Over 200 businesses have joined together to call on the government to reverse its shock decision to effectively scrap the zero carbon homes policy.
The government announced last week that it will not be proceeding with the zero carbon Allowable Solutions scheme, a move which has been described as the “death knell” for Zero Carbon Homes.
The Treasury’s Productivity Plan published on 10 July confirmed that: “The government does not intend to proceed with the zero carbon Allowable Solutions carbon offsetting scheme, or the proposed 2016 increase in on-site energy efficiency standards.”
Allowable Solutions were introduced in June 2014 and meant that developers could offset carbon emissions through remote measures if on-site methods were deemed unsuitable.
In an open letter to George Osborne, business leaders have told the chancellor that the shock announcement has “undermined industry confidence in government” which threatens to “curtail investment in British innovation and manufacturing”.
The open letter has been signed by a number of notable sources, including housebuilders Willmott Dixon, HAB Housing; developers, Lendlease and Argent; energy company, E.ON; and manufacturers, Saint-Gobain and Tata Steel.
Julie Hirigoyen, chief executive of the UK Green Building Council, who coordinated the letter, explained why the sector feels undermined: “The speed and the stealth with which this administration has destroyed some of the long-term policies supporting the renewable and low carbon industries has been breath-taking.
“We have witnessed an unparalleled wave of support from our members and the wider industry who are deeply concerned about how the government’s sudden, regressive and arbitrary decision to scrap the long established zero carbon policy will impact their business and investment.
“This U-turn not only means our new buildings will be less energy efficient and more costly to run, but it comes at a time when the UK should be taking strong action on climate change ahead of the UN conference in Paris in December.”
Hirigoyen concluded: “We urge government to reconsider its position for the sake of future confidence in the UK’s low carbon economy.”
The watering down of the zero carbon homes bill is part of a number of cuts and changes to green legislation enacted by the Conservative government. A number of national papers have reported that the government is now preparing a “major reset” of green energy subsidies, with solar PV and onshore wind reportedly in Westminster’s sights.