Our approach to Carbon Reporting
Policymakers on all islands have agreed Net Zero aspirations, but most of the detailed action plans for delivery are not yet figured out. The decisions that Governments make will significantly influence how this Sustainability Strategy evolves but we’re not waiting to get started. We know that collaboration, data sharing and partnerships are key for a successful energy transition, so we’re going to be working even more closely with Governments, the island’s energy forums, other energy providers and green energy innovators to cement the relationships that will drive change. The key policy headlines in each of our island jurisdictions are as follows:
The States of Guernsey Energy Policy 2020 - 2050 commits to a transition to decarbonization by 2050.
The Electricity Strategy is going to the States for debate in June 2023. The proposed policy direction is renewable electricity imported from France vis a 2nd interconnector (by 2030) an offshore windfarm (by 2035) plus new generation plant for the Vale Power Station.
The estimated cost to implement this Pathway D to 2050 is £1,730 million.
In the interim, renewable electricity is sourced via a cable link to Jersey, and back up supply via fossil fuel boilers at the Vale Power Station.
Isle of Man
The Climate Change Bill 2020 sets a Net Zero target by 2050, a detailed plan has yet to be released.
The Climate Change Act 2021 includes a ban on the installation of fossil fuel heating systems in new buildings from 1st January 2025.
Electricity is currently produced on island by gas-powered Combined Heat & Power and there are no renewables, which makes the gas that IEG supplies the lowest emissions energy source on the island.
No dates have yet been set for mandatory EPC’s – an update is likely with the Low Carbon Heating Strategy, expected by end of 2023.
The Carbon Neutral Strategy 2019 – is committing to carbon Neutrality by 2030 and an ambition of Net Zero by 2050.
The 2022 Carbon Neutral Roadmap includes policy directions including the prohibition of fossil fuel boilers in new builds from the 1st January 2026 and EPC for domestic and commercial properties will be mandatory at the point of sale and rental by the end of 2024, with minimum standards being brought in sequentially from 2026.
Defining our scope
A widely-accepted approach for GHG reporting is to identify and categorise emissions-releasing activities is the use of scopes. These are defined in the GHG Protocol Corporate Standard and are described below
Align with science based targets
Through the 2015 Paris Agreement, world governments committed to curbing global temperature rise to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C. Companies that set carbon reduction targets underpinned by a defined methodology to measure and reduce carbon emissions to limit global temperature rise by a set °C are said to have a ‘science-based target’.
The international organisation which developed the standard for Net Zero (Science Based Targets Initiative (SBTi) are in the process of developing guidance for the Oil & Gas sector. In the interim, IEG has committed to be proactive and align our methodology and target setting with the requirements of the SBTi standard, as follows: Scope of the Net Zero targets shall include the whole organisation (Scope 1 - 3) We shall develop a Net Zero Action Plan to reduce emissions that demonstrates continual improvement IEG shall only use removal offsets (and no longer purchase avoidance offsets) Any offsets IEG use to offset our carbon shall be good quality - I.e. Gold Standard
Net Zero Action Plan
Carbon reduction targets and a glide path to net zero by 2050
IEG has recognised the need for energy companies to evolve to meet the needs of the energy transition and path to Net Zero by 2050. As an energy company, we need to go above and beyond in the standards we set for ourselves, hence our commitment in our North Stars to 'Role Model Net Zero’. Becoming a Net Zero business is a journey, and we are at the start of that journey. The output of our carbon reporting has been used to set our Net Zero action planning detailing how we will reduce our scope 1-3 emissions and science-based targets for the business. We have developed an outline roadmap of actions, which we shall keep reviewing to identify new and improved ways to support, innovate, understand and influence government policy and evaluate how each might impact our strategic plan and our progress towards our targets.
To align with the SBTi standard we are developing a Net Zero Action Plan to reduce emissions that demonstrates continual improvement and only use good quality (i.e Gold Standard) removal offsets for what we cannot avoid, remove, or reduce.
Rather than offsetting all of our emissions and claiming carbon neutrality, we are tackling the more ambitious goal of achieving net zero by 2050. We are currently developing our green gas plan on how we shall steadily reduce the carbon intensity of the gas we supply. We are closely following industry developments from Liquid Gas UK and exploring the option to procure BioLPG and other renewable liquid gases (rDME), as well as the growing market for “Renewable Gas Guarantees of Origin” (RGGOs).