The Inter-departmental Analysts’ Group (IAG) was set up in 2001 and its purpose is to:
- Provide internal peer review of analysis by Government and related bodies, of the impacts of policies that affect Government’s objectives to reduce greenhouse gas emissions and promote sustainable and secure energy supplies
- Provide a forum to generate ideas and recommendations for the analysis, which can be considered to make the analysis more robust, and more consistent between government departments
- Discuss new methodological approaches for estimating and valuing climate and energy impacts. Disseminate agreed methodological approaches and values to ensure consistency in approach across the Government analytical community.
- Increase efficiency and consistency in the use of analytical resources and share best practice and experience both across Government but also with key external stakeholders
- Undertake other relevant tasks, as agreed
Valuation of energy use and Greenhouse Gas emissions for appraisal and evaluation
Valuing energy use and greenhouse gases is vital in order to ensure Government takes full account of climate change and energy impacts when appraising and evaluating public policies and projects. In consultation with analysts across Government, DECC has produced guidance that provides government analysts with a set of rules for valuing energy usage and greenhouse gas emissions:
The new DECC / HMT guidance provides practical guidance on the implementation of the revised carbon valuation methodology for UK policy appraisal (July 2009). It also outlines the reporting requirements for compliance with Carbon budgets and PSA Delivery Agreement 27: Lead the global effort to avoid dangerous climate change, Indicator 6 (cost effectiveness of climate change policies).
This guidance supplements the HM Treasury: Green Book that provides general guidance on how to conduct appraisal and evaluation.
There is a complementary spreadsheet ‘Toolkit’ that converts increases or decreases in energy consumption into changes in greenhouse gas emissions and that values the changes in both emissions and energy use. This spreadsheet also contains the latest assumptions on carbon values, energy prices, long-run variable energy supply costs, emission factors and air quality damage costs over the 2008-2100 period:
Tables 1-29 and a suggested template to report emissions savings for carbon budget accounting are also available in Excel format:
Further background analysis and explanations of the methodology adopted can be found below:
This guidance was last updated on 11 June 2010.
Any questions on this guidance, the spreadsheet toolkit or the background information should be addressed to: GHGappraisal@decc.gsi.gov.uk.