This week outgoing prime minister Theresa May announced that the UK would eradicate its net contribution to climate change by 2050, becoming the first G7 country to legislate for net zero emissions.
“Standing by is not an option,” said May. “Reaching net zero by 2050 is an ambitious target but it is crucial that we achieve it to ensure we protect our planet for future generations.”
As one of the biggest contributors of carbon emissions, the legislation will have a major affect on the real estate market.
Buildings currently contribute some 19% of global greenhouse gas emissions but this could double – or even treble – by 2050 if action is not taken now, according to Intergovernmental Panel on Climate Change research.
Julie Hirigoyen, chief executive of the UK Green Building Council, said: “Setting this important and necessary target now sends a strong signal to business that Britain is ready to lead the world in tackling the climate crisis.
“The UKGBC knows the built environment contains some of the biggest opportunities to slash emissions.
“We must accelerate action in all areas, including improving the efficiency of our ageing building stock and overcoming the challenge of decarbonising heat. To do this, we need to see both policy and industry leadership to ensure the built environment is at the vanguard of emissions reductions. There is no time to lose, now is the time to act.”
Last month, UKGBC members including Avison Young, Barratt, British Land, Bruntwood, CBRE, Grosvenor, JLL, The Crown Estate, Lendlease and SEGRO were among more than 120 businesses that sent an open letter to May, urging the adoption of the net zero target.
Five steps to net zero
- Establish a net-zero scope across the whole life cycle of a building, from construction to use, refurbishment and demolition.
- Reduce construction impact. Developers need to focus on changing the materials they use as well how their buildings are designed.
- Reduce operational energy. Landlords need to consider how best to retrofit efficiency measures into buildings and how to work with occupiers to make them work.
- Increase renewable energy supply, on and off-site
- Offset any remaining carbon. While reducing energy consumption is the best way to advance net zero, offsetting carbon emissions through tree planting and other measures should not be ignored.
It is evident that businesses across the built environment are already accelerating their sustainability programmes but with a fresh and ambitious target for net zero now being legislated for, the pressure to deliver has increased significantly.
According to the Better Buildings Partnership, a typical UK office consumes 219 kWh of energy annually for each sq m of net lettable floor area, which is some 25% more than the average home. The larger the property, the larger the energy consumption and emissions.
A typical office will measure around 10,000 sq m and will consume a whopping 136 times more energy than an average home.
Demand Logic chairman Sonny Masero said: “Actions that can deliver quick emissions reductions at scale and low cost should be prioritised.
“We need to act now. We need to reduce carbon emissions across every sector, in particular electricity generation, food and land use, industry, transportation and buildings.”
Masero said that while efforts were being made to reduce emissions in new buildings, the biggest challenge was in the UK’s existing building stock.
Miles Keeping, co-founder and director of ESG consultancy Hillbreak, added: “The UK’s stated commitment to net zero is really great news and it is interesting how the institutional investment community’s lead on pushing for decarbonisation is now being taken up by policy makers.
“But we now need granular policy and industry commitment to make it happen.
“Working with a wide range of fund managers and property companies that are all trying to reduce their carbon impact, we know that shifting gear to become net zero will require a change in approach for more real estate actors and how they approach improving energy efficiency will, of course, affect how quickly we achieve net zero.”
Making change
Tackling climate change is just one of the elements that the team at EG will be looking at in entries to our new Social Impact award.
If you are doing your bit to help the UK deliver on its ambitious and necessary target of net zero by 2050, it is an award you should definitely be putting yourself forward for.
Entries are open until 21 June. To find out more and to make your submission, e-mail carly.mcgowan@egi.co.uk
To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette
