Out-Law News 3 min. read

Updated low carbon building strategy promises "breathing room" for Scottish developers, experts say


The Scottish Government has acknowledged that it will not be possible to deliver 'zero carbon' homes to previously-agreed targets without allowing for some off-site measures, such as carbon offsetting.

More also needs to be done to educate members of the public about the importance of, and need for, low carbon and energy efficient buildings, according to the conclusions of a Scottish Government-commissioned working group. As previously announced by Planning Minister Derek Mackay, the group has also recommended postponing the implementation of the next set of building standards by one year, to 2015.

"The housebuilding industry will welcome the delay in the introduction of the new standards while the industry continues its efforts to recover from the effects of the recession," said property law expert Ewan Alexander of Pinsent Masons, the law firm behind Out-Law.com. "While everyone is quick to support and acknowledge the importance of sustainability, that support often evaporates when doing things differently starts to adversely affect individuals financially and house purchasers are no different from anyone else in this respect."

"That makes it very difficult for housebuilders who, on the one hand, recognise the part they have to play in delivering the low carbon/sustainability agenda; while on the other hand have difficulty in persuading customers to pay for the benefits of it, particularly when these are often seen by the public as a bit intangible and unquantifiable as against higher monthly mortgage payments. Education as to the real and long-term benefits – financial and otherwise - of higher standards and the negative effects of not adopting these remains very important, and high standards and stretching targets are something everyone in the industry should aspire to," he said.

In 2007, the then Climate Change Minister, Stewart Stevenson, appointed a panel to advise on the development of a low carbon building standards strategy to increase energy efficiency and reduce carbon emissions. The resulting Sullivan Report set out the panel's recommendations to drive forward standards and innovation, including an overall 'routemap' towards 'net zero carbon' new buildings which has been integral to two recent reviews of energy efficiency standards.

As this report pre-dated the economic downturn, in 2013 the panel was asked to reconvene to revisit some of its original recommendations. Its updated report reflects the need for more flexibility and practicality in the use of building standards in working towards 'nearly zero' and low carbon buildings, and will be "welcome reading for developers", according to planning and environmental law expert Gary McGovern of Pinsent Masons.

"The 'headline' recommendation - to defer the next set of standards from 2014 to 2015 - has already been announced by Scottish Ministers and is clearly helpful respite," he said. "However, a one-year delay does not create much breathing room, given the typical development life-cycle and the sluggish and still uncertain rate of the recovery."

"Equally important, therefore, are the acknowledgments that firstly, a 'net zero carbon' standard will not be achieved purely on the basis of on- or near-site measures and so off-site and offsetting, perhaps through so-called 'allowable solutions', need to be progressed; and secondly, 'low carbon' and 'energy efficient' product labelling does not yet resonate with purchasers and therefore does not translate into additional value, which means developers bear the cost of higher building standards. There is a need to look at financial inducements for owners/occupiers of low-carbon and low-energy buildings, and to recast valuation methods," he said.

According to the updated report, it is "not currently a realistic approach" to set targets for the delivery of zero carbon mainstream housing through an entirely on-site strategy, due to cost and practicality issues. This view has been confirmed since the publication of the original Sullivan Report by UK industry body Zero Carbon Hub (ZCH), and the panel believes that the same premise is likely to apply equally to new non-domestic developments.

The panel backs the concept of 'allowable solutions', as developed by ZCH; which could "offer flexibility in meeting a regulated emissions standard by looking beyond the development site itself". It calls on the Scottish Government to further investigate the potential for allowable solutions to address the gap between building or site-related zero carbon measures and a 'net zero carbon standard', for both domestic and commercial buildings.

"Consumer buy-in to all of this is clearly going to be incremental, and there probably does come a time when the regulatory authorities have to draw a line in the sand," said Alexander. "However, the suggestion of increased flexibility and practicality and the delay in implementation recommended in the Sullivan Report seem sensible and pragmatic in all of the current circumstances."

We are processing your request. \n Thank you for your patience. An error occurred. This could be due to inactivity on the page - please try again.