Hitting sustainable targets

If the right measures are put in place by government now, owners of commercial, industrial and public sector buildings can have the confidence to invest in better buildings for the future argues Stuart Farmer

Over the last twenty years, carbon emissions from buildings have remained relatively constant. The UK’s 1.8 million schools, hospitals, warehouses and commercial office buildings still account for nearly a fifth of the UK’s annual carbon emissions, as they did in 1990. But with the country now committed to reducing its emissions by 80 percent, swift direction setting and implementation of appropriate policy measures from government are needed to help the non-domestic buildings sector gear up and invest in low carbon buildings for the future.

In a recently published report, Building the Future, Today, it was found that the average non-domestic building will need to improve its Display Energy Certificate rating from an ‘E’ today to a ‘C’ by 2020 and an ‘A’ by 2050 to achieve the level of carbon reduction required to meet the UK’s commitments. The scale of this challenge should not be underestimated but the transformation is possible. And if the right action is taken now, there will also be a positive impact for the UK economy.

The key priority over the next ten years is to make all existing buildings as energy efficient as possible. Our calculations show the carbon footprint of non-domestic buildings could be reduced by more than a third by 2020 through the implementation of simple, cost-effective measures such as improving lighting and heating controls, better energy management, use of energy efficient light bulbs and new boilers. Making the most these will be fundamental to reducing emissions. But, to achieve the levels needed, all cost effective options will need to be implemented in all buildings.

Making the case for this scale of implementation shouldn’t, in theory, be difficult with £4bn of net economic benefit in energy savings by 2020 waiting to be realised. However, past experience shows that action is unlikely to take place without some additional incentive or support, particularly for Small and Medium Sized Enterprises (SMEs). Such measures could include the tightening of the Carbon Reduction Commitment (CRC) to spur businesses into action and the development of a national programme led by energy suppliers to install simple, low cost energy efficiency measures in those buildings used by SMEs.

While implementation of cost-effective energy efficiency measures over the next decade is a key recommendation of our report, transparency of energy performance across the sector first needs to be improved. This could be achieved by the roll out of Display Energy Certificates (DECs) and Energy Performance Certificates (EPCs) to all non-domestic buildings by 2015 and would help create a more level playing field. Currently, only public sector buildings are required to have DECs, and EPCs are only required when a building is sold or rented.

Amending and evolving these existing mechanisms over the coming years will also be important to set up the industry for the future and ensure the emissions reductions required can be delivered. For example, implementing a minimum building standard to ensure all non-domestic buildings achieve an F-rated EPC or better by 2020 would create an incentive for action, while the launch of a hands-on advice and support service for owners and users of F and G rated buildings could help accelerate improvements. Public sector leadership would also demonstrate government commitment. A good starting point would be ensuring large public sector buildings implement all cost effective measures recommended within the seven year lifetime of their DEC reports.

Beyond the next ten years, the picture becomes more complicated. Assuming all cost-effective measures have been implemented, the use of on-site or near-site renewables will be necessary as will the implementation of measures that might deliver a lower return on investment. Triple glazing and ground source heat pumps are likely to become more mainstream in both new and existing buildings. Designers and developers of buildings will need to take a more holistic and integrated approach, reducing energy demand by making better use of daylight and natural ventilation. And, of course, continued decarbonisation of the UK’s electricity grid will be required.

The next ten years will be vital if truly low carbon buildings are to become a reality and the UK is to meet its carbon targets. Setting a clear direction for industry and putting a comprehensive package of policy measures in place is necessary, encouraging both energy efficient buildings and rewarding organisations that use buildings well.

Case study
One business that has already improved the energy efficiency of many of its buildings is outsourcing company Capita Group. Capita committed in 2006 to making a 12 percent reduction in energy use across its 20 largest buildings by the end of 2008. The target was exceeded by more than 50 percent and the company went on to achieve a reduction of over 30 percent end of September 2009.

In one case, Capita Group as a tenant found itself facing ‘dilapidation charges’ in excess of £1m 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 £1.35m has resulted in a reduction in energy consumption of 40 percent.

“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 domestic hot water to replace gas heaters.

Stuart Farmer is head of buildings strategy at the Carbon Trust. For further details visit: carbontrust.co.uk