Notice

Contracts for Innovation: Impact validation report specification

Updated 14 July 2025

This template provides a draft overview of the core content of the report that you are expected to produce at the end of your project. We may make amendments to this template to incorporate feedback from applicants and to incorporate the latest policy positions. A final version of the template will be issued to successful applicants.

Objective

Projects must include an impact validation activity, measuring and analysing data to evaluate the lifecycle impacts and commercial scale-up potential of the resource efficiency solution. This should identify the solution’s potential to decarbonise the target sector and contribute to UK territorial carbon savings.

The evaluation should compare baseline data related to the competition theme and outline the improvement from your solution using data from the demonstration or trial.

This evaluation activity and summary report is a key deliverable and must be included as part of your milestones. This specification provides the required format for the final report. Please speak to your assigned Monitoring Service Provider about any proposed changes.

We expect the report to be around 40 pages, not including annexes.

1. Scope

1.1 Description of Resource Efficiency Solution

Describe the current state of the target sector and the resource efficiency challenge that your solution addresses. Provide a technical description of your proposed idea or technology and the resource efficiency outcomes that it supports. Where feasible, relate this to the resource efficiency measures identified within the Unlocking Resource Efficiency report for your target sector.

Applicants are encouraged to identify how their solution builds on the existing research and innovation landscape.

1.2 System Boundary and Target Success Criteria

Outline the boundary of the system in which you expect your solution to achieve resource efficiency improvements. Depending on context, this could include a Cradle-to-Grave, Cradle-to-Gate, or facility specific boundary. Consider the impacts at each stage of the value chain (e.g. raw material extraction, manufacturing, operational / use phase, end-of-life management, transportation stages). Justify the relevance of your chosen system boundary for measuring and evaluating impacts.

Clearly define the target success criteria for the solution in terms of measurable unit, for example: reduction in resource use or emissions per tonne of product produced.

Identify the extent to which the solution is expected to contribute to greenhouse gas emissions reductions, where this will occur (scope 1, 2, 3) and whether this contributes to territorial emissions savings (i.e. are the targeted activities taking place in the UK). Your analysis must include scope 3 impacts. If your solution relies on technologies such as carbon capture we expect you to include the energy impacts of operating this technology. If your solution relies on feedstocks that are utilised in other systems then we expect you to consider the impacts on these wider systems.

If relevant, describe how the solution would contribute to sector specific targets or standards.

1.3 Description of the Trial and Demonstration

Describe the controlled conditions under which the resource efficiency solution was tested to generate performance and emissions data, including:

• Location: Site Name, City, Country
• Facility: Activity, Sector
• Duration: Months
• Scale:

2. Methodology

The LCA should be based on the demonstrated project results. Summarise the approach taken to validate the technical feasibility and operational performance of the demonstrated solution. This should include the steps taken to quantify energy, material, and emissions performance compared to baseline operations, and to collect data for lifecycle inventory modelling.

2.1 Demonstrator Data Collected

Describe the sources of the data collected within your demonstration. We expect primary data collection from the demonstration project, and may also be complemented by secondary sources (e.g. from literature, or internationally recognized datasets) and qualitative information collected from users and the wider sector.

Specifically outline (as relevant):

Material and energy indicators

• Material Inputs:  type and quantity of raw materials or feedstocks considered
• Energy Use: amount of electricity, gas, or other fuels consumed, including changes in fuel type.
• Process Outputs: product yield, by-products, and waste streams.

Environmental indicators

• Direct emissions (e.g. scope 1 direct CO₂, CH₄, N₂O savings) (required)
• Indirect emissions (e.g., scope 2 emissions from energy reductions) (required)
• Water and waste effluent data
• Land-use
• Waste to landfill

Process indicators

• Costs
• Labour requirements
• Time
• Sales
• Product quality

Justify the rationale for the chosen indicators. If using secondary sources, please describe the options considered. We expect you to use consistent and authoritative sources, particularly for emissions factors (for example DESNZ emissions conversion factors, UK and EU Emissions Trading Scheme Data).  If you have used a simulation model, describe how the model is anchored to real data from the demonstration,

2.2 Instrumentation and Data Logging

Describe the equipment and processes used to collect and log the data from the demonstrated solution.

• Continuous monitoring equipment used where possible (e.g., smart meters, gas flow sensors).
• Manual data logging for batch processes.
• Calibration procedures applied to ensure data accuracy.

2.3 Comparison to Baseline

Describe how the baseline has been defined (for example using historic data, standard industry performance, or a parallel control process).

Describe and justify approaches taken in the demonstration to support:

• Normalisation to an appropriately selected reporting unit. This could be a declared unit (e.g. CO₂eq per kg of product) or a functional unit, which also accounts for a product’s performance and lifetime (e.g. CO₂eq per kg of product of x grade and with a lifetime of y years).
• Adjustments made for operational variability (e.g., production rate, downtime).

These measurements should inform the pre-intervention life-cycle impact assessment of your solution. By defining a functional unit, you are ensuring that there is a means to objectively compare results pre and post intervention in terms of cost, environmental impacts, or other metrics of producing/processing a given unit.

2.4 Life-cycle impact assessment approach

Describe the framework used to identify and assess the life cycle impact of the demonstrated solution.  Please provide a detailed description of the methodology used and the choices made about the measurement and impact approach. Describe how you will compare the result pre-intervention to post-intervention.

For most solutions we expect this to refer to the principles outlined in ISO 14040 and ISO 14044. These international standards provide a framework for conducting life cycle assessments.

Life Cycle Assessments are well established for many existing products, and this approach is often required as part of Environmental Product Declaration (EPD) Reporting and Product Category Rules (PCRs). For example:

• ISO 14067 sets out requirements and guidelines for quantification of the carbon footprint of products.
• Greenhouse Gas Protocol for Products Product Life Cycle Accounting and Reporting Standard.
• ISO 14025   Environmental labels and declarations.

The approach taken should seek to validate the impacts of the solution against relevant sector or product standards and targets. This should provide potential users or buyers of the solution that the solution is market compliant and can satisfy future demands for resource efficient, low carbon products.

For example:

Construction

You must adopt a methodology consistent with the RICS’ Whole life carbon assessment for the built environment (WLCA). WLCA is free to download from the RICS website and builds on existing ISO and EN standards, providing a methodology for measuring and reporting on carbon and greenhouse gas emissions from buildings and infrastructure throughout the life cycle.

Product specific standards apply for many building materials and products, and environmental standards are applied for processing, construction and demolition activities. Please identify the relevant standards for your sector. If you are unsure then we encourage you to engage with the producers/users of the material/product and relevant Trade Bodies. For example:

• ISO 20915 Life cycle inventory calculation methodology for steel products.
• BS EN 16908:2022. Cement and building lime
• BS EN 16757:2022, Concrete and concrete elements
• BS EN 17662.  Steel, Iron and Aluminium structural products for use in construction works (draft)
• EPD PCR in Europe for construction

We also encourage you to consider whether your solutions support the ambitions of relevant industry commitments, such as the CO2nstructZero Five Client Carbon Commitments.

Automotive

Product specific standards apply for many components and the vehicles themselves, and environmental standards are applied for processing activities. Please identify the relevant standards for your sector. If you are unsure then we encourage you to engage with the producers/users of the material/product and relevant Trade Bodies. For example:

• In the UK, the End-of-Life Vehicles (ELV) Regulation set targets for vehicle recovery and recycling, which are currently 95% recovery and 85% recycling by average weight.

Chemicals

The chemicals sector is required to meet relevant environmental standards. Please identify the relevant standards for your sector. If you are unsure then we encourage you to engage with the producers/users of the material/product and relevant Trade Bodies.

2.5 Validation and QA

Describe how the outputs from the demonstration and the LCA have been validated, for example through:

• Cross-checking data
• Independent review or third-party audit of trial methodology and results

2.6 Sensitivity and Uncertainty Analysis

Outline the key assumptions tested for robustness, any scenario analysis or Monte Carlo simulations conducted (if relevant). Be transparent about data limitations. Consider whether alternative LCA approaches may have yielded different results.

2.7 Results and Interpretation

Provide a summary and graphical / tabular presentation of the findings (this may also be provided in an annex).

Identify the impact hotspots in the impacts, and any potential co-benefits or trade-offs, across the life-cycle within the chosen boundary. In particular, explain whether all the measured impacts show improvements and outline any negative or unintended consequences of the solution.

3. Commercial Scale-Up Opportunity and Route to Market

3.1 Market Potential Assessment

Describe the addressable market by geography, sector/sub sector, and relevance of the solution. Provide a table summarising how many adopters of the demonstrated solution there would likely be in the UK and globally, and list the assumptions that informed the scaling potential.

Provide a clear list of the demand drivers, for example: regulation, health and safety, product performance, cost savings, profit, export potential, net-zero targets, Environmental, Social, and Governance pressures.

Provide a clear list of the barriers to scaling, for example: regulation, health and safety, product performance, cost savings, profit, export potential, net-zero targets, Environmental, Social, and Governance pressures.

3.2 Scalability Assessment

• Outline the current realised Technical readiness level (TRL) and Market Readiness Level (MRL).
• Outline any infrastructure or operational requirements for scale-up.
• Describe the potential for replication across other sites / sectors.  

Describe whether you have discovered any issues or opportunities in terms of the policy system / environment for resource efficient innovations, and what can government do to create a more supportive environment for this solution.

3.3 Route to Market

Outline the results of any stakeholder engagement and feedback collection exercises.

Describe the business model or investment model options for scaling the solution.

If applicable, outline:

• Route to securing accreditation
• Intellectual Property
• Levels of investment leveraged from other partners
• Planned activities to utilise the report, trial or demonstration to gain more private financing
• Industry commitments to purchase or use the solution

3.4 Economic Considerations

Outline the potential costs and benefits of the solution from a business perspective, including:

• Impact on product cost
• CapEx / OpEx estimates for scale-up
• Payback period, return on investment (ROI)
• Incentives and funding mechanisms (e.g. carbon pricing impacts)

4. Conclusions and Recommendations

Key feasibility and impact insights. Describe how the trial, demonstration or report creation has helped to developing the solution.

Outline any strategic recommendations for decision-makers, investors, and policymakers.