Let's go green for export

The UK Green Building Council’s recent report, entitled Building Zero Carbon, includes a number of important recommendations for government but I believe one stands out as deserving particular attention.

The report highlights the export-led economic growth potential which could result from a clear policy direction on zero carbon non domestic buildings. At first glance this may seem a little odd given the generally domestic nature of the construction industry, so deserves some unpicking.

My thoughts on this issue have been informed by my membership of the task group that drew up the report over the last few months but also by recent participation in two trade delegations to China and Latin America led by David Cameron and Nick Clegg respectively. The purpose of these delegations was to showcase the best we have to offer those markets and both trips have included a number of the UK’s leading companies with expertise in the design and delivery of low carbon buildings and infrastructure. 

The UK’s long term decarbonisation agenda as set out in the Climate Change Act is still regarded as progressive by other governments around the world. Mexico has recently introduced an almost exact carbon copy of the Climate Change Act and is now looking to follow our lead on the next level of policy and regulation including a carbon tax on fossil fuels and a feed-in-tariff for renewable energy. Although Mexico is only targeting a 50%reduction in emissions by 2050 (compared with our 80% target), this is arguably more ambitious given their predicted high growth rate. Building-related policies will inevitably be required and BRE have already pre-empted this demand, partnering with a Mexican municipality to develop an innovation park, mirroring their site in Watford and other planned projects in China, Brazil, US and Canada.

As governments around the world look for solutions to achieve decarbonised economic growth, it is clear that the UK’s leading position will not last for long unless we keep innovating

The UK’s zero-carbon homes policy is another example of the export value of forward thinking domestic policy that I have personally benefited from, working on low and zero carbon developments in China, South East Asia and the Middle East. As governments around the world look for solutions to achieve decarbonised economic growth, it is clear that the UK’s leading position will not last for long unless we keep innovating and providing the platform for UK companies to export our low carbon expertise and products to growth markets in BRICS and MINT countries.   

The current close alignment between national, European and global market trends leaves the UK at a key decision point. One option is to pull back from the challenge of zero carbon non-domestic buildings in the UK and wait until the market develops cheaper solutions to the problem. The other option is to build on the policy and market momentum created by the zero carbon policy and allow British suppliers of low carbon building products and services to keep ahead of our European and international competitors.

The value of the global market in innovative non-domestic building products has been estimated at £488bn up to 2050 and includes the opportunity to embed low carbon solutions into China’s rapid urbanisation. The scale of this opportunity is almost too large to comprehend with 70% of China’s population predicted to live in cities by 2050 compared with 24% in 1985, and with a city the size of Plymouth being built every week for the next 18 years and another Greece every two months.

Closer to home, the EU is driving the need for Nearly Zero Energy Buildings by 2020, which could see other member states leapfrogging the UK using EU funding for innovation to compete in our key export markets. In this case, the global market opportunities are too great to ignore so I hope the report leaves government with an easy decision to make.

Dave Worthington is the managing director of Verco