How can councils meet their housing decarbonisation aims
Every country is working to mitigate the impacts of climate change. While the global direction is guided by COP summits and diplomacy, and national policy might set the budget and priorities, it is down to local government to deliver on targets, whether that’s upgrading housing stock or rolling out EV charging infrastructure. Great work is being done at this local level, but councils face significant barriers to working at pace and scale to realise some of their ambitions. Here, we’re taking a look at some of the main issues, and possible strategies to address them, drawing insights from some of our research and practical experience supporting local authorities in their decarbonisation efforts.
Can we afford it?
The first and most obvious barrier to any initiative is cost. With enormous pressure on budgets, local authorities can face impossible decisions between cuts or investment in different services. In many cases, the capacity to invest in new infrastructure simply isn’t there, despite the recognition that in the long-term, financing renewable tech will deliver benefits. Another issue in terms of financing is the absence of a structured approach to funding at the right scale to tackle decarbonisation.
A 2021 report by the National Audit Office highlighted the extent to which funding shortages were identified as a barrier to achieving carbon reduction targets: “17 local authority areas received £20 million or more each, while 37 received less than £2 million each.” While the situation has evolved since, it is still the case that some councils have been more successful in grant funding than others. Much of the funding is allocated through competition, which naturally favours councils with existing resources. Matched funding is required, and delivery timescales are linked to government budget timelines, rather than what is actually feasible on the ground, and often reward caution rather than ambition and innovation.
Do we have the expertise?
Decarbonisation initiatives can require specialist knowledge and expertise, which may be limited within some councils. Within existing teams, with responsibilities and budgets stretched, the lack of available capacity to plan, implement, and monitor decarbonisation projects can also hinder progress.
“In some areas, officers might have to be placed in jobs that don’t match their expertise because that’s where the funding is now allocated – there’s often a skills challenge that councils have to address, whether through hiring, training or reallocation of resources.”
- Balazs Csuvar, Director of Innovation & Net Zero, DG Cities
How can we predict and invest on the basis of future policy?
Shifting regulatory frameworks and national policies can create uncertainty for councils, making it difficult to develop coherent decarbonisation strategies. Ambiguity surrounding government incentives and targets may have deterred councils from committing to long-term sustainability goals pre-election. Following July’s result, as the new government establishes itself, it’s natural to be cautious of investing in areas where there may be significant policy change.
What if there is resistance locally?
Decarbonisation initiatives can face resistance from various stakeholders, not least residents, businesses, and local interest groups. Concerns about cost implications, disruption, change to the appearance of a place, as well as any perceived inconveniences may hinder community support for sustainability measures. Some policies can be particularly divisive, such as LTNs and restrictions around parking.
How do we start to break down some of these barriers to meeting national and local targets?
First, by tackling the financial argument and helping councils identify, meet the criteria and apply for funding.
There are grants, private partnerships, and sustainable finance mechanisms to support decarbonisation efforts. Underpinning all these investment models is the principle that prioritising low-carbon infrastructure and energy-efficient technologies can yield long-term cost savings and environmental benefits. Our data-led approach can often help councils evidence this.
The government’s Warm Homes Social Housing Funding is an important source of financing for housing retrofit. The third and latest wave opened for applications at the end of September and will close on 25 November. A key step in submitting is identifying priorities, and DG Cities has developed a tool to support this – find out more about our ‘home-by-home’ plan here.
Second, by upskilling and building capacity within councils.
There’s clearly a need for investment in training and knowledge-sharing initiatives to build internal capacity for decarbonisation, potentially in collaboration with academic institutions, industry experts, and peer councils. This is a long-term priority. However, we understand the realities of council budgets and know that this isn’t always feasible – that’s why we exist. DG Cities was set up as an independent company by the Royal Borough of Greenwich to advance innovation in the area, but also to act as a strategic innovation partner for other councils to benefit from this expertise and experience of Greenwich as a testbed.
Third, we need continuity and stability in policy-making from government.
The public sector needs supportive regulatory frameworks that incentivise decarbonisation. Proactive participation in policy consultations and lobbying efforts can influence national decision-making processes and ensure alignment with local priorities. Projects must be coordinated beyond a local level – as our government-funded work to support the rollout of electric vehicle charging in rural areas showed, there is no use putting infrastructure where there is no grid capacity to support it. This sentiment was echoed in the LGA’s report, Green heat: Achieving heat and buildings decarbonisation by 2050, which highlighted the gap between national policy and local delivery for heating, as currently, there is “no mechanism and limited ability for councils to influence or shape investments in developing the electricity grid infrastructure in line with local plans for decarbonising heat.”
Finally, bring the public into the process.
This is vital. Effective communication and engagement are essential in building support for even the most contentious decarbonisation initiatives – ideally, turning apprehension into advocacy. Councils need to ensure transparent and inclusive approaches, involving residents and businesses in decision-making and addressing any concerns through meaningful dialogue and education. Our work in public engagement around new technologies has demonstrated the value of engagement in building trust and shifting attitudes – and meaningful is the key here, as the process must be open, inclusive and impactful, and not guided by pre-determined outcomes.
If the UK is to achieve its decarbonisation targets, national and local government must work together and in partnership with communities. Where internal capacity and skills are an issue, councils should look to bring in staff with relevant expertise and knowledge, or selectively look to external consultancies for support. We say selectively, as the aim should be to create in-house expertise and build capacity. By identifying and addressing barriers such as financial constraints, lack of capacity and expertise, regulatory uncertainty, and stakeholder resistance, local councils can drive the transition towards a more sustainable, equitable and resilient future.