Why cities hold the solutions to climate change
Author: Paula LucciDate: 01/06/2008
Publication: Solutions Magazine
Cities account for three-quarters of the world's greenhouse gas emissions. This is hardly surprising, since economic activity is concentrated in large conurbations - they are the places where most people live, work, and travel, and these activities all contribute directly to the UK's environmental footprint through the consumption of energy, water and waste. But could cities hold some of the solutions to climate change, as well as being part of the problem?
Within cities, buildings alone produce a significant amount of carbon emissions. Buildings generate almost half of all carbon emissions in the UK, with roughly an equal amount from residential and non-domestic buildings (Carbon Trust).
Policy initiatives to date have paid more attention to reducing the environmental footprint of new buildings than looking at existing ones. There has also been more attention paid to domestic buildings, and what individual householders can do to reduce energy consumption, than to how commercial establishments can be made greener. But is this the right approach?
Eco-towns, which recently caught the media headlines, are a good example of this policy focus. These have been heralded as low-carbon estates which will use the latest technologies to become templates of sustainable design, construction, and lifestyles. In principle, no one can disagree with the fact that building new low-carbon homes would tick many boxes - from reducing carbon emissions to building much needed new homes, including affordable housing.
Nevertheless, voices of concern have been raised, primarily due to the chosen location of many of these new towns. Many of the sites for the new eco-towns do not have good public transport links to job-rich city centres, which will put their environmental credentials at risk - as many eco-residents will be forced to drive to work. There are also concerns about their economic viability - as in some cases it's not clear where jobs for local residents will come from.
With tighter budgets and limited resources, we see a better economic and environmental case for focussing on greening buildings in our larger cities - where the necessary transport infrastructure and supply of jobs is already in place - alongside eco-towns. In addition, while reducing carbon emissions from new buildings is certainly a good start, let's remember that only 1% to 2% of buildings are replaced each year. Meeting carbon reduction targets will inevitably require reducing the environmental footprint of existing homes.
Greening existing buildings
Another area that has received relatively little attention is ‘greening' existing non-domestic buildings - a subject the All-Party Parliamentary Urban Development Group is examining at the moment, and will report on in July. The commercial sector - such as offices, warehouses and shops - includes large buildings with high levels of energy consumption, and involves big players within the corporate and property world. We've heard a lot about ‘low-carbon' homes, but not enough about ‘low-carbon' offices.
Within existing commercial buildings, it is well-known that energy consumption remains the main source of carbon emissions, and many have argued that energy efficiency offers one of the most cost-effective ways of addressing carbon reduction targets. For example, the International Energy Agency and the UN Intergovernmental Panel on Climate Change have identified the buildings sector as the segment of the market with the largest potential for energy efficiency gains. And a McKinsey report on reducing US Greenhouse Gas emissions reached a similar conclusion.
But if energy efficiency provides a cost-effective way of addressing carbon reduction and in many cases can also cut costs for the businesses which occupy those buildings, why has there been slow progress? In other words, what are the barriers preventing improvements in the energy performance of existing non-commercial buildings?
There are a number of barriers, often cited, when it comes to improving the environmental performance of the existing commercial buildings stock. These range from the availability of data, including standard measurements on energy performance, to the lack of coordination between different key actors - mainly landlords and tenants. There are also physical barriers related to the age and type of buildings. Due to the structure of some buildings the implementation of low carbon technologies may in some cases not be feasible.
Information overload
Many in the property industry point to ‘information overload' and confusion generated by the lack of a standard measurement of carbon emissions. In particular, benchmarking can be especially difficult given the different uses and types of buildings (the energy consumption of a large supermarket, for example, is fundamentally different in nature from that of an office or a warehouse). However, the format or level of detail on energy consumption may in some cases not be ideal - and there are additional difficulties related to multi-occupancy buildings - energy consumption data is available through billing information. The introduction of Energy Performance Certificates and Display Energy Performance Certificates will also help tackle these measurement issues, but there's a way to go before the real picture can be made clear.
There are also specific difficulties related to the number of actors involved in the property industry and the need for further coordination between them - from developers, designers and facility managers to building occupiers. In particular, the responsibility split between owners and occupiers is often quoted as a difficulty that needs to be overcome. While landlords are often the ones responsible for the costs incurred in making their buildings more efficient, it's tenants who enjoy the benefits of cheaper utility bills. And the fact that tenants often occupy a property for a short period of time suggests they might not be willing or able to make investments in greening buildings themselves. In addition, the fact that energy expenses only represent a marginal proportion of overall businesses' expenses is also often referred to as another barrier. With prices of energy going up, however, the market itself may provide increasing incentives for building users to implement energy saving measures.
Besides these issues, there are physical barriers that impose limits to energy efficiency. For example, listed buildings can be especially difficult to be made greener.
Incentives
To overcome these and other barriers, new regulation and stronger fiscal incentives need to be considered (for example, rewards for buildings that achieve improvements). At the same time, raising awareness amongst both residential and commercial tenants on energy efficiency measures would help shape consumer preferences for low carbon options.
As stated in this year's Budget, the Government is now considering policy options to address carbon emissions from non-domestic buildings, with the overall objective of improving the energy efficiency of and reducing carbon emissions of existing stock. In addition, Energy Performance Certificates for non-domestic buildings are now set to be progressively introduced. And some cities have already taken the initiative at the local level. The London Climate Change Agency has introduced the ‘Better Buildings Partnerships' bringing different stakeholders including the largest commercial and public property owners in London together. And outside the capital, northern Cities like Bradford have worked in partnership with the private sector to achieve energy savings and raise awareness about energy efficiency measures. The council facilitated a review of current practices related to the use of energy in the Kirkgate shopping centre, bringing together the perspectives of the centre's managers and individual tenants.
Addressing climate change requires action on many fronts at the same time. Making Britain's existing buildings greener is far more complex than dealing with new buildings, but is a challenge that needs to be addressed. It will require a concerted effort from across the public and private sectors - but one which should pay economic as well as environmental dividends.
A version of this article first appeared in Solutions Magazine.
