In October 2022, the Department for Business, Energy and Industrial Strategy (BEIS) launched a call for evidence to review the delivery of the UK's net zero climate commitments. The Net Zero review, launched by Chris Skidmore MP, aimed to consider the government's approach to net zero and how it can:

• deliver maximum economic growth and investment, driving opportunities for private investment, jobs, innovation, exports, and growth right across the UK;
• support UK energy security and affordability for consumers and business and the need to rapidly increase and strengthen UK energy production and supply;
• minimise costs borne by businesses and consumers, particularly in the short-term.

The BBP held a meeting in October to gather members views on the consultation, and based on this session developed and submitted a joint BBP response relating to the built environment representing the views of our members. 

Chris Skidmore has today published his recommendations based on the findings of the consultation. 

EXECUTIVE SUMMARY – KEY POINTS FROM OUR SUBMISSION 

The response to this call for evidence has been put together in the brief time available drawing from the experience of the BBP and its members, who have participated in a workshop to gather evidence in response to the call for evidence. The BBP has been working with its members since 2008 to support its members in improving the sustainability performance of their commercial real estate portfolios. This response therefore focuses on commercial real estate. The BBP works collaboratively with a wide range of organisations who cover other parts of the built environment sector who will also be submitting their own responses.  

In summary, BBP members consider that addressing climate change is critical to the growth and prosperity of the commercial real estate sector. It is therefore vital to retain the UK’s net zero target and strengthen the delivery mechanisms to ensure that the private sector can play its part in reducing emissions and securing the economic growth opportunities that net zero presents: 

1. The rationale for the UK’s net zero target was based on the overwhelming scientific evidence that demonstrates the need to achieve substantial emissions reductions across the economy to avoid and manage the consequences of climate change.  Our members consider that this rationale remains sound and that it is vital to retain this target to continue to provide much needed certainty that the market can then plan, prepare, and deliver against.  

2. Fundamentally, our members consider the aims of prosperity and growth, and delivering net zero, to be mutually reinforcing. Net zero carbon is consistent with economic growth and competitiveness and indeed presents a significant opportunity to contribute to both - at the firm level and the national level. 

3. Commercial property owners are already orienting their businesses, supply chains and investment processes towards net zero in response to pressure from investors, occupiers, and a recognition of the value proposition of doing so. 

4. Government needs to provide clarity and consistency, long-term policy, and targeted interventions to support market leaders, encourage innovation, develop the UK skills base, and focus on performance outcomes. We urge the government to maintain its focus on the UK’s existing decarbonisation commitments and to continue adding to the milestones and other tools that can help us achieve them. We specifically ask Government to: 

   a. Provide a clear, consistent, and stable policy environment – retaining the Net Zero target. 
   b. Publish responses to the consultation on MEES and the introduction of a performance based mandatory disclosure scheme for commercial buildings.  
   c. Align with industry best practice and timelines for implementation – bringing forward the Future Homes Standard and Future Building Standard 
   d. Introduce a fit for purpose regulatory framework to enable the use of sustainable building materials 
   e. To regulate embodied carbon by requiring whole life carbon assessments 
   f. To develop a performance-based rating system to sit alongside current EPC (Energy Performance Certificate) ratings 
   g. Government-backed best practices in Public Procurement to set a new standard for sustainable development 

5. This will enable property owners to capitalise on the growth opportunities by providing them with the confidence to invest in: 
   
   a. improving their buildings in line with net zero 
   b. innovation and technologies that will contribute to decarbonisation of buildings 
   c. developing the skills needed to deliver the transition