Green Watch, November 2021

November 2021

Green Watch Working together for a better future

Welcome to Green Watch.

Each month, Environment and Sustainability Manager, Corrina Jones shares a round-up of stories and guidance on energy efficiency and sustainable practices.

In this month's issue: EPCs Retrofitting Regulation and strategy New Build homes Climate change New technology Renewable energy

EPCs Updated Building Regulations Part L1A (Conservation of Fuel and Power) are due imminently in 2022 along with a partial update to EPC assessment procedures which may mean new EPCs are more in line with current carbon factors, but EPC metrics can become easily outdated.

If EPCs are to remain the governments metric of choice they need to ensure the methodology and metrics remain current and keep pace with new technologies and developments if stakeholders are to have confidence in the results.

Jason Page, a sustainability specialist at property and construction consultancy Ingleton Wood, says. “EPCs are a powerful tool in fighting climate change but they are now not only becoming worse at indicating building carbon emissions as the grid’s electricity moves towards renewable generation – they are becoming increasingly and actively misleading” Analysis shows actual carbon emissions for electrically heated buildings are around 60 per cent lower than predicted by EPCs, mainly because EPC methodology uses carbon factors set by the 2013 Building Regulations rather than up-to-date figures. EPCs are misleading and out of date - claim... (estateagenttoday.co.uk) Further reading: EPCs are misleading and out of date - claim... (estateagenttoday.co.uk) Analysis for Money Mail by EPC assessor accreditation firm, Elmhurst Energy highlights the issues with EPCs and research they completed shows that replacing a condensing gas boiler with a heat pump in a detached home would decrease the property's EPC score by three points from 63 to 60. This is because electricity is more expensive than gas per kilowatt at present.

The Government is trying to tackle this issue and has published a progress report on the consultation ‘Improving Energy Performance Certificates’: There will be a new updated version of the SAP software and methodology in 2022 which is used to calculate EPC ratings. The partially updated version of SAP 10 will include changes to fuel prices, carbon emissions and primary energy factors to name a few updates. The new Building Regulations Part L will also be considered in the calculations. The update is paving the way for the introduction of the Future Homes Standard in 2025 as part of the governments drive for all new homes to be net zero ready post 2025 and the launch of SAP 11 which is due to come into force alongside the Future Homes Standard.

SAP 11 will better align EPCs with Government objectives to decarbonise heat and electricity and meet net zero goals within the built environment.

Further reading: Improving Energy Performance Certificates: action plan - progress report - GOV.UK (www.gov.uk) The Scottish Government has recently consulted on the reforming of the Energy Performance Certificate (EPC). The first phase on this consultation focused on adding the new metric of ‘Energy Use’ and in summary the changes will mean a clearer, more precise EPC will be created showing all metrics (energy, cost and carbon).

The changes made will help to educate the building owner/or occupiers to better understand the different measures required to improve the energy efficiency of their property in order to reduce the demand for heat, the changes required to have a zero-emissions heating system and the impact this has on the properties running costs.

This additional metric will help to highlight any areas where Government support is required due to the increased running costs of many zero emissions systems in turn helping to move away from fuel poverty.

Further reading: Scottish Government to reform EPCs (elmhurstenergy.co.uk) It is estimated that 45% of Scotland’s homes have a good level of energy performance, equivalent to EPC rating of band C. However, to meet net zero targets there is a need to upgrade Scotland’s homes to make them more energy efficient. It is estimated that over a million homes will need to convert to zero emission heating by 2030. Scotland is aiming for all homes to meet EPC band C by 2033. Proposed that new regulations will be introduced between 2023-2025 which will establish a minimum energy efficiency standard of EPC band C for owner-occupied homes, which will need to be met by 2033.

Current UK EPC statistics The ONS has released data which provides an insight into the current energy efficiency of existing housing stock and central heating main fuel type in Wales and England: The median energy efficiency score for dwellings in England was 66 and 64 in Wales for all records up to March 2021, which is equivalent to band D Flats and maisonettes were the most energy efficient property type with a median energy efficiency score equivalent to band C Social rented dwellings had the highest median energy efficiency score across all property types which equated to a band C Dwellings in England and Wales constructed after 2012 had a median EPC rating of band B Dwellings constructed prior to 1900 had a median EPC rating of band E Homes built from 1983 onwards have an average rating of band C or higher, and those built before fall short of government targets In both countries, almost eight in 10 (79%) dwellings used mains gas as a main fuel source for central heating The median estimated energy cost per year for an existing dwelling was £797 in England and £852 in Wales, both being more than twice as much as that estimated for a new dwelling (£390 in England and £412 in Wales).

Further reading: Energy efficiency of housing in England and Wales - Office for National Statistics (ons.gov.uk)

Retrofitting Deputy Minister for Climate Change Lee Waters has announced an additional £150m to retrofit social homes in Wales with new technologies and insulation to help curb Wales’ emissions.

‘This investment will not only reduce emissions but will cut the energy bills of the people who live in them.

“And we are already trialling heat pumps, intelligent energy systems and solar panels with battery storage.

“We are taking a whole homes approach, which assesses what will work best in individual homes. The programme will see homes become so well insulated that heat would no longer wastefully escape’.

Further reading: Welsh Government Announces Extra £150m for Carbon Reduction in Social Homes - Business News Wales

The cost of upgrading a property from an energy performance certificate rating of D to C is up to £6,155, meaning the national retrofitting bill could be as much as £38bn, according to analysis by Habito. I It calculates that for one-bedroom flats or properties measuring under 55m² the cost is up to £3,653. For a small mid-terrace house (under 100m²), it is up to £6,400. For a large family detached home (100-200m²) the potential cost rises to £12,540, more than double the national average.

Further reading: Cost of upgrading EPC from D to C around £6,000: Habito | Mortgage Strategy Regulation and financial incentives may be the only way forward to encourage homeowners to retrofit their homes. Minor energy cost savings and small changes to home values may not be enough of an incentive for many homeowners to undertake energy efficiency improvements. The estimated cost of upgrading a home with an EPC rating of D is around £6,500, according to research but the £179 annual cost saving this yields means it would take 36 years to pay back the initial investment.

Further reading: Cost of decarbonising all UK homes could run to £330bn | News | Housing Today

Climate change End of coal in sight as UK secures ambitious commitments at COP26 summit.

The UK has secured a 190-strong coalition of countries and organisations at COP26, with countries such as Poland, Vietnam, Egypt, Chile and Morocco announcing commitments to phase out coal power.

Government regulation and strategy The UK aims for the first net-zero financial centre. Most big UK firms and financial institutions will be forced to show how they intend to hit climate change targets, under new Treasury rules. By 2023, they will have to set out detailed public plans for how they will move to a low-carbon future - in line with the UK's 2050 netzero target.

Under the new Treasury rules, financial institutions and listed companies in the UK must come up with net-zero transition plans, which will be published from 2023. The strategies will need to include targets to reduce greenhouse gas emissions, and steps which firms intend to take to get there.

By changing the financial system, their hope is that the trajectory of every economic sector, from energy to transport, food to clothing, how we live, work and what we consume will decarbonise of their own accord would certainly turbo boost the retrofit sector - Labour Party leader, Keir Starmer has revealed plans to improve energy efficiency of 19 million UK properties by pledging £6bn a year to upgrade homes.

Further reading: COP26: UK firms forced to plan for low-carbon future - BBC News

Further reading: End of coal in sight as UK secures ambitious commitments at COP26 summit - Gov.uk

Climate change is a bigger concern for UK consumers than Covid-19 and or the economy. SEC Newgate ESG Monitor has published a research study of public attitudes to environmental, social and governance (ESG) principles, revealing that 71% of British people are concerned about climate change. The percentage of people that put the pandemic and the economy as their first concern is 70% and 67%respectively.

Further reading: UK consumers are more worried about climate change than Covid, as COP26 nears IA new report by Hometrack predicts that that more than 1.5 million homes could be at risk of flooding due to the effects of climate change by 2050. Riverside and coastal housing are understandably more at risk from flooding, but climate change is increasing the risk of flooding across the UK. Torrential downpours sink holes and flash flooding are all on the increase. It is important that buyers and mortgage lenders understand the risks of climate change on property moving forward.

Further reading: Climate change will put 1.5 million homes at risk from flooding | Today's Conveyancer (todaysconveyancer.co.uk) However, the majority of homeowners believe that they will never be flooded. Nearly two in three households at risk of flooding don’t believe it will happen to them, new analysis revealed by the Environment Agency. The Environment Agency urges action as Met Office warns of above average likelihood of a wet winter. Follow the links below to find out if your home is at risk of flooding: Further reading: No time for complacency about flooding - Gov.uk No time for complacency about flooding - Gov.uk Natural Resources Wales / Check your flood risk by postcode Flood maps | Scottish Environment Protection Agency (SEPA) Check the risk of flooding in your area | nidirect

Climate action Principality Building Society is introducing climate awareness training for every colleague as part of its commitment to be a more environmentally friendly organisation.

The training allows individuals to understand what climate change is, what causes it and lifestyle changes that could be made to help support the environment, covering the topics of food, home, purchases and travel.

The training, delivered over two workshops and an assessment, also discusses climate justice and organisational, community and society wide change to stop the effects of climate change.

Further reading: Principality Introduces Climate Awareness Training for All Colleagues - Business News Wales Wood burning stoves are getting a green uplift! From 1st January 2022 all wood burning and multi-fuel stoves and fireplaces that are manufactured will have to adhere to strict new guidelines known as Ecodesign.

Further reading: Wood-burning stoves: What do the new rules mean for your fireplace? - HomeOwners Alliance (hoa.org.uk)

New technology It’s not all about EPC ratings! Electric car charging points are likely to become an additional selling point for movers. Growing awareness about the environment and energy efficiency is starting to impact the property market.

There’s been a huge rise in references to electric car charging within property listings submitted to Rightmove. The number of homes listed for sale across Britain with an electric car charging point installed on the premises, or in a nearby street, has increased 541 per cent over 12 months.

Further reading: Charge! Six-fold rise in property details listing ele... (estateagenttoday.co.uk) And new homes and buildings in England will be required by law to install electric vehicle charging points from next year. The government said the move will see up to 145,000 charging points installed across the country each year.

New-build supermarkets, workplaces and buildings undergoing major renovations will also come under the new law. The move comes as the UK aims to switch to electric cars, with new petrol and diesel cars sales banned from 2030.

Further reading: New homes in England to have electric car chargers by law - BBC News

Renewable energy New large-scale floating offshore wind ports and factories are to be built in the UK thanks to government investment.

Floating wind allows wind farms to be built further out to sea in deeper waters, boosting energy capacity even further where winds are strongest and ensuring the UK remains at the forefront of the next generation of clean energy.

Further reading: Scotland and Wales could be home to new floating offshore wind ports thanks to £160m UK government funding - GOV.UK (www.gov.uk) And Port Talbot is going Green! Port Talbot has always had a reputation of being a grey place with billowing plumes of smoke emanating from the steel works. But there is a sea.. of change happening at Associated British Ports in the drive for renewable energy sources Further reading: Welsh Ports Will Have a Revolutionary Role in Decarbonisation - Business News Wales

And a coalition of more than 200 architects, consultants and built environment bodies has also demanded “bold regulations and purposeful policies” from world leaders at the COP26 summit. The coalition have united around a detailed report published by the RIBA and Architects Declare which sets out essential actions to support the decarbonisation of existing and future buildings. Some of the demands include:

New Build homes In the run up to ‘built environment day’ at the COP26 climate summit, a number of major listed housebuilders have launched ‘net zero’ plans for their businesses. The difficulties in measurement will make the substance of housebuilders’ pledges hard - but not impossible to assess.

Standardisation of measurement metrics across the industry will help.

The RICS is working on initiatives to help the construction industry report and calculate the carbon emissions of developments accurately. The RICS has jointly published for consultation the world’s first international standard for reporting carbon emissions across all areas of construction. The International Cost Management (ICMS) reporting standards will help the industry lessen its environmental impact. The RICS and has also established a carbon emissions database which will allow professionals to log construction projects – whether that’s new homes, offices, or infrastructure.

The database will give an indication of how much carbon has been emitted during the manufacturing and construction process (the ‘upfront embodied carbon’), along with future maintenance, energy use and demolition emissions, and enable designers to identify and avoid carbon-intensive products in favour of more sustainable materials that will help the UK get to netzero by 2050.

Further reading: Construction groups unite to hit net zero target with proposed new carbon reporting rules (rics.org)

Reform building codes to regulate the energy performance of both new and existing buildings Ensure building codes set minimum standards for embodied carbon, reuse of materials and natural materials and implement carbon budgets for planning authorities Hold and freely provide information on derelict and vacant building stock, to encourage adaptive reuse of existing structures Update building codes and planning systems to include holistic health and wellbeing metrics, and nature-based solutions Develop financial mechanisms to drive public investment into emerging and low carbon technologies and support green finance initiatives that focus on reducing energy use of existing buildings.

Further reading: Industry demands ‘bold’ action from politicians on climate | News | Housing Today Housebuilder Countryside has put moving production over to modern methods of construction at the heart of a new “net zero” strategy for the business Countryside said it is aiming to reduce the direct and indirect emissions of the company by 42% by 2030, while reducing indirect emissions from its supply chain and home-users by 52% in the same timeframe.

The firm said the pledges had been ratified by the Science-Based Targets Institute as being consistent with the need to keep global warming to within 1.5 degrees of historic temperatures.

Further reading: Countryside puts MMC at heart of net zero strategy | News | Housing Today As part of its climate change strategy Redrow has announced an ambitious commitment to achieving science-based net-zero emissions by no later than 2050 across its own operations, the homes it builds, and the operations within its supply chain. The business has signed up to the Science Based Targets initiative (SBTi)’s highest Business Ambition of pursuing efforts to limit warming to 1.5⁰C, and will establish interim science-based targets across scopes 1, 2 and 3 in line with SBTi criteria and recommendations in 2022.

Further reading: Redrow Sets Ambitious Target to Achieve Net Zero Across Whole Business and Supply Chain by 2050 - Business News Wales

The timber-built eco-house which is both energy and carbon efficient from the day building starts was showcased at the COP26 summit.

And if you are interested in building a Passivhaus home - First-time self-builder – and self-confessed DIY novice – Paula Harte has saved thousands by project managing the build of this Passivhaus kit home in Scotland

The project is championed by modern homes specialists SNRG and energy efficiency company, Electric Corby. Traditional homes, even eco-friendly, energy efficient ones, involve the release of carbon dioxide into the atmosphere via the production of concrete, cement and steel when they are being built. Whereas if you build a timber home you are starting from a clean sheet. The homes will be built in a factory out of "sustainable locally-grown timber".

Further reading: Corby: Zero carbon timber ecohome showcased at COP26 - BBC News Scotland is forging ahead with ‘Planning’ changes to meet net zero - Planning applications will have to show how they help meet Scotland’s ambitious targets to cut emissions to net zero by 2045 to get approval under new proposals. Applications that create more town centre homes or help reuse vacant and derelict land will be more likely to succeed. These proposals promote the creation of 20-minute neighbourhoods, where services are easily accessible on foot or by bicycle, across cities and towns. Tighter restrictions will be imposed on out-of-town retail development. The Framework will support developments which contribute to nature restoration, drive population growth in rural Scotland, create more homes to meet local needs and encourage green investment.

Further reading: Planning to reach net zero gov.scot (www.gov.scot) Scotland’s Home-Grown House of the Future Visitors at COP26 could see the design of a new home that features not only conventional Scottish timber - floor, walls, roof and insulation - but a twist of hemlock wood in its interior. The design captures sunlight and body warmth, while drawing the warmth of stale air as it's expelled to warm the fresh incoming air. Hardly any additional heating will be required.

Further reading: COP26: Scotland's home-grown house of the future - BBC News

Further discussions We welcome the opportunity to discuss with you the challenges you are facing and explore the ways in which we could support you to overcome them.

If you would like to arrange a meeting to discuss any of the indicatives featured in this update, please email Corrina Jones at corrina.jones@esurv.co.uk.