Real Estate 'In The Dark' Over 2B SF Carbon-Cutting Problem

A key part of the government’s plans to make the UK a net-zero economy risks falling by the wayside because of delays in clarifying regulations around making commercial buildings more energy efficient, according to the British Property Federation.

About 1.9B SF of commercial real estate in the UK’s seven largest cities have an energy performance certificate rating below a B, BPF analysis of government data showed. 

Current proposals for EPC ratings in the commercial sector, consulted on in 2021, call for a target of EPC C by 2027 and EPC B by 2030.

But there has been no response to the 2021 consultation to date, meaning property owners don’t have certainty on what level of energy efficiency they will be legally required to hit. This delay makes the proposed interim milestone of EPC C by 2027 unrealistic, and the EPC B by 2030 target is increasingly challenging, the BPF said. 

“The sector has a critical role to play in tackling climate change. Yet the Government continues to keep owners and investors in the dark about future minimum energy efficiency standards,” BPF Assistant Director Rob Wall said in a statement. 

“Our research shows the scale of the challenge we face in retrofitting our commercial buildings, across all asset types and across the UK. The lack of a response to the 2021 consultation is hugely frustrating and is making a tough situation worse. The targets proposed in 2021 no longer look achievable, and we would call for the proposed interim EPC C target to be abandoned entirely.”

The built environment is responsible for about 40% of all carbon emissions, according to data from the International Energy Agency. The BPF said that commercial buildings are responsible for about about a third of all building emissions. 

The BPF is seeking certainty that the EPC B target will be the end target. It is also asking for clarity on rules around exemptions and enforcement and the split of responsibilities between owners and occupiers.