energy efficiency

Compact living for a greener Britain?

Last week, the Rt Hon Phillip Hammond MP set out his Autumn Budget. As eye-catching promises such as scrapping Stamp Duty Land Tax for nearly all first-time homebuyers – something Bright Blue had been calling for – caught the headlines, other measures have seemingly slipped under the radar. One such ambition is to increase housing density in urban areas – which the Chancellor believes can be achieved through policies such as making it easier to convert retail land into housing, greater support for the use of compulsory purchase powers, and introducing minimum density requirements on new projects in city centres and around transport hubs.

In London, where the need for housing is perhaps most acute, Mayor Sadiq Khan has recently released a draft of ‘The London Plan’ – a strategy document for spatial development in the capital – in which numerous ideas for achieving higher-density housing, such as developing on brownfield sites and on surplus public sector land, were mooted.

A White Paper issued earlier this year by the Secretary of State for Communities and Local Government, the Rt Hon Sajid Javid MP, set out measures intended to rectify the problem of Britain’s low-density housing. It proposed policies such as making it easier for existing buildings to be extended upwards and allowing more flexibility in the planning application process. Density, it would appear, is something very much on the political agenda – and for good reason.

Land space is finite in a way many other resources are not, thus making it particularly important to utilise effectively. Almost 11% of Britain has already been built on, but within the nation’s towns and cities, such development has all too often been done inefficiently with regards to space. In London, for example, there are only 150 dwellings per hectare, and the average for England sees that number fall to just 42. In this respect, Britain ranks woefully against its international counterparts: New York manages to fit 480 homes into an equivalent area, and Hong Kong a staggering 775 dwellings. Whilst some of this discrepancy can be explained by consumer preference, it is doubtless that government regulations are a significant causal factor in Britain’s tendency for low-density development.

Denser living, better environment

Increasing the density of development in Britain would have obvious benefits for the natural world, most evidently in the way that simply less of it will have to be sacrificed to buildings. Consequently, more habitats and ecosystems can go undisturbed – allowing wildlife a precious chance to flourish. Limiting the extent to which development impinges upon habitats will be a welcome reprieve for Britain’s animal species, 56% of which have seen their numbers decline over recent decades.

But there are other environmental advantages associated with increasing population density. When towns and cities sprawl outwards, people living in them have to make invariably longer journeys, because whilst their jobs and livelihoods will remain centrally located, their homes will not. Longer journeys equal more time for vehicle exhausts to emit the dangerous pollutants which contribute to poor air quality and climate change. Moreover, when people are housed further away from where they need to be on a daily basis, more environmentally friendly forms of transportation – be that walking, cycling, or using public transport – may become less attractive. This would likely increase the amount of people using private vehicles, thereby exacerbating the problems of air pollution and climate change.

The benefits of more compact living are not solely environmental. Utilities and public services which have relatively high fixed costs, but relatively low marginal costs, are more economically viable to provide in areas of greater population density, because of the ability to exploit economies of scale (that is, when diminishing average costs are realised with the supply of one extra unit of good or service). One example of this could be a public transportation network, which, incidentally, would in turn have benefits for the environment if it acts as a disincentive to private vehicle travel, and frees up land space for nature by reducing the need for certain infrastructure such as purpose-built car parks.

It should be noted, however, that some environmental disadvantages exist with regards to density achieved primarily through high-rise developments. Studies suggest that taller buildings can be more energy intensive on a day to day basis, and often have greater amounts of ‘embodied energy’ within them because of the materials they must be made from – for instance, reinforced concrete and steel. Any impetus towards increasing density, therefore, should be done sensitively, with such concerns in mind.

Conclusion

This is not a hymn to transform Britain’s conurbations into canyons of concrete, devoid of individual character and any sense of harmony with the natural environment – indeed, there are plenty of examples of developments which have increased the nation’s housing stock without being obvious eye-sores. The changes which could be implemented to prevent urban encroachment need not be radical, either. Introducing ‘permitted development rights’, allowing for an extra story or two on a housing development, encouraging terracing by updating certain planning requirements, making it easier to build on brownfield land, and relaxing Green Belt restrictions would all be practicable options which conserve perhaps the most vital and precious resource of all – space.

Eamonn Ives is a Researcher at Bright Blue

Message to energy ministers - let industry lead the way on energy efficiency

Let’s put ourselves in the shoes of Greg Clark, Nick Hurd or Baroness Neville-Rolfe. It’s not an easy brief, in fact it’s tough, really tough. An area filled with failed policy, over-reliance on subsidy, barriers and a broad number of policy interventions which are being flung at ministers each and every week. And we still have increasing numbers of people in the UK slipping from low incomes into fuel poverty with the coldest, “leakiest” homes in western Europe.  

The signal from Treasury officials is that there’s no money in the pot, it is the end of subsidy as we know it. Best not forget to mention the fragmented voices, myriads of stakeholders all eager to push their solution as the solution to climate change, energy reduction, energy security, decarbonisation and de-risking the energy supply in this uncertain world.

Confidence in the sector is low – internally and externally. You can experience the lethargy every day from all stakeholders whether they be industry or government. This is a 'just about managing' (JAM) industry, an industry which desperately needs to be able to restore its strength, confidence and stability and to be matched by a bold and brave government and policy framework.

To ministers it cannot be clearer that this area needs government support and even intervention, a big no-no with this new Government. This industry has been decimated by bad or failed policy – policy that was not well thought-through or was just too short-term. The Green Deal burnt many fingers. We urgently need Greg Clark, Nick Hurd and Baroness Neville-Rolfe to reframe, reset and reassure this market to bring certainty in what is an uncertain time.

What would I want to see were I Energy Minister? There are a raft of solutions out there. As a minister I would feel bombarded by them, almost drowning in the sea of ideas. “But how does a solution fit together and deliver?”, I might say, wishing to see industry bringing an achievable long-term vision package to my ministerial desk that clearly outlined and addressed fuel poverty, decarbonisation, energy security, demand reduction and the health and wellbeing of consumers – and more widely addressing how we improve our housing stock, housing stock that is the coldest in western Europe. An energy minister needs to have the right information, the framework to convince Treasury.  As Baroness Neville-Rolfe knows from her background in retail, industry itself is best placed to do this.

Furthermore, for too long we, as the industry, have been in denial on the reality of politics. For many years we had an easier ride with other political parties in government. This Government has policy objectives that are tightly honed on value for money and leveraging private finance and it has repeatedly communicated its desire to reduce subsidy particularly in the longer term. Conservatives have a ‘less is more’ approach to regulation with a ‘one in and three out’ policy but are also in dire need of some positive policy and an economic hit as they negotiate Brexit.

For industry, this context needs to be central to any thinking. Let’s put ourselves in the Government’s shoes. Let’s ensure we understand the political agenda and the political language: i.e. what the Government needs to do, what it wants to do and the restrictions they face in addressing the enormity of this brief.

Industry is now coming together with the forming of the Energy Efficiency Infrastructure Group (EEIG) and putting together the pieces of the jigsaw for government – a successful, high value for money infrastructure programme for energy efficiency.  The reframing of this issue as an energy efficiency infrastructure programme would enable government to move away from short-term interventions, to set out an ultimate vision to get all homes up to a high standard of energy efficiency and to have an infrastructure delivery model for getting us there.

The concept is simple to understand - energy efficiency is infrastructure and it delivers economic returns comparable to other major infrastructure programmes. This approach will deliver for government, consumers and industry. With economic and social benefits which will boost the economy and bring jobs and savings for consumers, we can strengthen the UK’s energy security and stamp out fuel poverty, and finally realise decarbonisation to help the UK meet its challenging climate targets.

With cross-party support, Scotland is leading the way and has already committed to making energy efficiency an infrastructure priority supported by capital funding. My message to the minister is to take up this opportunity and do better, be bold, go further. Let’s not look at this as a social subsidy but instead as a savvy public capital investment and great value for money. Let’s, at the very least, get UK homes to Band C by 2030 to meet carbon budgets.

The EEIG will start 2017 by reframing the issue: we have commissioned a shared “20-year vision for a building energy efficiency infrastructure programme” with Frontier Economics to support energy ministers to create a long-term energy efficiency infrastructure programme for Britain.  The vision will be shared across Government, with Parliamentarians and central and local government policymakers.

As an energy minister I would want to make each and every UK citizen the king (or queen) of his own, “warm” and “efficient” castle again. We must not forget the consumer is king. Let us also help the ministers deliver. As the International Energy Agency’s most recent energy efficiency market report stressed: “The greatest efficiency gains have been led by policy, and the greatest untapped potentials lie where policy is absent or inadequate.” It continues:Harnessing the potential of energy efficiency is key to transitioning to a sustainable and secure energy system that generates prosperity for our world.” Let’s get harnessing and working with ministers to deliver the future of energy efficiency.

Sarah Kostense-Winterton is executive director of MIMA and provides the secretariat to the Energy Efficiency Infrastructure Group

The views in this article are those of the author, and not necessarily those of Bright Blue