Construction green breakfast with Chris Cousins re sustainable construction 9 February 2012

Protecting People, Property and the PlanetThe wider benefits of sustainable construction – and whystandards are neededChris CousinsBRE Local Government Liaison Manager9 February 2012Part of the BRE Trust

Overview– Economic, environmental and social importance of sustainable construction– Use of standards: why and what– BREEAM and the Code for Sustainable Homes – Review – Examples– Existing stock and the Green Deal– National and international developments in sustainable construction

Protecting People, Property and the PlanetImportance of sustainable construction

Low carbon goods and services in UK– Over 51,000 companies– Exports £11.3 billion – up 3.9% in 2010/11– 4,500 new jobs – up 4.3% in 2010/11– Green Deal alone predicted to trigger £14 billion of investment to 2022, and support at least 65,000 insulation and construction jobs by 2015Source: 2011 Annual Energy Statement, DECC 23 November 2011

Sustainable Construction– UK low carbon goods and services market is 6th largest in world– Worth over £112 billion– Employs over 900,000 people– Output of UK designers is second largest invisible export after financial servicesSources: BIS press release, 4 August 2011; UKTI

Construction industry and buildings – Construction and demolition waste alone represented 35% of total UK waste in 2008 – the energy used in constructing, occupying and operating buildings represents approximately 50% of greenhouse gas emissions in the UK – Passenger transport vehicles account for a further 15% of CO2 emissions Sources: DEFRA, Environment Agency, Energy Saving Trust

Protecting People, Property and the PlanetUse of standards: why and what

Why standards?– Objective measure of performance - and improvement– Benchmarking– Credibility– Reputation– Competitive advantage

What standards?– Objective– Independently assessed– Quality assured– Holistic

Protecting People, Property and the PlanetBREEAM and the Code for Sustainable HomesReview

Aim– Design sustainability into the building – Lower environmental impact – More efficient building– Improve internal environment for occupants– Recognise quality design, procurement and management of the built environment

Number of buildings Regulatory minimum Minimal Level 1 Pass Level 2 Good Level 3 Very Good BREEAM/CSH Level 4 ExcellentEnvironmental Standards Level 5 Outstanding Aspirational Level 6

Issue Categories Health & Wellbeing Management Transport Energy Materials Water Waste Land Use & Ecology Pollution

BREEAM Weightings Category Weighting Management 12% Health & 15% Waste Land Use & Ecology Wellbeing Pollution Materials Energy 19% Management Transport 8% Water Water 6% Transport Materials 12.5% Health & Wellbeing Energy Waste 7.5% Land Use & 10% Ecology Pollution 10%

ScoringMinimum Standards Energy Management Health & Well-being Water Waste Land Use & Ecology Environmental WeightingTradable Credits Category Scores Energy Water Pass ≥ 30 Materials Good ≥ 45 Transport Final Score Very Good ≥ 55 Waste Excellent ≥ 70 Pollution Health & Well-being Outstanding ≥ 85 Management Land Use & EcologyInnovation Credits Exemplary Performance Requirements Approved Innovation Credits

Wat 1 – Indoor water use Water consumption Credits Mandatory Levels (litres / person / day) 120 l/p/day 1 Level 1 and 2 110 l/p/day 2 105 l/p/day 3 Level 3 and 4 90 l/p/day 4 80 l/p/day 5 Level 5 and 6

BREEAM & Code for Sustainable Homes– Two stage certification process – Design stage – Post construction– Minimum standards

Opportunities and Costs

Costs are fallingIn the last three years the “...what these figures average extra costs of show us is that as the building to level 3 of the construction industry Code for Sustainable continues to build more Homes has fallen by sustainable homes, almost three quarters there is further potential for the costs associated with building greener homes to continue falling”Cost of building to the Code for Sustainable Homes – updated cost Andrew Stunell, Communities review, CLG, August 2011 Minister, August 2011

Industry support for sustainable construction“The industry requires greatercommitment from government inthe shape of clearer, long-term andconsistent sustainability targets forall construction projects. These, inturn, need to take a whole-life, wholesystemapproach to sustainability.”Material Gains in Sustainability: the business case for the construction products sector, PwC and Construction Products Association, September 2011

Protecting People, Property and the PlanetBREEAM and the Code for Sustainable HomesExamples

BRE Innovation Park

Case Study - North Northamptonshire– “Residential units to be delivered 2008-2012 will meet the Code for Sustainable Homes (CSH) Level 3 as a minimum; those delivered 2013-2015 will meet the CSH Code Level 4 as a minimum; and those delivered from 2016 onwards will meet the CSH Code Level 6 as a minimum.” North Northamptonshire Joint Planning Unit, Adopted Core Strategy Policy 14

Planning Inspectorate Model Planning ConditionsCODE FOR SUSTAINABLE HOMES– The dwelling(s) shall achieve a Code Level [state level]in accordance with the requirements of the Code forSustainable Homes: Technical Guide (or such nationalmeasure of sustainability for house design that replacesthat scheme).– No dwelling shall be occupied until a Final CodeCertificate has been issued for it certifying that CodeLevel X has been achieved.

Case Study – Stockton on Tees– All new non-residential developments will be completed to a Building Research Establishment Environmental Assessment Method (BREEAM) of „very good‟ up to 2013 and thereafter a minimum rating of „excellent‟. Stockton on Tees Borough Council Core Strategy Policy 3 Adopted March 2010

Newport High School – BREEAM Excellent

Protecting People, Property and the PlanetExisting stock and the Green Deal

The Built Environment New Existing

BREEAM In Use– Evaluation, assessment and certification of – Existing Buildings – Property Portfolios – Management of property and building based activities

Why do we need to do something?– Government policy objectives • 74% of UK properties were built before 1975 • Homes produce 23% of UK GHG emissions– Climate Change Act 2008 set carbon emission reduction targets • 34% by 2020 • 80% by 2050– Average annual household energy bill • currently £1,124 • could rise by 33% (real) by 2030

Green Deal origins ….. Grant Shapps at BRE in 2009

What he said…Imagine if you could walk into your favourite store, buy some clothes or do yourweekly shop...and then at the checkout, as you hand over your Clubcard; thecashier offers you the prospect of permanently lower utility bills.Theres nothing to pay, now or even later.Your home will be retrofitted and all youll notice is that it costs you less to heatand power it.Now, unless you literally enjoy burning money, youre gonna love the GreenDeal…all youll see is lower bills... with zero upfront cost.Grant Shapps: We will green up to 25 million homes:Thursday 26th November 2009 at BRE

What is the Green Deal? – Customer receives package of energy efficiency measures (up to £10,000) – Cost is paid back via energy bills over e.g. 25 years – Cost of repayments should be less than or equal to likely energy bill savings – Customer not liable for capital, only repayments whilst they occupy the property – If occupants move, charge will pass to the new occupier – Will include owner-occupiers, private and social rented and commercial sector.

Green Deal: why have standards?– Boost customer confidence and encourage take- up– Ensure finance providers have the confidence in assessment and installations to put Green Deal funding in place.– Avoid problems experienced in other countries– Avoid mis-selling

More information…http://www.decc.gov.uk/The Green Deal: A summary of the Government’s Proposals The Green Deal: Energy savings for homes and business

Sustainable construction and the National PlanningPolicy Framework: BRE view– Tools such as the Code for Sustainable Homes and BREEAM – Promote development that is sustainable – Provide a national framework: developers do not have to cope with hundreds of different approaches around the country – Allow local discretion – Drive change within the supply chain to promote innovation and reduce costs – Support UK’s leading international role in sustainable construction

Protecting People, Property and the PlanetNational and International Developments

BREEAM and Code for Sustainable Homes– Required by – Government for own property – HCA for funded housing – Commercial developers and property companies e.g. Cushman and Wakefield – Companies such as M&S, Audi, John Lewis, Co-op, Waitrose – Overseas governments and property interests

BREEAM– Respected and replicated throughout the world – Over 250,000 buildings assessed – Network of over 2,500 independent licensed assessors– Developed with Government/industry– Independent governance– Regularly updated to ensure best practice

Property industry view– “BREEAM is a British success story. The industry knows that if you are interested in sustainability you make sure you build a BREEAM Excellent building” – Liz Peace, Chief Executive, British Property Foundation, January 2011

International Context– BREEAM being adopted in increasing no. of other countries e.g. Spain, Netherlands, Norway– BRE expertise contributing to innovation parks in China (with potential £100m. contracts for UK firms) and Brazil

Future direction?...1– “Moving to a green economy presents huge opportunities for British businesses not only to reduce their environmental impact, but also to transform products and services, develop cleaner technologies, and capture new international markets.”Caroline Spelman, Secretary of State for Environment, Food and Rural Affairs, 5 August 2011

Future direction?...2– “Now we know that a decade of environmental laws and regulations are piling costs on the energy bills of households and companies.”– “We’re not going to save the planet by putting our country out of business.– “So let’s at the very least resolve that we’re going to cut our carbon emissions no slower but also no faster than our fellow countries in Europe.”George Osborne, Conservative Party Conference, 3 October 2011

Future direction?...3– “Climate change is where the real world meets the real economy – building effective climate resilience using a combination of the best evidence available alongside risk-based approaches is a pre-requisite for long-term economic, societal, and environmental sustainability.”Caroline Spelman, January 2012 (foreword to UK Climate Change Risk Assessment)

Construction green breakfast with Chris Cousins re sustainable construction 9 February 2012

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