3.182 The HLOSs made it clear that the Secretary of State and the Scottish Ministers expect Network Rail to manage the network with minimum impact on the environment. The Secretary of State‟s HLOS said the industry should set itself carbon and energy efficiency objectives. The Scottish Ministers‟ HLOS seeks a continuous and sustained carbon reduction. We need to decide how we will measure Network Rail‟s
performance in this area, while avoiding any potential dual regulation.
3.183 In April 2013 the industry-wide Sustainable Rail Programme published its Meeting Rail‟s Carbon Ambition plan. The plan acknowledges the need to reduce operational and embedded carbon, develop a whole life carbon measurement tool and measure emissions accurately. The plan includes a number of industry-wide actions that will translate to an absolute reduction in traction CO2 emissions of 12% by the end of
CP5.
3.184 A number of Network Rail‟s plans will have positive environmental benefits. The electrification programme will reduce carbon emissions, Network Rail has signed a ten-year contract for supply of low-carbon electricity, and we are setting incentives to reduce transmission losses for electricity used by rolling stock and to encourage consumption to be metered.
3.185 Network Rail produced carbon emission forecasts in the SBP and we (jointly with Network Rail) commissioned the independent reporter (Arup) to validate the accuracy
and reliability of the forecasts. Arup concluded116 that there was scope for improving
the process for producing these forecasts.
3.186 Our outputs consultation proposed there should be no environmental outputs for Network Rail in CP5. In its review of CP4 regulated outputs, Arup questioned the value of environmental outputs, given the relative immaturity of the measures. There are also existing environmental and legal obligations on Network Rail117 and many of
Network Rail‟s sustainable development activities are regulated by others.
3.187 However, Network Rail must set itself ambitious and stretching targets. The Secretary of State‟s HLOS stated the “industry should also set out plans for embedding the rail industry‟s Sustainable Development Principles118 and measuring and reducing the
carbon embedded in new infrastructure, throughout the lifecycle of programmes and projects. This should include the use of a suitable carbon accounting methodology”. We will monitor Network Rail‟s asset policies and programme / project planning, to ensure this requirement is met.
3.188 Network Rail plans to forecast and report on the following measures, which we have decided will be indicators in CP5:
(a) Scope 1 and 2 carbon dioxide emissions associated with Network Rail‟s own operations (traction, non-traction and total);
(b) carbon embedded in new infrastructure; and
(c) sustainable development KPIs (to be detailed in the CP5 delivery plan). 3.189 There will be independent assurance of these indicators, to ensure Network Rail‟s
environmental reporting is relevant, accurate and reliable.
3.190 We expect Network Rail to address the recommendations in Arup‟s report before the revised carbon emission and intensity forecasts are published in its delivery plan. Network Rail‟s carbon reduction forecasts must also support the industry‟s goal of an absolute reduction in traction CO2 emissions of 12% by the end of CP5, and a
reduction in carbon embedded in new infrastructure.
3.191 In our draft determination we said it is vital that railway infrastructure is resilient to climate change and extreme weather. We said Network Rail does not have robust
116 Review of Network Rail's carbon reduction calculations and CP5 trajectory, Arup, May 2013, is
available at http://www.rail-reg.gov.uk/pr13/publications/consultants-reports.php.
117 Network Rail is required to report environmental incidents, and events of non-compliance with
environmental permits, to the Environment Agency and Scottish Environment Protection Agency. Network Rail is also required to report the condition of Sites of Special Scientific Interest (that it owns) to Natural England, Scottish Natural Heritage and Countryside Council of Wales, and its carbon footprint via the Carbon Reduction Commitment, to Department for Energy and Climate Change.
118 The Rail Industry Sustainable Development Principles, RSSB, February 2009, is available at
http://www.rssb.co.uk/SiteCollectionDocuments/national_programmes/sustainable_rail/Rail Industry Sustainable Development Principles.pdf.
climate change resilience plans and required it to provide further evidence (with its delivery plan) of how its assets are resilient to climate change and extreme weather. In its response to our draft determination consultation, Network Rail provided a
climate change and weather resilience document. It emphasises the need for a whole life cycle approach and provides examples of how Network Rail is making assets resilient to climate change and extreme weather. We believe this is a robust plan and provides the evidence we sought in our draft determination. Network Rail has also provided an example of a climate change and weather resilience plan at route level (for Western) and committed to publishing plans for all other routes by the end of September 2014. We will review these plans and monitor progress against the specific project delivery milestones in each route.
3.192 In 2010 the Department for Environment, Food and Rural Affairs (Defra) published a set of Noise Action Plans addressing noise management issues under the terms of the Environmental Noise (England) Regulations 2006, as amended119. The railways
action plan identified ORR and DfT as the rail authorities required to implement any actions or secure budget for actions. In 2012 Defra completed the second round of noise mapping120; identifying areas affected by railway noise. The Welsh and Scottish
governments have also carried out similar noise mapping exercises. Railway noise exposure is obtained through modelling. The industry‟s Noise Policy Working Group (NPWG) is considering additional research in CP5 to supplement the mapping work with recorded data, particularly in connection with acoustic track quality. Network Rail also has planned activities in CP5, including rail profile grinding and electrification projects that will support mitigation of the noise impacts identified in the latest noise mapping round. The NPWG agrees this is the most effective method of addressing railway noise impacts. We will monitor Network Rail‟s progress and continue to engage with the NPWG to address railway noise in the worst affected areas across Great Britain.