"Building the future, today" confirms that an urgent focus on the non-domestic building sector is needed to keep the UK on track to deliver carbon reductions of 80% by 2050. Currently, 18% of the country’s emissions can be attributed to the non-domestic building sector and these emissions have remained static for the last 20 years.
If the right strategy is followed, the carbon footprint of non-domestic buildings can be reduced by more than one third by 2020 and a net benefit of £4billion can be delivered to the UK economy through energy savings, the report finds.
Central to this strategy is the roll out Display Energy Certificates (DECs) and Energy Performance Certificates (EPCs) to all non-domestic buildings by 2015 to provide transparency of energy performance across the sector.
The Carbon Trust also proposes that all cost-effective energy efficiency measures, such as lighting and heating controls, must be implemented across all 1.8 million non-domestic buildings in the UK within the next ten years.
Beyond 2020, more costly measures – such as triple glazing and ground source heat pumps – must become standard in both new and existing buildings, alongside continued decarbonisation of the UK’s electricity grid. Designers and developers of new buildings will need to take a more holistic and integrated approach, reducing energy demand by making better use of natural light and ventilation.
The scenario presented by the Carbon Trust requires urgent action and a clear sense of purpose. However, it also identifies barriers that must be overcome such as energy costs being seen as marginal by building developers and operators, non-compliance with building regulations and the landlord-tenant divide.
Stuart Farmer, Head of Buildings Strategy at the Carbon Trust and lead author of the report said: "Commercial and public buildings offer the UK a big bang for its carbon reduction buck. But it won’t just happen on its own; energy efficiency needs to be the first and second priority. For policy makers and business, rolling out Display Energy Certificates to all non-domestic buildings must be the foundation stone to deliver not only better buildings, but better use of buildings too.
"Policymakers and business need to work together to capture this opportunity. Policymakers need to set a clear direction, show leadership and provide the necessary policy and regulatory support. In return, the building industry needs to respond by moving from niche exemplars of good practice to large scale, mass market implementation as standard."
‘Building the future, today’ sets out a strategy to reduce carbon emissions from non-domestic buildings by 35% by 2020. It also includes a range of policy options for policymakers to consider which the Carbon Trust believes will help catalyse the market into action by improving the quality of buildings and encouraging more energy efficient use of them by building owners and occupiers. These policy options include:
Improved buildings:
- Tighten the Building Regulations to ensure all cost-effective carbon reduction measures are implemented in new builds and major refurbishments by 2020, including Zero Carbon new buildings by 2019.
- Implement a minimum building standard to ensure almost all non-domestic buildings achieve an F-rated EPC or better by 2020.
- Show public sector leadership by ensuring that large public sector buildings implement all cost-effective measures recommended in DEC reports within the seven year lifetime of the report.
- Launch a hands on advice and support service for owners and users of F and G-rated buildings to help accelerate improvements.
- Tighten the Carbon Reduction Commitment (CRC) cap to incentivise businesses to take up cost-effective energy efficiency measures.
- Develop a national programme led by the energy suppliers to install simple, low cost energy efficiency measures in SME buildings.
Energy efficient use of buildings:
- Tighten the Carbon Reduction Commitment (CRC) cap to incentivise businesses to take up cost-effective energy efficiency measures.
- Develop a national programme led by the energy suppliers to install simple, low cost energy efficiency measures in SME buildings.
The findings of the Carbon Trust report have been welcomed by key players in the buildings industry and environmental groups: Paul King, Chairman, UK Green Building Council, said: "The government has put some excellent carbon reduction targets and policies in place for new homes and buildings. But so far we have collectively failed to grasp the scale of the opportunity - in terms of innovation, investment, efficiency, jobs and benefits to occupiers - of radically improving our existing non-domestic buildings. To achieve the carbon reductions we need by 2020 and beyond, we need to start today, and embrace a revolution in energy efficient refurbishment."
Neil Bentley, Director of Business Environment, CBI, said:
"Businesses are keen to take big steps to reduce energy and carbon emissions from their buildings. However many businesses, like homeowners, face major barriers in finding the capital to invest in energy efficient measures such as energy management systems, efficient lighting and heating systems. The Government needs to work closely with business to provide the right incentives to help overcome the upfront costs."
John Sauven, Director of Greenpeace said: "Buildings are responsible for a massive 44% of our CO2 emissions. It is clear that climate change cannot be tackled in the UK unless energy use in our homes and commercial buildings is massively reduced.
"The transformation of our buildings has many benefits. It will reduce emissions, improve energy security, and save energy. It will provide jobs and many local benefits. And it is key to meeting our climate change targets. This report from the Carbon Trust, calling for non-domestic buildings to improve their energy rating from an average E today to A by 2050, will be key if we are to decarbonise our economy."
Case Study
One business that has already improved the energy efficiency of many of its buildings is outsourcing company Capita Group, which posted revenues of £2,441 million in 2008. Capita committed in 2006 to making a 12% reduction in energy use across its 20 largest buildings by the end of 2008. They actually achieved an 18% reduction and have gone on to achieve a reduction of over 30% at the end of September 2009.
In one case, Capita Group as a tenant found itself facing ‘dilapidation charges’ in excess of £1million for ordinary wear and tear at the end of a lease on a building in Basingstoke. As the building was in a good location and there was no commercial reason to move, the company decided to remain in situ and spend the dilapidation charges on refurbishment of the building. Capita took the opportunity to upgrade the lighting, heating, air conditioning and ventilation systems and to increase the thermal insulation and air tightness. Ultimately, an expenditure of £1.35 million has resulted in a reduction in energy consumption of 40%.
"A thermography survey on the building demonstrated that it not only had poor insulation levels, but the external envelope of the building was not weather tight; it leaked heat like a sieve," says John Kost, Group SH&E Director.
To resolve these issues, Capita installed high tech insulation and improved the glazing. Energy use was also reduced through measures such as motion sensors on the lighting controls, and the building was used to try out newer technologies such as solar panels to generate hot water to replace gas heaters.