For real estate to achieve net zero carbon, we need to align building standard

COMMENT As part of its aim to be net zero by 2050 the UK government is seeking to reduce business and industrial energy consumption by 20% by 2030. To help achieve this there have been some significant changes to national regulations and local policies – along with further updates in the pipeline – covering the building industry. These affect the energy efficiency and the carbon footprint of both new build and existing non-domestic private rented property. As part of the government’s efforts there will be a major overhaul of the non-domestic Part L of the building regulations in 2025, while proposed interim changes are expected to be published later in 2021. Ministers’ preferred uplift in performance, to be met by improved fabric standards and low carbon heating, would roughly equate to a 27% reduction in a new building’s regulated CO₂ emissions, compared to the current part L which was published in 2013.  What’s changed? In the non-domestic PRS sector the government is proposing to incorporate a new implementation framework into the PRS regulations, including setting an interim Minimum Energy Efficiency Standard for rented commercial buildings of EPC C by 2027. This performance requirement comes ahead of a requirement for an EPC B rating by 2030.  In London, the mayor has formally retained the requirement for a 35% reduction in regulated CO₂ emissions, compared to Part L 2013 for new major developments, which are now also required to report and minimise their whole life carbon emissions. While the London Plan’s definition of a net zero carbon development does not cover all energy and sources of greenhouse gases, it does broaden its scope to incorporate consideration of embodied carbon. This demands that developers and their design teams calculate the embodied carbon emissions associated with their building’s construction, including the manufacture of materials used, and emissions arising from, the development’s operational use. With a view to supporting design for a circular economy, the London Plan also covers emissions arising from the building’s end-of-life deconstruction and disposal, along with any emissions’ reduction opportunities associated with the ability to reuse or recycle building elements. A net zero carbon building, is one that considers and seeks to minimise all sources of carbon dioxide and greenhouse gas emissions throughout its lifecycle, incorporates low carbon heat and includes an offset strategy for any residual emissions. To achieve net zero we need to go beyond only considering operational energy efficiency in our new builds and also minimise embodied carbon emissions, and we need to get radical about retrofitting our existing buildings to meet and exceed the government’s Minimum Energy Efficiency Standards. Along with a number of other organisations we have advocated for wider changes to be included in the planned part L updates. It is vital that policies and regulations are aligned with each other and with the fullest definition of a net zero carbon building, as described by the UK Green Building Council. We recommend the government reconsiders the omission from the updated regulations on the control of embodied carbon emissions in new build and major retrofit work. Regulations also need to consider the total energy consumed by buildings, including all plugged in and fitted out equipment, not just the energy consumption of the regulated building services. Meeting occupiers’ demands The companies and organisations renting our current and future building stock are making bold decarbonisation commitments for the next decade. They will increasingly look for the most energy efficient buildings in which to operate. For many organisations, the buildings they occupy represent their biggest source of emissions. And they want this situation addressed. Those building owners not leading the drive to improve energy efficiency will find it increasingly difficult to rent their property at the rates they want to achieve.  New building standards will be ambitious, but unless they also make significant changes in their scope and align fully with our net zero ambitions, we increase our risk of failing to overcome the biggest environmental challenge of our lifetime. Andrew Leiper is partner and net zero carbon leader at Max Fordham