Recommendation 9

HM Government Accepted in Part

The Net Zero Strategy sets out Government’s ambitions to help the construction sector improve their reporting on embodied carbon in buildings and confirmed we will explore the potential of a maximum embodied carbon level for new buildings in the future. To set maximum embodied carbon levels a robust evidence base of building-level whole life carbon data is needed to understand what current baseline embodied carbon emissions are from buildings and the potential for the industry to decarbonise. We believe that current targets proposed by industry are based on a small sample size and limited building typologies; to set targets across all new buildings a much greater evidence base will be needed to ensure targets are realistic, achievable, and drive all parts of the industry towards our net zero goals. We welcome work already underway by industry, such as the launch of the Built Environment Carbon Database (BECD), which will encourage greater levels of whole life carbon reporting and build our understanding of embodied carbon in the sector. As outlined above, we will consult on our approach to embodied carbon in 2023. This consultation will be informed by the results of further research and could include proposals for “ratcheted carbon targets” but it is too soon to commit to specific proposals. While ratcheting targets seem to be one logical approach, and there are international examples of similar practices, we can only take decisions on how targets could work once the evidence base is built. Any introduction of targets will also be subject to public consultation. With regards to the proposal to publish annual progress reports, the Net Zero Strategy, published last year, sets out indicative ‘pathways’ of emissions reductions for every sector of the UK economy to keep us on track for Carbon Budgets 4, 5 and 6, our 2030 Nationally Determined Contribution, and ultimately for net zero by 2050. These pathways are not predictions or targets, due to the inherent uncertainty in modelling emissions and to ensure we that we respond to real-world changes over time. UK territorial emissions associated with the built environment are captured as part of these pathways, for example in the heat and buildings sector. BEIS reports on progress annually, via our response to the Climate Change Committee’s Progress Report to Parliament. This sets out progress we have made and the further action we are taking across all sectors of the economy to bring down emissions, meet our carbon budgets and deliver net zero. The UK follows the agreed international approach for estimating and reporting greenhouse gas emissions under the UN Framework Convention on Climate Change, Kyoto Protocol, and Paris Agreement which is for countries to report the emissions produced within their territories. The Climate Change Committee (CCC) has also recommended that this remains the right basis for the UK’s carbon targets. The Government recognises that some of the whole-life carbon of buildings will fall outside the scope of UK territorial emissions, for example emissions associated with manufacture of imported goods. The UK therefore also reports on consumption-based emissions, which provides helpful insight and supports policy development, enabling us to keep track of our carbon footprint and informing our efforts to reduce this, for example through our work to prevent carbon leakage. We recognise there is much more to do which is why we are urging all other countries to raise ambition on tackling climate change and join the UK in setting stretching targets for reducing emissions by 2030 in their NDCs, ensuring they align with net zero by mid-century.