The government’s legally binding target to achieve net zero carbon emissions by 2050 and the 2015 Paris Agreement limiting global temperature rises to 1.5°C, requiring a 50% cut in emissions by 2030, are driving radical changes in the built environment. Investors perceive climate change as a financial risk, and companies want to occupy net zero buildings to meet their corporate social responsibility obligations. Developers and the construction industry have risen to this challenge to the point that net zero offices are becoming the norm in central London. 

Progress towards net zero for the commercial sector has been impressive, but other sectors have a long way to go because of the additional costs involved and a lack of knowledge and skills. For example, the sustainability performance of new-build housing is almost entirely driven by building regulations. The biggest challenge to resolve is how to improve the performance of existing buildings. Again, housing lags behind as retrofitting the nation’s 28 million existing homes could cost an estimated £250bn. This will have to be largely financed by owner occupiers.