Whole Life Carbon Roadmap
The UK Green Buildings Council (UKGBC) launched its Whole Life Carbon Roadmap, coinciding with the COP26 summit on 31st October 2021. The document included the carbon footprint of the property industry, recommended policy interventions for central and local government, and stakeholder action plans for 14 key industry stakeholders including developers, landlords, occupiers and others.
The report surmises that the built environment is directly responsible for 25% of UK emissions, rising to 42% when including transport elements. To bring the industry to net zero by 2050 they outline five action areas:
• Nation-wide retrofitting of existing homes
• Energy performance disclosure for non-domestic buildings
• Adoption of a design for performance approach
• Whole life carbon measurements and agreed limits
• National infrastructure investment based on net emissions impact
Our homes are the largest contribution to the sectors emissions. Operational carbon from domestic buildings accounts for half of the sectors emissions, when including embodied carbon (emissions during the construction of a building rather than when it is in use) this rises to almost 60%. The UKGBC estimate that the recommended nation-wide retrofitting of some 29 million existing homes would reduce this by 98% by 2050.
The UKGBC advocates those measures will also look to eradicate fuel poverty, create 500,000 green jobs, and positively contribute to the national levelling up agenda. It put forward a number of incentives to help retrofit 97% of homes by 2040 such as: variable stamp-duty adjusted in line with EPC, removal of VAT on refurbishment, council tax reform, government grants, incentivising banks and lenders to offer low interest and mortgage extensions and loans for retrofit, and adjust the gas and electricity tax regime.
Anthony Duggan, chief strategy officer & head of global capital markets research at Knight Frank, said: “Starting now, we must consider zero-emissions planning and climate mitigation for all new buildings and come together to ensure the existing housing stock is adapted and future-proof. Buildings designed with this in mind today can reduce embodied carbon and slash operational carbon for many years to come. The best part? A lot of the technology and natural-solutions we need are already out there – our next step is to collaborate, share and invest in these solutions.”
Oliver Knight, head of residential development at Knight Frank, commented that “New homes are already more efficient than existing stock. In the past year, over 85% of registered new dwellings were awarded an energy performance rating of either A or B, but with the Future Homes Standard requiring a 75-80% reduction of carbon emissions in new homes from 2025 compared with current standards, there is still a way to go – particularly given the huge skills shortage, and current pressure on global supply chains. Higher build costs will also need to be considered given the pressure they may place on housebuilder margins as well as land values.”
The UKGBC is right to highlight the important issue of embodied carbon, and regardless of the timing of the introduction of any regulation around embodied carbon in buildings, we expect this will come under great scrutiny from investors as comparable information becomes more readily available.
Sources: Knight Frank & UKGBC