In 2020, the European Commission created a target plan that challenged all European countries to cut greenhouse gas emissions to at least 55% below the figures recorded in 1990. The deadline year by which this must be achieved is 2030.
This is an ambitious but necessary step, as, according to the Commission’s “Long Term Strategy”, Europe aims to reach “net zero” - which means to become entirely climate neutral - by 2050.
So what can be done by businesses operating within the property industry in order to reduce emissions and support this plan?
In this article, UK auction company Property Solvers explore all of the steps that could - and should - be taken by property investors, developers, construction firms and agents to help Europe hit its 2030 target.
We’ll also explain what the European Commission intends to achieve with the 2030 climate plan and the 2050 net zero target beyond that, exploring some of the figures and projections that have influenced this decision.
Improve Domestic and Commercial Heating Systems
Domestic and commercial energy supply is a major producer of greenhouse gases, and is, therefore, a key focus of many sustainability action plans around the world.
In the UK, new build developers will not be permitted to install gas boilers as of 2025, with the aim being to phase out gas and focus on electricity - a form of energy that can be sustainably produced using solar, wind or nuclear power as well as hydroelectric generation.
With alternative options now readily available, including biomass boilers, ground source and air source heat pumps and even infrared heating panels, the transition from gas should not be too much of a challenge.
Insulate
Properly insulating new builds and upgrading existing properties to a higher standard is an important step towards carbon neutrality.
A White Paper presented by the European Industrial Insulation Foundation (EiiF) in 2020 suggested that approximately 1% of the continent’s annual carbon emissions could be wiped out if a mandatory energy efficiency level of “C” were introduced across all industrial properties.
To be rated “C”, a property must be judged to have between 69 and 80 SAP (Standard Assessment Procedure) points. The ways in which this can be achieved include the improvement of a property’s glazing and the installation of high quality loft and ceiling insulation.
Promote the Use of Electric Vehicles
With the EU proposing an effective ban on vehicles utilising fossil fuels by the year 2035 and a predicted six-fold surge in the production of electric vehicles across the continent by 2025, it is up to other industries to support these new developments.
Although there are concerns about the current lack of infrastructure to support a sudden influx of electric cars in numerous European countries, many of the continent’s territories are pushing forward aggressively in this field.
In fact, the UK has announced its intention to make electric vehicle charging points mandatory in new build homes from 2022.
The more energy the continent is able to produce in a sustainable manner, the more sustainable these vehicles will become at production level as well as during their operative lives.
Recycle Materials and Prevent Construction Waste
Back in 2008, the EU set a 70% recovery target for construction waste by 2020. While this has made a huge difference to levels of recycling within the European construction and property industries, there is a great deal more to be done.
Property developers across the continent can contribute to construction waste reduction by recycling or reusing materials in as many projects as possible.
Opt for “Clean” Production Methods and Sustainable Materials
The official European framework for sustainable buildings - named Level(s) - was officially launched in October 2020.
The initiative’s first “macro-objective” refers to the reduction of “greenhouse gas emissions along a building’s life cycle”. This includes not only the “use phase of the building”, but also its “embodied energy”.
Embodied energy is defined by the European Commission as “the total energy required for the extraction, processing, manufacturing, and delivery of buildings”.
Property developers can support this objective by selecting sustainably sourced and ethically produced building materials, thereby prioritising the reduction of greenhouse gas emissions as well as fighting environmental issues like deforestation when planning future projects.
Reduce Air Miles
“Frequent fliers” are contributing to greenhouse gas emissions to such an extent that the EU has recently cut airlines’ fuel tax exemption in order to push for cleaner fuel alternatives in air travel.
To that end, purchasing equipment and materials locally, or at least from within the same country as a project is based, is a key way to reduce a business’s carbon footprint - whether that business’s disciplines are based in property investment, construction, sales or management.
Adhere to New Sustainability Reporting Standards
The European Commission expects all EU member states to transpose a new Corporate Sustainability Reporting Directive into their national laws by December 2022.
With the exception of “micro companies”, this directive will apply to all organisations that operate on EU regulated markets.
By January 2023, all relevant companies will be required to comply with the rules of the directive.
Compliance involves the public disclosure of the impact their activities have on “people and the environment”, as well as accurately listing their unique “sustainability risks and opportunities”.
Diligent adherence to these new standards is an excellent way to support the European Commission’s 2030 target plan.
Failure to do so may lead to substantial fines - so it is within the best interests of most companies operating in Europe to follow this new directive, whatever their current position.
Improve Transparency
One approach that could prove exceptionally useful in the fight for greenhouse gas reduction in the European property industry is that of transparency.
By actively broadcasting and sharing their new aims, past achievements and current ethical approaches in the field of sustainability with competitors, clients and the general public, property firms are capable of further encouraging the trend for “thinking green”.
As more and more individuals become aware of the environmental impact of their everyday choices, not only is transparency a good ethical choice - as it will likely lead to improved accountability - but it may also improve the reputation of any firm that takes this approach.
Why Do We Need to Achieve Net Zero by 2050?
Concerns about the extent and the effects of climate change on our planet have grown significantly over the last decade, with the Intergovernmental Panel on Climate Change (IPCC) issuing a Special Report in late 2018 that highlighted an urgent need for real action.
The report cited a recent increase in natural disasters and phenomena, including Europe-wide heatwaves, severe droughts, floods and forest fires.
It stated that events further afield, such as typhoons and hurricanes, were also beginning to reach European shores, as well as having a devastating impact on other territories across the globe.
With global temperatures having already risen to around 1°C above pre-industrial levels (average temperatures recorded between 1850 and 1900), the Paris Agreement of 2015 included an aim to limit this increase to 1.5°C.
Failure to take action to this end would see global temperatures hit 2°C above pre-industrial levels a little after the year 2060. The below are just a handful of the likely outcomes:
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A huge transformation of around 13% of ecosystems around the globe
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The disappearance of 99% of the world’s coral reefs
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A 7 metre rise in sea levels, occurring as a result of the loss of Greenland’s ice sheet
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A 2140% increase in economic damages due to flooded rivers alone
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Weather-related disasters affecting around 66.67% of the population of Europe by 2100
The report also states that aridation is likely to impact around 16% of the Mediterranean climate zone by 2100, with “outdoor labour productivity” declining by up to 15% and food availability potentially becoming reduced.
These issues may, in turn, lead to greater levels of migration between countries and an increased level of pressure on economies across Europe and around the world.
The 2030 Climate Target plan is a first profound step towards carbon neutrality in Europe by 2050. Both of these goals have been designed to keep global warming to 1.5% above pre-industrial levels or lower.
This is why it is so vital for businesses across all industries to take steps to reduce their carbon footprint.
It is the responsibility of companies in sectors such as property and construction to revise their approach to materials sourcing and production, shipping, fabrication techniques and power usage.
These companies must also consider their levels of influence on competitors and consumers, understanding their position as role models and key industry players in order to prompt a change in attitude across their sector and beyond.
Transparency and accountability is vital, as is strict adherence to new reporting standards and the implementation of new sustainable technologies and approaches in as effective and timely a manner as possible.
The key may well be to take the initiative to adjust operational approaches as soon as possible, rather than waiting for mandatory directives to be put in place.
Not only will this help towards expediting the reduction of the continent’s carbon footprint, but it might also make adherence to new regulations and requirements achievable more quickly and with less pressure - as the framework to make these changes may already be in development.
In conclusion, the more each business owner or management team takes it upon themselves to make wholehearted, environment-focused changes to the approaches and techniques used in their activities, the more achievable the 2030 goal will become.