A general overview of the UK's approach to climate change in the run-up to COP26, the measures being put in place to ensure the UK reaches its net zero targets and how construction can play its part in reaching those targets.

The international background

A body of international agreements lie behind the key climate-related EU and UK laws. For example, The Montreal Protocol in 1987 dealt with how to phase out a large group of "ozone-depleting substances". The United Nations Framework Convention on Climate Change (UNFCCC), on which negotiations began in 1990, came into force in 1994 and formed the baseline in subsequent agreements and legislation on reducing greenhouse gas (GHG) emissions. The Kyoto Protocol, adopted by the UNFCCC in 1992, "operationalises" the UNFCCC by committing those parties signed up to it to "limit and reduce" specific GHG emissions in accordance with agreed individual targets. 

The UNFCCC established the Conference of the Parties (COP) whose aim is to stabilise GHG concentrations in the atmosphere within a timeframe sufficient to allow ecosystems to adapt naturally to climate change; safeguard food production; and enable sustainable economic development. The 21st meeting of the COP (COP21) was held in Paris in 2015. 195 countries signed up to the resulting Paris Agreement, which introduced: 

• quantified goals such as the pursuit of efforts to limit the global temperature to 1.5°C; 
• an agreement for parties to determine Nationally Determined Contributions (NDCs) (to be updated every five years) and to pursue domestic mitigation measures; 
• better systems of "voluntary cooperation"/carbon markets; 
• help for developing countries; and 
• a more robust programme for Reducing Emissions from Deforestation and Degradation of forests in developing countries (REDD+).

Twenty-five meetings of the COP have now taken place, each seeking to advance the international community towards closer agreement on measures needed to manage and fight the effects of climate change. The UK will host and act as president of the 26th meeting (COP26) in Glasgow from 31 October 2021 to 12 November 2021. As president, the UK has set ambitious goals for international agreement including: getting countries to commit to net zero by 2050; progressing more swiftly on adapting to climate change and enabling and encouraging countries affected by climate change to build defences, warning systems and resilient infrastructure; and increasing funding to support these aims.

The UK's net zero target

In 2008, the UK government committed to cutting its carbon emissions by 80% (of its 1990 emission levels) by 2050 and formalised this commitment in The Climate Change Act 2008. In 2019, the UK reset this target and became the first developed nation to legislate on a net zero target. This means that, by 2050, emissions from industry, homes, transport, buildings and all other sectors of the economy across the UK need to be avoided or have their impact offset.

(Note that the devolved administrations have slightly different approaches.)

How well is the UK doing in achieving its target?

The Climate Change Act 2008 introduced carbon budgets, each of which sets out a five-year statutory cap on total GHG emissions that the UK has to meet to fulfil its overall emission reduction commitments. To date, six carbon budgets have been set out covering the period from 2008 to 2037. The targets outlined in these budgets are increasingly progressive. For example, the fifth carbon budget set in 2016 sets a limit on GHG emissions from all sources (bar international aviation and shipping)¹ equating to a reduction of 57% in annual UK emissions relative to 1990. A sixth carbon budget for 2033 to 2037 was passed into law in June 2021, setting a new climate target to cut UK emissions by 78% by 2035. The Committee on Climate Change (CCC) has reported that the first and second budgets were met, and the UK is currently on track to meet the third but not the fourth and fifth budgets.

Post-Brexit – bolstering UK commitment 

In the Trade Cooperation Agreement (TCA) (December 2020), the EU and UK each re-affirmed their ambition of achieving economy-wide carbon neutrality by 2050 and their commitment to the Paris Agreement. Additionally, both parties committed to not weakening or reducing, in a manner affecting trade or investment between the parties, their respective levels of climate protection from the levels in place at the end of the transition period (31 December 2020). This in effect crystallised the level of climate protection in place at the end of the transition period; neither party will be able to regress from these levels in a way that affects trade or investment without triggering the specific level-playing field's dispute resolution process. 

That said, the TCA's dispute settlement mechanism that covers most of the EU/UK trade deal does not apply to its environment or sustainable development sections. Instead, disputes on these areas of dispute must be resolved by a mechanism involving consultations between parties and a panel of experts. Decisions from these processes would be non-binding (unless an activity affected trade or investment, which could give rise to further action being taken). 

What part can the construction sector play in meeting the net zero by 2050 target?

A key element of the UK government's policy ambition revolves around reducing the construction sector's significant carbon footprint (particularly from building methods, the materials used and decommissioning) and how to make existing buildings [more] energy efficient. According to the UK Green Building Council, the built environment contributes approximately 40% of the UK's total carbon footprint, and almost half of this is from the construction process as opposed to their "functional operation".²

Whilst newly constructed buildings are more energy-efficient, a key priority for the UK will be refurbishing and/or repurposing already existing buildings to ensure their energy efficiency (for example, in how they are insulated and heated). Heating accounts for approximately 37% of the UK's carbon footprint when including industrial processes.³ Approximately 13 to 14% of this is attributable to heating in our homes and it is no surprise therefore that the government has been focusing on a heating and building strategy. 

The following are key areas in which the construction industry can help to achieve the UK's net zero target.

Decarbonising the UK's heat supply

To achieve its net zero target, the UK will have to take radical steps to decarbonise its energy demand. Such a radical transformation requires a shift from carbon-based to renewable forms of energy. Of the various ideas currently in development on how to decarbonise the UK's heat supply, the government has focused on developing a "thriving low-carbon hydrogen sector" as part of its plan to "build back better" with a cleaner, greener energy system. The government's UK Hydrogen Strategy, published August 2021, sets a goal of "5GW of low-carbon hydrogen production capacity by 2030 for use across the economy". This ambitious plan goes beyond decarbonisation and focuses on supporting industry to develop sustainable, home-grown supply chains. Other government consultations seek views on the preferred Hydrogen Business Model, the "flagship" £240 million Net Zero Hydrogen Fund, and a UK Low Carbon Hydrogen Standard – all of which support the work being done to achieve the Sixth Carbon Budget and the UK's net zero targets.

Ensuring more carbon-efficient methods of construction

Carbon emissions must also be reduced in construction supplies. 50% of carbon emissions associated with new buildings come from the "embodied carbon" that goes into the manufacture of steel, concrete and other materials (which is not currently regulated). Many industry leaders are partnering with material manufacturers and universities in a bid to make some of the world's most carbon-intensive construction materials greener. The costs of innovative products such as low-carbon concrete and steel produced with lower emissions are still relatively high. However, it is hoped that future government policies in this area will help make the market for low-carbon alternatives more competitive.

Ensuring that our buildings are adapted to sustain increasingly extreme climatic conditions

The UK must create new buildings and retrofit existing buildings to maximise their carbon efficiency and adapt them to more extreme climatic conditions. Progress is underway. For example, designers are incorporating low-carbon design features into buildings such as green roofs and walls that can sequester carbon dioxide, improve insulation of the building and absorb excess rainwater. Retrofitting current buildings to improve energy efficiency is also vital, including, for example, the improvement of insulation and the installation of airtight doors and windows, LED lighting and efficient glazing. All of these can have a big impact on reducing the carbon footprint of our already existing buildings, as well as ensuring their sustainability in the future. 

New technology and legislation to achieve targets

The UK's ability to align its built environment to its 2050 net zero target will depend, to some extent, on its ability to deploy the appropriate technology across UK industry and establish legislative regimes to incentivise decarbonisation within the new and existing built environment. However, the legislative process can be slow – not helped by the disruption caused by the COVID-19 pandemic. For example, parliamentary progress has been delayed on the Environment Bill 2019-2021 that currently requires biodiversity gain as a condition of planning permission. 

Next steps towards net zero for construction

Many in the construction industry are already demonstrating their commitment to innovation and development in a drive to achieve net zero targets. More regulation and government policies lie ahead – an early change in approach is needed and particularly: 

• Early commitment – do not wait for new regulations and policies: Consider making your own commitments to net zero. What can your business do? How can you adapt? The built environment represents an obvious opportunity to enable the UK to reach its 2050 net zero target. A transition now, ahead of competitors and in advance of any mandatory measures, could reduce costs and enable the scaling-up of successful net zero measures across your business.
• Early experimentation and developing relationships throughout current and new supply chains: Reaching net zero across the UK's built environment will be challenging. Measuring a building's total impact – from construction, through to refurbishment and decommissioning – will require a holistic carbon lifecycle analysis. Construction and refurbishment will need to be weighed against future operational emissions savings. Such analysis and planning will require multiple stakeholder buy-in from owners, developers, designers, contractors, suppliers, operators and users. Setting strong and cutting-edge emissions targets will need multiple stakeholder buy-in. Establishing and developing these relationships now could create a competitive advantage in the future.
• Refurb not new build: Given that 80% of the UK's 2050 built environment is already built, refurbishment will be the primary mode of lowering emissions from the built environment. The UK government is expected to incentivise building electrification and adopt stronger requirements for energy efficiency in medium- to large-scale refurbishment projects. Expect a changing legislative landscape to funnel the industry toward net zero buildings. Consider seriously what voluntary measures are available and can they be adopted now, including the purchase of carbon offsets to best manage the inevitable transition to net zero. 
• A focused approach to your Environmental, Social and Governmental (ESG) strategy: Increasingly, stakeholders in your business (from employees to shareholders and investors) will demand you take proactive action to support delivery of the UK's net zero targets (that falls within the "E" in ESG). A failure to shift your working methods and business culture to a more sustainable and low-carbon-based approach could ultimately damage your business's reputation and your ability to win new work and attract the best staff. (For more on creating an ESG strategy, see The "ESG" agenda (UK Construction Focus).)

The construction sector has a significant role to play in the UK's efforts at achieving its net zero targets. While this role brings new obligations and risks, significant commercial opportunities lie waiting for those willing to engage and innovate.

Return to the Achieving net zero: UK Construction Focus home page

With thanks also to Grace Pinault for her help with this article.

1. The Carbon Budget Order 2016
2. Climate change – UKGBC – UK Green Building Council
3. Clean Growth – Transforming Heating – Overview of Current Evidence