Sustainable Housing: How to Achieve Net Carbon Zero?
Housing organisations across the country are juggling many challenges. Fire safety. Affordable rent. Housing quality. But, arguably, the biggest strategic challenge of all is becoming carbon neutral. While the UK government has set a target for the nation to be carbon neutral by 2050, many local authorities are aiming to achieve net carbon zero by 2030, with 74% declaring a climate emergency.
Most associations were focused on bringing stock up to scratch, getting to an EPC rating of C or above. But there was also a general admission that the government heat and buildings strategy’s focus on EPC C really isn’t enough. Adding some insulation and switching gas boilers to heat pumps needs to be part of a wider project educating residents, gathering data on housing stock and lowering emissions from the wider organisation.
Not only does focusing on EPC ratings miss many crucial elements, it also fails to take the bigger picture into account. Decarbonisation is deeply linked with other environmental, social and governance goals. Lowering carbon emissions can’t be done at the expense of creating disparity between residents’ energy bills, for example. And, of course, a good EPC rating doesn’t necessarily mean a house is nice to live in.
Accurate Data - The majority admit their organisations are lacking enough data to make definitive plans for decarbonisation. Lack of information about existing stock means it’s impossible to work out the potential costs of reaching net zero – and it’s harder to access funding. Data is a key priority in these early stages of sustainability improvements. What properties are already above EPC C? Which need improving? Are these in tower blocks or smaller buildings?
Financing - As part of its ‘Decarbonising the Housing Association Sector’ report, Savills found the cost of environmental improvements will be anywhere from £35bn to £58bn across the UK. The wide range shows just how uncertain things are – the same property could cost £10,000 or over £20,000 depending on the required standard.
There’s no denying that reaching net zero is going to be expensive for the sector. Organisations are gearing up for round two of the Social Housing Decarbonisation Fund (SHDF). But given the complexity and timeframes of the previous rounds, many are wary of committing too much. One organisation raised investment by releasing a new bond. Others are exploring partnerships with contractors who will apply for funding on their behalf. Other pots are starting to appear – for example the revived Renewable Heating Incentive.
Mindset - Organisations need to communicate the benefits of environmental improvements early on. Many people in social housing are over 60, a group not previously known for being early adopters of technology, although the pandemic has caused a shift here. If they’re to give up their existing log fires and gas boilers, they need to see how they could save money and be more comfortable.
While it’s a big task just bringing existing stock up to standard, it’s important to consider the wider goal. For example, one way of bringing your stock to EPC C would be to dispose of anything that can’t be improved. But that just shifts the problem elsewhere. Sustainability is about improving our whole environment, not just meeting one organisation’s targets. It’s about the wider outcomes we want to achieve, not just for residents via greener, more energy efficient homes, but for wider society too.
Sustainable housing is achievable, and the key lies in data-driven digital technology. This can help facilitate resident engagement, drive better decisions regarding housing stock and measure energy efficiency. Now is the time for associations to start looking for new partnerships, changing behaviours and putting plans in place for decades in the future.