Agenda item

Consideration was given to a report of the Green Energy & Sustainability Manager which provided an update on initiatives in the Oldham Green New Deal programme which would contribute to achieving the 2030 carbon neutrality target for Oldham Borough. The initiatives would also bring co-benefits such as supporting growth in Oldham’s Green Technology and Services sector, creating and supporting jobs and training opportunities for residents; enabling Oldham’s households and businesses to upgrade the energy efficiency of their properties; and supporting the Council to achieve its 2025 carbon neutrality target for Council Buildings and Street Lighting.

The Oldham Green New Deal (OGND) Strategy was adopted by the Council in March 2020. The Strategy set a number of objectives and pledges for delivery on environmental issues in a range of work areas, which broadly fitted into three over-arching ‘pillars’:-

·         Growing the green economy

·         Low carbon infrastructure and a Local Energy Market

·         Northern Roots

The OGND Strategy also set two carbon neutrality targets:-

·         For Council Buildings and Street Lighting by 2025

·         For the borough by 2030

The most recent data available showed that in 2019, overall emissions for the borough fell by 6% on the previous year to 772.6 ktCO2. Oldham retained its position within Greater Manchester as the borough with both the lowest total carbon footprint and also lowest per capita emissions at 3.3 tCO2 per Oldham resident. Emissions for Council Buildings and Street Lighting fell to 8,059 tCO2, which was a reduction of 4% on the baseline of 8,395 tCO2 in the Oldham Green New Deal Strategy.

It was noted that the most recent update report on the Oldham Green New Deal programme was presented to the Policy Overview and Scrutiny Committee in September 2021, which provided a funding update on a number of projects and initiatives and set out the potential for the Council to work with the private sector to deliver low carbon infrastructure in the borough. A further update was requested once further work had been done to develop the concept of a public-private sector partnership to deliver low carbon infrastructure in the borough.

Since the report in September, the Council had carried out soft market testing exercise, inviting private sector low carbon infrastructure companies to provide feedback to the Council on its proposed approach to setting up a public-private sector partnership to deliver against the 2025 and 2030 carbon neutrality targets. Alongside this exercise, a Local Area Energy Plan (LAEP) had been developed for Oldham by Energy Systems Catapult who were leading delivery of the GM Local Energy Market project. The LAEP showed that an investment of around £5.6 billion would be required in energy infrastructure in the Oldham borough to achieve carbon neutrality.

Members were advised that in October 2021, the Council commissioned Aleron social impact consultants to prepare a SWOT analysis and Regional Action Plan looking at how the Council and other key stakeholders could support growth in Oldham’s Green Technology and Services sector. For the study, Aleron carried out both a desktop analysis and interviews with a wide range of stakeholders including green businesses in Oldham. The study showed significant potential for Oldham’s Green Technology and Services (GTS) sector to play a key role in delivery of the 2030 carbon neutrality target whilst creating jobs and training opportunities for Oldham residents.

Members were informed that work had been completed on a Local

Area Energy Plan (LAEP) for Oldham, which had been prepared by Energy Systems Catapult, the lead partner in the GM Local Energy Market project. The LAEP had identified a requirement for £5.6bm to be invested in

Oldham’s energy infrastructure, to enable the borough to achieve its 2030 carbon neutrality target. Whilst this was seen as a significant challenge, it presented a significant commercial opportunity for private sector providers of low carbon infrastructure and provided an evidence base supporting an over-arching strategic business case for decarbonisation of the borough.

The Oldham Green Economy study and the LAEP were two key documents which would support any strategic public-private sector low carbon infrastructure partnership:-

·         The green economy study provided an evidence base which showed how the local Oldham supply chain could support delivery of low carbon infrastructure in the borough, and benefit from the investment

·         The LAEP provided an evidence base which highlighted the extent and prioritisation / targeting of low carbon infrastructure opportunities in the borough.

Taken together, the two documents would not only give confidence to any private sector infrastructure provider partner that potential commercial opportunities did exist in Oldham, making Oldham an attractive investment, but would also set out how such a private sector partner could engage Oldham’s local green business sector to deliver (or support delivery of) a significant part of the borough’s decarbonisation programme.

Members were advised that, following the conclusion of the soft market testing exercise, twelve organisations that represented a wide range of viewpoints responded which provided valuable feedback which would help the Council to further develop and refine its proposed approach. Highlight of the respondents were set out in section 3.4 of the report. From the feedback, a proposed structure for the strategic partnership had been developed. The proposed approach envisaged the Council appointing two main contractors:-

·         The Primary Contractor responsible for investment in, and delivery of, low carbon infrastructure in Oldham borough

·         A consultancy service providing independent assurance of the overall delivery programme and individual projects / initiatives, supporting the Council with governance and accountability, and supporting the infrastructure provider as a ‘critical friend’

RESOLVED that:

1.    the progress on three key complementary strategic initiatives be noted:-

·         Mapping the green economic sector to identify opportunities for growth;

·         Mapping the low carbon infrastructure opportunities across Oldham borough; and

·         Soft market testing exploring the potential for a Strategic Low Carbon Investment and Delivery Partnership with the private sector

2.    the proposed approach to developing a Strategic Low Carbon Investment and Delivery Partnership for more detailed consideration by senior officers and Cabinet members be endorsed.