The British Property Federation has called for the government to provide a net zero regulatory roadmap that goes beyond 2030 so that property owners know their investments and energy-saving works are future-proofed for longer than the next nine years.
The call came after the government published its new Industrial Decarbonisation Strategy yesterday, which included a second consultation on the Minimum Energy Efficiency Standards for commercial property. This sets out a target of an EPC B rating for all commercial properties by 2030 – and a new consultation on performance-based energy ratings in large commercial and industrial buildings.
The BPF welcomed the introduction of new rules on measuring the energy performance of commercial and industrial buildings as a vital step forward in supporting property owners and occupiers to achieve net zero.
The new performance-based energy ratings will apply in an initial “phase one” to all commercial offices above 10,000 sq ft in England and Wales, which means it covers around 10,000 office buildings.
But the BPF has warned the long-term nature of commercial property investment means that it requires a longer-term net-zero plan from government.
“The trajectory for regulation beyond 2030 is still relatively unknown – yet property owners will be making investment decisions today for existing buildings and new developments that will long outlive 2030,” the BPF said in a statement today.
BPF assistant director for development and sustainability Alex Green said: “The government’s commitment to a new stretching Minimum Energy Efficiency Standard up to 2030 will also act as an important signal to industry, but this is still too short-term in its approach for commercial property investors whose investment decisions today are based on forecasts that span the next several decades to come.”
The BPF is also lobbying for the new rating system to be applied to other commercial building uses, including retail, in the near future, but with consideration of the unique challenges presented by other building types.
Richard Quartermaine, Hammerson environmental manager and chair of the BPF sustainability committee, said: “Many companies in the sector have already committed to ambitious targets to reduce carbon emissions, including Hammerson with its Net Positive pledge by 2030.
“To make meaningful and long-lasting change, we need the whole industry to make that commitment and take action. We welcome these initial steps, however, we need all types of property to be focused on. This will be a challenge. However, shifting the mind set and accountability on to operational energy consumption is essential if, as a sector, we want to move forward at pace to reach net zero.”
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