Hogan Lovells 2024 Election Impact and Congressional Outlook Report
15 November 2024
With an ever-growing focus on how best to achieve net zero and improve energy efficiency, there is mounting recognition of the impact of the built environment on carbon emissions, not just at the initial build stage but throughout an asset’s life cycle. Having a consistent global approach to measuring that impact is a critical requirement and is precisely what the RICS’ Whole Life Carbon Assessment seeks to achieve.
The WLCA was launched by RICS in 2017 and is a methodology by which the carbon impact of the entire life cycle of a built asset can be measured. In September 2023, RICS released the second edition of the WLCA, which came into force on 1 July 2024. The second edition expands the tool to include a broader range of built assets and infrastructure, and it now includes fit-out, retrofit and refurbishments. The second edition also provides a standardised measurement tool designed to be used globally, enabling stakeholders to accurately compare and contrast carbon impact wherever the asset may be.
It is essential that there is a consistent approach to measure the impact or potential impact of each asset across its entire life cycle, not just at the initial construction stage.
The WLCA takes a holistic approach to an asset’s environmental impact across its entire life cycle. To do this, it measures embodied carbon, operational carbon and user carbon to assess the different causes of emissions:
All kinds of new and old built assets can be assessed. As well as commercial and residential developments, the assessment can also be used to measure the impact of infrastructure projects, such as highways or new railway stations.
The WLCA can also be used to measure the carbon impact of retrofitting and refurbishment of existing structures. This will prove particularly useful for investors and developers deciding whether to redevelop buildings entirely or make improvements to existing structure.
In the UK, WLCAs are required by some, but not all, local authorities as part of planning applications, primarily for larger developments. Local authorities which require a WLCA include London, Bristol, Dundee and Manchester. In London, for example, applications which are referable to the mayor require a WLCA and include residential developments of more than 150 flats and commercial buildings that are over 2,500 sq m. However, with the ever-growing focus on embodied carbon, and the debate about whether buildings should be reused instead of redeveloped from scratch, many applicants are choosing to submit WLCAs even where not required in order to justify their development strategy.
Ideally, a WLCA will take place at the initial concept design phase to provide an early estimate of the carbon output of the asset and will be updated at the developed design stage and once the construction phase is completed.
However, as the WLCA can also be used for existing buildings, it could be used to assess the current carbon output of an asset to demonstrate areas where carbon efficiency can be improved, assisting with cutting costs, or prior to a redevelopment or refurbishment.
The second edition of the WLCA provides the industry with a framework which can be used globally to assist with improving energy efficiency. It will be interesting to see how this is adopted by an industry in which the ESG agenda continues to grow rapidly in prominence across the globe.
An earlier version of the article appeared in EGi on 1 July 2024.
Authored by Hannah Quarterman, Louise Cadman, Stella Bliss, and Ingrid Stables.