Net Zero – Where are we?

The mix in terminologies used and various targets set have been difficult to follow, so it’s understandable that the industry, with contrasting perspectives, find it challenging to collaboratively navigate. 

One thing that UK’s built environment community commonly agrees on, is the need for a united framework to reduce ambiguity. Enter the UK Net Zero Carbon Buildings Standard, supported by a coalition of professionals.

The standard is crucially underpinned by an evidence-based reporting methodology. Measuring in-use data rather than theoretical models, with the aim to drive accountability and hopefully prevent greenwashing.  

Brookbanks embraces these aims and welcomes the standard, which plans to move from pilot phase to implementation in late 2025. But what other factors will drive net zero forward in the UK beyond regulatory compliance? Brookbanks want to briefly explore in this thought piece.  

Firstly, a quick look at some of the milestone points of net zero’s journey so far and definitions of the language commonly used. 

Net zero carbon key drivers in the built environment:

Certain sectors are seeing significant growth, with owners, investors and occupiers strategically evaluating assets. Let’s look at the drivers that are creating progress: 

• Regulatory Compliance 

The UK government are setting stringent energy performance standards, to improve the energy efficiency and reduce carbon emissions. Occupiers are aware and seek buildings that meet or exceed these requirements. The average building stock EPC ratings are poor, varying within regions and sectors. For context, it’s estimated that currently, only 10% of industrial buildings are above the EPC B grade, highlighting the need for improvements. 

• Corporate Sustainability Goals 

Companies have well developed ESG policies and have set ambitious aspirations with regards to net zero carbon. The industry will need to react to provide properties that align with the objectives.  

The Science Based Targets initiative (SBTi) has seen over 7,600 businesses commit to carbon reduction goals. 

• Operational Cost Savings 

Occupiers are increasingly recognising the financial benefits of energy-efficient buildings. A survey by CBRE found that three-fourths of occupiers would be willing to pay higher rents for properties that offer green energy solutions, citing potential long-term savings on operational costs. This is heightened by the electrification strategy adopted and surging electricity price changes, specifically during the last 5 years.  

Electricity demand globally is predicted to increase by 18% by 2030, according to a IEA report. 

•  Energy Security 

The increase demand on electricity, coupled with market growth in large energy consuming markets have left developers and investors concerned about securing power but also the power supply resilience in operation.  

Sparked by the pandemic, the industrial and logistics sector has witnessed unprecedented growth, with a trend relying on advanced technologies, robotics, and electric vehicle fleets. Then there is the growth within the life science, advanced manufacturing, and data centre market. 

JLL recently published an article on their website that indicated a potential 41% global unmet demand in the industrial sector between 2025 – 2030. In context, JLL summarised

for every two square feet of global demand for low carbon, sustainable industrial and logistics space, less than one square foot is in the pipeline. 

The challenges are not going away. The M&E Consultants have long lived with the challenges but have become more recently aware of energy resilience. Adam Selvey recently covered this in a very interesting article in the CIBSE Journal (June 2025 edition), voicing that power-grid congestion could threaten the clean energy transition, voicing the potential to transition from alternating current (AC) to direct current (DC) and microgrids as we advance to a renewable future. 

Smart-grid networks, microgrids and self- reliant energy production will help push net zero forward for the major energy consuming sectors.

Retrofit 

Although the industry prefers standardised approaches, we need to be mindful that retrofit projects require tailored flexible pathways to net zero. The industry will heavily rely on the expertise and knowledge of professionals to get this right – innovative technologies and materials alone won’t provide the correct result.  

The industry has recognised a skills gap that could threaten the achievement of targets between now and 2050. However, this gap—alongside the moral imperative of the challenge—is also helping to attract new talent. 

In engineering alone, we have witnessed graduates considering construction over the typically more financially rewarding industries such as automotive and aerospace. However, this potential must be actively nurtured, as the construction industry has unfortunately struggled with retaining talent early in their careers. 

The new build design philosophy is well known and prescribed, in terms of improving a building’s fabric, lowering demand, selecting smart efficient technologies, appropriately applying renewable technology and monitoring.  

Retrofit is a little different. Clearly incredibly positive from an embodied carbon perspective but operationally can be tricky. Heritage, disruption, project timescales and financial feasibility all create barriers. The assets need to be carefully assessed, then approximately optimised and enhanced in an effective manner. 

With considered design we have seen unlettable buildings turned into functional, high quality, low carbon assets. A notable example was documented in June’s CIBSE Journal. The Cathedral Hill Industrial Estate consisted of a 13 small unit industrial development that was 30 years old. The rental valve was reported as 33% below the average for the Surrey area. After a £10.6m refurbishment, the rental values increased by an impressive 220%. The scheme achieved BREEAM excellent and is on target to achieve net zero whole life.