The target of reaching net zero by 2050 has been set by the government for all industries. In the infographic above, however, we focus on the process for the housing sector. The question is, how do we get there?
A quick reminder on net zero while we’re here – this is a 100% reduction of greenhouse gas emissions by 2050 compared to 1990. Any excess emissions must be offset by activities removing an equivalent amount of greenhouse gases from the atmosphere.
What are the Targets?
Social housing providers in England and Wales must bring all properties up to Energy Performance Certificate (EPC) Band C by 2035. In the case of homes in which fuel poverty is being experienced, this should have happened by 2030.
In Scotland, there’s a non-statutory target where all social stock must be in EPC Band B by 2032. This less onerous approach contrasts with the overall ambition set by the government for net zero by 2045. Something, surely has to give here. In Northern Ireland, there’s a legally binding target for net zero by 2050, with a 48% reduction in net emissions by 2030.
But how will this transition be achieved? Firstly, through the installation of heat pumps. Even those using carbon-intensive fuel emit 20% less carbon dioxide than gas boilers. The supply chain can also be decarbonised – everything housing providers buy has a carbon footprint. And, finally, housing sites are prime biodiversity sites, with the chance to draw down carbon dioxide through more plants and trees. By law, all developers must increase on-site biodiversity by 10%.
All this will be the equivalent of removing 1.8 million cars from the roads, according to figures from the National Housing Federation.
How will the Process be Funded?
Outlay on this scale needs money, and fortunately the government has set aside £3.8 billion. This Social Housing Decarbonisation Fund, has arrived in waves – and named as such. The first, worth £179 million, landed in August 2021 and was for local authorities only. Any registered provide was eligible for £778 million in Wave 2.1. Next, Wave 2.2 added £80 million. Wave 3, worth £1.2 billion will be available for housing providers from April 2025.
The Home Upgrade Grant is for people who are on a local income, living in homes that have no mains gas supply and that have an EPC rating of D or lower. This is aimed at private landlords, with only 10% of an application allowed to go towards social housing.
Energy companies are also required to fund and deliver energy efficiency measures under the Energy Company Obligation, also known as the ECO. Right now we’re in iteration ECO4, running until 2026. This focuses on the least energy-efficient homes and those people that are in fuel poverty.
In Scotland, the Social Housing Net Zero Heat Fund has made £200m available to providers for the installation of heat pumps and district heating networks, as well as other energy efficiency measures.
Major Decarbonisation Challenges
Building fabric is a major issue for landlords, with homes often containing hard-to-insulate walls, flat roofs where loft insulation is difficult to install and nowhere for heat pumps. Then there is the often overlooked factor of planning restrictions that put constraints on the capacity of the local electrical grid.
The housing sector has some ambitious targets to hit in the next few years, centred around low-carbon heating, upgraded insulation and a more energy efficient supply chain and business. Right now, the sector is not on track to hit targets. Some watering-down of measures under the previous government occurred, with exemptions for homes that are not suitable for heat pumps introduced. However the ban on the sale of new gas boilers from 2035 remains in place, as does the government’s commitment to 600,000 heat pump installations per year by 2028.
The best way is to implement this series of measures is through accessible, detailed, accurate data – upgrading and gathering more information on housing stock, while putting in place a system that allows for decarbonising actions to be recorded and tracked. Then all resources can be directed in a way to deliver your net zero success.