Construction industry identified as key hurdle for net zero ambitions

The UK’s plans for net zero are hampered by issues within the carbon intensive construction sector, according to a poll of builder’s merchants.

Mitigating supply chain issues and meeting new skills requirements will be key for the construction industry if it is to meet its obligations meeting the UK’s net zero goals, according to research by ECI Software Solutions.

These hurdles represent a serious challenge to the wider drive for net zero in the UK, as in urban areas buildings currently account for up to 60% of overall carbon emissions.

Net zero also presented an issue for historic and older buildings. The “Predictions for Builders Merchants in 2023” report found that 56% of existing housing stock will need to be retrofitted to meet the net zero goal.

With gas boilers being phased out for traditionally more expensive electric ones, property expert Jonathan Rolande explained how this will impact the supply chain:

“Although the problem with [materials] shortages is easing, we expect demand for certain products such as energy efficient boilers and insulation to push up prices”, said Rolande.

Approximately 14% of carbon emissions in the UK are contributed by the usage of fossil fuels for home heating. The UK’s Heat and Buildings Strategy is one of the decarbonisation strategies that the government is planning in order to achieve net zero carbon emissions by 2050, and includes grants to homeowners to replace gas boilers.

Skills shortage

This month, The Progressive Policy Think Tank reported that 750,000 construction workers in the UK are due to retire within the next 15 years - and that only 20% of current workers are under the age of 30.

According to the poll, conducted by ECI Software Solutions, this could cause a net zero skills shortage for the UK, and lead to missed opportunities if there aren’t enough people with the relevant skills across the construction trade to retrofit the country’s homes.

As builders’ merchants commit to the net zero task, in the next five years, 350,000 new jobs will need to be filled in the construction sector if the government is to meet its targets.

Craig Sanders, joint managing director at construction supplies firm Protrade, said: “The lack of a skilled workforce is another concern for the construction industry, with companies unable to fulfil roles within the sector to complete projects. The ageing workforce, with all of the necessary skills, is simply not being replaced quickly enough.”

According to John Hoeppner, head of US stewardship and sustainable investments, LGIM America, as the real estate industry prepares to meet net-zero targets, new construction needs to be innovative and result in low-carbon emissions.