Green(ing) Houses: International policy ambitions
As has been reported many, many times over the past few years, the built environment — buildings — are responsible for nearly half of the world’s annual carbon emissions. For most of us that means office towers, shopping malls, schools and hospitals, and we tend to forget about our homes. With anywhere from 80 to 90% of the globe’s buildings already constructed, it’s widely believed that the majority of the housing stock falls below current environmental performance standards.
The challenge now is one of how to retrofit existing homes in the shadow of both geopolitical stresses stemming from the ongoing war in Ukraine and emerging sustainability standards. This is where policymakers will be required to find the right balance of legislation and incentives that will make it easier for individual and institutional homeowners as well as tenants to contribute to the net zero future.
Policies such as the Inflation Reduction Act in the US, which offers a 30% tax credit and US$14,000 rebates for homeowners that opt for solar panels and energy efficient appliances, and Powering Australia’s focus on renewable energies includes installing community batteries to power 100,000 households, are strong starts. The equivalent scheme in Canada applies only to owner occupiers not to rental properties. The current energy crisis has accelerated the adoption of sustainable technologies, but without policy support, landlords, tenants and low-income households are often excluded from the process.
This is where policymakers can step into the void. Responding to demand, the UK’s Green Homes Grant was extended to landlords, and Australia’s renewable power programme includes 85 solar banks for rental and low-income residents who fall between energy grant cracks targeting owners. Singapore’s Housing and Development Board is taking advantage of its 84,000 apartment portfolio to bring all its rental properties up to the city-state’s Green Mark standard through its Green Towns Programme. This focuses on reducing consumption and increasing renewable energy sources among its initiatives.
The challenge for policymakers everywhere is in finding solutions for retrofitting existing homes that are financially accessible to all residents, and that encourage owners and landlords to make green choices. Though costs have come down as use and demand rises, cost remains the single biggest barrier to wider establishment of sustainable homes. The right policy and leadership can help ease the way.
To read more about how international policy will play a key role in greening our homes and mitigating climate change, head to Savills Impacts http://sav.li/21l
