More and more publicity appears in the news media relating to the effects of climate change and how Governments throughout the world are going to be expected to react, to ensure that emissions reduce and help slow down the way that climate change is having an effect on the world.

Many sceptics do not accept that man’s involvement in creating more emissions is having any effect, and that natural events such as volcanic eruptions and naturally occurring events, have in the past added more to the changing climate than is being brought about by the way we live. Scientist throughout the world are proving more and more that the change in weather events, melting of glaciers and de-oxidisation of the oceans is quickening climate change, and that developing nations must be aware as to how much they are adding to emissions.

In this country and for that matter in the Wyre Forest area, there are more companies who are developing energy efficient products. These range from more energy efficient engines produced by the motor industry. There are companies producing and installing solar panels, insulation products and heating systems all of which are now big business. With the Government introducing minimum energy efficient ratings from next year for buildings, there will be Government lead requirements as to how buildings are insulated and their energy performance ratings. Current building regulations now have much more emphasis on buildings being energy efficient. Heating systems are also measured much more critically nowadays, to ensure that emissions from commercial and industrial buildings are kept as low as is humanly possible. There is now more demand for commercial properties locally from companies either involved in recycling, clean energy and solar products than ever before. The demand from such companies is likely to increase even more in future. It has already been established that when looking at rental values on industrial and commercial buildings, that those which are more energy efficient are likely to command higher rental values. Old Victorian buildings which are very difficult to heat and insulate and therefore overheads with buildings of this type are much higher, thus rents are lower. Some buildings constructed in the 1960’s are unlikely to meet current energy performance guidelines, and as the years go by these buildings are more likely to be difficult to let and sell. In some cases they may well be demolished to make way for buildings constructed to current energy saving standards.

When energy performance certificates were first introduced very few companies bothered to take on board the ratings which had been produced. We are seeing more and more situations where companies will take decisions on whether to buy or rent, taking into account the energy rating as part of their decision making process.

J E ANDREWS FRICS MARLA
DOOLITTLE & DALLEY LLP – COMMERCIAL DEPARTMENT