ZERO CARBON HOMES Mark Lowe QC Cardiff, 17 September 2007

1. ZERO CARBON HOMES Mark Lowe QCCardiff, 17 September 2007 THE NEXT CHALLENGE

2. Do we have a problem? • “Climate change represents potentially catastrophic threat, but it is within our control to address it – and address it we must”: The UK Government Sustainable Development Strategy, Foreword by Tony Blair 2005 • Quotation which encapsulates both the high priority given by government (probably of any hue) to reduce carbon emissions together with the confidence that it can be addressed by taking timely measures. • There has followed the publication of the Stern Review in October 2006.

3. continued/… • “I think that climate change is one of the defining global challenges of our age. The case for action has been established beyond doubt: Ruth Kelly 4 April 2007. • UK produces c. 500m tpa of greenhouse gases. • Co2 is the main greenhouse gas in the UK accounting for c.77% of total emissions of greenhouse gases in 1990: Planning and Climate Change • In 2004 more than a quarter of UK’s Co2 emissions came from the energy we use to heat, light and run our homes: Code for Sustainable Homes December 2006. • Non-residential buildings are responsible for c.18% of national carbon emissions: Ruth Kelly above. • Transport is responsible for c. one third all carbon emissions: Ruth Kelly

4. Climate Change • Global temperatures to rise 1 to 5 degrees by 2100 (6.3%) • UK milder wetter winters and hot drier summers (40 degrees C) every 2 or 3 years by 2050 • Peak rainfall intensity +5% to 2025 and 30% by 2115 + river flow + off shore wind speed + wave height Stern Report and PPG25

5. The Destination • Kyoto Protocol: Reduce emissions of greenhouses gases by 12.5% below 1990 levels by 2008 -12 (‘on track’ para 3 CC&P). • Domestic Target: Reduce carbon emissions by 20% below 1990 levels by 2010: Climate Change the UK Programme 2006. • Long Term ambition: UK to make real progress by 2020 towards long term ambition to reduce carbon emissions by 60% c.2050 – Climate Change Bill taken from 2003 White Paper ‘Our energy future – creating a low carbon economy”.

6. Welsh Context • The Assembly has a duty under section 121 of the Government of Wales Act 1998 to promote sustainable development. It is the only Government in Europe to have such a constitutional duty. Sustainable Development provides a framework for the development of policies and actions across the Assembly. Wales’ wildlife, habitats, landscapes and historic buildings are important to its prosperity, well being and culture, and need to be treasured, managed and protected in a way that does not hinder economic or social development. Where possible, policies will be developed which deliver effective protection of the Welsh environment and contribute to tackling global environmental threats such as climate change

7. Sustainable Development Action Plan 2004/07 `sustainable development is not an option that will go away - it is the only way forward` Rhodri Morgan AM, First Minister for Wales

8. Summary of Duty The National Assembly for Wales is required by law to make a Scheme stating how it will promote sustainable development in the exercise of its functions. The Assembly is required to publish annual reports on progress in implementing the Scheme, and every four years following each Assembly election an additional report must be published on the effectiveness of what has been done. In the light of this a decision must be taken – after consultation – on whether the Scheme should be remade or revised.

9. The Commitments • between now and 2007 work with developers, construction clients and funders, the Design Commission for Wales and Constructing Excellence to ensure the built environment meets our sustainable development goals; • issue improved Transport Appraisal Guidance • early in 2005; • use the sustainable development clause in the Planning and Compulsory Purchase Act to embed sustainable development in planning policies. Local Development Plans Wales guidance will issue in September 2005, and as Technical Advice Notes are revised they will incorporate sustainable development principles;

10. The Commitments – cont’d • formally appraise a revised transport framework for Wales against our sustainable development framework; • encourage National Park Authorities to work with developers to provide small scale, low cost,sustainable housing, within National Parks; • use the introduction of the Strategic Environmental Assessment integrated with Sustainability Appraisal for development plans to ensure wider area issues and linkages are properly addressed

11. Creating Sustainable Places • Under Review • General support for TAN 12 and its encouragement to considering sustainable development holistically as part of the design process for all new development.

12. Welsh Local Government Association • April 2006 published ‘Actions not Words’ • Signed by all 22 local authorities in Wales, the 3 National Parks and others. • The ‘Six Areas for Action’. • High level commitment • Leading by example • Spending wisely • Encouraging and supporting others • Measuring Progress • National Support

13. Microgeneration Action Plan: march 2007 • Builds on TAN8 Renewable Energy. • Heavy emphasis on on-shore wind facilities. • Contains targets for renewable microgeneration for houses, groups of buildings, communities and small businesses. • Discusses grant opportunities

14. The Timetable • On 13 February 2007 Carwyn James announced that in keeping with the WAG’s climate change agenda their aspiration is for all new buildings in Wales to be zero carbon by the end of the next Assembly. • Therefore all new buildings are expected to aspire to the BREEAM standard of ‘excellent’. • This will be the condition of funding for all projects receiving WAG financial support and in respect of land disposals. It is to be a core condition of all funding. • Want to devolve the building regulations to assist in this process. • All buildings built from 2011 onwards to be zero carbon (that is 5 years ahead of UK and UK policy applies only to homes).

15. Does this (per HBF) risk setting up Wales to fail? • Step one is to enforce this via secondary legislation i.e. the Building Regulations. • Before that can be done the Building Regulations have either to be devolved or the UK has to create different regulations for Wales. • The technology has to be both freely understood and freely available. • The economic implications have to be addressed. • UK budget 2007 includes a 5 year experiment of relieving zero carbon homes from stamp duty for all units costing less than £0.5m and £15k for those above that value.

16. Current Requirement • The Building and Approved Inspectors (Amendment) Regulations 2006: 6 April 2006. Regulation 17C requires new buildings to meet CO2 target emissions standards to implement the Energy Performance of Buildings Directive. • The upshot is that all new houses must meet this basic level of performance in terms of carbon emission reduction. • The debate revolves around the improvement of carbon reduction as required by the planning process over and above that minimum.

17. The Zero Home Defined • The code establishes a table of minimum standards by reference to star rating of new buildings. • A 5 star home will achieve zero emissions re Building Regulations issues (i.e. zero emissions from heating, hot water, ventilation and lighting). • A 6 star home is the true complete zero carbon home i.e. zero net carbon emissions from all sources. • The standards relate to energy/CO2 + water + materials + surface water run-off + site waste management and storage. • There are nine categories of performance. • The rating will be confirmed by the certification process at the close of construction. • It is intended to be a voluntary code until April 2008 for the private sector but for all publicly funded housing a 3 star rating (equivalent to Ecohomes Very Good) is compulsory.

18. The 5 and 6 star home • 5* home has zero emissions re Building Regulation issues (heating, hot water, ventilation and lighting) + 80 litres of water standard use per person + 60.1 points from other sources. • 6* home is a completely zero carbon home from all energy use in the home + 80 litres as above + 64.9 points from other sources

19. Other Sources? • 30% of water from non-potable sources eg grey water harvesting schemes • 90% of everything in the Code e.g. energy efficient appliances and lighting, accessible water butts, reduce run off, highly environmentally friendly materials, minimise construction waste, maximise recycling provision etc….

20. The Reality Check Para 8 of the draft PPS exhorts the LPA (a) to complement and not duplicate other statutory regimes, (b) information sought from applicants should be proportionate to the scale of the proposed development and consistent with demonstrating conformity with the development plan, (c) stand alone assessments should not be required where it is dealt with in the Design and Access Statement or EIA etc., and (d) if development plan is not updated determine application by reference to PPS. The LPA should not devise their own standards for the environment performance of individual buildings since these are set by the Building Regulations: para 31. The LPA should not take this as an invitation to set out required construction techniques, fabrics, fittings or finishes or performance levels for buildings: para 32. The LPA should focus on specific development opportunities and securing an earlier application of higher performance of national standards. Have regard to the overall costs of bringing sites to the market, and in particular ensure that the proposed approach is consistent with the securing the expected supply and pace of housing development shown in the housing trajectory required by PPS3.

21. Planning for Climate Change • Issued for consultation in Dec 06 and that was completed in March 2007. • The suggested way forward is to issue a Ministerial Interim Planning Policy Statement on Climate Change prior to making amendment to PPW and to issue Climate Change Compendium to march hand in hand with the MIPPS. • Drafts of both attached.

22. The Toolkit • Insufficient time to prepare a TAN but TAN12 may need amendment. • MIPPS will substitute for amendment to PPW • The Compendium will be a material consideration for preparation of LDPs and in development control. • Introduce a statutory requirement for design statements. • Encourage microgeneration and make the changes to the GPDO to achieve it.

23. Draft MIPPS on Climate Change • Climate change put at the heart of planning policy considerations. • Land use and the location of new development to be linked to the availability of resources and the drive to reduce emissions of CO2. • The availability of water and energy sources to serve proposed development an important consideration. • Need to consider environmentally sound ways of managing demand for resources and environmental risk. • The design of buildings and their surroundings to minimise energy demand both in use and in construction and be resource efficient in use of water, creation of waste and use of solar track and shade. Incorporate immediate carbon related benefits in construction e.g. localised energy sources, orientation in layouts, microgeneration etc. • An integrated framework and staged approach to climate responsive development from location, density, layout, built form, and ensuring in-built flexibility for varying uses. All to be demonstrated in design statements.

24. MIPPS Ax 1: Key Issue for LDPs • Summarises issues arising from other policies. • These are all general aspirations. • Page 29 and location of new development and land uses. • 14 important points • Page 30 and design – the 10 points

25. Draft Compendium • Status to be similar to a TAN • To be a ‘living document’. • Threshold for major development needing to demonstrate minimum 10% carbon reduction. • Any minerals or waste development. • Development of more than 10+ houses or a site of 0.5 ha or more. • Buildings of more than 1,000 sqm in area. • All sites of 1ha +.

26. Grasping the nettle: Wales • The experience of the WLG Association’s members and other bodies (such as the WDA) is that sustainable design and build projects cost more to construct than traditional build but less to run. There is an urgent need to examine issues around ‘investing to save’ as there is a real risk, with reduced budgets, that energy efficiency and other sustainable design concepts will be priced out of specifications. • The lack of any discussion of what the Assembly Government is proposing to do in terms of emissions from transport is a serious omission given the significance of this sector to energy consumption and climate change. The Action Plan needs to make reference to published targets on reducing annual traffic growth to 0% by the final year of the Objective 1 programme and the aim to reduce Carbon Dioxide emissions by 20% (from 1990 levels) by 2010 and explain how these will be achieved. • A key issue, across Wales, is housing - its affordability and quality – yet there is no discussion of this in the draft Action Plan. Achievement of the Welsh Housing Quality Standard could be an important lever for sustainable development. This is something that the Association, Assembly Government and WDA are currently researching and should be included in the final action plan. • We support the emphasis on procurement but would suggest that as well as guidance we need practical information, resources and commitment

27. Grasping the nettle: England • The Code suggests that the rating will produce ‘a mark of quality’, the inference being that it will create value. The unwritten assumption is that it will thereby achieve a higher price in the market than a product with a lower rating. • This must impact on affordability. • “We have ten years to plan, invest and innovate to deliver zero carbon homes. It is vital that we invest now to bring down the costs of new technologies and deliver low cost, low carbon homes. The homes of the future must be affordable as well as sustainable”: Yvette Cooper 9 January 2007 to HBF. • There will be higher costs of construction. Whilst the costs of energy technologies may reduce with the creation of a mass market over time (PPS para 75) in the interim zero homes will cost more to build and there will be less to spare to support other planning gain, including, potentially, affordable housing. Building a Greener Future forecast cost at £2,00 for an average unit or around 2 to 3% of costs. • The Evening Standard 6 June 07 ‘Eco trouble ahead’: reported that green elements of a commissioned green friendly design were £20 per sq m increasing the cost of a starter home by £13,500 with a stamp duty exemption for green homes of only £2,000 to offset. BowZED was claimed to cost £100 extra per sq ft to build (£250 cf £150) and on a larger scale it might reduce to a 5 -10% extra cost. • Which has the greater priority; zero homes or other planning gains? For this reason CABE suggest a national standard to avoid ‘horse trading’ between obligations.