The British Property Federation (BPF) has called on the government to provide “immediate clarity” on EPC targets for commercial buildings.
The federation wants the government to publish “without delay” a response to its 2021 consultation on new minimum energy efficiency standards (MEES) for commercial property owners, arguing the delay in issuing a response had already made the proposed interim milestone of EPC C by 2027 “unrealistic”.
The BPF added that any additional delay in issuing guidance “risks undermining” work to deliver the longer-term target of EPC B by 2030 and called on the government to publish a full response to the 2021 consultation.
It said the response would need to: confirm the timelines for new minimum energy efficiency standards; provide clarity on the rules around exemptions and enforcement; provide information on the split of responsibilities between owners and occupiers; and confirm payback arrangements and on the obligations associated with listed buildings.
Rob Wall, assistant director at the BPF, said: “Commercial real estate accounts for more than 10% of all greenhouse gas emissions from buildings. As such, we have a critical role to play when it comes to tackling climate change.
“We support new minimum energy efficiency standards for the sector, but the government needs to send a clear signal to the market now about the long-term direction of travel. It is more than two years since the consultation closed and commercial landlords are still in the dark over exactly what the new standards will be and how new regulations will be implemented and enforced.
“We hear repeatedly from commercial property owners that the lack of regulatory certainty is one of the biggest barriers to decarbonising buildings. The uncertainty over future MEES regulations is part of this and is holding back investment into energy efficiency measures and undermining efforts to make our buildings greener and cleaner. The government needs to publish a response to the 2021consultation as soon as possible.”
Anastasia Klein, head of ESG and partner at Maples Teesdale, added: “Landlords are in limbo – the changes that will be required to satisfy the anticipated deadlines go beyond the low hanging fruit of changing light bulbs etc and into more significant and costly works. There will need to be considerations around how the capital and subsequent operational costs of these changes will be met and recovered.
“Where a property is occupied, there are also questions around landlords’ rights of access to do the necessary works. Landlords, regardless of the size of their portfolio, will need to get funds together and works completed, both of which require time and a level of certainty that what they are planning to do will be satisfactory. Hence the BPF’s call to have this certainty as soon as possible before the likely deadlines kick in.”
