|
|
|
|
|
|
|
|
| Date:
13 May 2011 |
| Improving DEC and the CRC |
| Categories for this story: Energy Efficiency, Feature |
The CRC has been widely criticised by for its complicated methodology and lack of clarity, and the green agenda driven by compliance has completely stalled.
In recognition of this, the UK Green Building Council put together a number of task groups to address these issues, with a cross-sector body of members from the public and private sectors.
The result of this work culminated in March 2011, with the publication of Carbon Reductions in Existing Non-Domestic Buildings: A UK-GBC Task Group on Display Energy Certificates and the Carbon Reduction Commitment Energy Efficiency Scheme, which put forth the suggestions of the UKGBC and a representative opinion from its membership. The overarching objective for this task group was to “examine the existing policy mechanisms around Display Energy Certificates and the Carbon Reduction Commitment Energy Efficiency Scheme and make recommendations for how they could be improved.”
The final report from this Task Group examines both schemes and presents the UKGBC’s subsequent suggestions in detail. But what do these changes mean for practitioners in the sustainability industry, as well as owners and occupiers, and the property industry as a whole?
Task Group recommendations
To make sense of the changes that are taking place we need to look at what the aims of the CRC and the DECs are; who is going to be affected; how they are going to be implemented; and perhaps most importantly for those affected, how much will it cost?
By making the CRC essentially a tax and by rolling out DECs to the private sector, landlords and tenants will be forced to work together more closely to deal with the subsequent issues.
The CRC will help to align interests as well as drive value and demand for efficient buildings. This should be looked at as an opportunity rather than a simply a requirement. A savvy owner can look at this space as the ideal opportunity for greening up their portfolio to attract tenants and increase the profitability of their portfolio through quicker lease up times and lower utility bills.
There has long been debate about the split incentive for landlords and occupiers when looking at energy saving measures in a multi-tenanted building. However, through incorporating occupier and whole building DECs, investment in this space will have definable returns as the changes to the CRC create a watershed movement towards tighter energy management in buildings and more transparent sharing of utility costs for all stakeholders in the real estate value chain.
Once the CRC has been ratified and enforced, this legislation could create a global example of how energy costs and the inherent cost-saving opportunities in the built environment can be dealt with.
The legislation must be made clear and the Government must enforce it, otherwise this will be a squandered opportunity for both the Government and the UK real estate industry.
The Government position on climate change and energy, and indeed many other essential areas of the UK economy, has been enacted regardless of the impact on industry. Coupled with a confusing structure, little guidance, and no actual enforcement from the Government, it seems quite reasonable that the property industry has become disillusioned, and is showing diminishing confidence in the CRC.
The UKGBC has worked hard to give the Government clear guidance on how the CRC could be made to work.
We need to continue to support the movement towards a more efficient built environment in the UK, by looking at cost-saving environmental interventions and encouraging the Government to heed advice from the property industry to further simplify the scheme.
DECs and CRC simplification
Why are these changes being introduced?
To enable the UK to hit binding EU emissions agreements; as a revenue generator for the UK Government; to proliferate energy efficiency and renewable technologies to the built environment; to encourage responsible behaviour from and co-operation between landlord and tenant; to drive the creation of one of the greenest economies in the world.
How are these changes going to be implemented?
By using existing DEC infrastructure and database to create transparency around energy usage in the built environment and a simple way to benchmark industry sectors to create relevant league tables
How much is it going to cost?
It will cost £14.5m/year to roll out DECs to the private sector. On a per property basis it is likely to cost around £350 for a DEC in year one including an advisory report, and close to £135 on an on-going yearly basis.
There may be other costs, such as for the Landlord Energy Statement. These costs will be expected to go down over time, but can represent a significant sum of money depending on the size of the portfolio.
What is a Display Energy Certificate and how is it different to an Energy Performance Certificate?
DECs display the actual annual operational energy use of an occupier and were introduced as a mandatory requirement for public buildings over 1,000 square metres in England and Wales in October 2008 to comply with the EU Energy Performance of Buildings Directive (EPBD).
Energy Performance Certificates (EPCs) are projections of what the operational efficiency of a space should be. A simple metaphor would be how a car can drive under perfect tested conditions is the building equivalent.
www.communities.gov
Nick Katz
Senior sustainability advisor
Colliers International
|
|
|
|
|
|
|
|
|
|
|
|
|
|