NET ZERO 2030 - water

1 RoutemapNET ZERO2030 ContentsForeword 4 Introduction Preparing the water sector to operate in a net zero economy Why the water sector has developed the routemap How to read the net zero routemap 9 What does the 2030 net zero routemap cover? Organisational boundary Scope of emissions The role of Scotland.

2 Wales and Northern Ireland Other emissions chemicals and capital carbon Synergies with the wider UK system 12 Baseline and business as usual trajectory Historic emissions Baseline 2018-19 16 Business-as-usual trajectory to 2030 18 Defining the pathways to net zero The approach Decarbonisation interventions 22 Costs for key interventions 23 Marginal abatement costs of carbon for the sector Sector pathways 28 Definitions 29 Electricity procurement and accounting 30 Green electricity accounting 30 Green gas accounting 30 Green electricity considerations 31 Modelling of renewable electricity 31 Demand-led pathway 33 Key areas of uncertainty 37 Cost of implementing the demand-led pathway 38 Risks and opportunities 41 Consideration of company characteristics 41 Technology-led pathway 42 Key areas of uncertainty 46 Cost of implementing the technology-led pathway 46 Risks and opportunities 50 Consideration of company characteristics 51

3 Removal-led pathway 51 Insets 52 Offsets 53 Key areas of uncertainty 58 Cost of implementing the removal-led pathway 58 Risks and opportunities 60 Consideration of company characteristics 61 Pathways comparison 62 Combined pathway 62 Cost of implementing the indicative combined pathway 64 Tailoring the pathways Differences between water companies 66 Pathways summary 66 Low-regret options 70 Next steps for the sector water UK and water companies Supply chain Regulators Government and other stakeholders Opportunities where we can enable carbon reductions in the wider UK system 73 Conclusions 75 The water sector post 2030 Focus on innovation Emerging opportunities 80 Appendices 82A.

4 Pathways supporting information 83 Technology-led pathway summary of interventions and carbon reduction impact 83 Demand-led pathway summary of options and carbon reduction impact 84 Removal-led pathway summary of options and carbon reduction impact 85B. Key definitions 86C. Net zero routemap and net zero guidance document 87D. Non-cost criteria for decarbonisation option assessment 87E. water sector interdependencies with wider systems 88 water UK | Net Zero 2030 Routemap 32 water UK | Net Zero 2030 Routemap Foreword When it was announced last year that the water industry was embarking on creating a strategy to achieve net-zero carbon emissions by 2030, I was excited to know that Ricardo would be playing a key role.

5 Though this was going to be no small task, with the water sector ranking as the fourth most energy intensive industry in the UK, creating a realistic strategy was going to challenge everyone is critical relationship between climate change and water resource management, and whatever sector you work in, water will play a significant role in what you do. It was essential that the sector took this proactive step that will have substantial positive impacts in helping the UK achieve it s 2050 has been achieved through the hard work, collaboration and innovative thinking, is an ambitious and critical strategy that identifies the pathways for UK water companies to build on their good work to date and bring their carbon emissions down to the net-zero is an important report, not just for the water industry, but for all sectors.

6 The climate emergency that we are experiencing around the world, will not go away without strong leadership, innovative ideas and people who care enough to want to make a genuine difference. The work that has been done in developing this scientifically robust strategy is an indication to other organisations and industries of what is have announced Ricardo s own ambitions for achieving net-zero ambitions by 2030. It is important to me that, like the water industry, we set an example, and lead from the front, encouraging others to follow.

7 An increasing amount of our business at Ricardo is focussed on addressing the challenges of climate change and I am delighted that our team has been at the forefront of this vital work with the water industry. We are proud to have worked alongside fellow consultants Mott MacDonald, pooling our technical knowledge and extensive experience to drive this valuable plan. I look forward to seeing the water companies become pioneers through their own net-zero journey, helping other key industry sectors to understand what can be achieved.

8 Tackling the climate emergency is not the responsibility of one or two individual groups - it requires everyone to work together, and this plan is one further step to creating a healthier world for Shemmans CEO, Ricardo PLCT here will be many challenges but also opportunities and rewards. The industry is a large energy consumer. An obvious way to cut emissions is to accelerate the switch to renewable energy. Many companies will be able to install solar, wind or hydro power capacity alongside their assets. wastewater companies will also be able to produce biomethane and inject it into the gas grid or use it in transport.

9 Treatment and conveyance of water and wastewater requires attention to cut energy demand, resource consumption and construction of new infrastructure. That requires innovation in catchment management, working with farmers to reduce raw water contamination. It calls for the real time tailoring of treatment by tracking the weather and discharges. Rigorous attention to asset condition and technology upgrades are needed. Demand must be reduced by tackling leakage and encouraging customers to consume less something the companies are already addressing.

10 Fossil fuels must be phased out. Advances in water reuse and resource recovery are required. Work is underway to fill some important gaps in the industry s knowledge, particularly regarding the emissions of methane and nitrous oxide from wastewater treatment. As research and monitoring produce new data, companies must share it freely, if the industry as a whole is to take timely action. Net-zero recognises that some greenhouse gas emissions are inevitable, and these will have to be removed through carbon sequestration principally by planting trees and restoring peatland.