The construction industry faces the largest change management programme since Victorian times if it is to meet the low carbon agenda, according to an industry report published today.

The Innovation and Growth Team (IGT), which is drawn from the construction industry, was tasked by the government to consider how the construction sector could meet the low carbon agenda and the IGT today published its final report.

The report said the construction industry had already engaged positively with the sustainability issue with many examples of cutting-edge practice.

But the Climate Change Act calls for the net UK carbon account in 2050 to be at least 80% lower than the 1990 baseline, which will require a ‘quantum change’ in the industry’s response to the challenge, says the document.

The report highlights four themes that government and industry need to engage on to rise to the carbon challenge:

The potential size of the market – meeting the UK’s commitment to reducing carbon and other greenhouse gas emissions will affect every aspect of the built environment. The scale of the necessary change is considerable but there is much that could be done now, particularly with the existing building stock.

Opportunities for SMEs – transforming the built environment to low carbon could provide the industry with a 40 year programme of work and act as a springboard to growth for more than 200,000 small businesses in the sector.

The wider green economy benefits – the green economy represents an area of substantial potential growth for the UK. Creating a low carbon construction industry would develop skills and expertise that would be of great value to other sectors.

Stimulating demand – there would be little point in developing the necessary capacity and skills if the demand for low carbon was not there. Government and industry need to work closely together to identify the best ways to stimulate the market for low carbon and energy efficiency measures.

Paul Morrell, who led the IGT, said:

“Meeting the low carbon agenda is both a challenge and an opportunity for the construction industry. “t will require radical change to the way we do business as well as government action to meet the scale of the challenge. There are no easy answers.

“I hope this report will mark the start of a detailed collaboration between industry and government to address this complex issue.”

The report will now be considered by the Government, which will respond to the recommendations next year. Climate Change Minister Greg Barker commented:

“The Green Deal will provide a massive opportunity for industry, as well as making Britain’s homes and businesses warmer and more environmentally friendly. The Green Deal could unlock several billion pounds of private sector investment per year and support up to 250,000 jobs. My department will shortly introduce a new Energy Bill into Parliament which will set the framework for industry to deliver this ambitious programme. We welcome today’s report which shows industry is already gearing up to the challenge.”