This research explores the impact of policy measures to deliver a low carbon economy (both near term and more extensive policy change) on the development of new business models for low carbon cities.
Buildings account for around 47% of UK Carbon emissions (including both residential and non-residential buildings, and including space conditioning, lights and appliances and equipment). The current policy framework will not be sufficient to deliver a 60% or 80% reduction in carbon emissions, and the policy framework is expected to see substantial change in the next decade and beyond. Our current set of technological solutions for heat light and equipment will need to change to achieve such large reductions. Possible policy measures and technology scenarios were explored in the Building Market Transformation programme undertaken at the Environmental Change Institute. The programme resulted in more than 80 published papers.
As a consequence of policy changes and alongside technology changes, the business landscape which delivers and manages solutions for the built environment is likely to undergo major re-organisation, with existing organisations changing their business models and processes, as well as the creation of new business models. It is this opportunity and need for new business models which the proposed research will explore. Since two thirds of commercial space and a quarter of residential space is rented or leased, new business models may change the relationship between landlord and tenant, one that has been largely unaltered for many decades. It may include financing low carbon refurbishment off balance sheet. Solutions will be different for low carbon electricity and heat and different for different technologies. One new model is leasing out roofspace for PV, where roofspace has not previously been part of a separate lease. New business models may not solely exist in the commercial sector. They may exist as partnerships between the private sector and the public sector, and even at the intersection of the private sector and civil society. It is important to capture all of these areas.
About the speaker:
Mark Hinnells has been working in one aspect or other of the energy sector since 1992. This includes time in academia, in government, and in the private sector. At the same time as holding a part time post at ECI under the Future of Cities programme, Mark is Solutions Director of a private company Susenco (www.susenco.com). Susenco offers a range of consultancy services and is developing financing and will operate a portfolio of renewable energy installations. At present Susenco is working on an asset portfolio of in excess of £100million. Mark is also a founder of the networking site for low carbon business, 2degrees (www.2degreesnetwork.com).
Prior to this, Mark has had two spells each more than 4 years at the Environmental Change Institute in Oxford. The first of these was supporting development of EU energy labels and minimum standards for domestic and non-domestic equipment. The second, leading a research team at ECI exploring scenarios for large-scale carbon emissions reduction for the UK building stock (both residential and non-residential which, together account for 47% of UK CO2 emissions). This latter programme had over 80 publications via a range of journals and conferences. In between spells at ECI, he has served at both DEFRA and at the Energy Saving Trust in designing and delivering government policy to reduce emissions. This included managing a team of 18 to deliver a £50m government capital investment programme called Community Energy.