When considering NZ for operational energy roadmaps and methodologies, it is recognised that on PPP projects, Authorities are unable put in place effective carbon reduction projects and set achievable carbon reduction targets in isolation. To achieve the maximum impact of NZ for operational energy, cooperation and buy-in of all interested parties including funders, investors, MSA providers and FM service providers is key to achieving successful NZ outcomes. Helpfully, there are commercial levers available to public Authorities operating PPP projects to enforce the required NZ changes through the contractual provisions that exist in project agreement Change procedures.
It is worth noting when Authorities are considering a formal contract Change to implement carbon reduction opportunities within buildings to achieve NZ for operational energy, Project Cos are formally obliged to implement a Change once formally instructed by the Authority and whilst there are general timescales for doing so, no payment mechanism deductions are applicable if timescales are missed. It is worth noting that any failure to carry out a formal change would be a breach of contract.
Putting these systems in place is time consuming, not least because organisational commitments to reduce carbon emissions by a particular percentage in the short term and to NZ in the long term must be firmly based on fact. Therefore, when developing roadmaps to achieving NZ, successful outcomes are dependent upon both public and private sector stakeholder participation, transparency and collaboration, including leveraging any commercial, environmental, social, and governance criteria that socially conscious investors and funders utilise.
With the majority of operational PPP projects having a concession period of circa 25 years or more, there will be multiple gateways to consider NZ for operational energy. Typically these would be at stages of the contract period where either an Authority as part of their operational contract management function is validating/reviewing their project maintenance plans, lifecycle replacement maintenance schedules or handback considerations in terms of asset condition and any corporate NZ ambitions or indeed, at any point during the concession period where funding or operational energy opportunities become available.
Regardless of which NZ opportunities are identified, it is important to consider implementing a formal Change in relation to the achievement of NZ ambitions, or decisions made at this point about replacing carbon emitting assets other than on a 'like for like' basis noting that in the absence of any NZ interventions, carbon emissions will be locked in for years to come.