INDUSTRY INSIGHT
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What does the fi rst year on an accelerated Net Zero path have in store for UK businesses?
The UK is halfway to Net Zero by 2050 and on a new, sped-up Net Zero pathway. In light of this, Graham Paul, sales, marketing & client services director at TEAM Energy, speaks to TEAM Energy’s effi ciency and carbon reduction experts about the future of energy effi ciency and Net Zero in the UK
W
hen it comes to emissions reductions, it is still widely recognised that energy effi ciency is the ‘fi rst fuel’ en route to Net
Zero because it is one of the quickest and most aff ordable ways to cut emissions. However, new research has shown that 95% of companies globally do not have energy effi ciency plans in place. Having worked with many UK organisations, I
know fi rst-hand that as a nation we’re doing better than most thanks to the growing body of legislation mandating organisations to audit, plan, and report on their actioned energy effi ciency measures. Although these can be time-consuming, they
are necessary. By using energy wisely, at the right times, with the right technology, and transforming our buildings to eliminate waste, organisations can save money, protect themselves from energy price fl uctuations, and reduce their emissions. Such changes can form the backbone of their
carbon reduction plans. As supply chain emissions increasingly determine purchasing and investor decisions, not reducing emissions eff ectively removes organisations from buyers’ and investors’ considerations. As 2024 came to a close, Prime Minister Kier Starmer accelerated the UK’s journey towards Net Zero by 2050. Over the next 10 years, the UK must now reduce its emissions by 81% compared to 1990 levels. Energy effi ciency will continue to play a central
role for UK organisations on this new pathway, alongside bill management and carbon reduction planning. To fi nd out what the fi rst year on this new trajectory will be like for businesses and how they can navigate it, I spoke to some of our energy management and carbon reduction experts, starting with Tim Holman, head of operations at TEAM Energy.
Tim, what does the new Government mean for energy effi ciency, have there not been rumours of the energy effi ciency standards changing? Tim: “Through a parliamentary question reply in December and at the Labour Party conference in October, the Government suggested that minimum energy effi ciency standards for commercial buildings would increase, possibly from an E to C rating by 2030. Though not certain, any changes
20 March 2025
Left to right: Graham Paul Service Delivery Director TEAM Energy
Greg Armstrong Principal Comsultant TEAM Energy
Robert Webb Operations Manager TEAM Energy
Left to right: Sam Arje Senior Energy Consultant TEAM Energy
Timothy Holman Head of Operations TEAM Energy
Tom Anderton Head of Customer Success TEAM Energy
could be announced in the new year. However, more concrete is the Energy Performance of Buildings (EPB) framework consultation, which opened on 4th December 2024 and will close in February 2025, with changes set to be implemented from early 2026. This could introduce reduced validity timescales below 10 years for Energy Performance Certifi cate (EPC) and Display Energy Certifi cate (DEC) (for smaller buildings <1000m2) as well as requiring EPCs to be valid at all times, making them a more frequent requirement for commercial landlords and a necessity for re-letting and lease renewals. Alongside this could be changes to what EPCs measure with new and amended metrics. These potential changes could lead to the implementation of substantial energy effi ciency measures sooner rather than later. I would advise any landlord to get ahead of
the curve and ensure now that your buildings and workplaces are ready for energy effi ciency
improvements. Failing to do so could lead to a loss of revenue or missing out on securing fi nance dependant on EPC ratings, for example.” The exact details of the Minimum Energy
Effi ciency Standards changes are far from certain, neither have the ESOS deadlines been. So, I spoke with Senior Energy Consultant, Sam Arje to help shed light on the situation.
Sam Arje, the ESOS deadlines have shifted a lot, what does 2025 look like for businesses? Sam: “The start of the year will see organisations still submitting their ESOS phase 3 action plans, past the December deadline due to the Environment Agency’s (EA) promise to accept late submissions until the 5th March 2025. Hopefully those organisations who have completed their phase 3 audits have already prepared their action plans in full. Crucially, ESOS action plans must strike a balance between committing to meaningful action
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