The Net Zero Agenda – is time running out for the built environment?

The UK government was the first in the world to set a net zero target of 2050, putting us at the forefront of the climate call to arms on a global scale. Indeed, many organisations and local authorities reflect the urgency to achieve net zero as soon as possible, setting targets closer to the next decade.

Every day that passes leads to ‘zero hour’, but the positive is that we’re already a good way down the right path. With the government target being 2050, action is needed now, and the key will be making sure that our targets are challenging, while also realistic and achievable.

Central to everything will be identifying what exactly it means for a building to be ‘net zero’. This has been somewhat of a grey area, but the fog is starting to clear, with the UK Green Building Council bringing together leading organisations such as UK-GBC, LETI, BPP, BRE, Carbon Trust, CIBSE, RIBA, IStructE, and RICS to create the UK’s first Net Zero Carbon Building Standard.

This standard sets out metrics by which net zero carbon performance is evaluated, along with performance targets or limits that must be met. Having a single standard that provides a clear definition of net zero buildings reflects a wider collective drive to make a difference. Crucially, it will provide consistency, level the measurement field and enable the industry to robustly verify that assets are net zero carbon and in line with climate targets.

Funding remains crucial. In recent years, there certainly has been an increase particularly for public sector funding, including recent allocations for funds under both the Levelling Up Fund and the Public Sector and Social Housing Decarbonisation schemes. With the UK government setting the targets, it needs to lead the way and ensure that the required funding is allocated in order to meet its own deadlines.

The two-fold cost of delay

The first cost is the obvious one – we pay the cost of irreparable damage to our environment, which will have huge implications on the way we live and inhabit the planet. We are already on the cusp of areas of the globe becoming inhabitable for humans, and without the move to net zero, this risk will only increase.

Secondly, there will be significant financial implications for asset owners. Simply put, the actual cost of not decarbonising will soon outweigh the capital investment needed to decarbonise. For example, changes to the Minimum Energy Efficiency Standards (MEES) in April mean non-domestic properties with an Energy Performance Certificate (EPC) rating worse than E can no longer, legislative exemptions aside, be let by landlords – and it is safe to assume further changes in this manner will be seen in forthcoming years.

This ties into the increasing risk of ‘stranded assets’. This refers to buildings that can no longer be used for compliance purposes – such as not meeting the aforementioned MEES requirements – or are no longer classed as insurable assets. Companies with large real-estate portfolios are naturally at even higher risk of this, and as such need to be prepared and ahead of the decarbonisation curve. Many have signed a climate change commitment as a result.

In turn, this is feeding the current retrofit and re-use resurgence, and seeing many portfolio holders rationalising and diversifying their estates as part of this process, with the most obvious examples taking place within workplaces.

Net zero assets – today and into the future

With any project, our role is to guide clients through their requirements in a completely bespoke manner with two key journey stages – embodied and operational carbon.

It is unlikely a building will achieve net zero in isolation. In our process, we support clients with the wider considerations, including use of efficient systems and clean fuels and how to maximise on or offsite renewable energy systems and storage. A level of carbon offsetting can also form part of the process, but this poses the question of where the limit lies to still classify as net zero.

With net zero commitment dates beginning to draw closer, many organisations and local authorities are examining how to achieve their goals. 19% of the UK’s carbon footprint is attributable to operational emissions from powering, heating and cooling our buildings – the largest part of the 25% figure mentioned earlier. This is why whether looking at a new building, repurposing spaces or helping clients with overall decarbonisation across their portfolios, energy strategies must be part of the equation to ensure a net zero asset into the future.

We are coordinating with clients to develop heat decarbonisation strategies and declassification, which requires careful consideration on the increased demand for electricity. Moving away from fossil fuels cannot be solely reliant on the electricity network. It likely would not be ready for this high increase in demand, so we must diversify our energy sources and storage to truly future proof the built environment.

The most important point of all remains the very first step – setting sustainability targets with the client and design team at the very outset of work and taking this thread through every action along the way. For us, sustainability is a way of being and acting and will be embedded in all actions regardless of what service we are appointed to deliver for any scheme.

Showcasing a sustainable approach

Our experts will be attending FOOTPRINT+ from the 6-8th June, bringing our expertise to a new annual three-day event focusing on coordination across the property market and how emerging technologies can support delivery on net zero targets.

If you have made a climate emergency declaration or set a goal for your net zero journey and need support with your next steps, please get in touch with our sustainability team.