local authority approaches to the green deal descriptor 1 service area or industry or audience...

Local Authority approaches to the Green Deal

Descriptor 1 Service Area or Industry or Audience Segment (Author) Descriptor 2 Service or Industry (Topic: What is it about)

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Viv Cockburn

17 July 2012

Green Deal in Scotland – The Scottish Government, COSLA

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Agenda

Local Authority approaches to promote and deliver the Green Deal

1.Framework to assess the different approaches2.What are the approaches?3.How can the Green Deal be financed?4.Conclusions5.Useful References

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Framework to assess approaches to the Green Deal

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Do Minimum

Local Authority procures a Framework of Green Deal Providers

Increasing LocalAuthority Involvement

Local Authority Approaches

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Framework of Green Deal Providers

Role & Responsibility Lead Deliverer

Control No separate organisation is established.

Framework Agreement covers operation of the framework.

Promotion of Green Deal to consumers

Separate arrangements to promote Green Deal. Households then able to obtain quotes from Framework Providers.

Promotion of Green Deal to suppliers

Indirect measures – for example, apprenticeships.

Green Deal Provider Framework Company appointed under mini-competition for public work. Appointed by individual householder for domestic work.

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Community Interest Company

Role & Responsibility Lead Deliverer

Control Separate social enterprise established in the form of a Community Interest Company. Members of the CIC are participating Local Authorities who control the CIC and are responsible for governance.

Promotion of Green Deal to consumers

CIC promotes Green Deal across all sectors

Promotion of Green Deal to suppliers

CIC supports suppliers to deliver Green Deal services

Green Deal Provider Either: (i) the local suppliers, or (ii) the CIC who will then use local suppliers who are Green Deal certified assessors and installers

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Partnership Model

Role & Responsibility Lead Deliverer

Control Management Company Services can be contracted or provided through a separate organisation.

Promotion of Green Deal to consumers

Management Company promotes Green Deal across all sectors

Promotion of Green Deal to suppliers

May include provision for the use of the local supply chain

Green Deal Provider Management Company who may use its internal resources to deliver Green Deal works or certified Green Deal assessors and suppliers within the local supply chain

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Green Deal Provider

Role & Responsibility Lead Deliverer

Control Services provided by Council therefore, Council governance and control applies

Promotion of Green Deal to consumers

Council responsibility

Promotion of Green Deal to suppliers

May include use of the local supply chain

Green Deal Provider Council

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Local Authority Role Under the Different Approaches

Local Authority Role Do Minimum

Frameworks CIC

Green Deal Partnership

Model

Green Deal Provider

Procures Green Deal services - √ ? √ -

Provides Green Deal support to local suppliers

√ - √ ? -

Markets the Green Deal √ √ √ √ √

Promotes and packages demand

- √ √ √ √

Responsible for Green Deal Set-up Costs

- - ? ? √

Responsible for Green Deal operational costs

- - ? ? √

Responsible for sourcing finance for Green Deal Plans

- - - ? √

[1]Yes, if sub-contracting to local suppliers is required

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What is the best option?

Maximise cost effective

energy efficient investment

Benefits

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Options for financing the Green Deal

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LA approaches and financing sources

Sources of Finance

Do Minimum Frameworks CIC Partnership Model

Provider Model

The Green Deal Finance Company √ √ √ √ √

Corporate Funding (limited) √ √ √ √ √

Local Authority Funding √ √

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Conclusions

• Green Deal is one tool in the tool box

• The best delivery approach will be one which:• Reflects an Authority’s specific objectives• Takes account of the “base line” and what can be influenced• Reflects a Local Authority’s approach to risk

• Has the flexibility to take advantage of emerging sources of finance other than the Green Deal

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Useful References

• Scottish Futures Trust Report: Local Authority approaches to promoting and delivering the Green Dealhttp://www.scottishfuturestrust.org.uk under publicationsviv.cockburn@scottishfuturestrust.org.uk0131 510 0800 or 07766 006 028

• The Green Deal Finance Company – Local Authority Sub-GroupRuth Rule: ruth.x.rule@uk.pwc.comJohn Cordrey: john.m.cordrey@uk.pwc.com

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