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A new report from the Zero Carbon Hub sets out the latest insights into how Allowable Solutions, a critical component of the Government’s 2016 zero carbon new homes policy, could operate. Including stakeholder feedback, Allowable Solutions – evaluating opportunities and priorities examines in detail the Hub’s 2011 operational framework proposals.
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Whilst there is strong industry support for the concept of Allowable Solutions and the proposed framework, the report identifies a number of areas requiring critical attention. Paramount is certainty on the potential options, agreement on key operational aspects of the framework, including price, verification and fund management. The report also emphasises the urgency of establishing a programme of Allowable Solutions trials to test proposals and understand the real-life practicalities of delivery.
Allowable Solutions is a mechanism that is being formulated to account for the carbon emissions reductions that are difficult to deliver on site purely by the design and construction (Fabric energy efficiency and integral low-carbon heat and power technologies) of a new home.
For these residual emissions, the current framework proposal requires that a payment is made into a fund to enable the delivery of verified carbon-saving projects for community and national benefit. The framework proposals allow for the delivery of local carbon-saving projects through a community fund or the delivery of national projects - in both cases the expectation is that the Allowable Solutions funds will provide magnet capital or starter finance for projects.
The Zero Carbon Hub proposes that for a mainstream home the residual emissions could amount to 10-14 Kg CO2/m2/year depending on the type of home. For a typical home an Allowable Solutions payment would be about £1200 (using current proposals that Allowable Solutions should cover a 30 year period and be paid at £46 per tonne of carbon).
John Slaughter, Director of External Affairs, Home Builders Federation said: “The widely supported workshop process developed and delivered by the Hub and its partners has been very helpful in focusing minds on the real practical issues that have to be thought through to put together a workable and credible system for Allowable Solutions. It is important that Government picks up on the lessons learned in formulating early proposals for Allowable Solutions, including on price, so that the uncertainty now which is concerning developers and others can be resolved.”
Neil Jefferson, Chief Executive, Zero Carbon Hub said: “We see in this report a broad consensus of support for the 2011 Allowable Solutions framework proposals developed by the Hub. Crucial to early success of the policy is addressing the emerging key issues including clarity on cost of carbon, the rules of verification and certainty about Allowable Solution options, all of which seem to me to represent an ideal opportunity for the incoming Housing Minister to set out longer term sustainable thinking for the industry.”
Guy Battle, Partner Sustainability Services, Deliotte LLP said: "The UK Government is committed to an 80% reduction in carbon emissions by 2050 and given the importance of the construction sector within the UK, the Zero Carbon Building regulations will have a significant role in supporting this target. Allowable Solutions is an innovative mechanism that will permit developers to deliver this requirement cost effectively. But more importantly, Allowable Solutions has the potential to harness the creativity of the industry to inspire innovation in materials and systems, to create new jobs, drive growth and establish the UK as a leading low carbon economy. It is now essential that the government works closely with the whole of the industry (domestic, commercial and industrial) and embraces it’s power and enthusiasm to deliver on this ground breaking initiative."
A copy of the report and accompanying documentation can be downloaded from www.zerocarbonhub.org
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