Making the Business Case for Adaptation

Analysis of costs and financial drivers for making a more resilient built environment

[Presenters name][Meeting name][Date]

These slides were developed by Climate UK and the Environment Agency but are provided here in unbranded form so they can be adapted for local use and re-branded as needed.

Presentation contents

— Overview of training modules available in the series

— Risks and examples of climate impacts in the built environment

— Headlines from ‘Designing and Renovating Buildings’ chapter, ASC 2nd progress report

— Example costs for adaptation measures in individual buildings

— Climate Change Adaptation in the UK Built Environment (guidance)

Making the business case for adaptation

Other training modules in the series

— Statutory drivers for adaptation

— Making the business case for adaptation

— Green Infrastructure as an adaptation response

— How developments and buildings can be adapted so that they are resilient to climate change and extreme weather

— Addressing weather and climate risks through neighbourhood planning

— Achieving resilience to climate risks through local plans and supplementary planning guidance

Making the business case for adaptation

UK Climate Change Risk Assessment: Built Environment

Making the business case for adaptation

— Building temperature control

— Subsidence

— Flooding

— Water stress

Heatwave 2003

—2000 excess deaths due to heat in the UK

—Temperature of 39’C was recorded in Brogdale in Kent on 10 August 2003

—Speed limits imposed by network rail due to risk of track buckling

—Tourism; London Eye closed one day as cabins became too hot

—It is thought to have cost European farming €13.1 billion from death of livestock

Making the business case for adaptation

“More than 20,000 people died after a record-breaking heatwave left Europe sweltering in August 2003”.

Damflask Reservoir, Yorkshire Water

Flooding 2007

—£1.2bn domestic claims

—£1bn cost to business

—£330m power and utilities

—£287m public health costs

—£230m communications (incl roads)

—£50m damage to agriculture

—400,000 school days lost

Making the business case for adaptation

“Broad-scale estimates made shortly after the floods put the total losses at about £4 billion, of which insurable losses were reported to be about £3 billion”.

2012 Weather Extremes, from drought to floods

— A dry start to the year lead to hosepipe bans in some areas

— A warm and dry March gave way to the wettest April – June period on record

— The total UK rainfall in June was twice the 1971 – 2000 average

— Extreme rainfall event ‘Thunder Thursday’ in the North East caused £8m in damage

— 8000 properties were flooded in 2012

Making the business case for adaptation

Early fears of drought turned to record breaking rainfall

Designing and renovating buildings

“Buildings are a priority area for adaptation, because decisions concerning design, construction and renovation are long lasting and may be costly to reverse”.

Making the business case for adaptation

—Buildings already vulnerable to flood, storms, overheating, subsidence

—Plumbing, domestic appliances and occupant behaviour influence water demand

—Rising temperatures may make buildings more uncomfortable

—More extreme weather events may expose occupants to greater risk

Identifying low regret ‘property level’ adaptation measuresCase study areas - South East and the Aire Valley in Yorkshire & Humber considered:

water stress - heat stress - floodingCost benefit analysis for adaptation is significantly more challenging due to:

The methodology focused on:

—Low regret measures that perform well against a range of climate scenarios

—The benefit of individual measures to enable comparison between options

Making the business case for adaptation

Uncertainty of future impacts

Calculating monetary

value for the loss averted

Scaling up local data to national level

Water efficient measures analysed

Making the business case for adaptation

Measure Additional cost per household - retrofit

Additional cost per household – end of life upgrade

Additional cost per household – new build

Dual-flush WC £230 - 540 0 n/a

Low-flow shower £250 - 430 0 n/a

Low-flow tap (pair) £100 - 210 0 n/a

Low-volume, gravity rain water system

£1,000 0 £900

Short-retention grey water system

£1,920 - £2,220 0 £1,730 - £2,000

Flood resistant and resilient measures analysed

Making the business case for adaptation

Measure Additional cost per household - retrofit

Additional cost per household - repair

Additional cost per household – new build

Mount boilers on wall

£1,000 £150 0

Move washing machine to first floor

£600 £200 0

Replace ovens with raised built under type

£650 - 750 £200 0

Move electrics well above likely flood level

£700 - £1,100 £250 - £500 0

Install chemical damp-proof course below joist level

£5,090 - £9,270 £2,660 - £4,930 0

Raise floor above most likely flood level

£28,200 - £44,700 £11,000 to £ 18,350 0

Replace doors, windows, frames with water resistant ones

£8,110 - £15,010 £3,710 - £6,640 £3,340 - £5,970

Passive cooling measures analysed

Making the business case for adaptation

Measure Additional cost per household - retrofit

Additional cost per household – new build

High thermal mass + night cooling by natural ventilation

£2,130 - £4,580 £680 - £1,530

External shutters £1,000 - £1,200 £900 - £1,080

High thermal mass + night cooling by natural ventilation + solar shading + reduced internal gains + high roof albedo

£2,130 - £4,580 £680 - £1,530

Whole house ventilation + high thermal mass + no window opening

£2,130 - £4580 £680 - £1530

Climate Change Adaptation in the UK Built EnvironmentNew guidance for those working in the built environment sector, including planners, developers and designers on:

—How to assess and communicate the business case for climate change adaption in the built environment, and

—How to achieve developments which are resilient to the effects of a changing climate.

Making the business case for adaptation

Oxford University Press, Oxford – Hoare Lea

The guidance comprises short “How

to” guides built around a four stage risk

assessment processhttps://connect.innovateuk.org/web/climate-change-adaptation/article-view/-/blogs/guidance-for-making-the-case-for-climate-change-adaptation-in-the-built-environment

Developing an effective business case

There are 3 key principles that are critical to developing an effective business case for climate change adaptation in the built environment:

Making the business case for adaptation

Early identification and prioritisation of climate risks

Assess and address climate risks early to facilitate ‘no regret’ / ‘low regret’ adaptation

Design in ‘adaptive capacity’ - where climate risks are uncertain or long term

References

— UK Climate Change Risk Assessment, DEFRA

— MET Office, Education

— The costs of the summer 2007 floods in England, Environment Agency

— Adaptation Sub Committee (ASC) 2nd progress report 2011

— Climate Change Adaptation in the UK Built Environment, Climate Ready

Making the business case for adaptation

Case studies

— Our River, Our City – a case study from Derby

— The Hive, Worcester - award winning integrated public and university library

Making the business case for adaptation

CASE STUDY

Building a Resilient EnvironmentMaking the business case for adaptation

River Derwent in Derby looking towards the Council House, image by Climate East Midlands

New approach

Masterplan designed to:

• Reduce flood risk

• Make space for water

• Incorporate flood protection measures into new developments

• Capitalise on the asset of the river to regenerate central Derby

River Derwent at Darley Abbey in high flow Image by John McLinden, used under a Creative Commons licence

Problems• High flood risk• Low standard of

protection• Deteriorating assets• No incentives for

investment

Solution (part)• Incorporate flood

protection into new developments (at Opportunity sites)

L: Flood risk map R: Opportunity sites map

ElementsThe masterplan proposes a mix of different solutions at different points including:

• New defence walls

• Soft landscaped mounds

• Protection incorporated into new developments

• Some buildings removed to widen corridor

Challenges and Opportunities• Historic environment

• Archaeological remains

• Housing

• Commercial and Industrial sites

• Biodiversity

• Roads

• Railway

Derby Silk Mill image by Diego Sideburns, used under a Creative Commons licence

Scheme costs: approx. £95m*

Secured so far:

• Flood Defence Grant in aid £17m

• Growth Funding £19.6m

• Local Levy £470k

• Derby City Council £300k

• D2N2 LEP £12m

• Current funding shortfall £46m

Benefits

• 1,450 residential and 800 commercial properties protected

• 26,000 existing jobs protected / 6,300 new jobs created

• 80 Hectares of developable land created / 320 new residential properties

Benefit to cost ratio: 2.91

*Whole life costs Environment Agency Draft Business Case, Oct 2013

£££Costs and Benefits

*‘Over the coming decades climate change is likely to exacerbate the situation leading to more frequent and severe flood events.’

‘There will be a site specific approach to climate change, using a precautionary or managed adaptive approach. The precautionary approach will be taken where it is difficult to ‘top-up’ or adapt the defences in future, eg defences delivered as part of the development sites and pumping stations.

The managed adaptive approach will be taken where it is cost-effective to ‘top-up’ or adapt the defences in the future, eg flood embankments, stand-alone flood walls, floodgates. In the managed adaptive approach, asset foundations will be designed and built to accommodate a structural extension.’

*Source: Environment Agency Draft Business Case, Oct 2013

Climate change implications

The Hive, WorcesterThe award winning integrated public and university library

CASE STUDY

Introduction to The Hive, Worcester

• First fully integrated public and University library.

• Opened July 2012.

• Created in partnership between Worcestershire County Council and the University of Worcester.

• Brings together Worcester University's Library Service, the former City Library, The Worcestershire Record Office, Worcester Historic Environment and Archaeology Service and the Worcestershire Hub.

Making the business case for adaptation

The Hive: Adaptation and Sustainability

Natural Ventilation and Summertime Cooling Strategy

Making the business case for adaptation

• Directing air flow

• Natural air supply from below ground duct

• Evaporative cooling

• Piped water cooling during heatwaves

• Specialist window and roof design.

• Sustainable, durable building materials.

• BREEAM Outstanding

Building Design

(C) www.nandu.co.uk

(C) The Hive

Daylight Strategy

Making the business case for adaptation

• Maximum use of natural light.

• Reduction in energy use.

• Biomass boiler.

• Water sourced heat pump.

• Rainwater harvesting.

• Use of on-site water supply.

Renewable Energy Strategy

Water Management Strategy

Planting and Urban

Ecology

• Water meadows.

• Biodiversity enhancement.

(C) www.nandu.co.uk

(C) The Hive

Making the business case for adaptation

Use of UK Climate Projections

Making the business case for adaptation

• UKCP09 scenarios used to prepare for future climatic conditions.

• Building comfort conditions calculated for predicted conditions in the years 2020 and 2050.

• If the internal temperature exceeds 25°C, it will always remain 2°C less than the external temperature.

• Conditions will be maintained at required level in 2020 with only a 2% increase in carbon emissions.

• The building's lowest floor level is set above the 100 year predicted flood level with an additional allowance for anticipated climate change.

(C) Treefellers.co.uk

The Hive: Heating• 550kw biomass boiler.

• Regional wood supply source.

• Back-up gas boilers.

• Thermal mass.

Making the business case for adaptation

Why?• 1/3 of the energy used

compared to mechanical cooling.

The Hive: Cooling• Piped water from River

Severn.

• Used water returned to river with no impact on environment.

Why?

• Biomass only emits around 6.5% CO2 emissions compared to gas.

• Estimated that installation of biomass boiler saves £6,043 per year compared solely to gas heating.

The Hive: Water Management

• Rainwater harvesting.

• Sustainable Urban Drainage System (SuDS).

Making the business case for adaptation

Why?• Reduction in potable water

use and cost by 40% compared to an average library.

• Preventing financial damage to the building by minimising flood risk.

(C) Worcestershire County Council

The Hive: Roofscape

• Pyramid structure; each cone made from sustainable sourced softwoods.

• Brings in natural daylight and ventilation.

• Spatial character.

Making the business case for adaptation

(C) www.nandu.co.uk

(C) The Hive

Why?• The change from

steel/concrete design to timber has saved 2,000 tonnes CO2.

The Hive: External materials

• Made with a copper aluminium alloy finish.

• Durable and recyclable.

• Ground floor clad with locally sourced natural stone.

• 22% recycled material used.

Making the business case for adaptation

(C) Worcestershire County Council

The Hive: Windows

• Solar shading to prevent glare.

• Windows in the roof tested so that enough natural daylight comes in without creating physical discomfort.

Making the business case for adaptation

(C) www.nandu.co.uk

The Hive: Ventilation

• Naturally ventilated.

• Archives section mechanically ventilated to maintain specific conditions.

The Hive: Landscape & Ecology

• Indigenous vegetation encourages wildlife.

• Incorporation of bat boxes.

• Re-planting of rare local species.

• Flood alleviation.

• Shading and cooling.

Making the business case for adaptation

(C) Grant Associates

Further information

— Alan Carr

— Sustainability West Midlands

— 0121 237 5890

— alan.carr@swm.org.uk

— www.sustainabilitywestmidlands.org.uk

— www.climateuk.net

www.thehiveworcester.org

Making the business case for adaptation

Video case studies

— Lowaters Nursery

— Changing Climate, Changing Business (Climate South West)

Making the business case for adaptation

Lowaters Nursery – UK Water Efficiency Awards 2012 Winner

Making the business case for adaptation

M Brodie, Alamy PSL Images, Alamy

Business cuts water consumption, savings around £20,000 per year and ensuring water availability for the business in dry weather

Changing Climate, Changing Business

Making the business case for adaptation

M Brodie, Alamy PSL Images, Alamy

Tourism businesses adapting to climate change

Contact details

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Making the business case for adaptation