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Authors Charlie MercerDeputy Policy Director Neil McLoughlinClimateTech Policy Lead AboutStartup Coalition Startup Coalition, formerly the Coalition for a Digital Economy (Coadec), is an independent advocacygroup that serves as the policy voice for Britain’s technology-led startups and scaleups. Startup Coalition was founded in 2010 by Mike Butcher, Editor-at-Large of technology news publisherTechCrunch, and Jeff Lynn, Chairman and Co-Founder of online investment platform Seedrs. StartupCoalition works across a broad range of policy areas that matter the most to startups and scaleups:access to talent, access to finance & regulation. We have over 3,500 startups on our mailing list. Startup In 2022, Startup Coalition convened the ClimateTech Policy Coalition, consisting of the Startup Coalition,Undaunted,techUK,Tech Nation,Cleantech for UK,and TechZero.Together they represent across-sectionof entrepreneurs, inventors and innovators on the forefront of climate technology, orClimateTech. The coalition publishes an annual report highlighting low to no cost policy opportunities tounlock climate innovation. The latest of these reports, from November 2023, can be foundhere. In March Acknowledgements We are grateful to all of the startup founders who contributed to this report, and to the experts whosupported us with providing insight. We are also grateful to Undaunted, the ClimateTech accelerator, forthe introductions they supported to expand the network of startups contributing to this work, and for ExecutiveSummary In order to reach net zero, we need to reduce the environmental impact of buildings in the UK. Today, thegreenhouse gas emissions of the built environment constitutes 20% of the total emissions we produce in So far, however, we have failed to produce a credible plan to decarbonise this sector, with successivegovernments falling short with unambitious, complex, and ever-changing policies. Further, the LabourGovernment plans to accelerate housebuilding to fuel economic growth, but under current plans we donot have the carbon budget to deliver these homes in a way that is compatible with our net zero goals. In 2023, the UK was home to a £878m built environment ClimateTech sector, employing over2,500 people across the UK and contributing 12% of all ClimateTech exits over the last 14 years. This sector is a national asset, featuring firms developing low carbon building materials and constructionprocesses, to cutting edge low-carbon heating systems. From innovative insulation materials, to softwareto empower households to use energy more efficiently. If these startups are let loose on the challenge of To unlock this opportunity we must set the sector up for success with policies that work. For StartupCoalition, this means Building Differently, starting withcreating a holistic strategy for decarbonisation To ensure that we build low carbon buildings, the UK Governmentshould mandate embodied GHGemissions reporting for new buildsand thenexplore policies and incentives to scale up the use of For the sector as a whole to incentivise the right behaviours and innovative technologies,energyperformance certificates must be reformedto become more granular, updated regularly, and madeaccessible digitally. We also believe that the UK Government shouldconsult on whether to make the To ensure that best in class startup technologies are used to retrofit existing buildings, the LabourGovernment shouldintroduce a retrofit sandboxas a first initiative under its Regulatory InnovationOffice. It shouldexplore innovative property-linked finance mechanisms to fund retrofits, including Finally, to empower households to use energy more efficiently, particularly through the use of cuttingedge energy management startup software,a Smart Data scheme for the energy sectorshould be Introduction Whywe must decarbonise the built Reducing the environmental impact of the homes we live in is fundamental to combating climate change.In 2022, residential buildings made up 20% of total UK greenhouse gas (GHG) emissions, a 12% drop The built environment contributes to GHG emissions in a number of ways, including the embodiedemissions from the production of raw materials used to build houses, including cement, concrete, steel Importantly, the operational emissions impact of buildings is a proxy for the cost of running thatbuilding. Against the backdrop of rising energy bills and a cost of living crisis, improving the Howwe can decarbonise the built In order to address the environmental impact of the built environment, we must take a holistic approach,and examine the lifecycle of buildings, from breaking ground, to household use. Fortunately, acrossevery stage of this decarbonisation process, there are UK startups developing the tools, products and New Builds: Building Differently Firstly, we can reduce the environmental impact of the materials we use to build new homes andnon-domestic buildings. On the one hand this could