Thoughts on the UK’s net zero rollback
Two weeks ago, the Prime Minister announced that the UK will roll back its net-zero housing commitments. Next week is retrofit action week. What timing.
Why it’s so disappointing:
1. We are scrapping policies that work. The Minimum Energy Efficiency Standard (MEES) was introduced in 2015, pushing landlords to upgrade the coldest, mouldiest homes. Rentals with the poorest energy ratings fell by 95%. And what’s more? Housing availability wasn’t sacrificed; rental stock actually grew by 1.37x over the same period
2. Poorer households will be worse off. Requiring landlords to upgrade to EPC C would save tenants money – £1.75 billion a year according to E3G
3. The UK will lose out. We estimate a potential £500 billion+ retrofit market for the UK. The Construction Leadership Council estimates retrofit could create 500k jobs in the UK. This is at risk without supportive policy. Germany, France, and the US are tightening their rules – and building energy efficiency champions as a result
So, where to from here?
1. More carrot, less stick. Government is signalling it wants to work through subsidy, not standards – adding £2.5k per household to the Boiler Upgrade Scheme, while scrapping higher MEES rules. We need to raise the bar on the proposition, rather than just relying on EPC minimums to do the work
2. Make the pitch. Damp and cold are awful. Retrofit makes people’s lives better, saves them money, and adds to their property value. It should be a slam dunk – but we haven’t sold it well. Now’s the time to sharpen our pencils and sell this properly…
3. Sustainable housing should be a government priority. But even if it isn’t, we can – and must – make retrofit work.
Challenge accepted…