Thinking globally and acting locally: Vale of Glamorgan

Local authorities have a key role to play in tackling climate change. They can connect and respond to their communities more directly than other layers of government, and have a broad local footprint including through the procurement of services, meaning they are well-placed both to act and to support their residents in reducing emissions and changing behaviours. In Wales, the Welsh Government set an ambition for the public sector to reach net zero by 2030 while also recognising local authorities’ leadership role in supporting wider societal decarbonisation.

However, the fiscal and operational environment for local authorities is challenging, so finding the most effective ways to reduce emissions will be crucial.

Supporting public services to access and use evidence to support their decision-making is  the core mission of the Wales Centre for Public Policy (WCPP), and we were delighted that the Vale of Glamorgan sought our expertise to contribute to the scrutiny of their Carbon Management Plan 2024-30, setting out its plans to reach net zero. 

While our response to the Carbon Management Plan discusses the specific actions proposed in the Vale, the challenges and opportunities apply equally to other local authorities in Wales and beyond.

Local authorities have a key role to play in tackling climate change. They can connect and respond to their communities more directly than other layers of government, and have a broad local footprint including through the procurement of services.

Using insights from our Environment and Net Zero priority area, including recent publications supporting the work of the Wales Net Zero 2035 Challenge Group and work looking at how local authorities could lead the transition to net zero, we assessed how realistic the plan was and what additional actions might be needed, as well as how public engagement could be better supported. So what did we find?

Embracing ambition

Emissions will probably not reach net zero by 2030. This is not for a lack of ambition: we found that the actions presented in the document were broadly realistic and directed towards specific emissions reduction goals. But between strategy and realisation lie several barriers which will need to be overcome in order to successfully decarbonise.

Emissions in scope

Local authorities are expected to report on and reduce their scope 1, 2 and 3 emissions. Broadly these correspond to emissions the authority is directly responsible for (scope 1), such as vehicle fuel emissions; those that arise from where energy used is produced (scope 2), such as gas-fired energy generation; and finally, those that arise from procurement or supply chain activities (scope 3).

While local authorities can take action on scope 1 emissions, scope 2 emissions rely to a large extent on the decarbonisation of the energy system as a whole, unless local authorities install and operate their own renewable energy that is not connected to the grid.

Gofod i drafod, dadlau, ac ymchwilio.
Cefnogwch brif felin drafod annibynnol Cymru.

 

Scope 3 emissions, which make up nearly 70% of public sector emissions in Wales, can be influenced by purchase decisions, but ultimately rely on external suppliers reducing their own emissions. There is no guarantee that these suppliers will be able, ready, or willing to reduce their emissions to zero by 2030, with most likely to be looking instead to the 2050 target for societal net zero. 

The Vale of Glamorgan plan recommends a focus on scope 1 emissions, where there are the most levers for action. But local authorities are still required to report across all three scopes, and without reduction in scopes 2 and 3 the 2030 ambition will not be achieved.

Financing and resourcing change

Regardless of which emissions reductions are pursued, decarbonisation will cost money both in terms of capital investment and day-to-day spending. This is a significant challenge given the well-publicised financial issues facing Welsh local authorities and pressures from other spend areas, particularly social care. 

There are two major pressures that come from a lack of available resources. The first is that many steps required to reduce scope 1 emissions will be costly: the Vale of Glamorgan estimates that decarbonising its building stock will cost in the region of £40 million, a large sum in the context of its capital budget.

Managing a decarbonisation programme requires internal capacity within local authorities: to oversee and manage projects; ensure that budgets are well-spent and external funding can be applied for; and to deliver overall policy and strategy.

These schemes will be hard to prioritise unless additional funding is secured, because they will otherwise compete with maintenance, repair and improvement work which is already under pressure from increased costs and lower budgets.

Resourcing change is the second pressure. Managing a decarbonisation programme requires internal capacity within local authorities: to oversee and manage projects; ensure that budgets are well-spent and external funding can be applied for; and to deliver overall policy and strategy. Ensuring there is adequate staffing and resources to manage these functions is crucial for the successful, timely delivery of projects; but capacity has been hollowed out across local government due to successive waves of austerity. Protecting what capacity remains and enhancing it where possible will be key to managing the decarbonisation process.

Accelerating the transition

Despite a rather gloomy outlook, there are steps that can be taken to accelerate the transition if authorities are prepared to act.

Alternative financing sources can be considered for capital expenditure where appropriate: local climate bonds are one promising possibility, particularly where projects offer a good social return for citizens in addition to contributing to decarbonisation. For procurement or for smaller projects, pooling with other authorities or public bodies could represent an opportunity to access economies of scale, with existing procurement partnerships able to play a role here.

Syniadau uchelgeisiol, awdurdodol a mentrus.
Ymunwch â ni i gyfrannu at wneud Cymru gwell.

In order to protect capacity, more use could be made of regional working, perhaps working with other authorities to deliver certain project management or financing roles across multiple authorities or city regions. A focus on increasing productivity to make savings rather than on reducing headcount will also help on this front. Processes could be streamlined or eliminated where possible to ensure staff time is used most effectively.

Many interventions will have wider social benefits alongside their emissions reduction potential. To maximise public support, these benefits should be clearly articulated and understood. Meanwhile, business cases should be developed with as much precision as possible to ensure they are investible.

While these steps might not suffice to reach net zero for the public sector by 2030, they will have an effect on reducing emissions and can set the direction of travel for further reductions over the longer-term.

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