All things green August 2021
Welcome to All things green. Each month, Environment and Sustainability Manager, Corrina Jones will share a round-up of stories and guidance on energy efficiency and sustainable practices.
In this issue: •
Regulation and strategies
•
Property market
•
Retrofitting
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The 7 green commandments
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New Build homes
•
Climate change
Regulation and strategies Social housing retrofitting is leading the way in relation to the decarbonisation of the UK housing stock. The Government is driving forward with its Social Housing Decarbonisation Fund - a triple win upgrade for people living in social housing in England. Local authorities and housing associations across England will have the chance to secure a share in a £160 million cash injection set to enhance the country’s energy efficiency of socially rented homes. In total, through this first wave of funding, up to 38,000 of the UK’s worst energy-performing
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social housing properties – with energy performance certificate (EPC) ratings of D or below – will have the chance to receive vital energy efficiency upgrades, including installation of insulation and more energy efficient doors, windows and heating systems.
Further reading: Social Housing Decarbonisation Fund - GOV.UK (www.gov.uk) Wales is also pushing the pace when it comes to decarbonising their social housing stock. Welsh housing associations are already stepping up to the mark and taking on the challenge at speed. And not only are they looking at sustainability, but they are driving innovation and quality into their agenda through the adoption of the Welsh Development Quality Requirements 2021 – Creating Beautiful Homes & Places Strategy. The Welsh Government is aiming for private developers to adopt the requirements by 2025 which will mean no more gas boilers to heat properties and well-designed homes which will boost wellbeing and unite communities. Further reading: https://lnkd.in/eFyaNFif And in Scotland, the Scottish Government has released the application form and guidance notes for the Social Housing Net Zero Heat Fund 2021. A total of £100 million is being made available over the next five years to support social landlords across Scotland to install zero emissions heating systems and energy efficiency measures across their existing stock. The Government also issued its UK Hydrogen Strategy in August which includes a section on how hydrogen could be used to heat homes.
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All things green August 2021
They are running a number of studies to ascertain its potential including a village trial by 2025 whereby the whole area gas infrastructure is converted to 100% hydrogen. The trials will provide evidence on the practical, logistical and technical issues involved in converting buildings and appliances. By 2025 they are developing plans for a whole hydrogen heated town. Further reading: https://www.gov.uk/government/publications/u k-hydrogen-strategy
Property market More mortgage lenders are going 'green' Millions of older homes in the UK perform very poorly in terms of energy efficiency and have little in the way of ‘green’ credentials. Many have old, energy-intensive boilers, no insulation, and draughty windows. Many homeowners will need help to make the improvements needed to improve their energy efficiency ratings if the UK is to meet its net zero targets and more mortgage companies are looking at ways they can encourage homeowners to raise the bar. So-called green mortgages have been launched by several lenders to help progress the retrofit revolution. Their popularity has yet to take off, and there is some contention around what constitutes a green mortgage, but more lenders are throwing their hats into the arena. This month, Leeds Building Society is launching its first green mortgage deals, rewarding borrowers with energy efficient homes. The lender was among the first to join the Green Finance Institute’s (GFI’s) Coalition for the
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Energy Efficiency of Buildings. The two new cashback mortgages are designed in line with the Institute’s green home finance principles. The deals will be available for the purchase of homes with an energy efficiency rating of A-C. Further reading: Leeds BS introduces green cashback mortgages - Mortgage Solutions Halifax has also launched its green mortgage cashback range to market through intermediaries and direct through the lender. The new range comes with £250 cashback for those buying homes with an Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) rating of A or B. Further reading: Halifax brings green mortgage cashback range to market | Mortgage Strategy Other lenders who have already dipped their toes into the ‘green space’ include Barclays, Ecology Building Society, Nationwide and NatWest and Paragon Bank. Further reading: New mortgage range for buy to lets with good EPC rati... (landlordtoday.co.uk)
Retrofitting Is the retrofitting process too complicated? Up to 19 million homes in Britain may need retrofitting with energy efficiency measures if the UK is to meet 2050 net zero targets. The average UK home currently has a 'D' EPC rating. The government wants all UK homes to achieve a 'C' rating by 2035 but has yet to
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develop a clear road map of how this is to be achieved. Government plans to decarbonise homes are too complicated and confusing, according to a coalition of consumer and industry groups.
Further reading: Climate change: Consumer 'confusion' threatens net zero homes plan - BBC News Executives from across the energy, construction, financial services and housing industries are pressing the government to urgently develop a strategy to decrease emissions from the UK's housing stock, or risk missing its 2050 net zero emissions target. They are calling for a National Retrofit Strategy. Further reading: MPs call for national retrofit strategy for colleges amid lack of installers - Construction Manager (constructionmanagermagazine.com)
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The seven green commandments Firms are calling for the following demands of Government: 1. Build green homes for the future now: Government must work with industry to establish a roadmap to bringing the Future Homes Standard implementation forward. Just a fraction of new builds are currently built to EPC A standard. Until this changes, homes are still not being built fit for the future. 2. Create new jobs in green retrofitting: At present there aren't enough skilled installers and tradespeople to retrofit all the nation's homes. The construction sector cannot upskill until there is established demand. The Government must work with industry to create an ambitious skills strategy, which will provide good quality jobs across the UK 3. Make it fairly financed: Government could encourage consumers via a long-term commitment, including supplementary grant funding as a stimulus, and, critically, should help those who simply cannot afford to pay. 4. Make property fit for the future: It is time for the EPC to become a 'living document', akin to a building passport, that reflects changes made to the home. 5. Support green homes with green power: Great strides have been made in the decarbonisation of UK energy, and the release of the Heat and Buildings Strategy is imminent. Clean energy and heat are a key to any national retrofit strategy
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6. Regulate green retrofitting: Consumers need faith in the quality of the work if they are to retrofit. The government should regulate to ensure that all installers undertaking 'green home' retrofits are Trustmark certified and compliant with PAS standards 7. A public information campaign that inspires: Inertia and misinformation is rife regarding green. It's time for an inspirational public information campaign that helps people understand what is possible for their home. Is there a disconnect between intention and implementation? UK Governments want to phase out oldfashioned fossil fuel heating systems, but heating engineering courses still teach people how to install gas and oil boilers. Further reading: Call for Renewable Energy Apprenticeships to Help Meet Green Targets - Business News Wales
New Build homes
Is the future of new sustainable homes modular? Beyond Housing is investing £19.5m into a new housing development of 117 familyready and eco-friendly modular homes in Stockton-on-Tees.
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Further reading: Beyond Housing invests £19.5m in eco-friendly modular family homes in Stockton | Bdaily And The United Welsh Group is developing a factory in the heart of Caerphilly to build timber frame, low carbon homes. The factory, which is due to open this autumn, will manufacture high quality, sustainable timber frame structures complete with factory fitted insulation and windows to build up to 250 low carbon homes per annum. New Timber Frame Home Factory Coming to Caerphilly Business News Wales Energy service and tech company Sero has launched a New Build Specification to support others in the industry to deliver truly net zero in operation homes – for all homes: social housing, privately owned and rented accommodation. Further reading: Sero Sets the Standard for Delivering Zero Carbon Homes - Business News Wales But are things moving fast enough? The built environment establishment is not moving fast enough to decarbonise building stock, according to the annual sustainability report produced by RICS and World Built Environment Forum. On a positive note, globally, around half of respondents believe that green/sustainable buildings achieve a rent and a price premium over comparable nongreen/sustainable buildings. For those buildings that aren’t green or sustainable, 30 per cent of respondents’ state that these buildings are given a ‘brown discount’ – discounted rents to compensate for not being sustainable.
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The demand for green leases is also growing as companies look to mitigate their ESG risks. Further reading: https://www.rics.org/uk/wbef/home/reportsand-research/sustainability-report-2021/
The Tony Blair Institute for Global Change has produced a new study which states we all need to make a contribution by making only small adjustments to lifestyle choices which help the UK meet its Net Zero goal. The key areas for behavioural change relate to: Homes:
Climate change The IPCC published its long-awaited report on climate change in August which was a sombre read. Under the worst-case, very high GHG emissions scenario presented by the IPCC, the earth’s temperature could rise by 3.3°C to 5.7°C. If this happens then there is a very high risk that human and ecological systems will be under threat of survival. We can make changes to limit the impact of climate change.
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Install low-carbon heating and energy efficiency measures Reduce waste through reduced consumption and increased recycling.
Transport: • • •
Increase walking, cycling, use of public transport Purchase/use zero-emission vehicles Reduce international and domestic flights taken.
But the question we all need to ask ourselves is what we are individually, as a community, and as a country to contribute to CO2 reduction to safeguard the planet for future generations?
Diet: • Reduce meat and dairy consumption.
Further reading: Summary for Policymakers — Special Report on Climate Change and Land (ipcc.ch)
Further reading: Planes, Homes and Automobiles: The Role of Behaviour Change in Delivering Net Zero | Institute for Global Change
Get in touch
If you have any comments or ideas, please email Corrina Jones at corrina.jones@esurv.co.uk
Risk and Governance / Marketing Communications All things green, August 2021
Corrina Jones, MRICS
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