In the UK, there are legal requirements for quoted companies, large unquoted companies and large limited liability partnerships to report on greenhouse gas emissions, energy consumption and energy efficiency action for financial years beginning on or after 1 April 2019, under the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 (SI 2018/1155). This is known as the SECR regime (streamlined energy and carbon reporting). This includes energy emissions from owned and leased buildings, and therefore may incentivize more efficient use.
The government's Department for Energy Security and Net Zero is conducting a post-implementation review of the SECR regime and is due to report on this by April 2024.
An enhanced capital allowances scheme is in place, which allows companies to write off the entire capital cost of investing in qualifying energy-saving plants and machinery against taxable profits made in the year of purchase (this is against the standard regime for qualifying expenditure, which allows partial write-offs over successive tax years). Qualifying technologies include heating, ventilation and air-conditioning (HVAC), and new energy-efficient boilers.
Through updates to the building regulations (which came into force in 2022 and relate to buildings in England), the UK government has introduced net zero-focused changes, including a new performance metric to measure energy efficiency, and changes to how onsite electricity generation systems are regulated. They also include a requirement for a 27% reduction in emissions from new, non-residential buildings.
The UK government is currently consulting on implementation of a "Future Homes Standard" and a "Future Buildings Standard" to address operational emissions from new domestic and non-domestic buildings. These standards will be more stringent than the current building regulations and are intended to be the final step in meeting net-zero targets for new buildings, provided that the electricity grid decarbonizes as planned. They include high fabric standards and mandate low-carbon heating. The consultation also considers standards for domestic residences created though material change of use.
The UK government has also announced its intention to consult on its approach to measuring and reducing embodied carbon in new buildings in due course. The government has also launched a Plan for Water, which aims to review water efficiency options in planning, building regulations, and voluntary schemes in non-domestic buildings, such as offices and hotels.