an organisation should consider the sources of emissions identified in its inventory and baseline, and the alternatives and reduction opportunities available to it. Targets need to be measurable and challenging with defined deadlines, while also being realistic and achievable.

Net Zero 2030 Routemap, Water UK In November 2020, water companies announced a plan to deliver a net zero water supply for customers by 2030. Water UK has developed a Net Zero 2030 Routemap, outlining how they plan to reach target, and a framework for water companies on which to develop and cost their own net zero action plans: https://www.water.org.uk/routemap2030/

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Motivating action Every impact derived from climate change directly affects the water sector, be it more intense and frequent rainfall, sea level rise, or drought. Contributing to greenhouse gas mitigation not only makes economic sense, but it is also an environmentally and socially responsible action to build resilience over the long term.

Figure 3: Reasons why water utilities start to mitigate climate change

Some of the reasons water utilities start to mitigate climate change and help motivate action in their organisations are outlined in Figure 3. An increasingly important driver is the expectation that there will be action, which is also increasingly emerging in relevant legislation and regulation.

The moral imperative Public health and environmental protection are the core functions of water services delivery. Both are fundamentally threatened by the impacts of climate change. Interdecadal planning required by the nature of water infrastructure assets mean we are uniquely placed to respond. We are the last generation with the opportunity to make a significant difference to global warming. If not us ,then who. if not now, then when.

Managing climate change impacts

Anticipating GHG emissions reduction goals/regulations The establishment of He Pou a Rangi (the Climate Commission) and multi-party support for the Climate Change Response (Zero Carbon) Amendment Act, which legislates targets for action, demonstrates the government is committed to acting on climate change. New Zealand is the first country in the world to introduce a law that requires the financial sector to disclose the impacts of climate change on its business, and explain how it will manage climate-related risks and opportunities.

Operational costs

The water industry are on the front line of business affected by the impacts related to climate change, drought on water supply provision, asset inundation, aquifer salinity, increased flooding intensities. It is incumbent on us to act as leaders in the business community to mitigate against the severe risks to our services.

A majority of emissions sources have a directly correlated operational cost that is billed for every unit delivered (e.g. kWh of electricity). A reduction in the volume of that emission source will lead to direct cost savings. There are often opportunities for reducing waste (either wasted energy or waste products) which means less levies and fees as well as original purchase costs.

Community/stakeholder expectations

Capital costs

Water services are publicly owned, and are intrinsically linked to the natural environment by the work we do. There are societal pressures for both public and private entities to take climate action. This is driven through the very communities that are served, as well as the people the industry employs. Being guardians of water as a precious resource makes it our responsibility to take action.

Reviewing how to achieve the desired outcomes of an infrastructure project can lead to considerations of whether anything needs to be built at all, whether existing assets can be reused, or whether less overall infrastructure is required. These can all lead to a reduction in capital costs for a project. Whole-of-life value thinking also supports the potential for capital cost savings over the lifespan of the project.

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For example, part 5ZW of the Zero Carbon Act enables the Minister or the Climate Change Commission to request a water services utility to provide information on its approach to climate change risk and risk mitigation, including the metrics and targets used to assess and manage the risks and opportunities. This will include targets for emissions reductions. Similar disclosures are envisaged to be required of listed companies, both in draft legislation and by financial investors. A host of resources exist to assist in communicating the implications of climate change and the need for urgent action. Some useful resources for different audiences are:

Principles for effective communication and public engagement on climate change, the Intergovernmental Panel on Climate Change This handbook was originally developed to help scientists confidently engage with the public on climate change. Many of the principles are equally useful in water industry communications: https://www.ipcc.ch/site/assets/uploads/2017/08/Climate-OutreachIPCC-communications-handbook.pdf

Communication guide: time to act, the Climate Commission A series of guides written to help other organisations, professionals, and community leaders to effectively communicate with the public about climate change and renewable energy solutions: https://www.climatecouncil.org.au/resource/communication-guides/

Truth in 10, the Climate Reality project Al Gore created the Truth in 10 slideshow, a 10-minute presentation to help spread a simple message to your community: the climate crisis is urgent, but the solutions are at hand. The presentation is designed to be downloaded and personalised so you can then go out and deliver it: https://www.climaterealityproject.org/truth

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4.1

Business maturity Taking action to mitigate against climate change requires co-operation across several business areas. This means that embedding climate action into key planning processes and policy documents, and securing the commitment of appropriate people and resources within your organisation, is critical to its success. Organisational buy-in will require: • People: support from the Board, Chief Executive Officer, and senior management to implement emissions reductions • Policy: a policy, position, strategy, or direction-setting document that provides clear, transparent, and ongoing commitment to acting on climate change The buy in of both people and policy is essential for securing sufficient resources, both financial and non-financial, for co-ordination and input into the climate mitigation process. A simplified business maturity spectrum for people and policy is shown below. Careful consideration, understanding, and development of mature people and policy practices within the organisation will assist in overcoming difficulties.

Starting out Policy

People

Policy issues and constraints surrounding climate mitigation within your organisation have been investigated.

Management and staff have a basic understanding of the need for the organisation to act on climate change.

A policy detailing our organisations commitment to climate mitigation has been developed.

Senior management have endorsed the policy, and provided a mandate for developing an action plan.

Policy is guiding the corporate plan, and a mitigation plan detailing specific initiatives has been developed.

Senior management have endorsed the mitigation plan and allocated resources to action it.

Climate mitigation goals and actions are being developed and refined in the action plan.

Climate mitigation roles and responsibilities are communicated across the organisation, and everyone understands their role.

Ready for action

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Municipalities for Climate Innovation Program, Climate Action Maturity Scale For a deeper dive the Climate Adaptation Maturity Scale, developed by the Federation of Climate municipalities allows you to conduct a self-assessment. Originally developed for climate adaptation, many of the principles can be applied to your climate mitigation journey: https://fcm.ca/sites/default/files/documents/tools/MCIP/mcip-climate-adaptation-maturity-scale.pdf

4.2

Partnerships Water service delivery is intertwined with several stakeholders who may be informed, consulted with, collaborated with or empowered to assist in the delivery of our climate mitigation plans. Stakeholder partnerships can help drive action and extend the impact further than when we act alone. Conversely our stakeholders can act as barriers to mitigation when relationships and drivers are misaligned.

Practical guide to effective partnership, Sustainable Business Council This Guide supports businesses to think strategically about how they partner, using the collective insights of a number of leading practitioners. It captures the advice they would have liked when they started out on their partnership journey: https://www.sbc.org.nz/__data/ assets/pdf_file/0019/83215/SBC_PGEP_2July14.pdf

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A list of possible stakeholder relationships to reflect upon when you consider your organisation’s unique stakeholders make up are listed in the table. Government Aligning with government policy and strategies can assist in developing business cases for action, in some cases allocating funding, providing supporting tools, and legislation. Ministry for the Environment

Produces data and tools to assist in the understanding and assessment of greenhouse gas emissions.

Regional Councils

Many have declared a Climate Change Emergency. Often have in place carbon neutrality action plans and associated targets. Often provide information on the contribution of wastewater emissions to overall regional emissions, useful for setting context. Their decisions and approach to water allocations and receiving water quality can influence both operational and capital investment decision-making.

Territorial Councils

Many have emissions reduction targets and mitigation plans in place. These can set the framework for a more granular understanding of water emissions and opportunities. Councils also currently control the funding allocated to water service provision. In many cases, emissions mitigations may require increases in spending, meaning the buy-in of council and councillors is a critical determinant of success. The approach of councils to land use, and land use planning and policy, can influence operational and capital investment decision-making. For example, requirements for water-efficient land development can reduce the demand for water and the associated operational emissions.

Energy Efficiency and Conservation Authority

Responsible for delivering the New Zealand Energy Efficiency and Conservation Strategy. Has resources and funding to support implementation of energy efficiency initiatives.

He Pou a Rangi (the Climate Commission)

Provides evidence and advice (developed for government, but accessible to others) that can be used to help in the transition to a just Aotearoa.

Mana whenua Partnerships with iwi provide alternative world views that can help us identify new ways to address issues. Iwi and hapū also hold local knowledge of their tribal areas, and are uniquely placed to draw on more than 1,000 years’ experience of living in Aotearoa. Water consumers Water consumers are responsible for financing water service delivery, be it directly through water meters, or indirectly through council rates. Their willingness to pay for climate mitigation measures will dictate the ability to fund climate mitigation opportunities. Water consumers also have an important role in terms of levels of consumption. Efficient use of water limits the carbon inputs required in its distribution and delivery, minimising energy inputs in water and wastewater treatment and conveyance, chemical inputs into water treatment, and the amount of infrastructure (and associated embodied carbon) required to convey it. Supply chain Much of the technology, tools, and experience needed to deliver water services rests within supply chains. Creating alignment, drivers, and an enabling environment for suppliers to contribute to emissions reductions targets is needed to unlock the full range of climate mitigation opportunities that exist for the sector.

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5.1

The journey ahead Creating organisational commitment This section examines how you could approach embedding climate change mitigation into your business processes, and some of the actions that might be available to you to implement.

5.1.1

Integrating climate change into business-asusual practice The most impactful way of responding to the challenges of climate change is to integrate this into business-as-usual processes. In this way, climate mitigation decisions are considered across all spheres of the business, rather than in isolation. Some mechanisms to help achieve this (adapted from the Water Service Association of Australia’s Climate Change Adaptation Guidelines for the Australian water sector) are to: • Seek visible commitment from executive management. • Prepare an overall strategic approach to climate change that includes consideration of how this can be embedded in the culture of an organisation. • Engage with decision-makers early to make sure that climate change is front of mind ahead of critical decisions. • Include references to climate mitigation in planning and policy documents. • Ensure your emissions baseline and forecast are informed by, and inform other, business planning processes, so they evolve and grow. • Demonstrate and share case studies or experiences, so that people can progressively build confidence, networks, and capacity to support innovative thinking. • Advocate to external stakeholders who can help you overcome regulatory, internal culture or financial barriers. The Partnerships section of this document outlines potential stakeholders who might help you on this journey. • Educate and build capacity amongst staff and decision makers about how and why things need to be done differently.

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5.2

INFLUENCING

Figure 4: Human Resources: Aotearoa’s Net Zero Carbon Water Industry

Human resources The following diagram shows the potential range of skills required for actioning climate change mitigation. All water industry professionals should have some level of ‘climate literacy’, and have access to professionals in the areas outlined below.

Executive and Senior Leadership

Leaders in each organisation who show visible commitment and accountability to climate change, influencing and inspiring change internally, externally, and in a way appropriate to their catchment, region and local protocols.

Climate Change Champions

Leaders (from a diverse background) who embed climate change into the culture (internal) and are connected across the industry via networks (external). Empower those who want to make a difference – regardless of background. Climate Change as Business as BAU

TECHNICAL

Technical Specialists Specialists should have local knowledge, professional networks, and mentor developing specialists

Professionals who are experience at integrating general climate / carbon considerations into water industry work as business as usual (BAU).

Climate Change Mitigation Professionals who are specialists in understanding, quantifying and reducing operational, capital and supply chain carbon emissions. They are up to date with the latest international best practice.

Climate Change Adaption

Climate Change Policy

Professionals who are specialists in climate risk and resilience; who can prepare our water utilities for a more extreme climate (i.e flooding and droughts). They are up to date with the latest international best practice.

Professionals who are specialists in policy and the financial implications of climate change.

Developing Specialists

Due to long term thinking required for climate change action, people must be developed from all experience levels across the industry.

Industry wide climate change literacy

While it is critical to have climate change influencers and technical specialists, industry wide climate change literacy is essential for advanced climate change action and embedding considerations as BAU on all water industry work.

Given the large number of staff that need to be involved in effective implementation of climate change initiatives, it is important to have clear internal and external accountability for progress. A checklist of actions for assigning accountability (adapted from the WSAA Climate Change Adaptation Guidelines ) is shown below: • Formally allocate CEO time to review the implementation and success of climate mitigation initiatives. • Allocate to a senior manager responsibility for coordinating and tracking progress towards the climate mitigation goals . • Delegate to managers of key functional areas responsibility for achieving aspects of the climate mitigation goals. • Develop a cross-functional climate mitigation steering committee. • Have relationships with iwi and hapū in place to uphold commitment to Te Tiriti o Waitangi when planning and implementing climate initiatives. • Ensure progress is reported to a governance group at least bi-annually.

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• Clarify expectations of staff through internal policy statements and awareness training. • Include climate change mitigation responsibilities in position descriptions. • Include climate change mitigation responsibilities in performance contracts. Things to consider when building climate change capacity in your workforce are: • Te Tiriti o Waitangi – The voices of tangata whenua need to be heard in climate action discussions and decisions. This requires staff to understand and uphold commitment to Te Tiriti o Waitangi, and develop good working relationships with iwi and hapū groups. • Diversity – a strong diversity, equity, and inclusion (DEI) agenda is paramount for a low carbon future. Developing diverse climate change teams that are inclusive of all perspectives will help with robust planning and execution.

The Aotearoa Inclusivity Matrix, Diversity Works The matrix is an evidence-based framework, developed specifically for New Zealand workplaces, that allows organisations to identify the maturity of their diversity, equity, and inclusion (DEI) practices across seven components. It will provide a basis for workplaces to understand their current capabilities, identify areas for improvement, and create a roadmap for transformation: https://diversityworksnz.org.nz/news-resources/aotearoa-inclusivity-matrix/ • Empowerment – of those people who want to make a difference (regardless of background), and help them to believe that they can make a difference. • Training and development – climate change and carbon are complex topics that require training and professional development. It is important to provide employees with access to relevant training (i.e. influencing, carbon accounting, climate risk, workshop facilitation). • Industry-wide networks – encouraging members of your organisation to be part of both Aotearoa and international networks will lead to stronger collaboration and faster implementation of climate change solutions. • Support and pastoral care – professionals working in the climate change area are susceptible to burnout due to competing priorities that come from managing both their typical job responsibilities (such as technical work and operations tasks) and climate change mitigation responsibilities. Providing adequate support is important to make sure they have the capacity to continue working in this space.

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5.3

Planning for emissions reductions The planning phase requires the development of projects to reduce emissions. Understanding the operation of our assets, and where the largest emissions are occurring, allows us to focus optimisation for the greatest carbon reductions. Likewise, when planning for increased growth and levels of service, understanding how the emissions from existing assets compare with those of potential future assets allows asset owners and their supply chains to design for lower future emissions. This section provides an overview of operational and capital emissions from all water infrastructure, and provides guidance to assist in estimating the potential benefits. These opportunities were drawn from a workshop attended by water industry professionals across New Zealand. Some of their thoughts and case studies are also shared in this section. In addition to these opportunities, water utilities also share many of the same emissions reduction opportunities as other organisations. For example, switching to electric vehicle fleets, minimising travel, and improving office building efficiency. Such opportunities are not covered in detail in this document, as they are already covered by several useful resources, such as the carbon action toolbox below.

Climate Action Toolbox A simple self-assessment tool to help reduce the carbon footprint of any business. It focuses on five key areas – transport (moving people and goods), office operations, site operations and equipment, and the design and making of products, available from: https://www.tools. business.govt.nz/climate/

5.4 5.4.1

Operational emissions reduction initiatives Wastewater treatment and networks The table on the following page summarises key operational carbon emission hotspots, and examples of reduction initiatives for wastewater treatment plants and networks.

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Carbon Hotspot

Potential Reduction Initiatives

Disposal of biosolids

Processing options to form biosolids/biogas/biochar: • Bioprocessing, e.g. anaerobic digestion, thermal hydrolysis, anaerobic digestion, composting, vermicomposting. • Thermal, e.g. incineration, gasification, drying, co-combustion, pyrolysis. • Chemical, e.g. lime stabilisation, desiccant and binder (Moxiepal). Beneficial end-use options for biosolids/biogas/biochar: • Application to land, e.g. native forestry/tree plantations, creation of biofuels, quarry/land rehabilitation, agriculture/horticulture. • Energy recovery, e.g. combustion for heat, electricity generation, direct use in fleet vehicles. • Construction industry: roads/highway embankment, concrete/bricks. • Vermicomposting. Other disposal pathways: • Monofil/land restoration.

Nitrous oxide treatment emissions

• Monitor emissions and operating parameters to optimise based on results.

Methane treatment emissions

• Installation of a biofilter with a higher residence time that removes methane as well as hydrogen sulphide.

Discharge methane and nitrous oxide emissions

• Non-potable water reuse for irrigation.

Anaerobic digestion and biogas use

• Fixed roofs for digesters to minimise methane leakage around the perimeter.

• Increased effluent quality results in lower methane emissions.

• Replacement of open biogas flares (typically have 50% efficiency in conversion of biogas to carbon dioxide gas) with enclosed flares (which typically have 90% efficiency). • Use of biogas for co-generation of electricity (use on site or export to the grid) which would reduce emissions, natural gas usage, and reliance on the electricity grid. • Process optimisation such as recuperative thickening or thermal hydrolysis to enhance biogas production. • Co-digestion of high strength organic wastes to increase gas production. • Scrubbing of biogas and injection into the natural gas grid for beneficial reuse.

Electricity

• Increased power use efficiency in UV power and management settings. • Recovery of heat to meet process heat requirements or for third party use (such as swimming pools or greenhouses). • Energy efficient aeration systems: a) More energy efficient blowers, diffusers, and process control options could reduce blower electricity consumption. b) Onsite generation of oxygen.

Diesel and natural gas

• Increased electrification of process equipment will reduce diesel and natural gas consumption. • Batteries rather than diesel generation for backup power supply.

Wastewater sludges

• Biosolids reuse.

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Carbon Hotspot

Potential Reduction Initiatives

External resources

• Recovery of heat to meet process heat requirements or for third party use (such as swimming pools or greenhouses). • Nutrient recovery to offset synthetic fertilisers. • Hydrogen fuel production. • Algae-based fuel production. • Use of recycled wastewater (for both internal uses such as screen washing, and external uses such as watering golf courses).

On route to developing the document we hosted a symposium with water professionals from around New Zealand. Here are some of their thoughts on reducing wastewater emissions: “Understanding your emissions makeup is so important, it allows you to target the areas with most impact” “Our wastewater should be considered a product, our treatment plant “factories”. We should be thinking about how we can use and get the best from this product.” “Let’s stop calling it ‘wastewater’!”

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CASE STUDY: Vermicomposting biosolids Vermicomposting, or worm composting, is one of nature’s most effective and most advanced methods for processing organic wastes. Here in New Zealand, the technology has been developed on an industrial scale to transfer wastewater sludges from towns around the north island into a safe and highly valued soil conditioner known as vermicast for use in agriculture, horticulture, nurseries, and recreation areas. Over 250,000 tonnes of organic waste is vermicomposted annually, including municipal wastewater sludges from Taupō, Tokoroa, and Maketu and soon Ohakune. New vermicomposting sites are planned for 2021 and 2022 in Te Puke, Waihi Beach, Napier, and Matamata. The technology is scalable with ‘worm farm’ sizes varying from 250 to 159,000 tonnes per year. Raw biosolids are sources of the greenhouse gases carbon dioxide, methane, and nitrous oxide. Most methane is emitted during the sludge drying process, whilst almost all the nitrous oxide is emitted during biosolids storage. While there is much uncertainty around the exact volume, it is widely acknowledged that biosolids stockpiles can be significant sources of greenhouse gas emissions. Vermicomposting reduces wastewater sludge emissions, converting carbon and nutrients that might otherwise be released as greenhouse gases into carbon and nutrients in a form that promotes plant growth. The use of vermicast has other benefits as well.. It plays an important role in carbon sequestration in soils, water and nutrient storage and cycling, retaining moisture and reducing nitrogen leaching and runoff. Biosolids considered for land application have both pathogen reduction and contaminants standards that need to be met to ensure a product safe for reuse. Achieving standards cost effectively can be a challenge, meaning wastewater sludges often end up in landfill. Wood processing industries have different waste reuse challenges – a usually carbon to nitrogen ratio limits land utilisation unless significant nutrients are co-applied. Combining the two industries wastes overcomes these challenges and which is commercially viable. You can read more about the business running these worm farms at this link: https://www.mynoke.co.nz/ Currently, landfill and onsite stockpiles are the most commonly employed disposal route for our wastewater sludges. This means organic ‘wastes’ (resources) are not returned to productive land, breaking the nutrient cycles of our food production systems – nutrients are ultimately being transferred from soils to landfills. The technology of industrial scale vermicomposting has the potential to transform our wastewater sludges, and reintegrate them into the circular economy.

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5.4.2

Water treatment and networks The following table summarises key operational carbon emission hotspots and examples of reduction initiatives for water treatment plants and networks.

Carbon Hotspot

Potential Reduction Initiatives

Chemical consumption

• Reduction through design. • Lower carbon chemical options. • Source catchment management to improve raw water quality.

Electricity

• Increased power use efficiency in UV power and management settings. • Network optimisation to reduce pumping requirements. • Increased use of gravity as a driving force. • Efficient operation of membrane systems to operate at optimum flux rates. • Recovery of energy through hydrogeneration. • Energy generation through renewables co-located with existing assets.

Water demand management

• Leakage reduction. • Customer water metering. • Pricing incentives. • Water efficient appliance adoption. • Customer education. • Water recycling (in some instances). • Rainwater harvesting.

Here are some of the thoughts of our climate symposium attendees on reducing greenhouse gas emissions from our potable water network: “We need planning controls and policy instruments to encourage smaller and more efficient houses, and to drive the adoption of water efficiency interventions” “We need to think about water as a scarce and precious resource.” “Re-vegetation drinking water catchments allows us to minimise water treatment and has a range of massive co-benefits as well.”

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Micro-turbines that generate electrical energy from the filling of the Macaskill lakes in Te Marua

CASE STUDY: Wellington Water Micro-Turbines The Macaskill lakes in Te Marua, provide a back-up to the Hutt River supply which is supplied into Porirua City, Upper Hutt, Lower Hutt, and Wellington City networks. The lakes are used to meet public demand when the water in the river gets low, or rainfall causes turbidity in the river making it unsuitable for use. These two storage lakes have a combined useable capacity of 3,350 million litres, which is sufficient to maintain supply over 2-3 dry summer months. Energy available while filling the lakes is captured and converted into useful electrical energy, by operating the lake pumps in reverse as turbines. The project undertaken in 2009, required minimal modifications to the existing pumps. Up to 330kW can be generated depending on water availability, or around 5% of the network’s annual electricity usage. Power generated is used on-site by the boost pumps that deliver water from Te Marua Water Treatment Plant to Upper Hutt, Porirua, and Wellington. If there is storage available in the network, electricity prices can be used to determine the optimal ratio of plant throughput versus electricity generation. By self-generating electricity during pricing peaks, the network is able to save money on electricity bills, and reduce peak loads on the electricity network. Electricity generated by renewable sources provides an environmentally friendly and inexpensive alternative to burning fossil fuels, however renewable technologies such as wind and solar do not always match electricity demands. By removing load from the grid when customer usage is peaking, the water network can help balance electricity supply and demand, helping the electricity grid adapt to greater penetration of renewable energy. There is a total of four such turbine sites in the Wellington network. They all replace what had previously been pressure reducing valves, transforming previously wasted energy into electricity that can be used onsite or exported back into the electricity network.

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5.4.3

Stormwater treatment and networks Stormwater systems have a central role in shaping liveable cities, and mitigating against climate change. Practices such as Green Infrastructure have been shown to mitigate the effects of climate change, improve environmental and population health, and increase biodiversity. Prioritising “greening” stormwater infrastructure in collaboration with city planners presents opportunities for emission reduction in both construction and operational phases of development, with green infrastructure creating a carbon sink within the cityscape. This is an exhaustive topic, and it is beyond the scope of this document to address it adequately.

Water Sensitive Cities Knowledge Platform Climate change, economic growth, and population growth all put pressure on the urban water (hydrological) cycle. The concept of a water sensitive city has been developed as a response. In a water sensitive city, we interact with the urban water cycle in ways that: • provide the water security essential for economic prosperity through efficient use of diverse available resources; • enhance and protect the health of waterways and wetlands, the river basins that surround them, and the coast and bays; • mitigate flood risk and damage; and • create public spaces that collect, clean, and recycle water. The concept of water sensitive cities was developed by the Cooperative Research Centre for Water Sensitive Cities, and is being continued through the work of Water Sensitive Cities Australia. The group provides a network for cities to learn from each other, and hosts a knowledge hub with tools and case studies: https://watersensitivecities.org.au/

5.4.4

Onsite wastewater treatment Roughly one in five New Zealanders is served mainly by either septic tank or onsite wastewater treatment plant systems. Anaerobic conditions occur in septic tank systems, under which CH4 is emitted. More sophisticated onsite wastewater treatment processes often employ secondary treatment processes to de-nitrify wastewater, but which also produce nitrous oxide emissions. The National Greenhouse Gas Inventory notes, that “while the part of the population using septic tanks is small compared with the national population, this treatment type produces the most CH4 emissions from domestic wastewater, because emissions from other treatment types are small or the CH4 is destroyed.” In an unpublished breakdown of the 2015 greenhouse gas inventory, septic tanks accounted for 40% of fugitive emissions from wastewater, an estimated 106 ktCO2-e per year.

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Septic tanks are typically outside of organisations’ operational control boundaries, and accordingly will not be captured as part of most greenhouse gas emissions estimates. However, the large contribution to overall wastewater sector emissions means they should remain an important focus for future research into, and regulatory levers pertaining to, existing or new onsite wastewater tank technologies. There is currently a knowledge gap around the greenhouse gas emissions performance of septic tank and on-site wastewater treatment systems.

Capital carbon emissions reduction initiatives

5.5

Capital carbon is defined as the emissions generated from the creation of infrastructure. It typically encompasses all the emissions from the extraction of materials, creation of components, transport, and construction. While capital carbon is typically emitted by third party contractors and manufacturers rather than asset owners themselves, asset owners have direct control over their capital carbon emissions through procurement practices and empowerment of the supply chain to bring innovation and carbon reduction insights. The Carbon Reduction Hierarchy is described in the PAS 2080:2016, the Publicly Available Specification for Carbon Management in Infrastructure. It describes how the greatest opportunity for reduction is at the start of the project, when the outcome is defined, and the project itself can still be completely changed to achieve significant carbon reductions. Once a project is at the design phase, the number and potential impact of reduction opportunities are more limited (Figure 4). Furthermore, reductions greater than 50% can only be achieved when less material is used.

Figure 4: Carbon reduction hierarchy to help promote low carbon solutions (PAS 2080, 2016)

Minimising volumes/quantities of materials through clever design, and building only when essential, are the most effective methods for capital carbon reduction.

Carbon reduction potential

100%

Build nothing – challenge the root cause of the need; explore alternative approaches to achieve the desired outcome

80%

Build less – maximise the use of existing assets; optimise asset operation and management to reduce the extent of new construction required

50%

Build clever – design in the use of low carbon materials; streamline delivery processes; minimise resource consumption

20%

Build efficiently – embrace new construction technologies; eliminate waste

0% Planning

Design

Construction

Commissioning

Operation and maintenance

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The importance of capital carbon in the delivery of infrastructure is more significant in New Zealand than other parts of the world. This is because the electricity supply in New Zealand is predominantly generated from renewables, meaning that emissions from the operation of assets are lower, and emissions from the creation of capital assets is proportionately higher. Recent work carried out by Watercare, baselining its capital works programme, identified that annualised capital carbon emissions were approximately equivalent to operational emissions over a 9-year period. PAS 2080:2016 also highlights the importance of baselining capital works programmes to identify hotspots, and establish a starting point from which to measure reductions. It is recommended that the capital works programmes of individual asset owners be baselined to identify specific and relevant hotspots for that family of assets and supply chain. The following table summarises typical capital carbon emission hotspots that are common for many asset owners, and some examples of reduction initiatives.

Carbon Hotspot

Potential Reduction Initiatives

Concrete

• Mixes: Supplementary Cementitious Materials – use of admixtures, fly ash, slag, natural pozzolan to reduce cement content. The use of micro silica (needed for durability) also has a beneficial impact on carbon emission for these high-strength mixes. • Manufacturing: production and transport efficiency – tighter production control. • Use of local materials: based on resources – the mix design is fine-tuned to the environment. • Lower strength (<40MPa) concrete – specify the minimum strength required for durability (approximately every 5MPa adds 30tCO2-e). • Minimise thickness of walls. • Use of precast panels may reduce capital carbon.

Steel

• Optimisation of reinforcing bar through structural design. • Sourcing steel with higher recycled steel content.

Design phase options

Employ a framework and tools to provide guidance/case studies, e.g. • Consider reuse and repurposing of existing assets where available. • Optimisation of quantity and use of materials. • Consideration of alternative, lower carbon materials. • Design to allow for common walls. • Stormwater projects should consider open (naturalised) channels rather than pipes.

Construction phase options

Employ a framework and tools to provide guidance/case studies, e.g. • Recycling of lead pellets – residual from desludging of ponds. • Reuse of surface aerators. • Balance of cut to fill. • Assess source of imported fill. • Combined service trenches or directional drilling where possible. • Onsite screening of alluvial gravels.

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Here are some of the thoughts of our climate symposium attendees on reducing the capital carbon of our water networks: “Co-locating industry around wastewater treatment plants offers opportunities for “industrial ecology” that can lower resource use and help us fight climate change.” “Green infrastructure can provide an alternative or an opportunity to downscale many carbon intensive capital work projects.” “Urban intensification will allow us to make better use of the capacity of our existing assets instead of building new ones.”

An arial view of the shotover wastewater treatment plant and river. The wastewater disposal field is in the foreground, oxidation ponds in the middle, and the treatment plant in the distance by the Shotover bridge.

CASE STUDY: Shotover Project Shotover Wastewater Treatment Plant serves the Wakatipu Basin. The plant is undergoing an upgrade which involves duplication of the existing biological treatment system and decommissioning of the pond system. Sustainability in design was addressed through baselining the capital and operational carbon emissions for the project and seeking opportunities for reduction throughout the design phases. A wider sustainability mapping exercise was also carried out for the Kimiākau Shotover Delta Master Plan. The capital carbon baseline exercise showed that the major carbon hotspot for the project is the concrete and steel in the new treatment plant reactor and clarifier. Concrete and steel alone made up 70% of the total upgrade emissions. Opportunities to reduce the embodied emissions from concrete and steel are outlined in the report Under construction: Hidden emissions and untapped potential of buildings for New Zealand’s 2050 zero carbon goal: https://www. nzgbc.org.nz/Attachment?Action=Download&Attachment_id=2453 The report notes that it is not only material suppliers who need to implement low-carbon manufacturing technologies, but also specifiers and customers who need to consciously choose those materials. This could be encouraged by including embodied carbon considerations in public and private procurement policies.

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5.6

Offsetting and removal of residual emissions The primary focus for emissions management should be appropriate measurement of emissions, and the implementation of strategies for reducing the number and potency of greenhouse gas emitting activities. However, to reach net zero emissions goals, there will also need to be a certain amount of carbon removals or offsets. Removals comprise the activities or assets within an organisation that sequester or absorb carbon emissions. This may include, but is not limited to, forestry stocks and planting programmes. The emission reductions from such assets can be measured, however there is often significant variability due to factors such as climate, age, density, and species type (for forests). Specific guidance should be sought before attempting to quantify the specific rates of emissions removals from forests or other sequestering activities within an organisation’s operational control. Once measured, these removals are considered a negative when creating a carbon footprint, and can be removed from the gross contribution of emitting activities to create a net position. Carbon offsets are another way to reduce or minimise a carbon footprint to create a carbon neutral or net zero position. Voluntary offsetting means the retirement or cancellation of units (also known as carbon credits) that meet specific requirements (Ministry for the Environment, 2020b). A unit represents a tonne of carbon dioxide or equivalent GHG emitted, and is issued in a publicly accessible registry. These offsets are normally external to an organisation, and are purchased through an accredited body. For the voluntary carbon offset to be considered credible (for trading), it must be: • transparent; • real, measurable, and verified; • additional; • not double-counted; • permanent; and • address leakage. There are also projects that could generate emissions reductions beyond the boundary of water service provision. These might be a removal, a carbon credit/offset, or a reduction for another entity, and include: • Planting of native trees and shrubs in catchments owned by the water industry/council/ organisation. • Development of biofuels from wastewater. • Export of excess electricity from hydro-generation, or PV panels on reservoirs and ponds. • Sewage heat recovery processes.

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• Facilitating urban greening/tree planting/wetland through adoption of water-sensitive urban design practices. The Ministry for the Environment is the authoritative source of information on what constitutes a credible carbon offset. At the time of this guide’s publishing, requirements were outlined in “Guidance for voluntary carbon offsetting – updated and extended until 31 December 2021” available from the Ministry’s website: https://environment.govt.nz/publications/ guidance-for-voluntary-carbon-offsetting-updated-and-extended-until-31-december-2021/

5.7

Review Regular review of carbon emissions is required to allow tracking of annual emissions in relation to the baseline, determine whether targets are on track, and quantify remaining emissions that require offsetting. Monitoring of targets is a critical component of this review process, needed to provide feedback on operating practices, results of energy and greenhouse gas decarbonisation projects, and guidance on the level of energy or emissions expected in a certain period. Keeping an active monitoring and targets programme in place allows identification of areas where significant energy and cost savings can be made . The typical monitoring and targets process is shown in this schematic.

Recording

Controlling

Analysing

Reporting

Comparing

Monitoring

Target setting

The number of data streams that should be being monitored will reflect those included within the organisational boundary. This will include all Scope 1 emissions, such as diesel used in generators and vehicles, all Scope 2 emissions, which is purchased energy that is not generated on site (i.e. electricity), and Scope 3 emissions.

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Tracking and monitoring Scope 3 emissions can be challenging due to the substantial amount of data produced outside of the organisation, such as by external contractors. It can be aided by using online portals allowing the collection of data from the supply chain. See Appendix I for the typical greenhouse gas data sources tracked and reported on. The basic principles of this review process are: 1. Recording: measuring and recording greenhouse gas emissions. Data will be in a number of main categories: energy consumption figures, SCADA data, energy costs, and information about greenhouse gas drivers such as water volumes treated and wastewater quality. 2. Analysing: correlating greenhouse gas emissions with outputs or drivers, such as wastewater flows or increased asset maintenance. 3. Comparing: comparing greenhouse gas emissions to an appropriate benchmark. 4. Target setting: revisiting targets to reduce or control emissions. 5. Monitoring: comparing emissions to a set target on a regular basis. 6. Reporting: reporting the results, including any variances from the set targets . Typically, reporting falls into three categories: at regular intervals (e.g. monthly or annually); by exception, when something unexpected happens; and on demand, initiated by request or as the result of investigation. 7. Controlling: implementing management measures to correct variances identified. For example, when unexpected energy usage variations are identified, the cause must be identified and acted upon promptly to maximise the benefits of the monitoring and targeting programme. Having an ongoing process ensures targets are met, and that your business enjoys incremental gains. Figure 5: Example output of a successful emissions reduction programme

Figure 5 presents a high-level example output of what these seven steps aim to deliver for councils/asset owners/organisations over time.

Forecasted baseline emissions Actual reported emissions

Annual Operating + Capital Carbon Inventory (tCO2-e)

Emissions reduction achieved through capital and operational reduction initiatives

Emissions reduction from 2017 baseline Offsetting required for remaining non-biogenic emissions to achieve net zero (ZCA requires reduction to net zero for all GHGs except biogenic methane by 2050)

2017

2025

2030

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2035

2040

2045

2050

Remaining biogenic methane emissions for which offsetting is not required (ZCA requires 24-47% reduction of 2017 biogenic methane emissions by 2050)

5.8

External influences on the journey Climate change targets, and the required changes in planning, operations, and capital delivery to meet these targets, will require significant changes for councils and the water industry in New Zealand. Due to the relative lack of focus in carbon reduction to date, and the complexity of reducing emissions, particularly in wastewater, there is a step change in approach required. These changes also need to be considered in the context of other factors which may have an adverse effect on emission reduction ambitions. This section provides a high-level overview of some factors to consider when approaching emissions reduction.

5.8.1

The need to decouple emissions from population growth In the absence of any change to the way the services are delivered, emissions from the water sector will continue to increase, as a growing population means more demand for water services. Water services providers will need to consider options to decouple growth from emissions, and how to use the investment required to enable growth (including renewals) to provide better outcomes for the climate. This includes thinking beyond the infrastructure to how water utilities can work together with councils, developers, and other stakeholders to ensure that new land development proceeds in a water- and climate-sensitive manner.

5.8.2

Increased energy requirements The International Energy Agency anticipates that energy use in the water sector will double in the next 25 years3. This is driven in two key areas that are relevant for New Zealand: • Water supply – most low-energy and gravity fed sources are already utilised. To meet increased demand, more energy-intensive and costly sources will need to be commissioned. At the furthest extent of this is desalination and wastewater re-use. • Increased wastewater treatment – consent requirements are driving the need for improved discharges, which is often met with energy-intensive technologies such as membrane bio-reactors. New Zealand is fortunate to have access to plentiful hydro-electricity and other renewable energy resources, such as wind and solar in addition to hydro, that are becoming increasingly

3. https://www.iea.org/reports/ water-energy-nexus

5.8.3

cost effective. The drive for low-emissions renewable energy should also help to encourage the use of wastewater biosolids as an on-site energy source (as identified in section 5.4.1).

The difficulty in measuring and monitoring emissions from wastewater treatment As a field that is still relatively emergent, there are limitations in the measurement of greenhouse gases. This is particularly true for wastewater process emissions, where the standardised methodology uses default emissions factors which do not provide the opportunity for understanding the potential for emissions reduction and capturing the results of process optimisation. In the

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absence of direct measurement, there is a risk that operational and capital investment decisions result in increased emissions. Direct measurement is possible, but costly. There are opportunities for this to be improved through an industry sector focus. The measurement of wastewater treatment emissions, and options to reduce these emissions, are the subject of increasing global interest, and the local industry should continue to monitor and adopt developments in this area.

5.8.4

Finding the balance between adaptation and mitigation There are some adaptation activities that may create a higher level of resilience for an asset or community, but that come with an associated contribution of carbon emissions. Examples of this include capital carbon from building a sea wall, and additional pumping requirements from an elevated pump station. These increased emissions need to be considered as part of a resilient response.

5.8.5

Responding to the impacts of climate change The changing climate will have a direct impact on water services. For example, changing rainfall patterns may require changes in the ways drinking water is collected, stored, and treated, resulting in additional infrastructure and energy requirements. For some water sources, it may also increase the risk of contamination, requiring increased treatment chemicals and processing. The increased frequency of high rainfall events might increase stormwater pumping requirements. Water utilities should be assessing the risk of climate change to their services, and planning for the operational and investment decisions required to mitigate these risks.

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Where to from here? We are all travelling together on a journey towards a low-carbon future. This document provides a starting point, and sets out how the New Zealand water industry can plan to reduce carbon emissions to achieve a ‘net zero’ target. As a country, we are not currently on track to meet our targets.In short, there is much to do. As a water industry, there is still a lot that we do not understand. This document has been developed using a predominantly western knowledge base and understanding. We recognise the need, and work required, to include indigenous knowledge systems and Mātauranga Māori perspectives if we are to achieve the goal of progressing on a more sustainable path. In addition to knowledge of how to mitigate climate change, we also need to develop engagement pathways to collaborate with knowledge holders in meaningful ways. We have been challenged to find a co-created path for the future. The work of Johnnie Freeland has inspired us to think of our work as a navigational journey, and changed the way we both thought and structured our document, which was enormously beneficial to this version. However, to facilitate improvements for further versions, and dive deeper into this time-tested guidance, it is critically important that the current gap between existing organisational assumptions and processes, and the expectations and processes implicit within a Māori worldview, are reconciled. To do so will enable, as a foundation for future opportunities, the development and maintenance of authentic relationships at an organisational and professional level. To open the New Zealand water industry to alternative solutions offered by Mātauranga Māori, we need a better understanding of how things operate in a Māori context. This requires more Māori participants and voices across all parts of the New Zealand water industry. It also requires non-Māori to learn about living as tangata tiriti (people who belong in Aotearoa New Zealand under the agreements of Te Tiriti o Waitangi) and the history of the places in which we live and work, and further our competencies in te reo Māori. We also have gaps in our technical knowledge, which makes it difficult for us, at times, to make the right decisions. Resolving some of these gaps, and learning together, will help us to achieve some ‘quick wins’, and develop the actions we need to take now to achieve a low-carbon future. Being guided by the concept of whanaungatanga will encourage the sharing of information across our industry on the development of solutions and new techniques that reduce carbon. Integrated information networks will be integral to meeting these goals. Going forward, we expect to update this guidance as more information is available, and in response to feedback from the wider industry and mana whenua. To make this more flexible, we intend to publish this in a website format, so it is easier to provide regular updates and links to case studies and tools as these develop.

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The first version of this pathway was published in September 2021. We expect to take on board further feedback and lessons from other low-carbon approaches during 2022, and aim to publish this in a web-based format by the end of that year. We expect this will specifically support the carbon strategies of the water sectors as it transforms to meet the challenge ahead. Most importantly, we must take the first steps forward as an industry. Some organisations have already begun the journey, and others are planning to take these first steps. We know that our industry will be re-organised, and this has the potential to disrupt our journey. Keeping a focus on how we can continue to reduce emissions in parallel with this change will not be easy, but it is essential if we are to lead and learn together for a net zero carbon future for a thriving New Zealand water industry.

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Appendix I:

Typical greenhouse gas data sources tracked and reported on

GHG Data Source

Units

Scope

GHG Data Source

Units

Scope

Diesel

litre

Scope 1

Electricity Local Losses

kWh

Scope 3

Gasoline 91

litre

Scope 1

Unaccounted for Gas

kWh

Scope 3

Gasoline 95

litre

Scope 1

Domestic Air Travel

pkm

Scope 3

LPG

Scope 1

Short Haul Air Travel

pkm

Scope 3

Natural Gas

Scope 1

Long Haul Air Travel

pkm

Scope 3

Refrigerant Gases

Scope 1

National Rail Travel

pkm

Scope 3

Wood Chips

Scope 1

Ferry Travel

pkm

Scope 3

Coal

Scope 1

Car Travel

Scope 3

Sludge

Scope 1

Rental Car

Scope 3

Septic Tank

Scope 1

Taxi Travel

Scope 3

Anaerobic Ponds

Scope 1

Waste (Multiple Types)

Scope 3

Imhoff Tank

Scope 1

Recycling (Multiple Types)

Scope 3

Oxidation Pond

Scope 1

Rail Freight

tkm

Scope 3

Facultative Aerated Pond

Scope 1

HGV Freight

tkm

Scope 3

Waste Water Solids

Scope 1

Catering (Multiple Types)

Scope 3

Delivered Electricity

kWh

Scope 2

Hotel Accommodation

room nights

Scope 3

Electric Vehicles

Scope 2

Meals

Scope 3

Generated Electricity

kWh

Scope 2

Sludge (Indirect)

Scope 3

Delivered Steam

kWh

Scope 2

Sludge (Not owned landfill)

Scope 3

Contractors

various

Scope 3

Treated Waste Water

Scope 3

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Appendix II:

Analysis techniques for matching energy use changes to drivers Base Load Analysis For example, for a particular production process, it would be the energy still consumed when the process is shut down. In most water treatment and wastewater treatment plants, the load will be ‘variable’, i.e. linked to operational activity. When we know the base load, we can separate it out and see what energy consumption is ‘variable’, i.e. associated with the actual use of the facility, and what is a fixed or standing cost. Different strategies for reducing the different types of consumption will probably be required, but the information will help focus on the area that will yield the most return, which will be the variable load.

Regression Analysis Regression analysis attempts to describe, with a mathematical equation, the relationship between energy consumption and its drivers/process. When energy consumption changes in response to a variable driver, regression analysis can establish an accurate model linking the two. This analysis determines the line of best fit to predict what will happen to energy use when drivers in the process/plant, like production output, are varied. Regression will provide a broad-brush view of trends, and whether significant changes in energy efficiency are being maintained over a period of time.

An example of this analysis is shown above. In this case, the slope of the ‘best fit’ line tells us a lot about the energy efficiency of the production processes. A line that flattens out might suggest there are energy economies of scale, whereas an increasing rate, suggesting growing inefficiency, which might point to capacity issues.

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CUSUM Analysis CUSUM stands for cumulative sum of variations. It is a powerful statistical technique that highlights small differences in energy efficiency performances. Monitoring CUSUM charts regularly can help follow process/plant performance, and spot any trends early. CUSUM represents the difference between actual consumption and a baseline figure (expected or target consumption) over the period of consumption.

A typical CUSUM graph shows the fluctuation of energy consumption, and should oscillate around zero (standard or expected consumption). This trend will continue until something happens to alter the pattern of consumption, such as the effect of an energy-saving measure or, conversely, a worsening in energy efficiency (poor control or maintenance). External influences, such as changes to production levels, should be adjusted for in the baseline figure. Results under the baseline are ‘good’ (showing savings) while results above the baseline (staying there or increasing) indicate greater than expected energy use, and the need for immediate action.

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