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The British Property Federation (BPF), in partnership with JLL, today released a report identifying the key challenges facing the property sector as it decarbonises, and providing a set of policy recommendations.
Access to data is a key challenge identified in the survey, with property owners and occupants citing access to data as one of their top three challenges to decarbonisation. The lack of high-quality data makes it difficult to calculate accurate operational carbon and set realistic carbon reduction targets.
Policy and regulatory uncertainty and lack of financial incentives to support building renovations are hampering progress. The net-zero transition is costly, and without hard evidence of a return on investment, many property owners are unsure of investing in significant energy efficiency improvements.
The report reveals that 9 in 10 senior leaders surveyed by BPF and JLL do not believe current government policies will bring the real estate sector to net zero by 2050.
To ensure that the real estate sector can reach its net-zero target, the BPF has set a number of key policies. These include:
1. Require sharing of energy consumption data between owners and occupants of large commercial buildings and establish a task force to investigate the specific data challenges faced by residential owners
2. Urgently review the details of upcoming changes to MEES regulations for both the domestic and non-domestic private rental sector and details of the proposed new performance-based energy rating system;
3. Zero VAT on home repair and maintenance and reform capital deductions to encourage investment in decarbonization
4. Move towards mandating PV and green roofs in large residential, commercial and public buildings
5. Strengthening standards for green tariff labels
6. Enabling real estate investment trusts (REITs) to invest in off-site renewable energy
7. Align planning systems and provide resources to enable transition to net zero
8. Mandate the use and disclosure of life cycle assessments and set tangible carbon reduction targets
Melanie Leach, Chief Executive Officer of the British Real Estate Federation, commented: Clear long-term policies, regulations and incentives are needed to support industry efforts. We urge governments to adopt the policy recommendations of this report and work with us to ensure we deliver a net-zero building environment by 2050. ”
Guy Grainger, President of BPF and Global Head of Sustainability Services and ESG at JLL, commented: Promises must be turned into reliable actions. Without clear government incentives and regulation, we will continue to fall short of our goals. This report highlights the insights we gain when we work together, and this collaboration and government support is critical. ”
Last year, the British Real Estate Federation launched Net Zero Pledge, an industry-wide initiative to reduce carbon footprint across the property sector. The BPF pledge is designed to complement and support the broader sector and industry net zero initiatives. Members can sign up for the pledge at BPF’s website at www.bpf.org.uk/net-zero-pledge.
This research was supported by Derwent London, Dorrington, Greengage Environmental, JLL, Maples Teesdale and TFT.
