CBGA-HORIZON: Aligning Planning with Budget Cycles

LinkedIn Post 12: CBGA-HORIZON: Aligning Planning with Budget Cycles

UK statutory carbon budgets operate on five-year cycles. Your AI system plans on one-year capital budgets.

This temporal misalignment is where a lot of governance fails.

The system defers expensive interventions "until next year." Next year, the same deferral happens. And the year after. By the end of year five, you've hit every annual target but you're 30% behind your five-year statutory commitment.

CBGA-HORIZON constrains planning to five-year horizons. Instead of asking "what's the cheapest retrofit this year," you ask "what mix of interventions will meet our five-year carbon target?"

This forces a conversation about feasibility early. If deep retrofit costs £500k and you have £100k/year, you have a problem that can't be solved by quarterly optimisation. You either need more capital, or you need to accept that compliance is unachievable. There's no third option.

Making constraints explicit is uncomfortable. But it's the only way to ensure that your annual progress adds up to five-year compliance, rather than hoping it will.

#StrategicPlanning #Governance #CarbonBudgets #Sustainability #LongTermPlanning