Regulatory response to reduce carbon is driving growth opportunities
“New housing in the UK to be net zero carbon ready from 2025.”
“The EU Social Climate Change Fund will mobilise €144.4 billion for a socially fair transition.”1
On 14 July 2021 the European Commission announced its proposals for accelerating a reduction in greenhouse gas emissions in the next decade. To scale the new legislation, the target is to almost double the annual energy saving obligation of each member state. Within the framework of 13 recommendations there are 2 that support the growth of our low-carbon solutions.
Within the recast of the Energy Efficiency Directive there is direct reference to reviews of the Energy Performance of Buildings Directive (EPBD) and the Eco-design Directive as well as the Energy Labelling Directive. Although it is too early to have insight into all elements of those reviews, certainly we are likely to see continued focus on energy efficiency at a product and application level. The EPBD drives the carbon calculation methodology across Europe which is used in primary legislation and hence supports energy efficient ventilation as a carbon reduction. Any legislation that continues to reduce emission rates will therefore continue to help the adoption of our low-carbon products.
In addition there will be a requirement for 3% of public buildings to be renovated to reduce emissions every year. This will support upgrades in ventilation. In parallel we are just starting to see the legislative impacts of Covid-19 mitigation through the use of ventilation so it will align well.
The Social Climate Fund will also invest the equivalent of 25% of the expected revenues of emissions trading for buildings and transport into energy efficiency measures in buildings and mobility. It will provide 72.2 billion euro of funding to member states, for the period 2025–2032, based on a targeted amendment to the multiannual financial framework. With a proposal to draw on matching member state funding, the Fund would mobilise 144.4 billion euro for a socially fair transition.
In January 2021 the UK Government published the summary of responses to the first stage of the Future Homes consultation and also issued the second stage.
It has been confirmed that new build housing in the UK will be net zero carbon ready from 2025 and an interim step will also be made with a 31% reduction in existing CO2 emissions in advance. We await the publication of the regulations expected in late 2021.
The second stage builds on the Future Homes Standard by setting out energy and ventilation standards for non-domestic buildings and existing homes and includes proposals to mitigate against overheating in residential buildings.
Of particular interest to Volution is the requirement to ensure adequate ventilation is fitted, with energy efficiency upgrades to existing homes. It mandates mechanical ventilation when carrying out wall insulation (greater than 50% of the wall area) and with the replacement of windows and doors (greater than 30% of the total windows or doors since construction). This new requirement is expected to increase demand for RMI mechanical ventilation.
In August 2021 the New Zealand Green Building Council issued the latest update to its Homestar standard. Homestar is designed to be an independent rating tool for assessing the health, efficiency and sustainability of homes across New Zealand. In the latest addition the ventilation provision has been updated to further support the use of continuous ventilation solutions providing Volution with a significant opportunity to add value to homebuilders across the country.
1. Source: ec.europa.eu