This document is part of a handbook of good practice related to the decarbonisation of operational PFI projects. It should be read in the context of the full set of documents, constituting this Executive Summary, Part One – Developing a Decarbonisation Plan, and Part Two – Delivering a Net Zero Change.

It is acknowledged that there are many challenges to overcome to deliver decarbonisation interventions given the structure of a PFI contract coupled with the complexity of retrofitting within an existing built environment. Accordingly, this handbook advocates a practical and pragmatic approach, centred on transparency and underpinned by good faith obligations on all parties.

The handbook is intended to be used alongside the relevant contractual provisions of each individual project, which provide the framework within which project assets are maintained and services delivered. Success will be much more likely where Authorities have, from the outset, a thorough understanding of their project, and in particular the Project Agreement, including the way in which energy provision and use is addressed and how the change mechanism operates. It is worth noting that there are many different contractual approaches and models in operation, and any net zero change will need to be delivered in the context of the relevant approach in question.

In some cases, decarbonisation of operational PFI projects may require variations or changes to project contracts (referred to in this document as ‘net zero changes’). The guidance proposes a unified, systematic approach to the delivery of net zero changes for operational built environment PFI assets, to be used on all projects, irrespective of the genesis of the particular project agreement i.e. which version of SOPC it is based on.

This handbook is designed to assist all interested parties in implementing net zero changes by giving them a roadmap and framework within which they can operate, highlighting key issues and best practice approaches. It is not however a definitive, detailed technical manual for the delivery of retrofit decarbonisation investment. As such, this document signposts preceding government and industry guidance, toolkits and other supporting materials.

This handbook has been produced by the IPA with input from the IPA’s Net Zero Working Group, whose members include a number of investors, MSA providers, FM contractors and central government representatives.