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The energy used by non-domestic buildings accounts for approximately 18% of UK carbon emissions, while the buildings themselves are diverse in design and use. Innovation in the non-domestic buildings sector represents a significant opportunity to help meet the UK’s GHG emissions targets, as well as providing value through avoided energy costs, amounting to savings of 86MtCO2 and c. £13bn by 2050. Innovation could help create export opportunities that could contribute an estimated £1.7bn to GDP to 2050.
Public sector support will be required to unlock this value, as there are significant market failures across the sector to overcome. Public sector support could provide most value in integrated design, where there are significant potential carbon savings and value from energy costs. There are also significant market failures impeding integrated design innovations, and the UK has a medium-high competitive advantage in the area.