Green, resilient and ready for the future: how a sustainable built environment can support our economic goals in testing times
Notes from UKGBC private policy dinner in Parliament
In association with WSP, 14 November 2017
This private policy dinner was part of a series of parliamentary events that developed the themes of our report earlier this year, Building Places that Work for Everyone:
This dinner developed the discussion broadly around the direction of Britain’s green economy in the context of both English devolution and Brexit.
Target-setting and regulation
A strongconsensus emerged around the need for Government to set out a clear direction of travel to which industry will then respond. Industry needs bold targets on energy performance and low carbon solutions. Overarching carbon targets for the built environment, derived from Carbon Budgets, could set out milestones for both construction, infrastructure, residential and commercial buildings. These should ideally be outcome-focused and technology-neutral in order to give the necessary ‘predictable flexibility’. There is also a strong role for regulation, which is an effective tool that can work well with the market, promoting competition and much-needed innovation. MEES is an excellent example of regulation that is driving real change in the commercial sector.
Future-proofing our infrastructure
Our infrastructure lasts for a very long time, so it is important that what is built today is future-ready. By setting the highest design and performance standards for the infrastructure currently being planned or built, the Government will play a key role in driving innovation and raising the bar across the piece. Good infrastructure should create high quality environments for the communities it serves.
Incentives
One of the main reasons the Green Deal failed to deliver was because it lacked accompanying policy drivers to stimulate customer demand. A finance mechanism without additional incentives, e.g. variable rates of stamp duty and/or council tax, is insufficient to drive that demand. The German KfW Development Bank, which promotes energy efficient housing, was repeatedly cited as an excellent model to emulate. The recognition in the Clean Growth Strategy of the importance of green mortgages was also welcomed. Financing options must work for both first-time and ‘last-time’ buyers. But there is more work to be done to establish a coherent set of incentives to optimise energy and carbon savings in both the residential and commercial sectors. It is important to talk to householders about the health, comfort and wellbeing benefits of energy efficiency, rather than simply focusing on reducing bills.
Public procurement
The public sector has a crucial role to play in influencing the market by demanding high standards in both new and existing buildings. Central, devolved and local Governments have a great opportunity to be the kind of ‘intelligent client’ the construction sector likes, who knows what they want and gives clear direction about what is required.
Heat decarbonisation
Heat was identified as being the biggest challenge for decarbonisation at large scale and one that needs a clear direction from Government, working in conjunction with industry. Energy efficiency must work hand in hand with heat decarbonisation in order to make the transition to a low carbon economy more affordable for consumers.
Closing the performance and productivity gaps
A number of developers noted with concern that they are currently not held accountable for the performance of the product they deliver. Robust operational standards are needed to help address this performance gap. As regards the current productivity gap in the construction sector, a strong sector deal with the Government is needed. We need a modern construction sector that embraces smarter construction and digitisation – and we need a workforce that is appropriately skilled not just for the present, but for the future too.
Measuring the value of good design
There is a growing understanding that good quality design contributes to ‘social value’ by delivering a number of beneficial outcomes. But how do we measure that value? We need to take a more holistic view of what a good building is – we should be measuring it on whether it actually works in practice. Planning departments also have a big part to play in rewarding good design – but they often lack expertise and favour very traditional designs, especially in suburban settings where they fear a backlash from residents. Is there a role for local authority style guides? It is important that developers aren’t locked into inflexible technologies because of rigid planning policy.
Energy storage
We need to see significantly enhanced progress on energy storage. There are currently few incentives to store energy, as the most profitable electricity generation is peak demand. We need to incentivise the reduction of peak demand through storage. Energy storage in the home could potentially contribute significantly to energy smoothing.
Devolution
The devolution agenda presents strong opportunities for the sector to engage directly with devolved administrations – in particular the new Metro Mayors and combined authorities. There are some excellent examples of strategic planning at the devolved level, with a heavy emphasis on enabling economic development and improving people’s quality of life.
For further information please contact Jenny Holland,Public Affairs & Policy Specialist, UKGBC
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